UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction | (I.R.S. Employer | |
of incorporation or organization) | Identification No.) |
(Address of principal executive offices) | (Zip Code) |
(
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of Each Class |
| Trading Symbol |
| Name of Each Exchange on which Registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒ |
| Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | ||
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of October 24, 2022,
THE CHEESECAKE FACTORY INCORPORATED
INDEX
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements.
THE CHEESECAKE FACTORY INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
September 27, | December 28, | |||||
| 2022 |
| 2021 | |||
(Unaudited) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | | $ | | ||
Accounts and other receivables | | | ||||
Income taxes receivable |
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Inventories |
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Prepaid expenses |
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Total current assets |
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Property and equipment, net |
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Other assets: | ||||||
Intangible assets, net |
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Operating lease assets |
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Other | | | ||||
Total other assets | | | ||||
Total assets | $ | | $ | | ||
LIABILITIES, SERIES A CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | | $ | | ||
Gift card liabilities |
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Operating lease liabilities | | | ||||
Other accrued expenses | | | ||||
Total current liabilities | | | ||||
Long-term debt |
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Operating lease liabilities |
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Other noncurrent liabilities | | | ||||
Commitments and contingencies (Note 8) | ||||||
Series A convertible preferred stock, $ |
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Stockholders’ equity: | ||||||
Preferred stock, $ | ||||||
Common stock, $ | | | ||||
Additional paid-in capital |
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Retained earnings |
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Treasury stock, |
| ( |
| ( | ||
Accumulated other comprehensive loss |
| ( |
| ( | ||
Total stockholders’ equity |
| |
| | ||
Total liabilities, Series A convertible preferred stock and stockholders’ equity | $ | | $ | |
See the accompanying notes to the condensed consolidated financial statements
1
THE CHEESECAKE FACTORY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS)/INCOME
(In thousands, except per share data)
(Unaudited)
Thirteen | Thirteen | Thirty-Nine | Thirty-Nine | |||||||||
| Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | ||||||||
September 27, 2022 |
| September 28, 2021 |
| September 27, 2022 |
| September 28, 2021 | ||||||
Revenues | $ | | $ | | $ | | $ | | ||||
Costs and expenses: | ||||||||||||
Cost of sales |
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Labor expenses |
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Other operating costs and expenses |
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General and administrative expenses |
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Depreciation and amortization expenses |
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Impairment of assets and lease termination expenses | — | — | | | ||||||||
Acquisition-related contingent consideration, compensation and amortization expenses | | | | | ||||||||
Preopening costs |
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Total costs and expenses |
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(Loss)/income from operations |
| ( |
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Interest and other expense, net |
| ( |
| ( |
| ( |
| ( | ||||
(Loss)/income before income taxes |
| ( |
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Income tax (benefit)/provision |
| ( |
| ( |
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Net (loss)/income | ( | | | | ||||||||
Dividends on Series A preferred stock |
| — |
| — |
| — |
| ( | ||||
Undistributed earnings allocated to Series A preferred stock |
| — |
| — |
| — |
| ( | ||||
Net (loss)/income available to common stockholders | $ | ( | $ | | $ | | $ | | ||||
Net (loss)/income per common share: | ||||||||||||
Basic | $ | ( | $ | | $ | | $ | | ||||
Diluted (Note 11) | $ | ( | $ | | $ | | $ | | ||||
Weighted-average common shares outstanding: | ||||||||||||
Basic |
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Diluted |
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| |
See the accompanying notes to the condensed consolidated financial statements.
