CHEESECAKE FACTORY INC, 10-K filed on 2/26/2024
Annual Report
v3.24.0.1
Documents and Entity Information - USD ($)
 12 Months Ended
Jan. 02, 2024
Feb. 20, 2024
Jul. 04, 2023
Document and Entity Information      
Document Type 10-K    
Document Period End Date Jan. 02, 2024    
Document Annual Report true    
Document Transition Report false    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 1,654,084,907
Entity Common Stock, Shares Outstanding   51,115,061  
Entity Central Index Key 0000887596    
Current Fiscal Year End Date --01-02    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
Auditor Name KPMG LLP    
Auditor Firm ID 185    
Auditor Location California    
v3.24.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jan. 02, 2024
Jan. 03, 2023
Current assets:    
Cash and cash equivalents $ 56,290 $ 114,777
Accounts and other receivables 103,094 105,511
Income taxes receivable 20,670 21,522
Inventories 57,654 55,559
Prepaid expenses 63,090 48,399
Total current assets 300,798 345,768
Property and equipment, net 791,093 746,051
Other assets:    
Intangible assets, net 251,727 251,524
Operating lease assets 1,302,150 1,268,986
Other 194,615 162,891
Total other assets 1,748,492 1,683,401
Total assets 2,840,383 2,775,220
Current liabilities:    
Accounts payable 63,152 66,638
Gift card liabilities 222,915 219,808
Operating lease liabilities 134,905 139,099
Other accrued expenses 239,699 231,133
Total current liabilities 660,671 656,678
Long-term debt 470,047 468,032
Operating lease liabilities 1,254,955 1,233,497
Other noncurrent liabilities 136,648 125,010
Total liabilities 2,522,321 2,483,217
Commitments and contingencies (Note 13)
Stockholders' equity:    
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued and outstanding
Common stock, $.01 par value, 250,000,000 shares authorized; 107,195,287 shares issued and 50,652,129 shares outstanding at January 2, 2024 and 106,323,117 shares issued and 51,173,597 shares outstanding at January 3, 2023 1,072 1,063
Additional paid-in capital 913,442 887,485
Retained earnings 1,216,239 1,170,078
Treasury stock inclusive of excise tax, 56,543,158 and 55,149,520 shares at cost at January 2, 2024 and January 3, 2023, respectively (1,811,997) (1,765,641)
Accumulated other comprehensive loss (694) (982)
Total stockholders' equity 318,062 292,003
Total liabilities, Series A convertible preferred stock and stockholders' equity $ 2,840,383 $ 2,775,220
v3.24.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jan. 02, 2024
Jan. 03, 2023
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) 0 0
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 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 107,195,287 106,323,117
Common stock, shares outstanding 50,652,129 51,173,597
Treasury stock, shares 56,543,158 55,149,520
v3.24.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
CONSOLIDATED STATEMENTS OF INCOME      
Revenues $ 3,439,503 $ 3,303,156 $ 2,927,540
Costs and expenses:      
Food and beverage costs 803,500 810,926 653,133
Labor expenses 1,227,895 1,211,951 1,072,628
Other operating costs and expenses 922,428 881,627 792,311
General and administrative expenses 217,449 205,753 186,136
Depreciation and amortization expenses 93,136 92,380 89,654
Impairment of assets and lease termination expenses 29,464 31,387 18,139
Acquisition-related contingent consideration, compensation and amortization expenses 11,686 13,368 19,510
Preopening costs 25,379 16,829 13,711
Total costs and expenses 3,330,937 3,264,221 2,845,222
Income from operations 108,566 38,935 82,318
Interest and other expense, net (8,552) (6,043) (10,698)
Income before income taxes 100,014 32,892 71,620
Income tax benefit (1,337) (10,231) (753)
Net income 101,351 43,123 72,373
Dividends on Series A preferred stock     (18,661)
Undistributed earnings allocated to Series A preferred stock     (4,581)
Net income available to common stockholders $ 101,351 $ 43,123 $ 49,131
Net income per common share:      
Basic $ 2.10 $ 0.87 $ 1.03
Diluted (Note 1) $ 2.07 $ 0.86 $ 1.01
Weighted-average common shares outstanding:      
Basic 48,324 49,815 47,529
Diluted 49,050 50,414 48,510
v3.24.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME      
Net Income (Loss) $ 101,351 $ 43,123 $ 72,373
Other comprehensive gain/(loss):      
Foreign currency translation adjustment 288 (695) 34
Unrealized gain on derivative, net of tax     3,464
Other comprehensive gain/(loss) 288 (695) 3,498
Total comprehensive income 101,639 42,428 75,871
Comprehensive income attributable to Series A preferred stockholders     (23,540)
Total comprehensive income available to common stockholders $ 101,639 $ 42,428 $ 52,331
v3.24.0.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND SERIES A CONVERTIBLE PREFERRED STOCK - USD ($)
shares in Thousands, $ in Thousands
Preferred stock
Cumulative Effect, Period of Adoption, Adjustment [Member]
Convertible Preferred Stock [Member]
Preferred stock
Cumulative effect of adopting ASU 2020-06, adjusted balance
Convertible Preferred Stock [Member]
Preferred stock
Convertible Preferred Stock [Member]
Common Stock
Cumulative effect of adopting ASU 2020-06, adjusted balance
Common Stock
Additional Paid-in Capital
Cumulative effect of adopting ASU 2020-06, adjusted balance
Additional Paid-in Capital
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings
Cumulative effect of adopting ASU 2020-06, adjusted balance
Retained Earnings
Treasury Stock
Cumulative effect of adopting ASU 2020-06, adjusted balance
Treasury Stock
Accumulated Other Comprehensive Loss
Cumulative effect of adopting ASU 2020-06, adjusted balance
Accumulated Other Comprehensive Loss
Cumulative Effect, Period of Adoption, Adjustment [Member]
Cumulative effect of adopting ASU 2020-06, adjusted balance
Total
Beginning balance at Dec. 29, 2020 $ (4,763) $ 213,485 $ 218,248 $ 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 $ 293,456 $ 288,693
Beginning balance (in shares) at Dec. 29, 2020   200 200 98,645 98,645                        
Increase (Decrease) in Stockholders' Equity                                  
Net income                   72,373             72,373
Foreign currency translation adjustment                           34     34
Change in derivative, net of tax                           3,464     3,464
Cash dividends declared common stock, net of forfeitures, $1.08 per share                   588             588
Stock-based compensation         $ 8   24,778                   24,786
Stock-based compensation (in shares)         759                        
Common stock issued under stock-based compensation plans         $ 5   23,177                   23,182
Common stock issued under stock-based compensation plans (in shares)         436                        
Common stock issuance         $ 31   167,019                   167,050
Common stock issuance (in shares)         3,125                        
Treasury stock purchases                       (5,766)         (5,766)
Series A preferred stock cash-settled conversion     $ (160,114)       (283,637)                   (283,637)
Series A preferred stock cash-settled conversion (in shares)     150                            
Series A preferred stock conversion to common stock     $ (53,371)   $ 24   53,273                   53,297
Series A preferred stock conversion to common stock (in shares)     (50)   2,401                        
Deemed dividends on Series A preferred stock                   (13,591)             (13,591)
Cash dividends declared Series A preferred stock, $25.35 per share                   (5,070)             (5,070)
Ending balance at Dec. 28, 2021         $ 1,054   862,758     1,169,150   (1,702,509)   (287)     330,166
Ending balance (in shares) at Dec. 28, 2021         105,366                        
Increase (Decrease) in Stockholders' Equity                                  
Net income                   43,123             43,123
Foreign currency translation adjustment                           (695)     (695)
Cash dividends declared common stock, net of forfeitures, $1.08 per share                   (42,195)             (42,195)
Stock-based compensation         $ 8   24,644                   24,652
Stock-based compensation (in shares)         788                        
Common stock issued under stock-based compensation plans         $ 1   83                   84
Common stock issued under stock-based compensation plans (in shares)         169                        
Treasury stock purchases                       (63,132)         (63,132)
Ending balance at Jan. 03, 2023         $ 1,063   887,485     1,170,078   (1,765,641)   (982)     292,003
Ending balance (in shares) at Jan. 03, 2023         106,323                        
Increase (Decrease) in Stockholders' Equity                                  
Net income                   101,351             101,351
Foreign currency translation adjustment                           288     288
Cash dividends declared common stock, net of forfeitures, $1.08 per share                   (55,190)             (55,190)
Stock-based compensation         $ 9   25,957                   25,966
Stock-based compensation (in shares)         872                        
Treasury stock purchases                       (46,356)         (46,356)
Ending balance at Jan. 02, 2024         $ 1,072   $ 913,442     $ 1,216,239   $ (1,811,997)   $ (694)     $ 318,062
Ending balance (in shares) at Jan. 02, 2024         107,195                        
v3.24.0.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND SERIES A CONVERTIBLE PREFERRED STOCK (Parenthetical) - $ / shares
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Increase (Decrease) in Temporary Equity [Roll Forward]      
Cash dividends declared Series A preferred stock $ 25.35
Cash dividends declared common stock, net of forfeitures $ 1.08 $ 0.81
v3.24.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Cash flows from operating activities:      
Net income $ 101,351 $ 43,123 $ 72,373
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization expenses 93,136 92,380 89,654
Impairment of assets and lease termination expenses 26,998 31,327 17,937
Deferred income taxes (15,715) (18,646) (20,849)
Stock-based compensation 25,781 24,426 22,988
Changes in assets and liabilities:      
Accounts and other receivables (98) (12,266) (24,816)
Income taxes receivable/payable 852 14,651 715
Inventories (2,092) (12,725) (3,478)
Prepaid expenses (14,694) (11,960) (1,137)
Operating lease assets/liabilities (27,113) (18,404) (4,106)
Other assets (14,504) 13,739 (9,227)
Accounts payable 3,971 17,586 (3,678)
Gift card liabilities 3,104 8,634 26,527
Other accrued expenses 37,424 (9,939) 50,103
Cash provided by operating activities 218,401 161,926 213,006
Cash flows from investing activities:      
Additions to property and equipment (151,565) (112,464) (66,943)
Additions to intangible assets (1,658) (680) (606)
Other (274) 329 (1,061)
Cash used in investing activities (153,497) (112,815) (68,610)
Cash flows from financing activities:      
Acquisition-related deferred consideration and compensation (24,243) (18,316) (17,000)
Borrowings on credit facility 15,000 130,000  
Repayments on credit facility (15,000) (130,000) (150,000)
Convertible debt issuance     345,000
Convertible debt direct and incremental costs     (10,074)
Series A preferred stock cash-settled conversion     (443,751)
Series A preferred stock conversion direct and incremental costs     (74)
Series A preferred stock dividend paid     (18,661)
Common stock issuance     175,000
Common stock issuance direct and incremental costs     (7,950)
Proceeds from exercise of stock options   84 24,786
Common stock dividends paid (53,207) (42,272) (337)
Treasury stock purchases (46,085) (63,132) (5,766)
Cash used in financing activities (123,535) (123,636) (108,827)
Foreign currency translation adjustment 144 (325) (27)
Net change in cash and cash equivalents (58,487) (74,850) 35,542
Cash and cash equivalents at beginning of period 114,777 189,627 154,085
Cash and cash equivalents at end of period 56,290 114,777 189,627
Supplemental disclosures:      
Interest paid 9,764 7,233 9,586
Income taxes paid 14,473 14,688 13,031
Construction payable $ 16,815 $ 9,346 $ 4,343
v3.24.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Jan. 02, 2024
Summary of Significant Accounting Policies  
Summary of Significant Accounting Policies

1.    Summary of Significant Accounting Policies

Description of Business

The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. We currently own and operate 334 restaurants throughout the United States and Canada under brands including The Cheesecake Factory® (216 locations), North Italia® (37 locations), Flower Child® (32 locations) and a collection within our Fox Restaurant Concepts (“FRC”) portfolio (41 locations). Internationally, 33 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers.

Basis of Presentation

The accompanying 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.

We utilize a 52/53-week fiscal year ending on the Tuesday closest to December 31 for financial reporting purposes. Fiscal years 2023 and 2021 each consisted of 52 weeks. Fiscal year 2022 consisted of 53 weeks. Fiscal year 2024 will consist of 52 weeks.

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.

Geopolitical and Other Macroeconomic Impacts to our Operating Environment

During fiscal 2021 and 2022, the COVID - 19 pandemic continued to affect our business during periods of accelerated case counts in which we experienced increased restaurant staff absenteeism and temporary shifts in consumer behavior, such as changes in customer traffic or the mix between on-premise and off-premise channels. Along with the COVID-19 pandemic, our operating results were impacted by geopolitical and macroeconomic events, causing supply chain challenges and significantly increased commodity and wage inflation. Some of these factors continued to impact our operating results in fiscal 2023, contributing to significantly increased commodity and other costs. We also encountered delays in opening new restaurants primarily due to delays in permitting and landlord readiness, as well as supply chain challenges.

The ongoing impact of geopolitical and macroeconomic events could lead to further shifts in consumer behavior, wage inflation, staffing challenges, product and services cost inflation, disruptions in the supply chain and delay in new restaurant openings. Any of these factors may have an adverse impact on our business and materially adversely affect our financial performance.

Cash and Cash Equivalents

Amounts receivable from credit card processors, totaling $21.0 million and $19.1 million at January 2, 2024 and January 3, 2023, respectively, are considered cash equivalents because they are both short-term and highly liquid in nature and are typically converted to cash within three days of the sales transaction. Our cash management system provides for the funding of all major bank disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks are in excess of the cash balances at certain banks, which creates book overdrafts. Book overdrafts are presented as a current liability in other accrued expenses on our consolidated balance sheet.

