Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2021 | Apr. 26, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 30, 2021 | |
Entity File Number | 0-20574 | |
Entity Registrant Name | THE CHEESECAKE FACTORY INCORPORATED | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 51-0340466 | |
Entity Address, Address Line One | 26901 Malibu Hills Road | |
Entity Address, City or Town | Calabasas Hills | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91301 | |
City Area Code | 818 | |
Local Phone Number | 871-3000 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | CAKE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 46,479,297 | |
Entity Central Index Key | 0000887596 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 30, 2021 | Dec. 29, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 181,345 | $ 154,085 |
Accounts and other receivable | 57,815 | 75,787 |
Income taxes receivable | 34,973 | 36,889 |
Inventories | 38,955 | 39,288 |
Prepaid expenses | 30,727 | 35,310 |
Total current assets | 343,815 | 341,359 |
Property and equipment, net | 760,722 | 774,137 |
Other assets: | ||
Intangible assets, net | 253,152 | 253,160 |
Operating lease assets | 1,245,892 | 1,251,027 |
Other | 131,858 | 127,371 |
Total other assets | 1,630,902 | 1,631,558 |
Total assets | 2,735,439 | 2,747,054 |
Current liabilities: | ||
Accounts payable | 56,047 | 58,432 |
Gift card liabilities | 166,178 | 184,655 |
Operating lease liabilities | 132,521 | 132,519 |
Other accrued expenses | 203,211 | 210,461 |
Total current liabilities | 557,957 | 586,067 |
Long-term debt | 280,000 | 280,000 |
Operating lease liabilities | 1,216,473 | 1,224,321 |
Other noncurrent liabilities | 151,010 | 149,725 |
Commitments and contingencies (Note 8) | ||
Series A convertible preferred stock, $.01 par value, 200,000 shares authorized; 200,000 and 200,000 shares issued and outstanding at March 30, 2021 and December 29, 2020, respectively | 213,485 | 218,248 |
Stockholders' equity: | ||
Common stock, $.01 par value, 250,000,000 shares authorized; 99,508,470 and 98,645,147 shares issued at March 30, 2021 and December 29, 2020, respectively | 995 | 986 |
Additional paid-in capital | 904,045 | 878,148 |
Retained earnings | 1,114,047 | 1,110,087 |
Treasury stock, 53,101,293 and 53,026,409 shares at cost at March 30, 2021 and December 29, 2020, respectively | (1,700,700) | (1,696,743) |
Accumulated other comprehensive loss | (1,873) | (3,785) |
Total stockholders' equity | 316,514 | 288,693 |
Total liabilities, Series A convertible preferred stock and stockholders' equity | $ 2,735,439 | $ 2,747,054 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 30, 2021 | Dec. 29, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Series A convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Series A convertible preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Series A convertible preferred stock, shares issued (in shares) | 200,000 | 200,000 |
Series A convertible preferred stock, shares outstanding (in shares) | 200,000 | 200,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 4,800,000 | 4,800,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 99,508,470 | 98,645,147 |
Treasury stock, shares | 53,101,293 | 53,026,409 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS) | ||
Revenues | $ 627,417 | $ 615,106 |
Costs and expenses: | ||
Cost of sales | 135,875 | 140,905 |
Labor expenses | 229,732 | 236,982 |
Other operating costs and expenses | 181,533 | 167,970 |
General and administrative expenses | 44,427 | 43,960 |
Depreciation and amortization expenses | 22,006 | 23,562 |
Impairment of assets and lease termination expenses | 594 | 191,896 |
Acquisition-related costs | 1,236 | |
Acquisition-related contingent consideration, compensation and amortization expenses/(benefit) | 550 | (4,466) |
Preopening costs | 3,856 | 3,119 |
Total costs and expenses | 618,573 | 805,164 |
Income/(loss) from operations | 8,844 | (190,058) |
Interest and other expense, net | (2,694) | (1,518) |
Income/(loss) before income taxes | 6,150 | (191,576) |
Income tax provision/(benefit) | 2,282 | (55,413) |
Net income/(loss) | 3,868 | (136,163) |
Dividends on Series A preferred stock | (5,070) | 0 |
Net loss available to common stockholders | $ (1,202) | $ (136,163) |
Net loss per common share: | ||
Basic (in dollars per share) | $ (0.03) | $ (3.11) |
Diluted (in dollars per share) | $ (0.03) | $ (3.11) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 44,189 | 43,773 |
Diluted (in shares) | 44,189 | 43,773 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | ||
Net income/(loss) | $ 3,868 | $ (136,163) |
Other comprehensive gain/(loss): | ||
Foreign currency translation adjustment | 174 | (936) |
Unrealized gain/(loss) on derivative, net of tax | 1,738 | (2,370) |
Other comprehensive gain/(loss) | 1,912 | (3,306) |
Total comprehensive income/(loss) | 5,780 | (139,469) |
Comprehensive income attributable to preferred stockholders | (5,070) | |
Total comprehensive income/(loss) available to common stockholders | $ 710 | $ (139,469) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND SERIES A CONVERTIBLE PREFERRED STOCK - USD ($) $ in Thousands | Common StockCumulative effect of adopting ASU 2020-06, adjusted balance | Common Stock | Additional Paid-in CapitalCumulative effect of adopting ASU 2020-06, adjusted balance | Additional Paid-in Capital | Retained EarningsCumulative effect of adopting ASU 2020-06 | Retained EarningsCumulative effect of adopting ASU 2020-06, adjusted balance | Retained Earnings | Treasury StockCumulative effect of adopting ASU 2020-06, adjusted balance | Treasury Stock | Accumulated Other Comprehensive LossCumulative effect of adopting ASU 2020-06, adjusted balance | Accumulated Other Comprehensive Loss | Cumulative effect of adopting ASU 2020-06Series A Convertible Preferred stock | Cumulative effect of adopting ASU 2020-06 | Cumulative effect of adopting ASU 2020-06, adjusted balanceSeries A Convertible Preferred stock | Cumulative effect of adopting ASU 2020-06, adjusted balance | Series A Convertible Preferred stock | Total |
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Cumulative effect of adopting ASU 2020-06 | $ 977 | $ 855,989 | $ 1,408,333 | $ (1,693,122) | $ (435) | $ 571,742 | |||||||||||
Balance (as adjusted) (in shares) | 97,685 | ||||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 977 | 855,989 | 1,408,333 | (1,693,122) | (435) | 571,742 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 97,685 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Cumulative effect of adopting ASU 2020-06 | $ 985 | 861,641 | 1,255,794 | (1,695,708) | (3,741) | 418,971 | |||||||||||
Balance (as adjusted) (in shares) | 98,454 | ||||||||||||||||
Net income | (136,163) | (136,163) | |||||||||||||||
Foreign currency translation adjustment | 305 | (936) | (936) | ||||||||||||||
Change in derivative, net of tax | (2,370) | (2,370) | |||||||||||||||
Cash dividends declared | (16,376) | (16,376) | |||||||||||||||
Stock-based compensation | $ 6 | 5,541 | 5,547 | ||||||||||||||
Stock-based compensation (in shares) | 566 | ||||||||||||||||
Common stock issued under stock-based compensation plans | $ 2 | 111 | 113 | ||||||||||||||
Common stock issued under stock-based compensation plans (in shares) | 203 | ||||||||||||||||
Treasury stock purchases | (2,586) | (2,586) | |||||||||||||||
Ending balance at Mar. 31, 2020 | $ 985 | 861,641 | 1,255,794 | (1,695,708) | (3,741) | 418,971 | |||||||||||
Ending balance (in shares) at Mar. 31, 2020 | 98,454 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Cumulative effect of adopting ASU 2020-06 | $ 985 | 861,641 | 1,255,794 | (1,695,708) | (3,741) | 418,971 | |||||||||||
Balance (as adjusted) (in shares) | 98,454 | ||||||||||||||||
Cumulative effect of adopting ASU 2020-06 | $ 986 | $ 986 | $ 878,148 | 878,148 | $ 4,763 | $ 1,114,850 | 1,110,087 | $ (1,696,743) | (1,696,743) | $ (3,785) | (3,785) | $ (4,763) | $ 4,763 | $ 213,485 | $ 293,456 | $ 218,248 | 288,693 |
Balance (as adjusted) (in shares) | 98,645 | 98,645 | 200 | 200 | |||||||||||||
Beginning balance at Dec. 29, 2020 | $ 986 | $ 986 | 878,148 | 878,148 | 4,763 | 1,114,850 | 1,110,087 | (1,696,743) | (1,696,743) | (3,785) | (3,785) | (4,763) | 4,763 | $ 213,485 | 293,456 | $ 218,248 | 288,693 |
Beginning balance (in shares) at Dec. 29, 2020 | 98,645 | 98,645 | 200 | 200 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Cumulative effect of adopting ASU 2020-06 | $ 986 | $ 995 | $ 878,148 | 904,045 | $ 4,763 | $ 1,114,850 | 1,114,047 | $ (1,696,743) | (1,700,700) | $ (3,785) | (1,873) | $ (4,763) | $ 4,763 | $ 213,485 | $ 293,456 | $ 213,485 | 316,514 |
Balance (as adjusted) (in shares) | 98,645 | 99,508 | 200 | 200 | |||||||||||||
Net income | 3,868 | 3,868 | |||||||||||||||
Foreign currency translation adjustment | 174 | 174 | |||||||||||||||
Change in derivative, net of tax | 1,738 | 1,738 | |||||||||||||||
Cash dividends declared | 399 | 399 | |||||||||||||||
Stock-based compensation | $ 3 | 5,480 | 5,483 | ||||||||||||||
Stock-based compensation (in shares) | 293 | ||||||||||||||||
Common stock issued under stock-based compensation plans | $ 6 | 20,417 | 20,423 | ||||||||||||||
Common stock issued under stock-based compensation plans (in shares) | 570 | ||||||||||||||||
Treasury stock purchases | (3,957) | (3,957) | |||||||||||||||
Cash dividend declared Series A preferred stock, $25.35 per share | (5,070) | (5,070) | |||||||||||||||
Ending balance at Mar. 30, 2021 | $ 995 | 904,045 | 1,114,047 | (1,700,700) | (1,873) | $ 213,485 | 316,514 | ||||||||||