2
THE CHEESECAKE FACTORY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
(In thousands)
(Unaudited)
Thirteen | Thirteen | Thirty-Nine | Thirty-Nine | |||||||||
| Weeks Ended |
| Weeks Ended |
| Weeks Ended |
| Weeks Ended | |||||
September 27, 2022 | September 28, 2021 | September 27, 2022 | September 28, 2021 | |||||||||
Net (loss)/income | $ | ( | $ | | $ | | $ | | ||||
Other comprehensive (loss)/gain: |
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|
|
| ||||||||
Foreign currency translation adjustment |
| ( |
| ( |
| ( |
| | ||||
Unrealized gain on derivative, net of tax | — | — | — | | ||||||||
Other comprehensive (loss)/gain |
| ( |
| ( |
| ( |
| | ||||
Total comprehensive (loss)/income | ( | | | | ||||||||
Comprehensive income attributable to Series A preferred stockholders | — | — | — | ( | ||||||||
Total comprehensive (loss)/income available to common stockholders | $ | ( | $ | | $ | | $ | |
See the accompanying notes to the condensed consolidated financial statements
3
THE CHEESECAKE FACTORY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND SERIES A CONVERTIBLE PREFERRED STOCK
(In thousands)
(Unaudited)
For the thirty-nine weeks ended September 27, 2022:
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| Accumulated |
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Series A Convertible | Additional | Other | ||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-in | Retained | Treasury | Comprehensive | |||||||||||||||||||||
| Shares |
| Amount |
|
| Shares |
| Amount |
| Capital |
| Earnings |
| Stock |
| Loss |
| Total | ||||||||
Balance, December 28, 2021 | | $ | | | $ | | $ | | $ | | $ | ( | $ | ( | $ | | ||||||||||
Net income | | | | | | | | | | |||||||||||||||||
Foreign currency translation adjustment | | | | | | | | | | |||||||||||||||||
Cash dividends declared common stock, net of forfeitures | | | | | | | | | | |||||||||||||||||
Stock-based compensation | | | | | | | | | | |||||||||||||||||
Common stock issued under stock-based compensation plans | | | | | | | | | | |||||||||||||||||
Treasury stock purchases | | | | | | | ( | | ( | |||||||||||||||||
Balance, March 29, 2022 | | $ | | | $ | | $ | | $ | | $ | ( | $ | ( | $ | | ||||||||||
Net income | | | | | | | | | | |||||||||||||||||
Foreign currency translation adjustment | | | | | | | | ( | ( | |||||||||||||||||
Cash dividends declared common stock, net of forfeitures, $ | | | | | | ( | | | ( | |||||||||||||||||
Stock-based compensation | | | ( | | | | | | | |||||||||||||||||
Common stock issued under stock-based compensation plans | | | | | | | | | | |||||||||||||||||
Treasury stock purchases | | | | | | | ( | | ( | |||||||||||||||||
Balance, June 28, 2022 | | $ | | | $ | | $ | | $ | | $ | ( | $ | ( | $ | | ||||||||||
Net loss | | | | | | ( | | | ( | |||||||||||||||||
Foreign currency translation adjustment | | | | | | | | ( | ( | |||||||||||||||||
Cash dividends declared common stock, net of forfeitures, $ | | | | | | ( | | | ( | |||||||||||||||||
Stock-based compensation | | | | | | | | | ||||||||||||||||||
Common stock issued under stock-based compensation plans | | | | | | | | | | |||||||||||||||||
Treasury stock purchases | | | | | | | ( | ( | ||||||||||||||||||
Balance, September 27, 2022 |
| | $ | | | $ | | $ | | $ | | $ | ( | $ | ( | $ | |
4
For the thirty-nine weeks ended September 28, 2021:
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| Accumulated |
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Series A Convertible | Additional | Other | ||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-in | Retained | Treasury | Comprehensive | |||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Stock | Loss | Total | ||||||||||||||||||
Balance, December 29, 2020 | | $ | | $ | | $ | | $ | | $ | ( | $ | ( | $ | | |||||||||||
Cumulative effect of adopting ASU 2020-06 | | ( | | | | | | | | |||||||||||||||||
Balance, December 29, 2020, as adjusted | | | | | | | ( | ( | | |||||||||||||||||
Net income | | | | | | | | | | |||||||||||||||||
Foreign currency translation adjustment | | | | | | | | | | |||||||||||||||||
Change in derivative, net of tax | | | | | | | | | | |||||||||||||||||
Cash dividends declared common stock, net of forfeitures | | | | | | | | | | |||||||||||||||||
Stock-based compensation | | | | | | | | | | |||||||||||||||||
Common stock issued under stock-based compensation plans | | | | | | | | | | |||||||||||||||||
Treasury stock purchases | | | | | | | ( | | ( | |||||||||||||||||
Cash dividends declared Series A preferred stock, $ | | | | | | ( | | | ( | |||||||||||||||||
Balance, March 30, 2021 | | $ | | $ | | $ | | $ | | $ | ( | $ | ( | $ | | |||||||||||
Net income | | | | | | | | | | |||||||||||||||||
Foreign currency translation adjustment | | | | | | | | | | |||||||||||||||||
Change in derivative, net of tax | | | | | | | | | | |||||||||||||||||
Cash dividends declared common stock, net of forfeitures | | | | | | | | | | |||||||||||||||||
Stock-based compensation | | | | | | | | | | |||||||||||||||||
Common stock issued under stock-based compensation plans | | | | | | | | | | |||||||||||||||||
Common stock issuance | | | | | | | | | | |||||||||||||||||
Treasury stock purchases | | | | | | | ( | | ( | |||||||||||||||||
Series A preferred stock cash-settled conversion | ( | ( | | | ( | | | | ( | |||||||||||||||||
Series A preferred stock conversion to common stock | ( | ( | | | | | | | | |||||||||||||||||
Deemed dividends on Series A preferred stock | | | | | | ( | | | ( | |||||||||||||||||
Balance, June 29, 2021 | | $ | | | $ | | $ | | $ | | $ | ( | $ | | $ | | ||||||||||
Net income | | | | | | | | | | |||||||||||||||||
Foreign currency translation adjustment | | |