Concentration of Credit Risk

Financial instruments that potentially subject us to a concentration of credit risk are cash and cash equivalents and receivables. We maintain our day-to-day operating cash balances in non-interest-bearing transaction accounts, which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. We invest our excess cash in a money market deposit account, which is insured by the FDIC up to $250,000. Although we maintain balances that exceed the federally insured limit, we have not experienced any losses related to these balances, and we believe credit risk to be minimal.

We consider the concentration of credit risk for accounts receivable from our bakery customers to be minimal due to the payment histories and general financial condition of our larger bakery accounts. Concentration of credit risk related to other receivables is limited as this balance is comprised primarily of amounts due from our gift card distributors, insurance providers and delivery partner.

Inventories

Inventories consist of restaurant food and other supplies, bakery raw materials and bakery finished goods and are stated at the lower of cost or net realizable value on an average cost basis at the restaurants and on a first-in, first-out basis at the bakeries.

Property and Equipment

We record property and equipment at cost less accumulated depreciation. Improvements are capitalized, while repairs and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the reasonably certain lease term, whichever is shorter. Leasehold improvements include the cost of our internal development and construction department. Depreciation periods are as follows:

​

​

​

​

​

Buildings and land improvements

    

30 years

​

Leasehold improvements

​

10 to 30 years

​

Furnishings, fixtures and equipment

​

3 to 15 years

(1)

Computer software and equipment

​

5 years

​

(1)Other than certain types of restaurant equipment with estimated useful lives that equal or exceed the reasonably certain lease term, in which case the reasonably certain lease term is utilized.

Gains and losses related to property and equipment disposals are recorded in depreciation and amortization expenses.

Impairment of Long-Lived Assets and Lease Termination Expenses

We assess the potential impairment of our long-lived assets on an annual basis or whenever events or changes in circumstances indicate the carrying value of the assets or asset group may not be recoverable. Factors considered include, but are not limited to, negative cash flow, significant underperformance relative to historical or projected future operating results, significant changes in the manner in which an asset is being used, an expectation that an asset will be disposed of significantly before the end of its previously estimated useful life and significant negative industry or economic trends. At any given time, we may be monitoring a number of locations, and future impairment charges could be required if individual restaurant performance does not improve or we make the decision to close or relocate a restaurant.

Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Impairment testing is performed at the individual restaurant asset group level, which is inclusive of property and equipment and lease right-of-use assets. Recoverability is assessed by comparing the carrying value of the assets to the undiscounted cash flows expected to be generated by those assets. Impairment losses are measured as the amount by which the carrying values of the assets exceed their fair value, which is determined based on discounted future net cash flows expected to be generated by the assets.

In fiscal 2023, we recorded $29.5 million of expense primarily related to the impairment of long-lived assets for three The Cheesecake Factory (one previously impaired), one North Italia (previously impaired), one Other FRC and two Other restaurant lease terminations. In fiscal 2022, we recorded $31.4 million of expense primarily related to the impairment of long - lived assets for three The Cheesecake Factory, one Other FRC and three Other restaurants. In fiscal 2021, we recorded $16.3 million of expense primarily related to the impairment of long-lived assets for three The Cheesecake Factory and two Other restaurants. These amounts are recorded in impairment of assets and lease terminations on the consolidated statements of income.

Intangible Assets

The following table presents components of intangible assets, net (in thousands):

​

​

​

​

​

​

​

​

​

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

Indefinite-lived intangible assets:

​

​

  

​

​

  

Goodwill

​

$

1,451

​

$

1,451

Trade names and trademarks

​

 

234,341

​

 

234,077

Transferable alcoholic beverage licenses

​

 

7,923

​

 

7,683

Total indefinite-lived intangible assets

​

 

243,715

​

 

243,211

Definite-lived intangible assets, net:

​

 

​

​

 

​

Licensing agreements

​

 

4,602

​

 

5,092

Non-transferable alcoholic beverage licenses

​

 

3,410

​

 

3,221

Total definite-lived intangible assets

​

 

8,012

​

 

8,313

Total intangible assets, net

​

$

251,727

​

$

251,524

​

Goodwill and other indefinite-lived intangible assets are not amortized and are tested for impairment annually as of the first day of our fiscal fourth quarter or on an interim basis if events or changes in circumstances between annual tests indicate a potential impairment. First, we determine if, based on qualitative factors, it is more likely than not that an impairment exists. Factors considered include, but are not limited to, historical financial performance, wage, product and services inflation, competitive environment, macroeconomic and industry conditions, results of prior impairment tests and share price performance. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on our consolidated financial statements. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is performed. The quantitative assessments require the use of estimates and assumptions regarding future cash flows and asset fair values. Key assumptions include projected revenue growth and operating expenses, discount rates, royalty rates, valuation multiples and other factors that could affect fair value or otherwise indicate potential impairment. Such assessments could change materially if different estimates and assumptions were used.

We performed our annual impairment assessment of indefinite-lived intangible assets as of the first day of the fourth quarters of fiscal 2023, 2022 and 2021 and concluded there was no impairment.

Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable based on estimated undiscounted future cash flows. If impaired, the asset or asset group is written down to fair value based on discounted future cash flows. We performed our annual impairment assessment of definite-lived intangible assets as of the first day of the fourth quarters of fiscal 2023, 2022 and 2021. We concluded there was no impairment for fiscal 2023 and 2022 and recorded $1.3 million of impairment expense in fiscal 2021 related to licensing agreements. Amortization expenses related to our definite-lived intangible assets were $0.8 million, $0.7 million and $0.7 million for fiscal 2023, 2022 and 2021, respectively. Definite-lived intangible assets will be amortized over one to 52 years.

We evaluate the useful lives of our intangible assets, other than goodwill, at each reporting period to determine if they are definite or indefinite-lived. A determination on useful life requires judgments and assumptions regarding the future effects of obsolescence, demand, competition, other economic factors (such as the stability of the industry, legislative action that results in an uncertain or changing regulatory environment and expected changes in distribution channels), the level of required maintenance expenditures and the expected lives of other related groups of assets.

Revenue Recognition

Our revenues consist of sales at our Company-owned restaurants, sales from our bakery operations to our licensees and other third-party customers, royalties from our licensees’ restaurant sales and from consumer packaged goods sales, and licensee development and site fees. Revenues are presented net of sales taxes. Sales tax collected is included in other accrued expenses until the taxes are remitted to the appropriate taxing authorities.

Revenues from restaurant sales are recognized when payment is tendered at the point of sale. Revenues from bakery sales are recognized upon transfer of title and risk to customers. Royalty revenues are recognized in the period the related sales occur, utilizing the sale-based royalty exception available under current accounting guidance. Our consumer packaged goods minimum guarantees do not require distinct performance obligations. Therefore, related revenue is recognized on a straight-line basis over the life of the applicable agreements, ranging from five to seven years. As our development and site fee agreements do not contain distinct performance obligations, related revenue is recognized on a straight-line basis over the life of the applicable agreements, ranging from eight to 30 years. Deferred and recognized revenue for new minimum guarantees for consumer packaged goods and for new site and development agreements were immaterial in all periods presented.

We recognize a liability upon the sale of our gift cards and recognize revenue when these gift cards are redeemed in our restaurants. Based on our historical redemption patterns, we can reasonably estimate the amount of gift cards for which redemption is remote, which is referred to as “breakage.” Breakage is recognized over a three-year period in proportion to historical redemption trends and is classified as revenues in our consolidated statements of income. We recognized $7.3 million, $7.0 million and $6.8 million of gift card breakage in fiscal years 2023, 2022 and 2021, respectively. Incremental direct costs related to gift card sales, including commissions and credit card fees, are deferred and recognized in earnings in the same pattern as the related gift card revenue.

Certain of our promotional programs include multiple element arrangements that incorporate various performance obligations. We allocate revenue using the relative selling price of each performance obligation considering the likelihood of redemption and recognize revenue upon satisfaction of each performance obligation. During fiscal 2023, we deferred and recognized previously deferred revenue of $27.5 million and $23.3 million, respectively, related to promotional programs. During fiscal 2022, we deferred and recognized previously deferred revenue of $27.3 million and $23.6 million, respectively, related to promotional programs. During fiscal 2021, we deferred and recognized previously deferred revenue of $27.5 million and $15.2 million, respectively, related to promotional programs.

Leases

We currently lease all of our restaurant locations, generally with initial terms of 10 to 20 years plus two five-year renewal options. Our leases typically require contingent rent above the minimum base rent payments based on a percentage of revenues ranging from 2% to 10%, have escalating minimum rent requirements over the term of the lease and require payment for various expenses incidental to the use of the property. A majority of our leases provide for a reduced level of overall rent obligation if specified co-tenancy requirements are not satisfied. We expend cash for leasehold improvements and furniture, fixtures, and equipment to build out and equip our leased premises. We may also expend cash for structural additions that we make to leased premises. Generally, a portion of the leasehold improvements and building costs are reimbursed to us by our landlords as construction contributions. If obtained, landlord construction contributions usually take the form of up-front cash, full or partial credits against our future minimum or percentage rents, or a combination thereof. We do not meet any of the accounting criteria under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 842, Leases, for being the owner of the asset under construction. Many of our leases provide early termination rights permitting us to terminate the lease prior to expiration in the event our revenues are below a stated level for a period of time, generally conditioned upon repayment of the unamortized landlord contributions.

In addition to leases for our restaurant locations, we also lease automobiles and certain equipment that is used in the restaurants, bakeries and corporate office. The leases for our restaurant locations, automobiles and certain restaurant equipment are included in our operating lease assets and liabilities. All other leases are immaterial or qualify for the short-term lease exclusion.

The assessment of whether a contract is or contains a lease is performed at contract inception. A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control is defined as having both the right to obtain substantially all the economic benefits from the use of the asset and to direct how and for what purpose the asset is used.

At lease commencement, we evaluate each material lease and those that don’t qualify for the short-term exclusion to determine its appropriate classification as an operating or finance lease. All of the leases evaluated meet the criteria for classification as operating leases. For restaurant leases that existed as of the adoption of ASC 842, we continued to apply our historical practice of excluding executory costs, and only minimum base rent was factored into the initial operating lease liability and corresponding lease asset. For restaurant leases beginning after adoption of ASC 842, we have elected the single lease component practical expedient. Operating lease assets and liabilities are recorded on the balance sheet at lease commencement based on the present value of minimum base rent and other fixed payments over the reasonably certain lease term. The difference between the amounts we expend for structural costs and the construction contributions received from our landlords is recorded as an adjustment to the operating lease asset. Lease terms include the build-out period for our leases where no rent payments are typically due under the terms of the lease, as well as options to renew when we deem we have significant economic incentive to exercise the extension. When determining if we have a significant economic incentive, we consider relevant factors, such as contractual, asset, entity and market-based considerations. Option periods are included in the lease term for the majority of our leases. Termination rights have not been factored into the lease terms since based on our probability assessment we are reasonably certain we will not terminate our leases.

We cannot determine the interest rate implicit in our leases because we do not have access to the lessor’s estimated residual value or the amount of the lessor’s deferred initial direct costs. Therefore, we use our incremental borrowing rate as the discount rate for our leases. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because we do not generally borrow on a collateralized basis, we derive an appropriate incremental borrowing rate using the interest rate we pay on our non-collateralized borrowings, adjusted for the amount of the lease payments, the lease term and the effect of designating specific collateral with a value equal to the unpaid lease payments for that lease.

We monitor for events or changes in circumstances that require reassessment of our leases. When a reassessment results in the re-measurement of a lease liability, a corresponding adjustment is made to the carrying amount of the operating lease asset. We also assess the potential impairment of our operating lease assets under long-lived asset impairment guidance in ASC 360, Property, Plant, and Equipment: Impairment or disposal on long-lived assets.

Rent expense included in our operating lease assets is recognized on a straight-line basis. Contingent rent expense is recorded as incurred to the extent it exceeds minimum base rent per the lease agreement. Variable lease payments, which primarily consist of real estate taxes, common area maintenance charges, insurance cost and other operating expenses, are not included in the operating lease right-of-use asset or operating lease liability balances and are recognized as incurred. Rent expense is included in other operating costs and expenses in the consolidated statements of income.

The reasonably certain lease term and the incremental borrowing rate for each restaurant location require judgment by management and can impact the classification and accounting for a lease as operating or finance, the value of the operating lease asset and liability and the term over which leasehold improvements for each restaurant are depreciated. These judgments may produce materially different amounts of operating lease assets and liabilities, rent expense and interest expense than would be reported if different assumptions were used.

Self-Insurance Liabilities

We retain financial responsibility for a significant portion of our risks and associated liabilities with respect to workers’ compensation, general liability, staff member health benefits, employment practices and other insurable risks. The accrued liabilities associated with these programs are based on our estimate of the ultimate costs to settle known claims, as well as claims incurred but not yet reported to us (“IBNR”) as of the balance sheet date and are recorded in other accrued expenses. Our estimated liabilities, which are not discounted, are based on information provided by our insurance brokers and insurers, combined with our judgment regarding a number of assumptions and factors, including the frequency and severity of claims, claims development history, case jurisdiction, applicable legislation and our claims settlement practices. Significant judgment is required to estimate IBNR amounts, as parties have yet to assert such claims. If actual claims trends, including the severity or frequency of claims, differ from our estimates, our financial results could be impacted.

Stock-Based Compensation

We maintain stock-based incentive plans under which equity awards may be granted to staff members, consultants and non-employee directors. We account for the awards based on fair value measurement guidance and amortize to expense over the vesting period using a straight-line or graded-vesting schedule, as applicable. (See Note 15 for further discussion of our stock-based compensation.)

Advertising Costs

We expense advertising production costs at the time the advertising first takes place. All other advertising costs are expensed as incurred. Most of our advertising costs are included in other operating costs and expenses and were $34.7 million, $24.0 million and $19.9 million in fiscal 2023, 2022 and 2021, respectively. The increase in fiscal 2023 is primarily due to the launch of our Cheesecake RewardsTM program.