Ending balance (in shares) at Mar. 30, 2021 | 99,508 | 200 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Cumulative effect of adopting ASU 2020-06 | $ 995 | $ 904,045 | $ 1,114,047 | $ (1,700,700) | $ (1,873) | $ 213,485 | $ 316,514 | ||||||||||
Balance (as adjusted) (in shares) | 99,508 | 200 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND SERIES A CONVERTIBLE PREFERRED STOCK (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Balance | $ 218,248 | |
Balance (in shares) | 200,000 | |
Balance | $ 213,485 | |
Balance (in shares) | 200,000 | |
Cash dividend declared Series A preferred stock, per share | $ 25.35 | |
Cash dividends declared per common share (in dollars per share) | $ 0.36 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income/(loss) | $ 3,868 | $ (136,163) |
Adjustments to reconcile net income/(loss) to cash provided by/(used in) operating activities: | ||
Depreciation and amortization expenses | 22,006 | 23,562 |
Impairment of assets and lease termination expense | 431 | 191,571 |
Deferred income taxes | (1,508) | (11,231) |
Stock-based compensation | 5,444 | 5,507 |
Changes in assets and liabilities: | ||
Accounts and other receivables | 15,517 | 38,312 |
Income taxes receivable/payable | 1,916 | (44,553) |
Inventories | 408 | (605) |
Prepaid expenses | 4,584 | 1,452 |
Operating lease assets/liabilities | (2,684) | 1,851 |
Other assets | (2,113) | 13,279 |
Accounts payable | (1,588) | (3,464) |
Gift card liabilities | (18,480) | (26,753) |
Other accrued expenses | (6,159) | (85,745) |
Cash provided by/(used in) operating activities | 21,642 | (32,980) |
Cash flows from investing activities: | ||
Additions to property and equipment | (7,227) | (15,775) |
Additions to intangible assets | (480) | (128) |
Other | (1,000) | |
Cash used in investing activities | (8,707) | (15,903) |
Cash flows from financing activities: | ||
Borrowings on credit facility | 90,000 | |
Proceeds from exercise of stock options | 20,423 | 113 |
Cash dividends paid | (2,179) | (15,791) |
Treasury stock purchases | (3,957) | (2,586) |
Cash provided by financing activities | 14,287 | 71,736 |
Foreign currency translation adjustment | 38 | (246) |
Net change in cash and cash equivalents | 27,260 | 22,607 |
Cash and cash equivalents at beginning of period | 154,085 | 58,416 |
Cash and cash equivalents at end of period | 181,345 | 81,023 |
Supplemental disclosures: | ||
Interest paid | 1,742 | 253 |
Income taxes paid | 327 | 352 |
Construction payable | $ 4,206 | $ 3,945 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 30, 2021 | |
Significant Accounting Policies | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of The Cheesecake Factory Incorporated and its wholly owned subsidiaries (referred to herein collectively as the “Company,” “we,” “us” and “our”) and are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions for the periods presented have been eliminated in consolidation. The unaudited financial statements presented herein include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for the fair statement of the financial condition, results of operations and cash flows for the period. However, these results are not necessarily indicative of results that may be achieved for any other interim period or for the full fiscal year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules of the Securities and Exchange Commission (“SEC”). The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 29, 2020 filed with the SEC on February 24, 2021 ("fiscal 2020 10-K"). We utilize a 52/53-week fiscal year ending on the Tuesday closest to December 31 for financial reporting purposes. Fiscal 2021 consists of 52 weeks and will end on December 28, 2021. Fiscal 2020, which ended on December 29, 2020, was also a 52 -week year. Beginning with our fiscal 2020 10-K, we combined accounts receivable and other receivable on the consolidated balance sheet and statement of cash flow. Corresponding balances for the thirteen weeks ended March 31, 2020 were reclassified to conform to the current presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from these estimates. COVID-19 Pandemic The Company is subject to continued risks and uncertainties as a result of the outbreak of, and local, state and federal governmental responses to, the COVID-19 pandemic which was declared a National Public Health Emergency in March 2020. We experienced significant disruptions to our business as suggested and mandated social distancing and shelter-in-place orders led to the temporary closure of a number of restaurants across our portfolio while the remaining locations shifted to an off-premise only operating model on an interim basis. In the second quarter of fiscal 2020, certain jurisdictions began allowing the reopening of restaurant dining rooms, and we began to reopen dining rooms across our concepts. However, restrictions on the type of permitted operating model and occupancy capacity continue to change. We cannot predict how long the COVID-19 pandemic will last or whether it will reoccur, what additional restrictions may be enacted, to what extent we can maintain off-premise sales volumes or if individuals will be comfortable returning to our dining rooms during or following social distancing protocols and what long-lasting effects the COVID-19 pandemic may have on the restaurant industry as a whole. The extent of the reopening process, along with the potential impact of the COVID-19 pandemic on consumer spending behavior, will determine the continued significance of the impact of the COVID-19 pandemic to our operating results and financial position. Recent Accounting Pronouncements In August 2020, the FASB issued Accounting Standards Update ("ASU") 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which is intended to simplify the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity's own equity. This pronouncement is effective for fiscal years beginning after December 15, 2021 and early adoption is permitted. The guidance allows for either full retrospective adoption or modified retrospective adoption. We adopted this guidance in the first quarter of fiscal 2021 utilizing the modified retrospective method and, accordingly, recorded a |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | 2. Fair Value Measurements Fair value measurements are estimated based on valuation techniques and inputs categorized as follows: ● Level 1: Quoted prices in active markets for identical assets or liabilities ● Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities ● Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring the Company to develop its own assumptions The following tables present the components and classification of our assets and liabilities that are measured at fair value on a recurring basis (in thousands): March 30, 2021 Level 1 Level 2 Level 3 Assets/(Liabilities) Non-qualified deferred compensation assets $ 85,596 $ — $ — Non-qualified deferred compensation liabilities (84,418) — — Acquisition-related deferred consideration — (38,326) — Acquisition-related contingent consideration and compensation liabilities — — (7,706) Interest rate swap — (2,288) — December 29, 2020 Level 1 Level 2 Level 3 Assets/(Liabilities) Non-qualified deferred compensation assets $ 83,485 $ — $ — Non-qualified deferred compensation liabilities (83,702) — — Acquisition-related deferred consideration — (38,119) — Acquisition-related contingent consideration and compensation liabilities — — (7,465) Interest rate swap — (4,591) — The fair value of the acquisition-related contingent consideration and compensation liabilities was determined utilizing a Monte Carlo model based on estimated future revenues, margins and volatility factors, among other variables and estimates and has no minimum or maximum payment. The undiscounted range of outcomes per the Monte Carlo model was $0 to $32.0 million. Results could change materially if different estimates and assumptions were used. The following table presents a reconciliation of the beginning and ending amounts of the fair value of the acquisition-related contingent consideration and compensation liabilities categorized as Level 3 (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Beginning balance $ 7,465 $ 13,218 Change in fair value 241 (5,938) Ending balance $ 7,706 $ 7,280 The change in the fair value of the contingent consideration during the first quarter of fiscal 2020 primarily stemmed from the delay of future new restaurant openings caused by the impact of the COVID-19 pandemic on the estimated cash flows used in the valuation. The fair values of our cash and cash equivalents, accounts and other receivable, income taxes receivable, prepaid expenses, accounts payable, income taxes payable and other accrued expenses approximate their carrying amounts due to their short duration. |
Inventories
Inventories | 3 Months Ended |
Mar. 30, 2021 | |
Inventories | |
Inventories | 3. Inventories Inventories consisted of (in thousands): March 30, 2021 December 29, 2020 Restaurant food and supplies $ 24,190 $ 24,282 Bakery finished goods and work in progress 7,642 7,861 Bakery raw materials and supplies 7,123 7,145 Total $ 38,955 $ 39,288 |
Gift Cards
Gift Cards | 3 Months Ended |
Mar. 30, 2021 | |
Gift Cards | |
Gift Cards | 4. Gift Cards The following tables present information related to gift cards (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Gift card liabilities: Beginning balance $ 184,655 $ 187,978 Activations 16,465 17,340 Redemptions and breakage (34,942) (44,103) Ending balance $ 166,178 $ 161,215 Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Gift card contract assets: Beginning balance $ 17,955 $ 23,172 Deferrals 2,295 2,203 Amortization (3,995) (4,690) Ending balance $ 16,255 $ 20,685 The significant declines in redemptions and breakage during the first quarter of 2021 compared to 2020 stem from the impact of the COVID-19 pandemic on our business. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 30, 2021 | |
