The Cheesecake Factory (CAKE) The 44th Annual William Blair Growth Stock Conference summary

Strategic positioning and brand overview

• Operates 337 restaurants in the US and Canada under multiple brands, with 34 international locations via licensing.

• Flagship brand remains the primary revenue and cash flow driver, with a long-term goal of 300 domestic locations.

• Menu innovation, high-energy ambiance, and integrated bakery are key differentiators, supporting industry-leading dessert sales and guest loyalty.

• Focus on operational excellence and strong employee retention, recognized as a top workplace for 11 consecutive years.

• Brand enjoys strong cultural relevance and engagement, leveraging social media and word-of-mouth for marketing.

Growth initiatives and portfolio development

• North Italia targets 200 domestic locations with 20% average annual unit growth, leveraging local customization and strong alcohol mix.

• Flower Child, now with 32 locations, is positioned for 15-20% annual growth after operational and supply chain improvements.

• Fox Restaurant Concepts (FRC) serves as an innovation incubator, with 42 units and several growth concepts in the pipeline.

• On track to open up to 22 new restaurants in 2024, building on 16 openings in 2023 and 13 in 2022.

• Rewards program launched to drive incremental sales and guest engagement, with early demand exceeding expectations.

Financial performance and outlook

• Achieved record $3.4 billion revenue in 2023, with strong comparable sales and new unit growth.

• Off-premise sales stabilized at 22% of total, averaging $2.7 million per restaurant annually.

• Generated over $210 million in operating cash flow in 2023, returning nearly $100 million to shareholders.

• Q1 2024 saw 20% adjusted EPS growth, driven by margin improvement and sales outperformance.

• 2024 revenue projected at $3.6 billion, with a targeted net income margin of 4.25% and $180-200 million in CapEx for development.