Preopening Costs

Preopening costs include all costs to relocate and compensate restaurant management staff members during the preopening period, costs to recruit and train hourly restaurant staff members, and wages, travel and lodging costs for our opening training team and other support staff members. Also included are expenses for maintaining a roster of trained managers for pending openings, the associated temporary housing and other costs necessary to relocate managers in alignment with future restaurant opening and operating needs, and corporate travel and support activities. We expense preopening costs as incurred.

Income Taxes

We provide for federal, state and foreign income taxes currently payable and for deferred taxes that result from differences between financial accounting rules and tax laws governing the timing of recognition of various income and expense items. We recognize deferred income tax assets and liabilities for the future tax effects of such temporary differences based on the difference between the financial statement and tax bases of existing assets and liabilities using the statutory rates expected in the years in which the differences are expected to reverse. The effect on deferred taxes of any enacted change in tax rates is recognized in income in the period that includes the enactment date. Income tax credits are recorded as a reduction of tax expense.

We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and record a valuation allowance if, based on all available evidence, we determine that some portion of the tax benefit will not be realized. In evaluating our ability to recover our deferred tax assets within the jurisdictions from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies (when applicable) and results of recent operations. If we later determine that we would be able to realize our deferred tax assets in excess of their net recorded amount, we adjust the deferred tax asset valuation allowance and reduce income tax expense.

We evaluate our exposures associated with our various tax filing positions and recognize a tax benefit from an uncertain tax position only if it is more-likely-than-not that the position will be sustained upon examination by the relevant taxing authorities based solely on its technical merits, taking into account available administrative remedies and litigation. If this threshold is met, we recognize only the portion of the tax benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. We record a liability for any portion of the tax benefit that does not meet these recognition and measurement criteria and we adjust this liability through income tax expense in the period in which the uncertain tax position is effectively settled, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when new information becomes available. We recognize interest and penalties related to uncertain tax positions in income tax expense.

Net Income per Share

Basic net income per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards. At January 2, 2024, January 3, 2023 and December 28, 2021, 2.9 million shares, 2.5 million shares and 2.1 million shares, respectively, of restricted stock and restricted stock units issued were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal years 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. Common stock equivalents for our convertible senior notes due 2026 (“Notes”) are determined by application of the if-converted method, and common stock equivalents for outstanding stock options, restricted stock and restricted stock units are determined by the application of the treasury stock method.

Holders of our Series A Convertible Preferred Stock, par value $0.01 per share (the “Series A preferred stock”) participated in dividends on an as-converted basis when declared on common stock. As a result, our Series A preferred stock met the definition of a participating security which required 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 was a participating security, we were 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.

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

​

2023

​

2022

​

2021

​

​

(In thousands, except per share data)

Basic net income per common share:

​

​

​

​

​

​

​

​

​

Net income

​

$

101,351

​

$

43,123

​

$

72,373

Dividends on Series A preferred stock

​

 

—

​

 

—

​

 

(18,661)

Undistributed earnings allocated to Series A preferred stock

​

​

—

​

​

—

​

​

(4,581)

Net income available to common stockholders

​

 

101,351

​

 

43,123

​

 

49,131

Basic weighted-average shares outstanding

​

​

48,324

​

​

49,815

​

​

47,529

Basic net income per common share

​

$

2.10

​

$

0.87

​

$

1.03

​

​

​

​

​

​

​

​

​

​

Diluted net income per common share:

​

​

​

​

​

​

​

​

​

Net income available to common stockholders

​

​

101,351

​

​

43,123

​

​

49,131

Reallocation of undistributed earnings to Series A preferred stock

​

​

—

​

​

—

​

​

85

Net income available to common stockholders for diluted EPS

​

​

101,351

​

​

43,123

​

​

49,216

Basic weighted-average shares outstanding

​

​

48,324

​

​

49,815

​

​

47,529

Dilutive effect of equity awards (1)

​

​

726

​

​

599

​

​

981

Diluted weighted-average shares outstanding

​

​

49,050

​

​

50,414

​

​

48,510

Diluted net income per common share

​

$

2.07

​

$

0.86

​

$

1.01

(1)Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 2.9 million, 3.3 million and 1.9 million for fiscal 2023, 2022 and 2021, respectively, were excluded from the diluted calculation due to their anti-dilutive effect. No shares of common stock equivalents related to the Notes were included in the diluted calculation due to their anti-dilutive effect.

Comprehensive Income

Comprehensive income includes all changes in equity during a period except those resulting from investment by and distribution to owners. Our comprehensive income consists of net income, unrealized gains on our interest rate swap and translation gains/(losses) related to our Canadian restaurant operations.

Foreign Currency

The Canadian dollar is the functional currency for our Canadian restaurant operations. Revenue and expense accounts are translated into U.S. dollars using the average exchange rates during the reporting period. Assets and liabilities are translated using the exchange rates in effect at the reporting period end date. Equity accounts are translated at historical rates, except for the change in retained earnings which is the result of the income statement translation process. Translation gains and losses are reported as a separate component in our consolidated statements of comprehensive income and would only be realized upon the sale or upon complete or substantially complete liquidation of the business. Gains and losses from foreign currency transactions are recognized in our consolidated statements of income in interest and other expense, net.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which updates income tax disclosures related to the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendment also provides further disclosure comparability. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively. However, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures.
v3.24.0.1
Fair Value Measurements
 12 Months Ended
Jan. 02, 2024
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):

​

​

​

​

​

​

​

​

​

​

​

​

    

January 2, 2024

​

    

Level 1

    

Level 2

    

Level 3

Assets/(Liabilities)

​

​

​

​

​

​

​

 

​

Non-qualified deferred compensation assets

​

$

94,136

​

$

—

​

$

—

Non-qualified deferred compensation liabilities

​

​

(93,979)

​

​

—

​

​

—

Acquisition-related contingent consideration and compensation liability

​

​

—

​

​

—

​

​

(25,495)

​

​

​

​

​

​

​

​

​

​

​

​

    

January 3, 2023

​

    

Level 1

    

Level 2

    

Level 3

Assets/(Liabilities)

​

​

​

​

​

​

​

​

​

Non-qualified deferred compensation assets

​

$

78,542

​

$

—

​

$

—

Non-qualified deferred compensation liabilities

​

​

(78,286)

​

​

—

​

​

—

Acquisition-related deferred consideration (1)

​

​

—

​

​

(10,751)

​

​

—

Acquisition-related contingent consideration and compensation liability

​

​

—

​

​

—

​

​

(28,565)

(1) The final $11.3 million payment related to the Acquisition - related deferred consideration was made in fiscal year 2023.

Changes in the fair value of non-qualified deferred compensation assets and liabilities are recognized in interest and other expense, net in our consolidated statements of income. Changes in the fair value of the acquisition-related deferred and contingent consideration and compensation liability are recognized in acquisition-related contingent consideration, compensation and amortization expenses in our consolidated statements of income.

The following table presents a reconciliation of the beginning and ending amounts of the fair value of the acquisition-related contingent consideration and compensation liability categorized as Level 3 (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Beginning balance

​

$

28,565

​

$

23,894

Payment

​

​

(12,994)

​

​

(7,187)

Change in fair value

​

 

9,924

​

 

11,858

Ending balance

​

$

25,495

​

$

28,565

​

The fair value of the Acquisition-related contingent consideration and compensation liability 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 utilized to determine the fair value of the acquisition-related contingent consideration and compensation liability was $2.6 million to $235.4 million at January 2, 2024 and $0 to $276.0 million at January 3, 2023. Results could change materially if different estimates and assumptions were used. During fiscal 2023, the fair value of the contingent consideration and compensation liability decreased by $3.1 million due to a payment of $13.0 million per the FRC acquisition agreement, partially offset by $9.9 million increase in the fair value primarily stemming from a change in the volatility factors, as well as an increase in fiscal 2023 revenues and estimated future revenues utilized in the calculation and amortization. During fiscal 2022, the fair value of the contingent consideration and compensation liability increased by $4.7 million due to an $11.9 million increase in the fair value primarily stemming from a change in the volatility factors, as well as an increase in fiscal 2022 revenues and estimated future revenues utilized in the calculation and amortization, partially offset by a payment of $7.2 million per the FRC acquisition agreement.

The fair values of our cash and cash equivalents, accounts receivable, income taxes receivable, other receivables, prepaid expenses, accounts payable, income taxes payable and other accrued expenses approximate their carrying amounts due to their short duration.

At both January 2, 2024 and January 3, 2023, we had $345.0 million aggregate principal amount of Notes outstanding. The estimated fair value of the Notes based on a market approach as of January 2, 2024 and January 3, 2023 was approximately $298.8 million and $282.9 million, respectively, and determined based on the estimated or actual bids and offers of the Notes in an over-the-counter market on the last business day of the reporting period. The increase in the fair value of the Notes was primarily due to an increase in our stock price. See Note 10 for further discussion of the Notes.
v3.24.0.1
Accounts and Other Receivables
 12 Months Ended
Jan. 02, 2024
Accounts and Other Receivables  
Accounts and Other Receivables

3.    Accounts and Other Receivables

Accounts and other receivables consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

    Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Gift card distributors

​

$

35,777

​

$

37,586

Bakery customers

​

​

13,863

​

​

16,561

Landlord construction contributions

​

 

12,650

​

 

9,862

Insurance providers

​

​

9,984

​

​

10,529

Delivery partner

​

​

7,154

​

​

7,757

Other

​

​

23,666

​

​

23,216

Total

​

$

103,094

​

$

105,511

​
v3.24.0.1
Inventories
 12 Months Ended
Jan. 02, 2024
Inventories  
Inventories

4.    Inventories

Inventories consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Restaurant food and supplies

​

$

32,283

​

$

30,783

Bakery finished goods and work in progress

​

 

16,230

​

 

17,250

Bakery raw materials and supplies

​

 

9,141

​

 

7,526

Total

​

$

57,654

​

$

55,559

​
v3.24.0.1
Prepaid Expenses
 12 Months Ended
Jan. 02, 2024
Prepaid Expenses  
Prepaid Expenses

5.    Prepaid Expenses

Prepaid expenses consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

    Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Gift card contract assets

​

$

19,111

​

$

19,886

Prepaid rent (1)

​

 

24,438

​

 

12,165

Other

​

 

19,541

​

 

16,348

Total

​

$

63,090

​

$

48,399

(1)The primary cause for the increase in prepaid rent expenses is a higher number of restaurants under construction at January 2, 2024 where the lease has not yet commenced compared to the prior year.
v3.24.0.1
Property and Equipment
 12 Months Ended
Jan. 02, 2024
Property and Equipment  
Property and Equipment

6.    Property and Equipment

Property and equipment consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

    Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Land and related improvements

​

$

15,852

​

$

15,852

Buildings

​

 

44,179

​

 

44,138

Leasehold improvements

​

 

1,291,153

​

 

1,225,860

Furnishings, fixtures and equipment

​

 

625,931

​

 

584,924

Computer software and equipment

​

 

57,952

​

 

60,861

Restaurant smallwares

​

 

38,234

​

 

36,494

Construction in progress

​

 

58,067

​

 

36,675

​

​

​

​

​

​

​

Property and equipment, total

​

 

2,131,368

​

 

2,004,804

Less: Accumulated depreciation

​

 

(1,340,275)

​

 

(1,258,753)

Property and equipment, net

​

$

791,093

​

$

746,051

​

Depreciation expenses related to property and equipment for fiscal 2023, 2022 and 2021 were $92.9 million, $92.1 million and $89.4 million, respectively. Repair and maintenance expenses for fiscal 2023, 2022 and 2021 were $99.5 million, $89.1 million and $77.4 million, respectively and are recorded in other operating costs and expenses. Net (income)/expense for property and equipment disposals was ($0.4) million, $1.6 million and $1.1 million, in fiscal 2023, 2022 and 2021, respectively.
v3.24.0.1
Other Assets
 12 Months Ended
Jan. 02, 2024
Other Assets  
Other Assets

7.    Other Assets

Other assets consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

    Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Non-qualified deferred compensation assets (1)

​

$

94,136

​

$

78,542

Deferred income taxes(2)

​

​

91,944

​

​

76,245

Other

​

​

8,535

​

​

8,104

Total

​

$

194,615

​

$

162,891

(1)See Note 16 for further discussion of our non-qualified deferred compensation assets.
(2)See Note 17 for further discussion of our income taxes.
v3.24.0.1
Gift Cards
 12 Months Ended
Jan. 02, 2024
Gift Cards  
Gift Cards

8.    Gift Cards

The following tables present information related to gift cards (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

Gift card liabilities:

​

​

​

​

​

​

Beginning balance

​

$

219,808

 

$

211,182

Activations

​

 

140,647

​

 

152,368

Redemptions and breakage

​

 

(137,540)

​

 

(143,743)

Ending balance

​

$

222,915

 

$

219,808

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

Gift card contract assets: (1)

​

​

​

​

​

​

Beginning balance

​

$

19,886

 

$

18,468

Deferrals

​

 

14,957

​

 

16,440

Amortization

​

 

(15,732)

​

 

(15,022)

Ending balance

​

$

19,111

 

$

19,886

(1)Included in prepaid expenses on the consolidated balance sheets.
v3.24.0.1
Other Accrued Expenses
 12 Months Ended
Jan. 02, 2024
Other Accrued Expenses  
Other Accrued Expenses

9.    Other Accrued Expenses

Other accrued expenses consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

    Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Self-insurance

​

$

71,546

​

$

71,872

Salaries and wages (1)

​

 

51,040

​

 

43,402

Staff member benefits

​

 

28,951

​

 

27,332

Payroll and sales taxes

​

 

20,365

​

 

24,861

Rent

​

​

18,973

​

​

12,713

Deferred consideration (2)

​

​

—

​

​

10,751

Other

​

 

48,824

​

 

40,202

Total

​

$

239,699

​

$

231,133

(1)The increase in accrued salaries and wages was primarily due to the timing of payroll disbursements in relation to the fiscal 2023 versus 2022 year-end dates.
(2)The final $11.3 million payment related to the Acquisition-related deferred consideration was made in fiscal year 2023.
v3.24.0.1
Long-Term Debt
 12 Months Ended
Jan. 02, 2024
Long-Term Debt  
Long-Term Debt

10.    Long-Term Debt

Revolving Credit Facility

On October 6, 2022, we entered into a Fourth Amended and Restated Loan Agreement (the “Loan Agreement” and the revolving credit facility provided thereunder, the “Revolver Facility”). The Loan Agreement amends and restates in its entirety our prior credit agreement. The Revolver Facility, which terminates on October 6, 2027, provides us with revolving loan commitments that total $400 million, of which $50 million may be used for issuances of letters of credit. The Revolver Facility contains a commitment increase feature that, subject to certain conditions precedent, could provide for an additional $200 million in revolving loan commitments. Our obligations under the Revolver Facility are unsecured. Certain of our material subsidiaries have guaranteed our obligations under the Revolver Facility.