Long-Term Debt | |
Long-Term Debt | 5. Long-Term Debt On March 30, 2021, we entered into a Second Amendment (the “Second Amendment”) to our existing Third Amended and Restated Loan Agreement, dated July 30, 2019 (as amended by that certain First Amendment, dated as of May 1, 2020 and by the Second Amendment, collectively, the “Amended Credit Agreement”). The Amended Credit Agreement, which terminates on July 30, 2024, consists of a $400 million revolving loan facility (the “Revolving Facility”), including a $40 million sublimit for letters of credit.The Amended Credit Agreement also provides the ability to increase the Revolving Facility in an amount not to exceed (a) during the Covenant Relief Period (as defined below) $125 million and (b) thereafter, $200 million. The funding of any such increases are subject to receipt of lender commitments and satisfaction of customary conditions precedent. Certain of our material subsidiaries have guaranteed our obligations under the Amended Credit Agreement. The Second Amendment, among other things, (i) extended the prior covenant relief period during which the testing of the net adjusted debt to EBITDAR ratio covenant (the “Net Adjusted Leverage Ratio”) and the EBITDAR to interest and rent expense ratio covenant (the “EBITDAR Ratio”) is suspended until the quarter ending December 28, 2021 (the “Covenant Relief Period”), (ii) continued to impose a monthly liquidity covenant of $100 million until the Company has demonstrated compliance with the financial covenants as of the quarter ending December 28, 2021, (iii) provided that the obligations thereunder be secured by a first priority security interest in substantially all of our and any guarantor’s property, with such property to be released upon (a) the termination of the Covenant Relief Period, (b) the Company’s compliance with the Net Adjusted Leverage Ratio and the EBITDAR Ratio as of the quarter ending on March 29, 2022, (c) neither the Company nor any of the guarantors having incurred unsecured debt using certain debt baskets under the Revolving Facility unless such debt is convertible debt or subordinated on customary debt subordination terms reasonably acceptable to the administrative agent and (d) no default or event of default having occurred or continuing, (iv) amended certain negative covenants during the Covenant Relief Period, including certain restrictions on capital expenditures, restricted payments, investments and indebtedness, and (v) permitted the payment of cash dividends with respect to our Series A Convertible Preferred Stock, par value $0.1 per share (“Series A preferred stock”) for each fiscal quarter of 2021 in an amount not to exceed $5.25 million per quarter. Borrowings under the Amended Credit Agreement during the Covenant Relief Period bear interest, at our option, at a rate equal to either: (i) the adjusted LIBO Rate (as customarily defined, the “Adjusted LIBO Rate”) plus 2.5%, or (ii) the sum of (a) the highest of (1) the rate of interest last quoted by The Wall Street Journal as the prime rate in effect in the United States, (2) the greater of the rate calculated by the Federal Reserve Bank of New York as the effective federal funds rate or the rate that is published by the Federal Reserve Bank of New York as an overnight bank funding rate, in either case plus 0.5%, and (3) the one-month Adjusted LIBO Rate plus 1.0%, plus (b) 1.5%. We also pay a fee of 0.4% on the daily amount of unused commitments under the Amended Credit Agreement. Subsequent to the Covenant Relief Period, borrowings under the Amended Credit Agreement will bear interest, at our option, at a rate equal to either: (i) the Adjusted LIBO Rate plus a margin that is based on our net adjusted leverage ratio, or (ii) the sum of (a) the highest of (1) the rate of interest last quoted by The Wall Street Journal as the prime rate in effect in the United States, (2) the greater of the rate calculated by the Federal Reserve Bank of New York as the effective federal funds rate or the rate that is published by the Federal Reserve Bank of New York as an overnight bank funding rate, in either case plus 0.5%, and (3) the one-month Adjusted LIBO Rate plus 1.0%, plus (b) a margin that is based on our net adjusted leverage ratio. Letters of credit bear fees that are equivalent to the interest rate margin that is applicable to revolving loans that bear interest at the adjusted LIBO Rate plus other customary fees charged by the issuing bank. We paid certain customary loan origination fees in conjunction with the Amended Credit Agreement. During the first quarter of fiscal 2021 we had net availability for borrowings of $96.6 million, based on a $280.0 million outstanding debt balance and $23.4 million in standby letters of credit. Our Liquidity balance was $300.4 million at March 29, 2021, and we were in compliance with all covenants under the Amended Credit Agreement in effect at that date. The Amended Credit Agreement contains customary affirmative and negative covenants, including limits on cash dividends and share repurchases with respect to our equity interests, and restrictions on indebtedness, liens, investments, sales of assets, fundamental changes and other matters. The Amended Credit Agreement also contains customary events of default that include, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgements, cross defaults to material indebtedness and events constituting a change of control. The occurrence of an event of default could result in the termination of commitments under the Revolving Facility, the declaration that all outstanding loans are immediately due and payable in whole or in part and the requirement of cash collateral deposits in respect of outstanding letters of credit. |
Leases
Leases | 3 Months Ended |
Mar. 30, 2021 | |
Leases | |
Leases | 6. Leases Components of lease expense were as follows (in thousands): Thirteen Thirteen March 30, 2021 March 31, 2020 Operating $ 32,394 $ 33,041 Variable 16,481 15,828 Short-term 70 129 Total $ 48,945 $ 48,998 Supplemental information related to leases (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 33,926 $ 30,760 Right-of-use assets obtained in exchange for new operating lease liabilities 7,372 14,929 |
Derivative
Derivative | 3 Months Ended |
Mar. 30, 2021 | |
Derivative | |
Derivative | 7. Derivative The Company has an interest rate swap agreement, which matures on April 1, 2025, to manage our exposure to interest rate movements on our Revolving Facility.The interest rate swap entitles us to receive a variable rate of interest based on the one-month LIBO rate in exchange for the payment of a fixed interest rate of 0.802%. The notional amount of the swap agreement is $280.0 million through March 31, 2023 and $140.0 million from April 1, 2023 through April 1, 2025. The differences between the variable LIBO rate and the interest rate swap rate are settled monthly. We determined that at both March 30, 2021 and March 31, 2020, the interest rate swap agreement was an effective hedging agreement. Our only derivative is the aforementioned interest rate swap, which is designated as a cash flow hedge. At March 30, 2021 and March 31, 2020, the fair value of our interest rate swap was a liability of $2.3 million and $3.1 million, respectively. We reclassified $0.5 million out of accumulated other comprehensive loss (“AOCL”) in the first quarter of fiscal 2021 and none out of AOCL in the first quarter of 2020 for the monthly settlement of the interest rate swap. No gains or losses representing amounts excluded from the assessment of effectiveness were recognized in earnings in the first quarter of fiscal 2021 or 2020. The following table summarizes the changes in AOCL, net of tax, related to the interest rate swap (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Beginning balance $ (3,464) $ — Other comprehensive loss before reclassifications 1,270 (2,370) Amounts reclassified from AOCL 468 — Other comprehensive loss, net of tax 1,738 (2,370) Ending balance $ (1,726) $ (2,370) We classified this interest rate swap within Level 2 of the valuation hierarchy described in Note 2. Our counterparty under this arrangement provided monthly statements of the market values of this instrument based on significant inputs that were observable or could be derived principally from, or corroborated by, observable market data for substantially the full term of the asset or liability. The impact on the derivative liability for the Company’s and the counterparty’s non-performance risk to the derivative trade was considered when measuring the fair value of derivative liability. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies On June 7, 2018, the California Department of Industrial Relations issued a $4.2 million wage citation jointly against the Company and our vendor that provides janitorial services to eight of our Southern California restaurants, alleging that the janitorial vendor or its subcontractor failed to comply with various provisions of the California Labor Code (Wage Citation Case No. 35-CM-188798-16). The wage citation seeks to recover penalties and other monetary payments on behalf of the employees that worked for this vendor or its subcontractor. On June 28, 2018, we filed an appeal of the wage citation. On June 11, 2020, the DLSE postponed the hearing on the Company’s appeal due to safety concerns related to the COVID-19 pandemic. It is not possible at this time to reasonably estimate the outcome of or any potential liability from this matter and, accordingly, we have not reserved for any potential future payments. On June 22, 2018, the Internal Revenue Service issued a Notice of Deficiency in which they disallowed $8.0 million of our §199 Domestic Production Activities Deduction for tax years 2010, 2011 and 2012. On September 11, 2018 we petitioned the United States Tax Court for a redetermination of the deficiency. The tax court has assigned docket number 18150-18 to our case. We intend to vigorously defend our position in litigation and based on our analysis of the law, regulations and relevant facts, we have not reserved for any potential future payments. Within the ordinary course of our business, we are subject to private lawsuits, government audits and investigations, administrative proceedings and other claims. These matters typically involve claims from customers, staff members and others related to operational and employment issues common to the foodservice industry. A number of these claims may exist at any given time, and some of the claims may be pled as class actions. From time to time, we are also involved in lawsuits with respect to infringements of, or challenges to, our registered trademarks and other intellectual property, both domestically and abroad. We could be affected by adverse publicity and litigation costs resulting from such allegations, regardless of whether they are valid or whether we are legally determined to be liable. At this time, we believe that the amount of reasonably possible losses resulting from final disposition of any pending lawsuits, audits, investigations, proceedings and claims will not have a material adverse effect individually or in the aggregate on our financial position, results of operations or liquidity. It is possible, however, that our future results of operations for a particular quarter or fiscal year could be impacted by changes in circumstances relating to lawsuits, audits, proceedings or claims. Legal costs related to such claims are expensed as incurred. |
Stockholders' Equity and Series
Stockholders' Equity and Series A Convertible Preferred Stock | 3 Months Ended |
Mar. 30, 2021 | |
Stockholders' Equity and Series A Convertible Preferred Stock | |
Stockholders' Equity and Series A Convertible Preferred Stock | 9. Stockholders’ Equity and Series A Convertible Preferred Stock Common Stock -Dividends and Share Repurchases To preserve liquidity during the COVID-19 pandemic and in conjunction with the terms of the Amended Credit Agreement, in March 2020, our Board suspended the quarterly dividend on our common stock, as well as share repurchases. Prior to this suspension, our Board declared cash dividends of $0.36 per common share for the first quarter of fiscal 2020. Future decisions to pay or to increase or decrease dividends are at the discretion of the Board and will be dependent on our operating performance, financial condition, capital expenditure requirements, limitations on cash distributions pursuant to the terms and conditions of the Amended Credit Agreement and applicable law, and such other factors that the Board considers relevant. (See Note 5 for further discussion of our long-term debt.) Under authorization by our Board to repurchase up to 56.0 million shares of our common stock, we have cumulatively repurchased 53.1 million shares at a total cost of $1,700.7 million through March 30, 2021 with 0.1 million shares repurchased at a cost of $4.0 million during the first quarter of fiscal 2021 to satisfy tax withholding obligations on vested restricted share awards. Our objectives with regard to share repurchases have been to offset the dilution to our shares outstanding that results from equity compensation grants and to supplement our earnings per share growth. Our share repurchase authorization does not have an expiration date, does not require us to purchase a specific number of shares and may be modified, suspended or terminated at any time. Shares may be repurchased in the open market or through privately negotiated transactions at times and prices considered appropriate by us. Future decisions to repurchase shares are at the discretion of the Board and are based on several factors, including current and forecasted operating cash flows, capital needs associated with new restaurant development and maintenance of existing locations, dividend payments, debt levels and cost of borrowing, obligations associated with the acquisitions of North Italia and FRC (the "Acquisition "), our share price and current market conditions. The timing and number of shares repurchased are also subject to legal constraints and financial covenants under the Amended Credit Agreement that limit share repurchases based on a defined ratio. (See Note 5 for further discussion of our long-term debt.) Series A Convertible Preferred Stock On April 20, 2020, to increase our liquidity given the impact of the COVID-19 pandemic on our operations, we issued The Series A preferred stock ranks senior to our common stock with respect to dividends and distributions on liquidation, winding-up and dissolution upon which each share of Series A preferred stock will be entitled to receive an amount per share equal to the greater of (i) the purchase price (without giving effect to the commitment fee), plus all accrued and unpaid dividends (the “Liquidation Preference”) and (ii) the amount that the holder of the Series A preferred stock would have been entitled to receive at such time if the Series A preferred stock were converted into common stock. At March 30, 2021, the Liquidation Preference was $1,067.42 per share. Dividend Rights The holders of Series A preferred stock are entitled to dividends on the Liquidation Preference at the rate of 9.5% per annum, payable in cash or, at our option, paid in-kind. Such holders are also entitled to participate in dividends declared or paid on our common stock on an as-converted basis. During the first quarter of fiscal 2021, we declared a cash dividend of $5.1 million, or $25.35 per share. Conversion Rights Each holder has the right, at its option, to convert its Series A preferred stock, in whole or in part, into fully paid and non-assessable shares of our common stock at a conversion price equal to $22.23 per share, subject to customary anti-dilution adjustments, including in the event of any stock split, stock dividend, recapitalization or similar events and certain anti-dilutive offerings if they occur on or prior to April 19, 2021. At March 30, 2021, the number of common shares that would be required to be issued upon conversion of the outstanding shares of Series A preferred stock was 9.6 million. Pursuant to the terms of the Certificate of Designations, unless and until approval of our stockholders is obtained as contemplated by Nasdaq listing rules (the “Stockholder Approval”), no holder may convert shares of Series A preferred stock through either an optional or a mandatory conversion into shares of common stock if and solely to the extent that such conversion would result in the holder beneficially owning in excess of 19.9% of the then outstanding common stock. We have the right to settle any conversion in cash. As of March 30, 2021, the Series A preferred stock was convertible into approximately 17.1% of our outstanding common stock, on an as-converted basis. After April 20, 2023 and subject to certain conditions, we may, at our option, require conversion of all of the outstanding shares of Series A preferred stock to common stock if, for at least 20 trading days during the 30 consecutive trading days immediately preceding the date we notify the holders of Series A preferred stock of the election to convert, the closing price of the common stock is at least 200% of the conversion price. We will not exercise our right to mandatorily convert all outstanding shares of Series A preferred stock unless certain liquidity conditions with regard to the shares of common stock to be issued upon such conversion are satisfied. Upon adoption of ASU 2020-06 in the first quarter of fiscal 2021, we recorded a $4.8 million cumulative adjustment to retained earnings to reverse previously recorded beneficial conversion features. Redemption Rights On and after October 20, 2027, holders of the Series A preferred stock have the right to require redemption of all or any part of the Series A preferred stock for an amount equal to the Liquidation Preference. Upon certain change of control events, we are required to redeem, subject to conversion rights of the holders of Series A preferred stock, all of the outstanding shares of Series A preferred stock for cash consideration equal to the greater of (i) the Liquidation Preference and (ii) the amount that such holder would have been entitled to receive at such time if the Series A preferred stock were converted into common stock. We may redeem any or all of the Series A preferred stock for an amount equal to (i) 120% of the Liquidation Preference thereof at any time between April 21, 2025 and April 19, 2026 and (ii) 100% of the Liquidation Preference at any time beginning on April 20, 2026, provided that such holder will have the right to convert the Series A preferred stock immediately prior to and in lieu of such redemption. To the extent such holder elects to convert the Series A preferred stock in lieu of such redemption and the number of shares of common stock issuable upon such conversion would exceed 19.9% of the outstanding shares of common stock, and the Stockholder Approval has not been obtained as of such date, any portion in excess of such limit will remain outstanding as Series A preferred stock. Voting Rights Holders of Series A preferred stock are generally entitled to vote with the holders of the common stock on an as-converted basis. Holders of Series A preferred stock are entitled to a separate class vote with respect to, among other things, amendments to the Company’s organizational documents that have an adverse effect on the Series A preferred stock, issuances of securities that are senior to, or equal in priority with, the Series A preferred stock and certain business combinations and binding or statutory share exchanges or reclassification involving the Series A preferred stock unless such events do not adversely affect the rights, preferences or voting powers of such preferred stock. In addition, for so long as the holders of Series A preferred stock hold record and beneficial ownership of 25% of the Series A preferred stock issued to them, such holders will have the right to designate one member to our board of directors. If the holders cease to have such designation right, for so long as the holders have record and beneficial ownership of shares of common stock issued upon conversion of the Series A preferred stock that constitute at least 5% of the outstanding common stock, the holders will have the right to nominate one person for election to our board of directors. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 30, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 10. Stock-Based Compensation We maintain stock-based incentive plan under which incentive stock options, non-qualified stock options, stock appreciation rights, restricted shares and restricted share units may be granted to staff members, consultants and non-employee directors. The following table presents information related to stock-based compensation, net of forfeitures (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Labor expenses $ 2,043 $ 1,966 Other operating costs and expenses 74 70 General and administrative expenses 3,327 3,471 Total stock-based compensation 5,444 5,507 Income tax benefit 1,337 1,353 Total stock-based compensation, net of taxes $ 4,107 $ 4,154 Capitalized stock-based compensation (1) $ 39 $ 40 (1) It is our policy to capitalize the portion of stock-based compensation costs for our internal development department that relates to capitalizable activities such as the design and construction of new restaurants, remodeling existing locations and equipment installation. Capitalized stock-based compensation is included in property and equipment, net on the condensed consolidated balance sheets. Stock Options We did not Stock option activity during the thirteen weeks ended March 30, 2021 was as follows: Weighted- Average Weighted- Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term Value (1) (In thousands) (Per share) (In years) (In thousands) Outstanding at December 29, 2020 2,294 $ 45.35 5.0 $ 307 Granted — — Exercised (484) 42.18 Forfeited or cancelled — — Outstanding at March 30, 2021 1,810 $ 46.20 5.7 $ 6,914 Exercisable at March 30, 2021 953 $ 48.80 4.2 $ 6,473 (1) Aggregate intrinsic value is calculated as the difference between our closing stock price at fiscal period end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised their options on the fiscal period end date. The total intrinsic value of options exercised during the thirteen weeks ended March 30, 2021 and March 31, 2020 was $5.7 million and $35.6 million, respectively. As of March 30, 2021, total unrecognized stock-based compensation expense related to unvested stock options was $6.5 million, which we expect to recognize over a weighted-average period of approximately 3.2 years. Restricted Shares and Restricted Share Units Restricted share and restricted share unit activity during the thirteen weeks ended March 30, 2021 was as follows: Weighted- Average Fair Shares Value (In thousands) (Per share) Outstanding at December 29, 2020 2,008 $ 43.70 Granted 385 48.38 Vested (199) 47.93 Forfeited (92) 45.34 Outstanding at March 30, 2021 2,102 $ 44.08 Fair value of our restricted shares and restricted share units is based on our closing stock price on the date of grant. The weighted average fair value for restricted shares and restricted share units issued during the first quarter of fiscal 2021 and 2020 was $48.38 and $40.01, respectively. The fair value of shares that vested during the thirteen weeks ended March 30, 2021 was $9.5 million. As of March 30, 2021, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $46.5 million, which we expect to recognize over a weighted-average period of approximately 3.2 years. |
Net (Loss)_Income Per Share
Net (Loss)/Income Per Share | 3 Months Ended |
Mar. 30, 2021 | |
Net (Loss)/Income Per Share | |
Net (Loss)/Income Per Share | 11. Net Income/(Loss) Per Share Basic net income/(loss) per share is computed by dividing net income/(loss) available to common stockholders by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards. At both March 30, 2021 and March 31, 2020, 2.1 million shares of restricted stock issued were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal periods ended on those dates. Diluted net income per share is computed by dividing net income available to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. Holders of our Series A Convertible Preferred Stock, par value $0.01 per share (the "Series A preferred stock") participate in dividends on an as-converted basis when declared on common stock. As a result, our Series A preferred stock meets the definition of a participating security which requires us to apply the two-class method to compute both basic and diluted net income per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. In addition, as our Series A preferred stock is a participating security, we are required to calculate diluted net income per share under the if-converted method in addition to the two-class method and utilize the most dilutive result. In periods where there is a net loss, no allocation of undistributed net loss to preferred stockholders is performed as the holders of our Series A preferred stock are not contractually obligated to participate in our losses. Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 (In thousands, except per share data) Basic net income/(loss) per common share: Net income/(loss) $ 3,868 $ (136,163) Dividends on Series A preferred stock (5,070) — Net loss available to common stockholders (1,202) (136,163) Basic weighted-average shares outstanding 44,189 43,773 Basic net loss per common share $ (0.03) $ (3.11) Diluted net income/(loss) per common share: Net loss available to common stockholders $ (1,202) $ (136,163) Basic weighted-average shares outstanding 44,189 43,773 Dilutive effect of equity awards (1) — — Diluted weighted-average shares outstanding 44,189 43,773 Diluted net loss per common share $ (0.03) $ (3.11) (1) Shares of common stock equivalents of 1.5 million and 3.8 million as of March 30, 2021 and March 31, 2020, respectively, were excluded from the diluted calculation due to their anti-dilutive effect . |
Segment Information
Segment Information | 3 Months Ended |
Mar. 30, 2021 | |
Segment Information | |
Segment Information | 12. Segment Information Our operating segments, the businesses for which our management reviews discrete financial information for decision-making purposes, are comprised of The Cheesecake Factory, North Italia, Flower Child, the other FRC brands, our bakery division and Grand Lux Cafe. Based on quantitative thresholds set forth in ASC 280, “Segment Reporting,” The Cheesecake Factory, North Italia and the other FRC brands are the only businesses that meet the criteria of a reportable operating segment. The remaining operating segments (Flower Child, our bakery division and Grand Lux Cafe) along with our businesses that don’t qualify as operating segments are combined in Other. Unallocated corporate expenses, capital expenditures and assets are also combined in Other. Segment information is presented below (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Revenues: The Cheesecake Factory $ 499,389 $ 488,471 North Italia 32,823 30,512 Other FRC 36,194 35,583 Other 59,011 60,540 Total $ 627,417 $ 615,106 Income/(loss) from operations: The Cheesecake Factory $ 44,481 $ 39,324 North Italia 332 (72,086) Other FRC 3,880 (69,964) Other (39,849) (87,332) Total $ 8,844 $ (190,058) Depreciation and amortization expenses: The Cheesecake Factory $ 16,320 $ 17,277 North Italia 844 965 Other FRC 1,177 1,201 Other 3,665 4,119 Total $ 22,006 $ 23,562 Impairment of assets and lease termination expenses: The Cheesecake Factory $ — $ 616 North Italia — 71,524 Other FRC — 72,939 Other 594 46,817 Total $ 594 $ 191,896 Preopening costs: The Cheesecake Factory $ 2,063 $ 1,414 North Italia 1,217 953 Other FRC 463 (159) Other 113 911 Total $ 3,856 $ 3,119 Capital expenditures: The Cheesecake Factory $ 4,080 $ 8,598 North Italia 1,212 2,964 Other FRC 719 1,104 Other 1,216 3,109 Total $ 7,227 $ 15,775 March 30, 2021 December 29, 2020 Total assets: The Cheesecake Factory $ 1,622,997 $ 1,671,733 North Italia 244,345 270,218 Other FRC 285,108 308,866 Other 582,989 496,237 Total $ 2,735,439 $ 2,747,054 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 30, 2021 | |
Subsequent Events | |
Subsequent Events | 13. Subsequent Events On March 30, 2021, the Audit Committee of our Board declared a cash dividend of $5.1 million, or $25.35 per share, on our Series A preferred stock, which was paid on |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 30, 2021 | |
Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of The Cheesecake Factory Incorporated and its wholly owned subsidiaries (referred to herein collectively as the “Company,” “we,” “us” and “our”) and are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions for the periods presented have been eliminated in consolidation. The unaudited financial statements presented herein include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for the fair statement of the financial condition, results of operations and cash flows for the period. However, these results are not necessarily indicative of results that may be achieved for any other interim period or for the full fiscal year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules of the Securities and Exchange Commission (“SEC”). The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 29, 2020 filed with the SEC on February 24, 2021 ("fiscal 2020 10-K"). We utilize a 52/53-week fiscal year ending on the Tuesday closest to December 31 for financial reporting purposes. Fiscal 2021 consists of 52 weeks and will end on December 28, 2021. Fiscal 2020, which ended on December 29, 2020, was also a 52 -week year. Beginning with our fiscal 2020 10-K, we combined accounts receivable and other receivable on the consolidated balance sheet and statement of cash flow. Corresponding balances for the thirteen weeks ended March 31, 2020 were reclassified to conform to the current presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from these estimates. |
COVID-19 Pandemic | COVID-19 Pandemic The Company is subject to continued risks and uncertainties as a result of the outbreak of, and local, state and federal governmental responses to, the COVID-19 pandemic which was declared a National Public Health Emergency in March 2020. We experienced significant disruptions to our business as suggested and mandated social distancing and shelter-in-place orders led to the temporary closure of a number of restaurants across our portfolio while the remaining locations shifted to an off-premise only operating model on an interim basis. In the second quarter of fiscal 2020, certain jurisdictions began allowing the reopening of restaurant dining rooms, and we began to reopen dining rooms across our concepts. However, restrictions on the type of permitted operating model and occupancy capacity continue to change. We cannot predict how long the COVID-19 pandemic will last or whether it will reoccur, what additional restrictions may be enacted, to what extent we can maintain off-premise sales volumes or if individuals will be comfortable returning to our dining rooms during or following social distancing protocols and what long-lasting effects the COVID-19 pandemic may have on the restaurant industry as a whole. The extent of the reopening process, along with the potential impact of the COVID-19 pandemic on consumer spending behavior, will determine the continued significance of the impact of the COVID-19 pandemic to our operating results and financial position. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the FASB issued Accounting Standards Update ("ASU") 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which is intended to simplify the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity's own equity. This pronouncement is effective for fiscal years beginning after December 15, 2021 and early adoption is permitted. The guidance allows for either full retrospective adoption or modified retrospective adoption. We adopted this guidance in the first quarter of fiscal 2021 utilizing the modified retrospective method and, accordingly, recorded a |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 30, 2021 | |
Fair Value Measurements | |
Schedule of fair value of assets and liabilities measured on recurring basis | The following tables present the components and classification of our assets and liabilities that are measured at fair value on a recurring basis (in thousands): March 30, 2021 Level 1 Level 2 Level 3 Assets/(Liabilities) Non-qualified deferred compensation assets $ 85,596 $ — $ — Non-qualified deferred compensation liabilities (84,418) — — Acquisition-related deferred consideration — (38,326) — Acquisition-related contingent consideration and compensation liabilities — — (7,706) Interest rate swap — (2,288) — December 29, 2020 Level 1 Level 2 Level 3 Assets/(Liabilities) Non-qualified deferred compensation assets $ 83,485 $ — $ — Non-qualified deferred compensation liabilities (83,702) — — Acquisition-related deferred consideration — (38,119) — Acquisition-related contingent consideration and compensation liabilities — — (7,465) Interest rate swap — (4,591) — |
Schedule of fair value of the acquisition-related contingent consideration | Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Beginning balance $ 7,465 $ 13,218 Change in fair value 241 (5,938) Ending balance $ 7,706 $ 7,280 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 30, 2021 | |
Inventories | |
Schedule of inventories | Inventories consisted of (in thousands): March 30, 2021 December 29, 2020 Restaurant food and supplies $ 24,190 $ 24,282 Bakery finished goods and work in progress 7,642 7,861 Bakery raw materials and supplies 7,123 7,145 Total $ 38,955 $ 39,288 |
Gift Cards (Tables)
Gift Cards (Tables) | 3 Months Ended |
Mar. 30, 2021 | |
Gift Cards | |
Schedule of gift card liabilities | The following tables present information related to gift cards (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Gift card liabilities: Beginning balance $ 184,655 $ 187,978 Activations 16,465 17,340 Redemptions and breakage (34,942) (44,103) Ending balance $ 166,178 $ 161,215 |
Schedule of gift card contract assets | Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Gift card contract assets: Beginning balance $ 17,955 $ 23,172 Deferrals 2,295 2,203 Amortization (3,995) (4,690) Ending balance $ 16,255 $ 20,685 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 30, 2021 | |
Leases | |
Schedule of components for lease expense | Components of lease expense were as follows (in thousands): Thirteen Thirteen March 30, 2021 March 31, 2020 Operating $ 32,394 $ 33,041 Variable 16,481 15,828 Short-term 70 129 Total $ 48,945 $ 48,998 |
Schedule of supplemental cash flow information related to leases | Supplemental information related to leases (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 33,926 $ 30,760 Right-of-use assets obtained in exchange for new operating lease liabilities 7,372 14,929 |
Derivative (Tables)
Derivative (Tables) | 3 Months Ended |
Mar. 30, 2021 | |
Derivative | |
Schedule of changes in AOCL, net of tax, related to the interest rate swap | The following table summarizes the changes in AOCL, net of tax, related to the interest rate swap (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Beginning balance $ (3,464) $ — Other comprehensive loss before reclassifications 1,270 (2,370) Amounts reclassified from AOCL 468 — Other comprehensive loss, net of tax 1,738 (2,370) Ending balance $ (1,726) $ (2,370) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 30, 2021 | |
Stock-Based Compensation | |
Schedule of information related to stock-based compensation, net of forfeitures | The following table presents information related to stock-based compensation, net of forfeitures (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Labor expenses $ 2,043 $ 1,966 Other operating costs and expenses 74 70 General and administrative expenses 3,327 3,471 Total stock-based compensation 5,444 5,507 Income tax benefit 1,337 1,353 Total stock-based compensation, net of taxes $ 4,107 $ 4,154 Capitalized stock-based compensation (1) $ 39 $ 40 (1) It is our policy to capitalize the portion of stock-based compensation costs for our internal development department that relates to capitalizable activities such as the design and construction of new restaurants, remodeling existing locations and equipment installation. Capitalized stock-based compensation is included in property and equipment, net on the condensed consolidated balance sheets. |
Schedule of stock option activity | Weighted- Average Weighted- Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term Value (1) (In thousands) (Per share) (In years) (In thousands) Outstanding at December 29, 2020 2,294 $ 45.35 5.0 $ 307 Granted — — Exercised (484) 42.18 Forfeited or cancelled — — Outstanding at March 30, 2021 1,810 $ 46.20 5.7 $ 6,914 Exercisable at March 30, 2021 953 $ 48.80 4.2 $ 6,473 (1) Aggregate intrinsic value is calculated as the difference between our closing stock price at fiscal period end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised their options on the fiscal period end date. |
Schedule of restricted share and restricted share unit activity | Weighted- Average Fair Shares Value (In thousands) (Per share) Outstanding at December 29, 2020 2,008 $ 43.70 Granted 385 48.38 Vested (199) 47.93 Forfeited (92) 45.34 Outstanding at March 30, 2021 2,102 $ 44.08 |
Net (Loss)_Income Per Share (Ta
Net (Loss)/Income Per Share (Tables) | 3 Months Ended |
Mar. 30, 2021 | |
Net (Loss)/Income Per Share | |
Schedule of basic and diluted net income per share | Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 (In thousands, except per share data) Basic net income/(loss) per common share: Net income/(loss) $ 3,868 $ (136,163) Dividends on Series A preferred stock (5,070) — Net loss available to common stockholders (1,202) (136,163) Basic weighted-average shares outstanding 44,189 43,773 Basic net loss per common share $ (0.03) $ (3.11) Diluted net income/(loss) per common share: Net loss available to common stockholders $ (1,202) $ (136,163) Basic weighted-average shares outstanding 44,189 43,773 Dilutive effect of equity awards (1) — — Diluted weighted-average shares outstanding 44,189 43,773 Diluted net loss per common share $ (0.03) $ (3.11) (1) Shares of common stock equivalents of 1.5 million and 3.8 million as of March 30, 2021 and March 31, 2020, respectively, were excluded from the diluted calculation due to their anti-dilutive effect . |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 30, 2021 | |