On October 6, 2022, we repaid the outstanding balance under the then-existing credit agreement and borrowed the same amount on the Revolver Facility. In November 2023, we borrowed $15.0 million on the Revolver Facility and repaid it in December 2023. As of January 2, 2024, we had net availability for borrowings of $236.5 million, based on a $130.0 million outstanding debt balance and $33.5 million in standby letters of credit under the Revolver Facility.

Under the Revolver Facility, we are subject to the following financial covenants as of the last day of each fiscal quarter: (i) a maximum ratio of net adjusted debt to EBITDAR (the “Amended Net Adjusted Leverage Ratio”) of 4.25 and (ii) a minimum ratio of EBITDAR to interest and rent expense (“EBITDAR Ratio”) of 1.90. The Amended Net Adjusted Leverage Ratio includes a rental expense multiplier of six as compared to eight in the prior credit agreement. At January 2, 2024, we were in compliance with all covenants in effect at that date.

Borrowings under the Loan Agreement bear interest, at our election, at a rate equal to either: (i) the sum of (A) adjusted term SOFR (as defined in the Loan Agreement, the “Term SOFR Rate”) plus (B) a rate variable based on the Amended Net Adjusted Leverage Ratio, ranging from 1.00% to 1.75%, or (ii) the sum of (A) the highest of (x) the rate of interest last quoted by The Wall Street Journal as the prime rate in effect in the United States, (y) the greater of the rate calculated by the Federal Reserve Bank of New York as the federal funds effective rate or the rate that is published by the Federal Reserve Bank of New York as the overnight bank funding rate, in either case, plus 0.50%, and (z) the one-month Term SOFR Rate plus 1.00%, plus (B) a rate variable based on the Net Adjusted Leverage Ratio, ranging from 0.00% to 0.75%. We will also pay a fee variable based on the Net Adjusted Leverage Ratio, ranging from 0.125% to 0.25%, on the daily amount of unused commitments under the Loan Agreement. 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 SOFR plus other customary fees charged by the issuing bank. We paid certain customary loan origination fees in conjunction with the Loan Agreement.

We are also subject to customary events of default that, if triggered, could result in acceleration of the maturity of the Revolver Facility. Subject to certain exceptions, the Revolver Facility also limits distributions with respect to our equity interests, such as cash dividends and share repurchases, based on a defined ratio, and also sets forth negative covenants that restrict indebtedness, liens, investments, sales of assets, fundamental changes and other matters.

Convertible Senior Notes

On June 15, 2021, we issued $345.0 million aggregate principal amount of convertible senior notes due 2026 (“Notes”). The net proceeds from the sale of the Notes were approximately $334.9 million after deducting issuance costs related to the Notes.

The Notes are senior, unsecured obligations and are (i) equal in right of payment with our existing and future senior, unsecured indebtedness; (ii) senior in right of payment to our existing and future indebtedness that is expressly subordinated to the Notes; (iii) effectively subordinated to our existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent we are not a holder thereof) preferred equity, if any, of our subsidiaries. The Notes were issued pursuant to, and are governed by, an indenture (the “Base Indenture”) between us and a trustee (“Trustee”), dated as of June 15, 2021, as supplemented by a first supplemental indenture (the “Supplemental Indenture,” and the Base Indenture, as supplemented by the Supplemental Indenture, the “Indenture”), dated as of June 15, 2021, between the Company and the Trustee.

The Notes accrue interest at a rate of 0.375% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2021. The Notes will mature on June 15, 2026, unless earlier repurchased, redeemed or converted. Before February 17, 2026, noteholders will have the right to convert their Notes only upon the occurrence of certain events.

From and after February 17, 2026, noteholders may convert their Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. We will have the right to elect to settle conversions either entirely in cash or in a combination of cash and shares of our common stock. However, upon conversion of any Notes, the conversion value, which will be determined over an “Observation Period” (as defined in the Indenture) consisting of 30 trading days, will be paid in cash up to at least the principal amount of the Notes being converted. The initial conversion rate is 12.7551 shares of common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $78.40 per share of common stock. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. At January 2, 2024, the conversion rate for the Notes was 13.4936 shares of common stock per $1,000 principal amount of the Notes, which represents a conversion price of approximately $74.11 per share of common stock. In connection with the cash dividend that was declared by our Board on February 15, 2024, on March 5, 2024 we will adjust the conversion rate (which is expected to increase) and the conversion price (which is expected to decrease) of the Notes in accordance with the terms.

The Notes are redeemable, in whole or in part (subject to certain limitations described below), at our option at any time, and from time to time, on or after June 20, 2024 and on or before the 30th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of our common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (ii) the trading day immediately before the date we send such notice. However, we may not redeem less than all of the outstanding Notes unless at least $150.0 million aggregate principal amount of Notes are outstanding and not called for redemption as of the time we send the related redemption notice. In addition, calling any Note for redemption will constitute a Make-Whole Fundamental Change with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption.

If certain corporate events that constitute a “Fundamental Change” (as defined in the Indenture) occur, then, subject to a limited exception for certain cash mergers, noteholders may require us to repurchase their Notes at a cash repurchase price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The definition of Fundamental Change includes certain business combination transactions involving us and certain de-listing events with respect to our common stock.

The Notes will have customary provisions relating to the occurrence of “Events of Default” (as defined in the Indenture), which include the following: (i) certain payment defaults on the Notes (which, in the case of a default in the payment of interest on the Notes, will be subject to a 30-day cure period); (ii) our failure to send certain notices under the Indenture within specified periods of time; (iii) our failure to comply with certain covenants in the Indenture relating to our ability to consolidate with or merge with or into, or sell, lease or otherwise transfer, in one transaction or a series of transactions, all or substantially all of our assets and our subsidiaries, taken as a whole, to another person; (iv) a default by us in our other obligations or agreements under the Indenture or the Notes if such default is not cured or waived within 60 days after notice is given in accordance with the Indenture; (v) certain defaults by us or any of our significant subsidiaries with respect to indebtedness for borrowed money of at least $20,000,000; (vi) the rendering of certain judgments against us or any of our significant subsidiaries for the payment of at least $25,000,000, where such judgments are not discharged or stayed within 60 days after the date on which the right to appeal has expired or on which all rights to appeal have been extinguished; and (vii) certain events of bankruptcy, insolvency and reorganization involving us or any of our significant subsidiaries.

If an Event of Default involving bankruptcy, insolvency or reorganization events with respect to us (and not solely with respect to a significant subsidiary of ours) occurs, then the principal amount of, and all accrued and unpaid interest on, all of the Notes then outstanding will immediately become due and payable without any further action or notice by any person. If any other Event of Default occurs and is continuing, then, the Trustee, by notice to us, or noteholders of at least 25% of the aggregate principal amount of Notes then outstanding, by notice to us and the Trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of the Notes then outstanding to become due and payable immediately. However, notwithstanding the foregoing, we may elect, at our option, that the sole remedy for an Event of Default relating to certain failures by us to comply with certain reporting covenants in the Indenture consists exclusively of the right of the noteholders to receive special interest on the Notes for up to 180 days at a specified rate per annum not exceeding 0.50% on the principal amount of the Notes.

As of January 2, 2024, the Notes had a gross principal balance of $345.0 million and a balance of $340.0 million, net of unamortized issuance costs of $5.0 million. The unamortized balance of issuance costs was recorded as a contra-liability and netted with long-term debt on our condensed consolidated balance sheets. Total amortization expense was $2.0 million, $2.0 million and $1.1 million in fiscal 2023, fiscal 2022 and fiscal 2021, respectively and was included in interest expense in the consolidated statements of income. The effective interest rate for the Notes was 0.96% as of January 2, 2024.
v3.24.0.1
Leases
 12 Months Ended
Jan. 02, 2024
Leases  
Leases

11.    Leases

Components of lease expense were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

​

Fiscal Year

​

    

​

2023

    

2022

    

2021

Operating

​

$

145,774

​

$

140,351

​

$

131,834

Variable

​

​

87,047

​

​

81,585

​

 

73,909

Short-term

​

​

142

​

​

116

​

 

283

Total

​

$

232,963

​

$

222,052

​

$

206,026

​

Supplemental information related to leases (in thousands, except percentages):

​

​

​

​

​

​

​

​

​

​

 

Fiscal Year

​

​

    

2023

    

2022

​

Cash paid for amounts included in the measurement of lease liabilities:

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

145,836

​

$

149,624

​

Right-of-use assets obtained in exchange for new operating lease liabilities

​

​

114,373

​

​

86,187

​

Weighted-average remaining lease term — operating leases (in years)

​

​

14.9

​

​

15.2

​

Weighted-average discount rate — operating leases

​

​

5.3

%

​

5.0

%

​

As of January 2, 2024, the maturities of our operating lease liabilities were as follows (in thousands):

​

​

​

​

​

Fiscal year 2024

​

$

138,459

Fiscal year 2025

​

 

146,828

Fiscal year 2026

​

 

144,453

Fiscal year 2027

​

 

142,444

Fiscal year 2028

​

​

149,919

Thereafter

​

 

1,357,092

Total future lease payments

​

​

2,079,195

Less: Interest

​

​

(689,335)

Present value of lease liabilities

​

$

1,389,860

​

Operating lease liabilities include $710.3 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $280.7 million of legally binding minimum lease payments for leases signed but not yet commenced.
v3.24.0.1
Other Noncurrent Liabilities
 12 Months Ended
Jan. 02, 2024
Other Noncurrent Liabilities  
Other Noncurrent Liabilities

12.   Other Noncurrent Liabilities

Other noncurrent liabilities consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Non-qualified deferred compensation liabilities (1)

​

$

93,979

​

$

78,286

Contingent consideration and compensation liability

​

​

25,495

​

​

28,565

Other

​

 

17,174

​

 

18,159

Total

​

$

136,648

​

$

125,010

(1)See Note 16 for further discussion of our non-qualified deferred compensation assets and liabilities.
v3.24.0.1
Commitments and Contingencies
 12 Months Ended
Jan. 02, 2024
Commitments and Contingencies  
Commitments and Contingencies

13.   Commitments and Contingencies

Purchase obligations, which include inventory purchases, equipment purchases, information technology and other miscellaneous commitments, were $101.4 million and $129.9 million at January 2, 2024 and January 3, 2023, respectively. These purchase obligations are primarily due within three years and recorded as liabilities when goods are received or services rendered. Real estate obligations, which include construction commitments, net of up-front landlord construction contributions, and legally binding minimum lease payments for leases signed but not yet commenced, were $414.8 million and $252.4 million at January 2, 2024 and January 3, 2023, respectively.

The FRC acquisition agreement included a contingent consideration provision of which the remainder is payable annually from 2024 through 2027 and is based on achievement of revenue and profitability targets for the FRC brands other than North Italia and Flower Child with considerations made in the event we undergo a change in control or divest any FRC brand (other than North Italia and Flower Child) during the five years after closing. The liability for this contingent consideration provision was $25.5 million at January 2, 2024. See Note 2 for discussion of the fair value measurement of this liability. We are also required to provide financing to FRC in an amount sufficient to support achievement of these targets during the five years after closing.

As credit guarantees to insurers, we had $33.5 million and $31.5 million at January 2, 2024 and January 3, 2023, respectively, in standby letters of credit related to our self-insurance liabilities. All standby letters of credit are renewable annually.

We retain the financial responsibility for a significant portion of our risks and associated liabilities with respect to workers’ compensation, general liability, staff member health benefits, employment practices and other insurable risks. The accrued liabilities associated with these programs are based on our estimate of the ultimate costs to settle known claims, as well as claims incurred but not yet reported to us (“IBNR”) as of the balance sheet date. The total accrued liability for our self-insured plans was $71.5 million and $71.9 million at January 2, 2024 and January 3, 2023, respectively.

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 November 10, 2022, the parties participated in voluntary mediation and reached a settlement of all claims. We reserved an immaterial amount for settlement purposes. Final payment under the settlement agreement was made in October 2023 following the final agency approval.

On February 10, 2023, a class action complaint was filed against the Company in the United States District Court for the Southern District of California (Lightoller vs. TCF Co. LLC., Case No. 3:23-cv-00272-AJB-NLS), alleging violations of state privacy laws. The lawsuit alleges that the Company violated state wiretapping and privacy laws by improperly tracking and/or recording the keystrokes of visitors on the Company’s website without permission. A similar case was filed in the United States District Court for the District of Maryland on February 21, 2023 (Curd v. TCF CO. LLC; Civil Action No. 1:23-cv-00472-JMC). On May 10, 2023, the plaintiffs in Case Nos. 3:23-cv-00272 and 1:23-cv-00472 voluntarily dismissed their complaints against the Company without prejudice.

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.

We have employment agreements with certain of our executive officers that provide for payments to those officers in the event of an actual or constructive termination of their employment, including in the event of a termination without cause, an acquirer failure to assume or continue equity awards following a change in control of the Company or, otherwise, in the event of death or disability as defined in those agreements. Aggregate payments totaling approximately $3.4 million, excluding accrued potential bonuses of $2.6 million, which are subject to approval by the Compensation Committee, would have been required by those agreements had all such officers terminated their employment for reasons requiring such payments as of January 2, 2024. In addition, the employment agreement with our Chief Executive Officer specifies an annual founder’s retirement benefit of $650,000 for ten years, commencing six months after termination of his full-time employment.
v3.24.0.1
Stockholders' Equity
 12 Months Ended
Jan. 02, 2024
Stockholders' Equity  
Stockholders' Equity

14.   Stockholders’ Equity

Common Stock Issuance

On June 15, 2021, we issued 3.125 million shares of our common stock for $175.0 million. In connection with the issuance, we incurred direct and incremental costs of $8.0 million.

Common Stock - Dividends and Share Repurchases

Following the suspension that began in fiscal 2020 due to the impact of COVID-19 on our business and in conjunction with the terms of our Loan Agreement, our Board declared a quarterly dividend in the second quarter of fiscal 2022 and has declared quarterly dividends since then. Our Board declared dividends of $1.08 per common share in the aggregate during fiscal 2023. 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 Loan Agreement and applicable law, and such other factors that the Board considers relevant. (See Note 10 for further discussion of our long-term debt.)

On October 26, 2022, our Board increased the authorization to repurchase our common stock by 5.0 million shares to 61.0 million shares. Under this authorization, we have cumulatively repurchased 56.5 million shares at a total cost of $1,811.7 million, excluding excise tax, through January 2, 2024. During fiscal 2023, 2022 and 2021, we repurchased 1.4 million, 2.0 million and 0.1 million shares of our common stock at a cost of $46.1 million, $63.1 million and $5.8 million, excluding excise tax, respectively. The increase from fiscal 2021 to 2022 is primarily due to the resumption of our share repurchase program in the second quarter of fiscal 2022 after the suspension that began in fiscal 2020 due to the impact of COVID-19 on our business and in conjunction with the terms of our Loan Agreement. 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. Repurchased common stock is reflected as a reduction of stockholders’ equity in treasury stock.

Our share repurchase program 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. Share repurchases may be made from time to time in open market purchases, privately-negotiated transactions, accelerated share repurchase programs, issuer self-tender offers or otherwise. 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 FRC acquisition, our share price and current market conditions. The timing and number of shares repurchased are also subject to legal constraints and covenants under our Loan Agreement that limit share repurchases based on a defined ratio. (See Note 10 for further discussion of our long-term debt.)

​

Series A Convertible Preferred Stock

On April 20, 2020, we issued 200,000 shares of Series A Convertible Preferred Stock, par value $0.01 per share (the “Series A preferred stock”) for an aggregate purchase price of $200 million, or $1,000 per share. In connection with the issuance, we incurred direct and incremental costs of $10.3 million, including financial advisory fees, closing costs, legal expenses, a commitment fee and other offering-related expenses. These direct and incremental costs reduced the Series A preferred stock balance at the issuance date and were recognized through retained earnings on June 30, 2020, the first measurement date. 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 beneficial conversion features recorded during fiscal 2020.

​

The Series A preferred stock ranked 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 would 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.

​

On June 15, 2021, we paid $443.8 million in connection with the cash-settled conversion of 150,000 shares of our outstanding Series A preferred stock (effected through a repurchase agreement), which was recognized through additional paid in capital. We also share-settled the conversion of the remaining 50,000 shares of our outstanding Series A convertible preferred stock into 2,400,864 shares of our common stock. These are both based on the then current Liquidation Preference per share of $1,067.42 and conversion price of $22.23.

​

During the first quarter of fiscal 2021, we declared a cash dividend of $5.1 million, or $25.35 per share, on the Series A preferred stock. During the second quarter of fiscal 2021, $13.6 million in payments were made in connection with the conversion of the Series A preferred stock, consisting of $3.9 million, or $19.72 per share, of accrued dividends and $9.7 million of an inducement, which is also deemed to be a dividend.
v3.24.0.1
Stock-Based Compensation
 12 Months Ended
Jan. 02, 2024
Stock-Based Compensation  
Stock-Based Compensation

15.   Stock-Based Compensation

We maintain stock-based incentive plans 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. Our current practice is to issue new shares, rather than treasury shares, upon stock option exercises, for restricted share grants and upon vesting of restricted share units. To date, we have only granted non-qualified stock options, restricted shares and restricted share units of common stock under these plans.

On March 24, 2022, our Board approved an amendment to our The Cheesecake Factory Incorporated Stock Incentive Plan to increase the number of shares of common stock reserved for grant under the plan to 19.8 million shares from 17.5 million shares. This amendment was approved by our stockholders at our annual meeting held on May 23, 2022. Approximately 3.1 million of these shares were available for grant as of January 2, 2024.

Stock options generally vest at 20% per year and expire eight to ten years from the date of grant. Restricted shares and restricted share units generally vest between three to five years from the date of grant and require that the staff member remains employed in good standing with the Company as of the vesting date. Certain restricted share units granted to executive officers contain performance-based vesting conditions. Performance goals are determined by the Board of Directors. The quantity of units that will vest ranges from 0% to 150% based on the level of achievement of the performance conditions. Equity awards for certain executive officers may vest earlier in the event of a change of control in which the acquirer fails to assume or continue such awards, as defined in the plan, or under certain circumstances described in such executive officers’ respective employment agreements. Compensation expense is recognized only for those options, restricted shares and restricted share units expected to vest, with forfeitures estimated based on our historical experience and future expectations.

The following table presents information related to stock-based compensation, net of forfeitures (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

    

2023

    

2022

    

2021

​

​

​

​

​

​

​

​

​

​

Labor expenses

​

$

9,914

​

$

9,590

​

$

8,856

Other operating costs and expenses

​

 

318

​

 

321

​

 

311

General and administrative expenses

​

 

15,549

​

 

14,515

​

 

13,821

Total stock-based compensation

​

 

25,781

​

 

24,426

​

 

22,988

Income tax benefit

​

 

6,437

​

 

6,026

​

 

5,646

Total stock-based compensation, net of taxes

​

$

19,344

​

$

18,399

​

$

17,342

​

​

​

​

​

​

​

​

​

​

Capitalized stock-based compensation (1)

​

$

185

​

$

226

​

$

194

(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 consolidated balance sheets.

​

Stock Options

The weighted-average fair value at the grant date for options issued during fiscal 2023 was $15.76 per share. The fair value of options issued was estimated utilizing the Black-Scholes valuation model with the following weighted-average assumptions: (a) an expected option term of 6.7 years, (b) expected stock price volatility of 45.2%, (c) a risk-free interest rate of 4.0% and (d) a dividend yield on our stock of 2.7%. We did not issue any stock options during fiscal 2022 or 2021.

The expected option term represents the estimated period of time until exercise and is based on historical experience of similar options, giving consideration to the contractual terms, vesting schedules and expectations of future staff member behavior. Expected stock price volatility is based on a combination of the historical volatility of our stock and the implied volatility of actively traded options on our common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with an equivalent remaining term. The dividend yield is based on anticipated cash dividend payouts.

Stock option activity during fiscal 2023 was as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-

​

​

​

​

​

​

​

​

​

​

Average

​

​

​

​

​

​

​

Weighted-

​

Remaining

​

​

​

​

​

​

Average

​

Contractual

​

Aggregate

​

    

Shares

    

Exercise Price

    

Term

    

Intrinsic Value (1)

​

​

(In thousands)

​

(Per share)

​

(In years)

​

(In thousands)

Outstanding at beginning of year

 

1,685

​

$

46.11

​

4.2

​

$

0

Granted

 

40

​

$

40.42

​

​

​

​

​

Exercised

 

—

​

$

—

​

​

​

​

​

Forfeited or cancelled

 

(175)

​

$

48.01

​

​

​

​

​

Outstanding at end of year

 

1,550

​

$

45.75

​

3.8

​

$

0

​

​

​

​

​

​

​

​

​

​

​

Exercisable at end of year

 

1,199

​

$

47.11

​

3.1

​

$

0

(1)Aggregate intrinsic value is calculated as the difference between our closing stock price at fiscal year 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 year-end date.

There were no options exercised during fiscal 2023. The total intrinsic value of options exercised during fiscal 2022 and 2021 was $4.9 million and $7.1 million, respectively. As of January 2, 2024, total unrecognized stock-based compensation expense related to unvested stock options was $1.5 million, which we expect to recognize over a weighted-average period of approximately 1.3 years.

Restricted Shares and Restricted Share Units

Restricted share and restricted share unit activity during fiscal 2023 was as follows:

​

​

​

​

​

​

​

​

​

​

​

Weighted-

​

​

​

​

Average

​

    

Shares

    

Fair Value

​

​

(In thousands)

​

(Per share)

Outstanding at beginning of year

​

2,512

​

$

41.93

Granted

 

1,005

​

$

37.73

Vested

 

(501)

​

$

43.59

Forfeited

 

(130)

​

$

39.77

Outstanding at end of year

 

2,886

​

$

40.28

​

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 fiscal 2023, 2022 and 2021 was $37.73, $36.84 and $49.57, respectively. The fair value of shares that vested during fiscal 2023, 2022 and 2021 was $21.8 million, $18.5 million and $15.4 million, respectively. As of January 2, 2024, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $57.1 million, which we expect to recognize over a weighted-average period of approximately 2.9 years.
v3.24.0.1
Employee Benefit Plans
 12 Months Ended
Jan. 02, 2024
Employee Benefit Plans  
Employee Benefit Plans

16.   Employee Benefit Plans

We have defined contribution benefit plans in accordance with section 401(k) of the Internal Revenue Code (“401(k) Plans”) that are open to our staff members who meet certain compensation and eligibility requirements. Participation in the 401(k) Plans is currently open to staff members from our restaurant concepts, bakery facilities, corporate office and FRC headquarters. The 401(k) Plans allow participating staff members to defer the receipt of a portion of their compensation and contribute such amount to one or more investment options. Our executive officers and a select group of management and/or highly compensated staff members are not eligible to participate in the 401(k) Plans. We currently match in cash a certain percentage of the staff member contributions to the 401(k) Plans and also pay a portion of the administrative costs. Expense recognized in fiscal 2023, 2022 and 2021 was $2.3 million, $2.1 million and $2.1 million, respectively.

We have also established non-qualified deferred compensation plans (“Non-Qualified Plans”) for our executive officers and a select group of management and/or highly compensated staff members. The Non-Qualified Plans allow participating staff members to defer the receipt of a portion of their base compensation and bonuses. Non-employee directors may also participate in the Non-Qualified Plans and defer the receipt of their earned director fees. We currently match in cash a certain percentage of the staff member contributions to the Non-Qualified Plans and also pay for the administrative costs. We do not match any contributions made by non-employee directors. Expense recognized in fiscal 2023, 2022 and 2021 was $1.3 million, $1.4 million and $1.2 million, respectively.

While we are under no obligation to fund Non-Qualified Plan liabilities (in whole or in part), our current practice is to maintain company-owned life insurance contracts and other investments that are specifically designed to informally fund savings plans of this nature. These contracts are recorded at their cash surrender value as determined by the insurance carrier. Our consolidated balance sheets reflect investments in other assets and our obligation to participants in the Non-Qualified Plans in other noncurrent liabilities. Gains and losses related to our non-qualified deferred compensation assets and liabilities are reflected in interest and other expense, net in our consolidated statements of income.

We maintain self-insured medical and dental benefit plans for our staff members. The accrued liabilities associated with these programs are based on our estimate of the ultimate costs to settle known claims as well as claims incurred but not yet reported to us as of the balance sheet date. The accrued liability for our self-insured benefit plans, which is included in other accrued expenses, was $11.3 million and $14.0 million as of January 2, 2024 and January 3, 2023, respectively. (See Note 1 for further discussion of accounting for our self-insurance liabilities.)
v3.24.0.1
Income Taxes
 12 Months Ended
Jan. 02, 2024
Income Taxes  
Income Taxes

17.   Income Taxes

The provision for income taxes consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

Fiscal Year

​

    

2023

    

2022

    

2021

​

​

​

​

​

​

​

​

​

​

Income before income taxes

​

$

100,014

​

$

32,892

​

$

71,620

Income tax provision/(benefit):

​

​

​

​

​

​

​

​

​

Current:

​

​

​

​

​

​

​

​

​

Federal

​

$

7,183

​

$

3,520

​

$

15,746

State

​

 

7,195

​

 

4,895

​

 

4,350

Total current

​

 

14,378

​

 

8,415

​

 

20,096

Deferred:

​

​

​

​

​

​

​

​

​

Federal

​

 

(15,329)

​

 

(17,733)

​

 

(20,434)

State

​

 

(386)

​

 

(913)

​

 

(415)

Total deferred

​

 

(15,715)

​

 

(18,646)

​

 

(20,849)

Total benefit

​

$

(1,337)

​

$

(10,231)

​

$

(753)

​

The following reconciles the U.S. federal statutory rate to the effective tax rate:

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

 

​

    

2023

    

2022

    

2021

 

​

​

​

​

​

​

​

​

U.S. federal statutory rate

 

21.0

%  

21.0

%  

21.0

%

State and district income taxes, net of federal benefit

 

5.4

​

8.9

​

4.2

​

Credit for FICA taxes paid on tips

 

(24.9)

​

(66.4)

​

(24.2)

​

Other credits and incentives

 

(2.2)

​

(10.7)

​

(4.2)

​

Impact of net operating loss carryback

 

0.0

​

0.0

​

(6.3)

​

Deferred compensation

 

(2.4)

​

9.7

​

(2.9)

​

Equity compensation

​

1.5

​

5.5

​

0.0

​

Uncertain tax positions

​

(0.7)

​

(2.3)

​

10.3

​

Non-deductible executive compensation

​

0.8

​

2.8

​

0.3

​

Other

 

0.2

​

0.4

​

0.7

​

Effective tax rate

 

(1.3)

%

(31.1)

%

(1.1)

%

​

On March 27, 2020, the CARES Act was signed into law. It included provisions allowing for the carryback of net operating losses generated in fiscal years 2018, 2019 and 2020. During fiscal 2021, we filed a refund claim in the amount of $18.4 million for our fiscal 2020 net operating loss carryback, which was received during fiscal 2022. In January 2022, we filed amended returns for tax years 2018 and 2019 requesting total refunds of $21.3 million for credits released by our fiscal 2020 loss carryback. These refunds have not yet been received. The effects of these claims were primarily included in our fiscal 2020 provision for income taxes, using estimates based on the best information available at the time we prepared our fiscal 2020 consolidated financial statements, and were adjusted to as-filed actual amounts in our fiscal 2021 provision for income taxes. These adjustments had a minor effect on our fiscal 2021 provision for income taxes. In our fiscal 2021 provision for income taxes, we also recorded the effects of accelerating the remittance of certain FICA taxes that had been deferred pursuant to the CARES Act. The accelerated remittance increased the value of our fiscal 2020 loss carryback by $4.3 million. We made no further adjustments in our fiscal 2023 provision for income taxes relating to these amounts.