Segment Information | |
Schedule of segment information | Segment information is presented below (in thousands): Thirteen Thirteen Weeks Ended Weeks Ended March 30, 2021 March 31, 2020 Revenues: The Cheesecake Factory $ 499,389 $ 488,471 North Italia 32,823 30,512 Other FRC 36,194 35,583 Other 59,011 60,540 Total $ 627,417 $ 615,106 Income/(loss) from operations: The Cheesecake Factory $ 44,481 $ 39,324 North Italia 332 (72,086) Other FRC 3,880 (69,964) Other (39,849) (87,332) Total $ 8,844 $ (190,058) Depreciation and amortization expenses: The Cheesecake Factory $ 16,320 $ 17,277 North Italia 844 965 Other FRC 1,177 1,201 Other 3,665 4,119 Total $ 22,006 $ 23,562 Impairment of assets and lease termination expenses: The Cheesecake Factory $ — $ 616 North Italia — 71,524 Other FRC — 72,939 Other 594 46,817 Total $ 594 $ 191,896 Preopening costs: The Cheesecake Factory $ 2,063 $ 1,414 North Italia 1,217 953 Other FRC 463 (159) Other 113 911 Total $ 3,856 $ 3,119 Capital expenditures: The Cheesecake Factory $ 4,080 $ 8,598 North Italia 1,212 2,964 Other FRC 719 1,104 Other 1,216 3,109 Total $ 7,227 $ 15,775 March 30, 2021 December 29, 2020 Total assets: The Cheesecake Factory $ 1,622,997 $ 1,671,733 North Italia 244,345 270,218 Other FRC 285,108 308,866 Other 582,989 496,237 Total $ 2,735,439 $ 2,747,054 |
Significant Accounting Polici_3
Significant Accounting Policies - Basis of Presentation (Details) | 3 Months Ended | 12 Months Ended |
Mar. 30, 2021 | Dec. 29, 2020 | |
Significant Accounting Policies | ||
Length of fiscal year | 364 days | 364 days |
Significant Accounting Polici_4
Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 30, 2021 | Dec. 29, 2020 |
Recent Accounting Pronouncements | ||
Retained Earnings (Accumulated Deficit) | $ 1,114,047 | $ 1,110,087 |
Cumulative effect of adopting ASU 2020-06 | ||
Recent Accounting Pronouncements | ||
Retained Earnings (Accumulated Deficit) | $ 4,800 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 30, 2021 | Dec. 29, 2020 |
Minimum | ||
Assets (Liabilities) at fair value | ||
Undiscounted range of out comes | $ 0 | |
Maximum | ||
Assets (Liabilities) at fair value | ||
Undiscounted range of out comes | 32,000 | |
Level 1 | ||
Assets (Liabilities) at fair value | ||
Non-qualified deferred compensation assets | 85,596 | $ 83,485 |
Non-qualified deferred compensation liabilities | (84,418) | (83,702) |
Level 2 | ||
Assets (Liabilities) at fair value | ||
Acquisition-related deferred consideration | (38,326) | (38,119) |
Interest rate swap | (2,288) | (4,591) |
Level 3 | ||
Assets (Liabilities) at fair value | ||
Acquisition-related contingent consideration and compensation liabilities | $ (7,706) | $ (7,465) |
Fair Value Measurements - Begin
Fair Value Measurements - Beginning and ending amounts of the fair value (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | $ 7,465 | $ 13,218 |
Change in fair value | 241 | (5,938) |
Ending balance | $ 7,706 | $ 7,280 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 30, 2021 | Dec. 29, 2020 |
Inventories | ||
Restaurant food and supplies | $ 24,190 | $ 24,282 |
Bakery finished goods and work in progress | 7,642 | 7,861 |
Bakery raw materials and supplies | 7,123 | 7,145 |
Total | $ 38,955 | $ 39,288 |
Gift Cards (Details)
Gift Cards (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | |
Gift card liabilities: | ||
Beginning balance | $ 184,655 | $ 187,978 |
Activations | 16,465 | 17,340 |
Redemptions and breakage | (34,942) | (44,103) |
Ending balance | 166,178 | 161,215 |
Gift card contract assets: | ||
Beginning balance | 17,955 | 23,172 |
Deferrals | 2,295 | 2,203 |
Amortization | (3,995) | (4,690) |
Ending balance | $ 16,255 | $ 20,685 |
Long-Term Debt (Details)
Long-Term Debt (Details) | Mar. 30, 2021USD ($)$ / shares | Dec. 28, 2021USD ($) | Mar. 30, 2021USD ($)$ / shares | Dec. 28, 2021USD ($) | Mar. 29, 2021USD ($) | Apr. 20, 2020$ / shares |
Long-Term Debt | ||||||
Outstanding letters of credit | $ 23,400,000 | $ 23,400,000 | ||||
Cash dividends | 5,070,000 | |||||
Net availability for borrowings | $ 96,600,000 | $ 96,600,000 | ||||
Net Adjusted Leverage Ratio | 280 | 280 | ||||
Liquidity Balance | $ 300,400,000 | |||||
Series A Convertible Preferred stock | ||||||
Long-Term Debt | ||||||
Shares Issued, Price Per Share | $ / shares | $ 0.1 | $ 0.1 | $ 0.01 | |||
Cash dividends | $ 5,100,000 | |||||
Subsequent Events | ||||||
Long-Term Debt | ||||||
Minimum Amount of Liquidity to be Maintained at the End of Each Calendar Month | $ 100 | |||||
Maximum | Series A Convertible Preferred stock | ||||||
Long-Term Debt | ||||||
Cash dividends | $ 5,250,000 | |||||
Second Amendment | ||||||
Long-Term Debt | ||||||
Maximum commitments | 400,000,000 | $ 400,000,000 | ||||
Maximum commitments, letter of credit sub-facility | 40,000,000 | $ 40,000,000 | ||||
Second Amendment | Adjusted LIBO Rate | ||||||
Long-Term Debt | ||||||
Credit facility, basis spread on variable rate, (as a percent) | 2.50% | |||||
Commitment fee (as a percent) | 0.40% | |||||
Second Amendment | Federal Funds Effective Rate | ||||||
Long-Term Debt | ||||||
Credit facility, floating interest rate basis | federal funds rate | |||||
Credit facility, basis spread on variable rate, (as a percent) | 0.50% | |||||
Second Amendment | Base Rate Member | ||||||
Long-Term Debt | ||||||
Credit facility, basis spread on variable rate, (as a percent) | 1.50% | |||||
Second Amendment | One-month Adjusted LIBO Rate | ||||||
Long-Term Debt | ||||||
Credit facility, floating interest rate basis | one-month Adjusted LIBO Rate | |||||
Credit facility, basis spread on variable rate, (as a percent) | 1.00% | |||||
Amended Credit Agreement [Member] | ||||||
Long-Term Debt | ||||||
Revolving facility | 200,000,000 | $ 200,000,000 | ||||
Amended Credit Agreement [Member] | Maximum | ||||||
Long-Term Debt | ||||||
Revolving facility | $ 125,000,000 | $ 125,000,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | |
Leases | ||
Operating | $ 32,394 | $ 33,041 |
Variable | 16,481 | 15,828 |
Short-term | 70 | 129 |
Total | 48,945 | 48,998 |
Lessee Operating Lease Description | ||
Operating cash flows from operating leases | 33,926 | 30,760 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 7,372 | $ 14,929 |
Derivative (Details)
Derivative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 30, 2021 | Apr. 01, 2025 | Mar. 31, 2023 | Mar. 31, 2020 | Mar. 13, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amounts reclassified from AOCL | $ 500 | ||||
Interest rate swap agreement | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Fixed interest rate | 0.802% | ||||
Fair value of derivative liability | 2,300 | $ 3,100 | |||
Gain (Loss) on Components Excluded from Assessment of Interest Rate Fair Value Hedge Effectiveness | $ 0 | ||||
Subsequent Events | Interest rate swap agreement | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount | $ 140,000 | $ 280,000 |
Derivative - Changes in AOCL, n
Derivative - Changes in AOCL, net of tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 288,693 | $ 571,742 |
Amounts reclassified from AOCL | 500 | |
Ending balance | 316,514 | 418,971 |
Accumulated Other Comprehensive Loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (3,785) | (435) |
Ending balance | (1,873) | (3,741) |
Interest rate swap agreement | Accumulated Other Comprehensive Loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (3,464) | 0 |
Other comprehensive loss before reclassifications | 1,270 | (2,370) |
Amounts reclassified from AOCL | 468 | |
Other comprehensive loss, net of tax | 1,738 | (2,370) |
Ending balance | $ (1,726) | $ (2,370) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 22, 2018USD ($) | Jun. 07, 2018USD ($)restaurant |
Commitments and Contingencies | ||
Number of restaurants receiving janitorial services | restaurant | 8 | |
Wage citation | $ 4.2 | |
Internal Revenue Service | ||
Commitments and Contingencies | ||
Tax disallowance | $ 8 |
Stockholders' Equity and Seri_2
Stockholders' Equity and Series A Convertible Preferred Stock (Details) $ / shares in Units, $ in Thousands | Mar. 30, 2021USD ($)$ / sharesshares | Apr. 20, 2020USD ($)$ / sharesshares | Mar. 30, 2021USD ($)directoritem$ / sharesshares | Mar. 31, 2020USD ($)$ / shares | Dec. 29, 2020USD ($)shares |
Stockholders Equity | |||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 0.36 | ||||
Cash dividend declared Series A preferred stock, per share | $ / shares | $ 25.35 | ||||
Repurchased shares since program inception | shares | 53,101,293 | 53,101,293 | 53,026,409 | ||
Value of shares repurchased since program inception | $ 1,700,700 | $ 1,700,700 | $ 1,696,743 | ||
Treasury stock repurchased during period | 3,957 | $ 2,586 | |||
Cash dividends | 5,070 | ||||
Retained Earnings (Accumulated Deficit) | 1,114,047 | $ 1,114,047 | $ 1,110,087 | ||
Minimum beneficial ownership for right to designate one member to board of directors (as a percent) | 25.00% | ||||
Right to designate number of member to board of directors | director | 1 | ||||
Minimum percentage of outstanding common stock for holders to have right to nominate one person for election to our board of directors | 5.00% | ||||
Right to nominate number of person for election to our board of director | director | 1 | ||||
Cumulative effect of adopting ASU 2020-06 | |||||
Stockholders Equity | |||||
Retained Earnings (Accumulated Deficit) | $ 4,800 | $ 4,800 | |||
Treasury Stock | |||||
Stockholders Equity | |||||
Number of shares authorized to be repurchased | shares | 56,000,000 | 56,000,000 | |||