​

Following are the temporary differences that created our deferred tax assets and liabilities (in thousands):

​

​

​

​

​

​

​

​

​

    

January 2, 2024

    

January 3, 2023

Deferred tax assets:

​

​

​

​

​

​

Staff member benefits

​

$

35,932

​

$

31,325

Insurance reserves

​

 

14,931

​

 

14,374

Operating lease liability

​

​

324,587

​

​

323,094

Deferred income

​

 

38,074

​

 

35,928

Tax credit carryforwards

​

 

74,004

​

 

57,710

Goodwill

​

 

22,743

​

 

21,331

Stock-based compensation

​

​

10,789

​

​

10,769

State and foreign net operating loss carryforwards

​

​

1,640

​

​

2,435

Other

​

​

674

​

​

604

Subtotal

​

 

523,374

​

 

497,570

Less: Valuation allowance

​

 

(1,444)

​

 

(1,223)

Total

​

$

521,930

​

$

496,347

​

​

​

​

​

​

​

Deferred tax liabilities:

​

​

​

​

​

​

Property and equipment

​

$

(121,219)

​

$

(113,565)

Prepaid expenses

​

 

(8,933)

​

 

(8,151)

Inventory

​

 

(8,882)

​

 

(8,399)

Accrued rent

​

​

(5,889)

​

​

(5,285)

Operating lease asset

​

​

(284,244)

​

​

(283,921)

Other

​

​

(819)

​

​

(781)

Total

​

$

(429,986)

​

$

(420,102)

​

​

​

​

​

​

​

Net deferred tax asset

​

$

91,944

​

$

76,245

​

At January 2, 2024 and January 3, 2023, we had $72.8 million and $56.5 million, respectively of U.S. federal credit carryforwards which begin to expire in 2038 and $1.6 million and $1.6 million, respectively, of state hiring and investment credits which begin to expire in 2024. At January 2, 2024 and January 3, 2023, we had $2.3 million and $2.5 million, respectively of foreign net operating loss carryforwards which begin to expire in 2038 and $27.4 million and $46.6 million, respectively, of state net operating loss carryforwards with statutory carryforward periods ranging from 5 years to no expiration period. The earliest year that a material state net operating loss will expire is 2032.

We assess the available evidence to estimate if these carryforwards and our other deferred tax assets will be realized. We concluded that a substantial portion of our deferred tax assets are more likely than not to be realized by reversals of existing taxable temporary differences and that forecasted future taxable income, exclusive of reversing temporary differences, will result in realization of a substantial portion of the remainder. We did not need to consider tax planning strategies in this analysis. Based on this evaluation, at January 2, 2024 and January 3, 2023 we carried a valuation allowance of $1.4 million and $1.2 million, respectively, to reflect the amount that we will likely not realize. This assessment could change if estimates of future taxable income during the carryforward period are revised. The earliest tax year still subject to examination by a significant taxing jurisdiction is 2015.

​

At January 2, 2024, we had a reserve of $3.8 million for uncertain tax positions, all of which would favorably impact our effective income tax rate if resolved in our favor. A reconciliation of the beginning and ending amount of our uncertain tax positions is as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

    

2023

    

2022

    

2021

​

​

​

​

​

​

​

​

​

​

Balance at beginning of year

​

$

3,787

​

$

4,799

​

$

655

Additions related to prior year tax positions

​

​

181

​

​

227

​

​

4,157

Additions related to current period tax positions

​

 

(121)

​

 

(54)

​

 

(13)

Reductions related to settlements with taxing authorities

​

 

—

​

 

(1,185)

​

 

—

Balance at end of year

​

$

3,847

​

$

3,787

​

$

4,799

​

At January 2, 2024 and January 3, 2023, we had $1.4 million and $2.2 million, respectively, of accrued interest and penalties related to uncertain tax positions. $0.3 million of the balance of uncertain tax positions at January 2, 2024 related to tax positions for which it is reasonably possible that the total amount could decrease during the next twelve months based on the lapses of statutes of limitations.
v3.24.0.1
Segment Information
 12 Months Ended
Jan. 02, 2024
Segment Information  
Segment Information

18.   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 and our bakery division. 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 and our bakery division) along with our businesses that do not 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):

​

​

​

​

​

​

​

​

​

​

​

​

​

Fiscal Year

​

    

2023

    

2022

    

2021

Revenues:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

2,595,066

​

$

2,528,043

​

$

2,293,225

North Italia

​

​

258,878

​

​

228,622

​

​

171,901

Other FRC

​

​

263,923

​

​

237,552

​

​

182,175

Other

​

 

321,636

​

 

308,939

​

 

280,239

Total

​

$

3,439,503

​

$

3,303,156

​

$

2,927,540

​

​

​

​

​

​

​

​

​

​

Income from operations:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

297,063

​

$

220,765

​

$

242,599

North Italia

​

​

18,515

​

​

13,934

​

​

8,624

Other FRC

​

​

19,422

​

​

23,577

​

​

16,323

Other(1)

​

 

(226,434)

​

 

(219,341)

​

 

(185,228)

Total

​

$

108,566

​

$

38,935

​

$

82,318

​

​

​

​

​

​

​

​

​

​

Depreciation and amortization expenses:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

64,206

​

$

66,539

​

$

65,987

North Italia

​

​

6,407

​

​

5,713

​

​

4,078

Other FRC

​

​

7,916

​

​

6,231

​

​

4,802

Other

​

 

14,607

​

 

13,897

​

 

14,787

Total

​

$

93,136

​

$

92,380

​

$

89,654

​

​

​

​

​

​

​

​

​

​

Impairment of assets and lease termination expenses:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

20,401

​

$

19,701

​

$

11,904

North Italia

​

​

1,015

​

​

—

​

​

—

Other FRC

​

​

2,582

​

​

3,909

​

​

1,305

Other

​

​

5,466

​

​

7,777

​

​

4,930

Total

​

$

29,464

​

$

31,387

​

$

18,139

​

​

​

​

​

​

​

​

​

​

Preopening costs:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

12,857

​

$

9,525

​

$

4,868

North Italia

​

​

5,058

​

​

4,305

​

​

4,510

Other FRC

​

​

6,482

​

​

1,361

​

​

3,188

Other

​

 

982

​

​

1,638

​

​

1,145

Total

​

$

25,379

​

$

16,829

​

$

13,711

​

​

​

​

​

​

​

​

​

​

Capital expenditures:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

80,752

​

$

65,996

​

$

31,832

North Italia

​

​

26,882

​

​

14,818

​

​

12,539

Other FRC

​

​

27,562

​

​

18,895

​

​

13,524

Other

​

​

16,369

​

​

12,755

​

​

9,048

Total

​

$

151,565

​

$

112,464

​

$

66,943

​

​

​

​

​

​

​

​

​

​

Total assets:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

1,571,943

​

$

1,625,073

​

$

1,653,161

North Italia

​

​

346,810

​

​

306,642

​

​

270,029

Other FRC

​

​

399,038

​

​

301,618

​

​

276,369

Other

​

 

522,592

​

 

541,887

​

 

598,566

Total

​

$

2,840,383

​

$

2,775,220

​

$

2,798,125

(1)Fiscal 2023, 2022 and fiscal 2021 include $11.7 million, $13.4 million and $19.5 million, respectively, of acquisition-related expenses. These amounts were recorded in acquisition-related costs and acquisition-related contingent consideration, compensation and amortization expenses in the consolidated statements of income.
v3.24.0.1
Subsequent Events
 12 Months Ended
Jan. 02, 2024
Subsequent Events  
Subsequent Events

19.   Subsequent Events

On February 15, 2024, our Board declared a quarterly cash dividend of $0.27 per share to be paid on March 19, 2024 to the stockholders of record of each share of our common stock at the close of business on March 6, 2024.

v3.24.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 02, 2024
Summary of Significant Accounting Policies  
Basis of Presentation

Basis of Presentation

The accompanying 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.

We utilize a 52/53-week fiscal year ending on the Tuesday closest to December 31 for financial reporting purposes. Fiscal years 2023 and 2021 each consisted of 52 weeks. Fiscal year 2022 consisted of 53 weeks. Fiscal year 2024 will consist of 52 weeks.
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.
Geopolitical and Other Macroeconomic Impacts to our Operating Environment

Geopolitical and Other Macroeconomic Impacts to our Operating Environment

During fiscal 2021 and 2022, the COVID - 19 pandemic continued to affect our business during periods of accelerated case counts in which we experienced increased restaurant staff absenteeism and temporary shifts in consumer behavior, such as changes in customer traffic or the mix between on-premise and off-premise channels. Along with the COVID-19 pandemic, our operating results were impacted by geopolitical and macroeconomic events, causing supply chain challenges and significantly increased commodity and wage inflation. Some of these factors continued to impact our operating results in fiscal 2023, contributing to significantly increased commodity and other costs. We also encountered delays in opening new restaurants primarily due to delays in permitting and landlord readiness, as well as supply chain challenges.

The ongoing impact of geopolitical and macroeconomic events could lead to further shifts in consumer behavior, wage inflation, staffing challenges, product and services cost inflation, disruptions in the supply chain and delay in new restaurant openings. Any of these factors may have an adverse impact on our business and materially adversely affect our financial performance.
Cash and Cash Equivalents

Cash and Cash Equivalents

Amounts receivable from credit card processors, totaling $21.0 million and $19.1 million at January 2, 2024 and January 3, 2023, respectively, are considered cash equivalents because they are both short-term and highly liquid in nature and are typically converted to cash within three days of the sales transaction. Our cash management system provides for the funding of all major bank disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks are in excess of the cash balances at certain banks, which creates book overdrafts. Book overdrafts are presented as a current liability in other accrued expenses on our consolidated balance sheet.
Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject us to a concentration of credit risk are cash and cash equivalents and receivables. We maintain our day-to-day operating cash balances in non-interest-bearing transaction accounts, which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. We invest our excess cash in a money market deposit account, which is insured by the FDIC up to $250,000. Although we maintain balances that exceed the federally insured limit, we have not experienced any losses related to these balances, and we believe credit risk to be minimal.

We consider the concentration of credit risk for accounts receivable from our bakery customers to be minimal due to the payment histories and general financial condition of our larger bakery accounts. Concentration of credit risk related to other receivables is limited as this balance is comprised primarily of amounts due from our gift card distributors, insurance providers and delivery partner.
Inventories

Inventories

Inventories consist of restaurant food and other supplies, bakery raw materials and bakery finished goods and are stated at the lower of cost or net realizable value on an average cost basis at the restaurants and on a first-in, first-out basis at the bakeries.
Property and Equipment

Property and Equipment

We record property and equipment at cost less accumulated depreciation. Improvements are capitalized, while repairs and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the reasonably certain lease term, whichever is shorter. Leasehold improvements include the cost of our internal development and construction department. Depreciation periods are as follows:

​

​

​

​

​

Buildings and land improvements

    

30 years

​

Leasehold improvements

​

10 to 30 years

​

Furnishings, fixtures and equipment

​

3 to 15 years

(1)

Computer software and equipment

​

5 years

​

(1)Other than certain types of restaurant equipment with estimated useful lives that equal or exceed the reasonably certain lease term, in which case the reasonably certain lease term is utilized.

Gains and losses related to property and equipment disposals are recorded in depreciation and amortization expenses.
Impairment of Long-Lived Assets and Lease Termination Expenses

Impairment of Long-Lived Assets and Lease Termination Expenses

We assess the potential impairment of our long-lived assets on an annual basis or whenever events or changes in circumstances indicate the carrying value of the assets or asset group may not be recoverable. Factors considered include, but are not limited to, negative cash flow, significant underperformance relative to historical or projected future operating results, significant changes in the manner in which an asset is being used, an expectation that an asset will be disposed of significantly before the end of its previously estimated useful life and significant negative industry or economic trends. At any given time, we may be monitoring a number of locations, and future impairment charges could be required if individual restaurant performance does not improve or we make the decision to close or relocate a restaurant.

Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Impairment testing is performed at the individual restaurant asset group level, which is inclusive of property and equipment and lease right-of-use assets. Recoverability is assessed by comparing the carrying value of the assets to the undiscounted cash flows expected to be generated by those assets. Impairment losses are measured as the amount by which the carrying values of the assets exceed their fair value, which is determined based on discounted future net cash flows expected to be generated by the assets.