Repurchased shares since program inception | shares | 53,100,000 | 53,100,000 | |||
Value of shares repurchased since program inception | $ 1,700,700 | $ 1,700,700 | |||
Shares repurchased during period | shares | 100,000 | ||||
Treasury stock repurchased during period | $ 4,000 | ||||
Series A Convertible Preferred stock | |||||
Stockholders Equity | |||||
Cash dividend declared Series A preferred stock, per share | $ / shares | $ 25.35 | ||||
Price per share (in dollars per share) | $ / shares | $ 0.1 | $ 0.01 | $ 0.1 | ||
Cash dividends | $ 5,100 | ||||
Series A Convertible Preferred Stock | |||||
Stockholders Equity | |||||
Cash dividend declared Series A preferred stock, per share | $ / shares | 25.35 | ||||
Number of shares issued (in shares) | shares | 200,000,000 | ||||
Value of shares issued | $ 200,000 | ||||
Price per share (in dollars per share) | $ / shares | $ 1,000 | ||||
Preferred stock direct costs | $ 10,300 | ||||
Liquidation Preference (in dollars per share) | $ / shares | $ 1,067.42 | $ 1,067.42 | |||
Dividend rate (as a percent) | 9.50% | ||||
Cash dividends | $ 5,100 | ||||
Conversion price (in dollars per share) | $ / shares | $ 22.23 | ||||
Number of common shares that would be required to be issued upon conversion | shares | 9,600,000 | ||||
Beneficial ownership (as a percent) | 19.90% | ||||
Threshold trading days for conversion of preferred stock | item | 20 | ||||
Preferred Stock, Convertible, Threshold Consecutive Trading Days | item | 30 | ||||
Preferred Stock, Convertible, Closing Price Of Common Stock, Percent | 200.00% | ||||
Percentage of outstanding common stock in to which the preferred stock is convertible | 17.10% | 17.10% | |||
Series A Convertible Preferred Stock | April 21, 2025 and April 19, 2026 | |||||
Stockholders Equity | |||||
Redemption rate (as a percent) | 120.00% | ||||
Series A Convertible Preferred Stock | At any time beginning on April 20, 2026 | |||||
Stockholders Equity | |||||
Redemption rate (as a percent) | 100.00% |
Stock-Based Compensation - Net
Stock-Based Compensation - Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | |
Stock-Based Compensation | ||
Total stock-based compensation | $ 5,444 | $ 5,507 |
Income tax benefit | 1,337 | 1,353 |
Total stock-based compensation, net of taxes | 4,107 | 4,154 |
Capitalized stock-based compensation | 39 | 40 |
Labor expenses | ||
Stock-Based Compensation | ||
Total stock-based compensation | 2,043 | 1,966 |
Other operating costs and expenses | ||
Stock-Based Compensation | ||
Total stock-based compensation | 74 | 70 |
General and administrative expenses | ||
Stock-Based Compensation | ||
Total stock-based compensation | $ 3,327 | $ 3,471 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Fair Value (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | Dec. 29, 2020 | |
Stock Options | |||
Stock-Based Compensation | |||
Weighted-average fair value at the grant date for options issued (in dollars per share) | $ 6.66 | ||
Weighted average assumptions under Black-Scholes valuation model | |||
Expected option term | 6 years 10 months 24 days | ||
Expected stock price volatility (as a percent) | 25.70% | ||
Risk-free interest rate (as a percent) | 1.50% | ||
Dividend yield (as a percent) | 3.60% | ||
Stock option activity, Shares | |||
Outstanding at beginning of year (in shares) | 2,294 | ||
Exercised (in shares) | (484) | ||
Outstanding at end of the period (in shares) | 1,810 | 2,294 | |
Exercisable at end of the period (in shares) | 953 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of year (in dollars per share) | $ 45.35 | ||
Exercised (in dollars per share) | 42.18 | ||
Outstanding at end of the period (in dollars per share) | 46.20 | $ 45.35 | |
Exercisable at end of the period (in dollars per share) | $ 48.80 | ||
Weighted Average Remaining Contractual Term (In years) | |||
Weighted Average Remaining Contractual Term (In years) | 5 years 8 months 12 days | 5 years | |
Exercisable at end of the period (In years) | 4 years 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Outstanding at beginning of year | $ 307 | ||
Outstanding at end of the period | 6,914 | $ 307 | |
Exercisable at end of the period | $ 6,473 | ||
Shares issued during the period | 0 | ||
Total intrinsic value of options exercised | $ 5,700 | $ 35,600 | |
Unrecognized Stock-based Compensation Expense | |||
Total unrecognized stock-based compensation expenses related to unvested stock options, restricted shares and restricted share units | $ 6,500 | ||
Expected weighted average period for recognition of compensation expense related to unvested stock option | 3 years 2 months 12 days | ||
Restricted Shares and Restricted Share Units | |||
Restricted Shares and Restricted Share Units, Shares | |||
Outstanding at beginning of year (in shares) | 2,008 | ||
Granted (in shares) | 385 | ||
Vested (in shares) | (199) | ||
Forfeited (in shares) | (92) | ||
Outstanding at end of the period (in shares) | 2,102 | 2,008 | |
Fair value of shares vested | $ 9,500 | ||
Weighted Average Fair Value | |||
Outstanding at beginning of year (in dollars per share) | $ 43.70 | ||
Granted (in dollars per share) | 48.38 | $ 40.01 | |
Vested (in dollars per share) | 47.93 | ||
Forfeited (in dollars per share) | 45.34 | ||
Outstanding at end of the period (in dollars per share) | $ 44.08 | $ 43.70 | |
Unrecognized Stock-based Compensation Expense | |||
Total unrecognized stock-based compensation expenses related to unvested stock options, restricted shares and restricted share units | $ 46,500 | ||
Expected weighted average period for recognition of compensation expense related to unvested stock option | 3 years 2 months 12 days |
Net (Loss)_Income Per Share (De
Net (Loss)/Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2021 | Mar. 31, 2020 | |
Basic net income/(loss) per common share: | ||
Net income/(loss) | $ 3,868 | $ (136,163) |
Dividends on Series A preferred stock | (5,070) | 0 |
Net loss available to common stockholders | $ (1,202) | $ (136,163) |
Basic weighted-average shares outstanding | 44,189 | 43,773 |
Basic net loss per common share (in dollars per share) | $ (0.03) | $ (3.11) |
Earnings Per Share, Diluted [Abstract] | ||
Net loss available to common stockholders | $ (1,202) | $ (136,163) |
Basic weighted-average shares outstanding | 44,189 | 43,773 |
Diluted weighted-average shares outstanding | 44,189 | 43,773 |
Diluted net loss per common share (in dollars per share) | $ (0.03) | $ (3.11) |
Net (Loss)_Income Per Share - A
Net (Loss)/Income Per Share - Additional Information (Details) - $ / shares shares in Millions | 3 Months Ended | 15 Months Ended | ||
Mar. 30, 2021 | Mar. 31, 2020 | Mar. 30, 2021 | Dec. 29, 2020 | |
Net income per share, basic and diluted | ||||
Series A convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Restricted Shares and Restricted Share Units | ||||
Net Income Per Share | ||||
Antidilutive securities excluded from calculation of basic earnings per share (in shares) | 2.1 | |||
Common Stock | ||||
Net income per share, basic and diluted | ||||
Dilutive effect of equity awards (in shares) | 1.5 | 3.8 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2021 | Mar. 31, 2020 | Dec. 29, 2020 | |
Segment Information | |||
Revenues | $ 627,417 | $ 615,106 | |
Income/(loss) from operations | 8,844 | (190,058) | |
Depreciation and amortization expenses | 22,006 | 23,562 | |
Impairment of assets and lease termination expenses | 594 | 191,896 | |
Preopening costs | 3,856 | 3,119 | |
Capital expenditures | 7,227 | 15,775 | |
Total assets | 2,735,439 | $ 2,747,054 | |
The Cheesecake Factory | |||
Segment Information | |||
Revenues | 499,389 | 488,471 | |
Income/(loss) from operations | 44,481 | 39,324 | |
Depreciation and amortization expenses | 16,320 | 17,277 | |
Impairment of assets and lease termination expenses | 616 | ||
Preopening costs | 2,063 | 1,414 | |
Capital expenditures | 4,080 | 8,598 | |
Total assets | 1,622,997 | 1,671,733 | |
North Italia | |||
Segment Information | |||
Revenues | 32,823 | 30,512 | |
Income/(loss) from operations | 332 | (72,086) | |
Depreciation and amortization expenses | 844 | 965 | |
Impairment of assets and lease termination expenses | 71,524 | ||
Preopening costs | 1,217 | 953 | |
Capital expenditures | 1,212 | 2,964 | |
Total assets | 244,345 | 270,218 | |
Other FRC | |||
Segment Information | |||
Revenues | 36,194 | 35,583 | |
Income/(loss) from operations | 3,880 | (69,964) | |
Depreciation and amortization expenses | 1,177 | 1,201 | |
Impairment of assets and lease termination expenses | 72,939 | ||
Preopening costs | 463 | (159) | |
Capital expenditures | 719 | 1,104 | |
Total assets | 285,108 | 308,866 | |
Other | |||
Segment Information | |||
Revenues | 59,011 | 60,540 | |
Income/(loss) from operations | (39,849) | (87,332) | |
Depreciation and amortization expenses | 3,665 | 4,119 | |
Impairment of assets and lease termination expenses | 594 | 46,817 | |
Preopening costs | 113 | 911 | |
Capital expenditures | 1,216 | $ 3,109 | |
Total assets | $ 582,989 | $ 496,237 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2021 | Mar. 30, 2021 | Mar. 30, 2021 | Mar. 31, 2020 |
Subsequent Events | ||||
Cash dividend declared Series A preferred stock, $25.35 per share | $ 5,070 | |||
Cash dividend declared, per share | $ 25.35 | |||
Cash dividend paid | $ 2,179 | $ 15,791 | ||
Series A Convertible Preferred stock | ||||
Subsequent Events | ||||
Cash dividend declared Series A preferred stock, $25.35 per share | $ 5,100 | |||
Cash dividend declared, per share | $ 25.35 | |||
Subsequent Events | Series A Convertible Preferred stock | ||||
Subsequent Events | ||||
Cash dividend paid | $ 5,070,265 | |||
Cash dividend paid, per share | $ 25.35 |