In fiscal 2023, we recorded $29.5 million of expense primarily related to the impairment of long-lived assets for three The Cheesecake Factory (one previously impaired), one North Italia (previously impaired), one Other FRC and two Other restaurant lease terminations. In fiscal 2022, we recorded $31.4 million of expense primarily related to the impairment of long - lived assets for three The Cheesecake Factory, one Other FRC and three Other restaurants. In fiscal 2021, we recorded $16.3 million of expense primarily related to the impairment of long-lived assets for three The Cheesecake Factory and two Other restaurants. These amounts are recorded in impairment of assets and lease terminations on the consolidated statements of income.
Intangible Assets

Intangible Assets

The following table presents components of intangible assets, net (in thousands):

​

​

​

​

​

​

​

​

​

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

Indefinite-lived intangible assets:

​

​

  

​

​

  

Goodwill

​

$

1,451

​

$

1,451

Trade names and trademarks

​

 

234,341

​

 

234,077

Transferable alcoholic beverage licenses

​

 

7,923

​

 

7,683

Total indefinite-lived intangible assets

​

 

243,715

​

 

243,211

Definite-lived intangible assets, net:

​

 

​

​

 

​

Licensing agreements

​

 

4,602

​

 

5,092

Non-transferable alcoholic beverage licenses

​

 

3,410

​

 

3,221

Total definite-lived intangible assets

​

 

8,012

​

 

8,313

Total intangible assets, net

​

$

251,727

​

$

251,524

​

Goodwill and other indefinite-lived intangible assets are not amortized and are tested for impairment annually as of the first day of our fiscal fourth quarter or on an interim basis if events or changes in circumstances between annual tests indicate a potential impairment. First, we determine if, based on qualitative factors, it is more likely than not that an impairment exists. Factors considered include, but are not limited to, historical financial performance, wage, product and services inflation, competitive environment, macroeconomic and industry conditions, results of prior impairment tests and share price performance. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on our consolidated financial statements. If the qualitative assessment indicates that it is more likely than not that an impairment exists, then a quantitative assessment is performed. The quantitative assessments require the use of estimates and assumptions regarding future cash flows and asset fair values. Key assumptions include projected revenue growth and operating expenses, discount rates, royalty rates, valuation multiples and other factors that could affect fair value or otherwise indicate potential impairment. Such assessments could change materially if different estimates and assumptions were used.

We performed our annual impairment assessment of indefinite-lived intangible assets as of the first day of the fourth quarters of fiscal 2023, 2022 and 2021 and concluded there was no impairment.

Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable based on estimated undiscounted future cash flows. If impaired, the asset or asset group is written down to fair value based on discounted future cash flows. We performed our annual impairment assessment of definite-lived intangible assets as of the first day of the fourth quarters of fiscal 2023, 2022 and 2021. We concluded there was no impairment for fiscal 2023 and 2022 and recorded $1.3 million of impairment expense in fiscal 2021 related to licensing agreements. Amortization expenses related to our definite-lived intangible assets were $0.8 million, $0.7 million and $0.7 million for fiscal 2023, 2022 and 2021, respectively. Definite-lived intangible assets will be amortized over one to 52 years.

We evaluate the useful lives of our intangible assets, other than goodwill, at each reporting period to determine if they are definite or indefinite-lived. A determination on useful life requires judgments and assumptions regarding the future effects of obsolescence, demand, competition, other economic factors (such as the stability of the industry, legislative action that results in an uncertain or changing regulatory environment and expected changes in distribution channels), the level of required maintenance expenditures and the expected lives of other related groups of assets.
Revenue Recognition

Revenue Recognition

Our revenues consist of sales at our Company-owned restaurants, sales from our bakery operations to our licensees and other third-party customers, royalties from our licensees’ restaurant sales and from consumer packaged goods sales, and licensee development and site fees. Revenues are presented net of sales taxes. Sales tax collected is included in other accrued expenses until the taxes are remitted to the appropriate taxing authorities.

Revenues from restaurant sales are recognized when payment is tendered at the point of sale. Revenues from bakery sales are recognized upon transfer of title and risk to customers. Royalty revenues are recognized in the period the related sales occur, utilizing the sale-based royalty exception available under current accounting guidance. Our consumer packaged goods minimum guarantees do not require distinct performance obligations. Therefore, related revenue is recognized on a straight-line basis over the life of the applicable agreements, ranging from five to seven years. As our development and site fee agreements do not contain distinct performance obligations, related revenue is recognized on a straight-line basis over the life of the applicable agreements, ranging from eight to 30 years. Deferred and recognized revenue for new minimum guarantees for consumer packaged goods and for new site and development agreements were immaterial in all periods presented.

We recognize a liability upon the sale of our gift cards and recognize revenue when these gift cards are redeemed in our restaurants. Based on our historical redemption patterns, we can reasonably estimate the amount of gift cards for which redemption is remote, which is referred to as “breakage.” Breakage is recognized over a three-year period in proportion to historical redemption trends and is classified as revenues in our consolidated statements of income. We recognized $7.3 million, $7.0 million and $6.8 million of gift card breakage in fiscal years 2023, 2022 and 2021, respectively. Incremental direct costs related to gift card sales, including commissions and credit card fees, are deferred and recognized in earnings in the same pattern as the related gift card revenue.

Certain of our promotional programs include multiple element arrangements that incorporate various performance obligations. We allocate revenue using the relative selling price of each performance obligation considering the likelihood of redemption and recognize revenue upon satisfaction of each performance obligation. During fiscal 2023, we deferred and recognized previously deferred revenue of $27.5 million and $23.3 million, respectively, related to promotional programs. During fiscal 2022, we deferred and recognized previously deferred revenue of $27.3 million and $23.6 million, respectively, related to promotional programs. During fiscal 2021, we deferred and recognized previously deferred revenue of $27.5 million and $15.2 million, respectively, related to promotional programs.
Leases

Leases

We currently lease all of our restaurant locations, generally with initial terms of 10 to 20 years plus two five-year renewal options. Our leases typically require contingent rent above the minimum base rent payments based on a percentage of revenues ranging from 2% to 10%, have escalating minimum rent requirements over the term of the lease and require payment for various expenses incidental to the use of the property. A majority of our leases provide for a reduced level of overall rent obligation if specified co-tenancy requirements are not satisfied. We expend cash for leasehold improvements and furniture, fixtures, and equipment to build out and equip our leased premises. We may also expend cash for structural additions that we make to leased premises. Generally, a portion of the leasehold improvements and building costs are reimbursed to us by our landlords as construction contributions. If obtained, landlord construction contributions usually take the form of up-front cash, full or partial credits against our future minimum or percentage rents, or a combination thereof. We do not meet any of the accounting criteria under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 842, Leases, for being the owner of the asset under construction. Many of our leases provide early termination rights permitting us to terminate the lease prior to expiration in the event our revenues are below a stated level for a period of time, generally conditioned upon repayment of the unamortized landlord contributions.

In addition to leases for our restaurant locations, we also lease automobiles and certain equipment that is used in the restaurants, bakeries and corporate office. The leases for our restaurant locations, automobiles and certain restaurant equipment are included in our operating lease assets and liabilities. All other leases are immaterial or qualify for the short-term lease exclusion.

The assessment of whether a contract is or contains a lease is performed at contract inception. A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control is defined as having both the right to obtain substantially all the economic benefits from the use of the asset and to direct how and for what purpose the asset is used.

At lease commencement, we evaluate each material lease and those that don’t qualify for the short-term exclusion to determine its appropriate classification as an operating or finance lease. All of the leases evaluated meet the criteria for classification as operating leases. For restaurant leases that existed as of the adoption of ASC 842, we continued to apply our historical practice of excluding executory costs, and only minimum base rent was factored into the initial operating lease liability and corresponding lease asset. For restaurant leases beginning after adoption of ASC 842, we have elected the single lease component practical expedient. Operating lease assets and liabilities are recorded on the balance sheet at lease commencement based on the present value of minimum base rent and other fixed payments over the reasonably certain lease term. The difference between the amounts we expend for structural costs and the construction contributions received from our landlords is recorded as an adjustment to the operating lease asset. Lease terms include the build-out period for our leases where no rent payments are typically due under the terms of the lease, as well as options to renew when we deem we have significant economic incentive to exercise the extension. When determining if we have a significant economic incentive, we consider relevant factors, such as contractual, asset, entity and market-based considerations. Option periods are included in the lease term for the majority of our leases. Termination rights have not been factored into the lease terms since based on our probability assessment we are reasonably certain we will not terminate our leases.

We cannot determine the interest rate implicit in our leases because we do not have access to the lessor’s estimated residual value or the amount of the lessor’s deferred initial direct costs. Therefore, we use our incremental borrowing rate as the discount rate for our leases. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because we do not generally borrow on a collateralized basis, we derive an appropriate incremental borrowing rate using the interest rate we pay on our non-collateralized borrowings, adjusted for the amount of the lease payments, the lease term and the effect of designating specific collateral with a value equal to the unpaid lease payments for that lease.

We monitor for events or changes in circumstances that require reassessment of our leases. When a reassessment results in the re-measurement of a lease liability, a corresponding adjustment is made to the carrying amount of the operating lease asset. We also assess the potential impairment of our operating lease assets under long-lived asset impairment guidance in ASC 360, Property, Plant, and Equipment: Impairment or disposal on long-lived assets.

Rent expense included in our operating lease assets is recognized on a straight-line basis. Contingent rent expense is recorded as incurred to the extent it exceeds minimum base rent per the lease agreement. Variable lease payments, which primarily consist of real estate taxes, common area maintenance charges, insurance cost and other operating expenses, are not included in the operating lease right-of-use asset or operating lease liability balances and are recognized as incurred. Rent expense is included in other operating costs and expenses in the consolidated statements of income.

The reasonably certain lease term and the incremental borrowing rate for each restaurant location require judgment by management and can impact the classification and accounting for a lease as operating or finance, the value of the operating lease asset and liability and the term over which leasehold improvements for each restaurant are depreciated. These judgments may produce materially different amounts of operating lease assets and liabilities, rent expense and interest expense than would be reported if different assumptions were used.

Self-Insurance Liabilities

Self-Insurance Liabilities

We retain financial responsibility for a significant portion of our risks and associated liabilities with respect to workers’ compensation, general liability, staff member health benefits, employment practices and other insurable risks. The accrued liabilities associated with these programs are based on our estimate of the ultimate costs to settle known claims, as well as claims incurred but not yet reported to us (“IBNR”) as of the balance sheet date and are recorded in other accrued expenses. Our estimated liabilities, which are not discounted, are based on information provided by our insurance brokers and insurers, combined with our judgment regarding a number of assumptions and factors, including the frequency and severity of claims, claims development history, case jurisdiction, applicable legislation and our claims settlement practices. Significant judgment is required to estimate IBNR amounts, as parties have yet to assert such claims. If actual claims trends, including the severity or frequency of claims, differ from our estimates, our financial results could be impacted.
Stock-Based Compensation

Stock-Based Compensation

We maintain stock-based incentive plans under which equity awards may be granted to staff members, consultants and non-employee directors. We account for the awards based on fair value measurement guidance and amortize to expense over the vesting period using a straight-line or graded-vesting schedule, as applicable. (See Note 15 for further discussion of our stock-based compensation.)
Advertising Costs

Advertising Costs

We expense advertising production costs at the time the advertising first takes place. All other advertising costs are expensed as incurred. Most of our advertising costs are included in other operating costs and expenses and were $34.7 million, $24.0 million and $19.9 million in fiscal 2023, 2022 and 2021, respectively. The increase in fiscal 2023 is primarily due to the launch of our Cheesecake RewardsTM program.
Preopening Costs

Preopening Costs

Preopening costs include all costs to relocate and compensate restaurant management staff members during the preopening period, costs to recruit and train hourly restaurant staff members, and wages, travel and lodging costs for our opening training team and other support staff members. Also included are expenses for maintaining a roster of trained managers for pending openings, the associated temporary housing and other costs necessary to relocate managers in alignment with future restaurant opening and operating needs, and corporate travel and support activities. We expense preopening costs as incurred.
Income Taxes

Income Taxes

We provide for federal, state and foreign income taxes currently payable and for deferred taxes that result from differences between financial accounting rules and tax laws governing the timing of recognition of various income and expense items. We recognize deferred income tax assets and liabilities for the future tax effects of such temporary differences based on the difference between the financial statement and tax bases of existing assets and liabilities using the statutory rates expected in the years in which the differences are expected to reverse. The effect on deferred taxes of any enacted change in tax rates is recognized in income in the period that includes the enactment date. Income tax credits are recorded as a reduction of tax expense.

We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and record a valuation allowance if, based on all available evidence, we determine that some portion of the tax benefit will not be realized. In evaluating our ability to recover our deferred tax assets within the jurisdictions from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies (when applicable) and results of recent operations. If we later determine that we would be able to realize our deferred tax assets in excess of their net recorded amount, we adjust the deferred tax asset valuation allowance and reduce income tax expense.

We evaluate our exposures associated with our various tax filing positions and recognize a tax benefit from an uncertain tax position only if it is more-likely-than-not that the position will be sustained upon examination by the relevant taxing authorities based solely on its technical merits, taking into account available administrative remedies and litigation. If this threshold is met, we recognize only the portion of the tax benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. We record a liability for any portion of the tax benefit that does not meet these recognition and measurement criteria and we adjust this liability through income tax expense in the period in which the uncertain tax position is effectively settled, when the statute of limitations expires for the relevant taxing authority to examine the tax position or when new information becomes available. We recognize interest and penalties related to uncertain tax positions in income tax expense.
Net Income per Share

Net Income per Share

Basic net income per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards. At January 2, 2024, January 3, 2023 and December 28, 2021, 2.9 million shares, 2.5 million shares and 2.1 million shares, respectively, of restricted stock and restricted stock units issued were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal years 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. Common stock equivalents for our convertible senior notes due 2026 (“Notes”) are determined by application of the if-converted method, and common stock equivalents for outstanding stock options, restricted stock and restricted stock units are determined by the application of the treasury stock method.

Holders of our Series A Convertible Preferred Stock, par value $0.01 per share (the “Series A preferred stock”) participated in dividends on an as-converted basis when declared on common stock. As a result, our Series A preferred stock met the definition of a participating security which required 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 was a participating security, we were 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.

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

​

2023

​

2022

​

2021

​

​

(In thousands, except per share data)

Basic net income per common share:

​

​

​

​

​

​

​

​

​

Net income

​

$

101,351

​

$

43,123

​

$

72,373

Dividends on Series A preferred stock

​

 

—

​

 

—

​

 

(18,661)

Undistributed earnings allocated to Series A preferred stock

​

​

—

​

​

—

​

​

(4,581)

Net income available to common stockholders

​

 

101,351

​

 

43,123

​

 

49,131

Basic weighted-average shares outstanding

​

​

48,324

​

​

49,815

​

​

47,529

Basic net income per common share

​

$

2.10

​

$

0.87

​

$

1.03

​

​

​

​

​

​

​

​

​

​

Diluted net income per common share:

​

​

​

​

​

​

​

​

​

Net income available to common stockholders

​

​

101,351

​

​

43,123

​

​

49,131

Reallocation of undistributed earnings to Series A preferred stock

​

​

—

​

​

—

​

​

85

Net income available to common stockholders for diluted EPS

​

​

101,351

​

​

43,123

​

​

49,216

Basic weighted-average shares outstanding

​

​

48,324

​

​

49,815

​

​

47,529

Dilutive effect of equity awards (1)

​

​

726

​

​

599

​

​

981

Diluted weighted-average shares outstanding

​

​

49,050

​

​

50,414

​

​

48,510

Diluted net income per common share

​

$

2.07

​

$

0.86

​

$

1.01

(1)Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 2.9 million, 3.3 million and 1.9 million for fiscal 2023, 2022 and 2021, respectively, were excluded from the diluted calculation due to their anti-dilutive effect. No shares of common stock equivalents related to the Notes were included in the diluted calculation due to their anti-dilutive effect.
Comprehensive Income

Comprehensive Income

Comprehensive income includes all changes in equity during a period except those resulting from investment by and distribution to owners. Our comprehensive income consists of net income, unrealized gains on our interest rate swap and translation gains/(losses) related to our Canadian restaurant operations.
Foreign Currency

Foreign Currency

The Canadian dollar is the functional currency for our Canadian restaurant operations. Revenue and expense accounts are translated into U.S. dollars using the average exchange rates during the reporting period. Assets and liabilities are translated using the exchange rates in effect at the reporting period end date. Equity accounts are translated at historical rates, except for the change in retained earnings which is the result of the income statement translation process. Translation gains and losses are reported as a separate component in our consolidated statements of comprehensive income and would only be realized upon the sale or upon complete or substantially complete liquidation of the business. Gains and losses from foreign currency transactions are recognized in our consolidated statements of income in interest and other expense, net.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which updates income tax disclosures related to the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendment also provides further disclosure comparability. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively. However, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures.
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jan. 02, 2024
Summary of Significant Accounting Policies  
Schedule of depreciation and amortization periods

​

​

​

​

​

Buildings and land improvements

    

30 years

​

Leasehold improvements

​

10 to 30 years

​

Furnishings, fixtures and equipment

​

3 to 15 years

(1)

Computer software and equipment

​

5 years

​

(1)Other than certain types of restaurant equipment with estimated useful lives that equal or exceed the reasonably certain lease term, in which case the reasonably certain lease term is utilized.
Schedule of components of intangible assets, net

The following table presents components of intangible assets, net (in thousands):

​

​

​

​

​

​

​

​

​

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

Indefinite-lived intangible assets:

​

​

  

​

​

  

Goodwill

​

$

1,451

​

$

1,451

Trade names and trademarks

​

 

234,341

​

 

234,077

Transferable alcoholic beverage licenses

​

 

7,923

​

 

7,683

Total indefinite-lived intangible assets

​

 

243,715

​

 

243,211

Definite-lived intangible assets, net:

​

 

​

​

 

​

Licensing agreements

​

 

4,602

​

 

5,092

Non-transferable alcoholic beverage licenses

​

 

3,410

​

 

3,221

Total definite-lived intangible assets

​

 

8,012

​

 

8,313

Total intangible assets, net

​

$

251,727

​

$

251,524
Schedule of basic and diluted net income (loss) per share

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

​

2023

​

2022

​

2021

​

​

(In thousands, except per share data)

Basic net income per common share:

​

​

​

​

​

​

​

​

​

Net income

​

$

101,351

​

$

43,123

​

$

72,373

Dividends on Series A preferred stock

​

 

—

​

 

—

​

 

(18,661)

Undistributed earnings allocated to Series A preferred stock

​

​

—

​

​

—

​

​

(4,581)

Net income available to common stockholders

​

 

101,351

​

 

43,123

​

 

49,131

Basic weighted-average shares outstanding

​

​

48,324

​

​

49,815

​

​

47,529

Basic net income per common share

​

$

2.10

​

$

0.87

​

$

1.03

​

​

​

​

​

​

​

​

​

​

Diluted net income per common share:

​

​

​

​

​

​

​

​

​

Net income available to common stockholders

​

​

101,351

​

​

43,123

​

​

49,131

Reallocation of undistributed earnings to Series A preferred stock

​

​

—

​

​

—

​

​

85

Net income available to common stockholders for diluted EPS

​

​

101,351

​

​

43,123

​

​

49,216

Basic weighted-average shares outstanding

​

​

48,324

​

​

49,815

​

​

47,529

Dilutive effect of equity awards (1)

​

​

726

​

​

599

​

​

981

Diluted weighted-average shares outstanding

​

​

49,050

​

​

50,414

​

​

48,510

Diluted net income per common share

​

$

2.07

​

$

0.86

​

$

1.01

(1)Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 2.9 million, 3.3 million and 1.9 million for fiscal 2023, 2022 and 2021, respectively, were excluded from the diluted calculation due to their anti-dilutive effect. No shares of common stock equivalents related to the Notes were included in the diluted calculation due to their anti-dilutive effect.
v3.24.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Jan. 02, 2024
Fair Value Measurements  
Schedule of components and classification of assets and liabilities measured at fair value on a 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):

​

​

​

​

​

​

​

​

​

​

​

​

    

January 2, 2024

​

    

Level 1

    

Level 2

    

Level 3

Assets/(Liabilities)

​

​

​

​

​

​

​

 

​

Non-qualified deferred compensation assets

​

$

94,136

​

$

—

​

$

—

Non-qualified deferred compensation liabilities

​

​

(93,979)

​

​

—

​

​

—

Acquisition-related contingent consideration and compensation liability

​

​

—

​

​

—

​

​

(25,495)

​

​

​

​

​

​

​

​

​

​

​

​

    

January 3, 2023

​

    

Level 1

    

Level 2

    

Level 3

Assets/(Liabilities)

​

​

​

​

​

​

​

​

​

Non-qualified deferred compensation assets

​

$

78,542

​

$

—

​

$

—

Non-qualified deferred compensation liabilities

​

​

(78,286)

​

​

—

​

​

—

Acquisition-related deferred consideration (1)

​

​

—

​

​

(10,751)

​

​

—

Acquisition-related contingent consideration and compensation liability

​

​

—

​

​

—

​

​

(28,565)
Schedule of reconciliation of the beginning and ending amounts of the fair value of the acquisition-related contingent consideration and compensation liabilities categorized as Level 3

The following table presents a reconciliation of the beginning and ending amounts of the fair value of the acquisition-related contingent consideration and compensation liability categorized as Level 3 (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Beginning balance

​

$

28,565

​

$

23,894

Payment

​

​

(12,994)

​

​

(7,187)

Change in fair value

​

 

9,924

​

 

11,858

Ending balance

​

$

25,495

​

$

28,565
v3.24.0.1
Accounts and Other Receivables (Tables)
 12 Months Ended
Jan. 02, 2024
Accounts and Other Receivables  
Schedule of accounts and other receivables

Accounts and other receivables consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

    Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Gift card distributors

​

$

35,777

​

$

37,586

Bakery customers

​

​

13,863

​

​

16,561

Landlord construction contributions

​

 

12,650

​

 

9,862

Insurance providers

​

​

9,984

​

​

10,529

Delivery partner

​

​

7,154

​

​

7,757

Other

​

​

23,666

​

​

23,216

Total

​

$

103,094

​

$

105,511

​
v3.24.0.1
Inventories (Tables)
 12 Months Ended
Jan. 02, 2024
Inventories  
Schedule of inventories

Inventories consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Restaurant food and supplies

​

$

32,283

​

$

30,783

Bakery finished goods and work in progress

​

 

16,230

​

 

17,250

Bakery raw materials and supplies

​

 

9,141

​

 

7,526

Total

​

$

57,654

​

$

55,559

​
v3.24.0.1
Prepaid Expenses (Tables)
 12 Months Ended
Jan. 02, 2024
Prepaid Expenses  
Schedule of prepaid expenses

Prepaid expenses consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

    Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Gift card contract assets

​

$

19,111

​

$

19,886

Prepaid rent (1)

​

 

24,438

​

 

12,165

Other

​

 

19,541

​

 

16,348

Total

​

$

63,090

​

$

48,399

(1)The primary cause for the increase in prepaid rent expenses is a higher number of restaurants under construction at January 2, 2024 where the lease has not yet commenced compared to the prior year.
v3.24.0.1
Property and Equipment (Tables)
 12 Months Ended
Jan. 02, 2024
Property and Equipment  
Schedule of property and equipment

Property and equipment consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

    Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Land and related improvements

​

$

15,852

​

$

15,852

Buildings

​

 

44,179

​

 

44,138

Leasehold improvements

​

 

1,291,153

​

 

1,225,860

Furnishings, fixtures and equipment

​

 

625,931

​

 

584,924

Computer software and equipment

​

 

57,952

​

 

60,861

Restaurant smallwares

​

 

38,234

​

 

36,494

Construction in progress

​

 

58,067

​

 

36,675

​

​

​

​

​

​

​

Property and equipment, total

​

 

2,131,368

​

 

2,004,804

Less: Accumulated depreciation

​

 

(1,340,275)

​

 

(1,258,753)

Property and equipment, net

​

$

791,093

​

$

746,051

​
v3.24.0.1
Other Assets (Tables)
 12 Months Ended
Jan. 02, 2024
Other Assets  
Schedule of other assets

Other assets consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

    Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Non-qualified deferred compensation assets (1)

​

$

94,136

​

$

78,542

Deferred income taxes(2)

​

​

91,944

​

​

76,245

Other

​

​

8,535

​

​

8,104

Total

​

$

194,615

​

$

162,891

(1)See Note 16 for further discussion of our non-qualified deferred compensation assets.
(2)See Note 17 for further discussion of our income taxes.
v3.24.0.1
Gift Cards (Tables)
 12 Months Ended
Jan. 02, 2024
Gift Cards  
Schedule of gift card liabilities

The following tables present information related to gift cards (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

Gift card liabilities:

​

​

​

​

​

​

Beginning balance

​

$

219,808

 

$

211,182

Activations

​

 

140,647

​

 

152,368

Redemptions and breakage

​

 

(137,540)

​

 

(143,743)

Ending balance

​

$

222,915

 

$

219,808

​

​
Schedule of gift card contract assets

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

Gift card contract assets: (1)

​

​

​

​

​

​

Beginning balance

​

$

19,886

 

$

18,468

Deferrals

​

 

14,957

​

 

16,440

Amortization

​

 

(15,732)

​

 

(15,022)

Ending balance

​

$

19,111

 

$

19,886

(1)Included in prepaid expenses on the consolidated balance sheets.
v3.24.0.1
Other Accrued Expenses (Tables)
 12 Months Ended
Jan. 02, 2024
Other Accrued Expenses  
Schedule of other accrued expenses

Other accrued expenses consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

    Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Self-insurance

​

$

71,546

​

$

71,872

Salaries and wages (1)

​

 

51,040

​

 

43,402

Staff member benefits

​

 

28,951

​

 

27,332

Payroll and sales taxes

​

 

20,365

​

 

24,861

Rent

​

​

18,973

​

​

12,713

Deferred consideration (2)

​

​

—

​

​

10,751

Other

​

 

48,824

​

 

40,202

Total

​

$

239,699

​

$

231,133

(1)The increase in accrued salaries and wages was primarily due to the timing of payroll disbursements in relation to the fiscal 2023 versus 2022 year-end dates.
v3.24.0.1
Leases (Tables)
 12 Months Ended
Jan. 02, 2024
Leases  
Schedule of components for lease expense

Components of lease expense were as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

​

Fiscal Year

​

    

​

2023

    

2022

    

2021

Operating

​

$

145,774

​

$

140,351

​

$

131,834

Variable

​

​

87,047

​

​

81,585

​

 

73,909

Short-term

​

​

142

​

​

116

​

 

283

Total

​

$

232,963

​

$

222,052

​

$

206,026
Schedule of supplemental information related to leases

Supplemental information related to leases (in thousands, except percentages):

​

​

​

​

​

​

​

​

​

​

 

Fiscal Year

​

​

    

2023

    

2022

​

Cash paid for amounts included in the measurement of lease liabilities:

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

145,836

​

$

149,624

​

Right-of-use assets obtained in exchange for new operating lease liabilities

​

​

114,373

​

​

86,187

​

Weighted-average remaining lease term — operating leases (in years)

​

​

14.9

​

​

15.2

​

Weighted-average discount rate — operating leases

​

​

5.3

%

​

5.0

%
Schedule of operating lease liabilities maturity

As of January 2, 2024, the maturities of our operating lease liabilities were as follows (in thousands):

​

​

​

​

​

Fiscal year 2024

​

$

138,459

Fiscal year 2025

​

 

146,828

Fiscal year 2026

​

 

144,453

Fiscal year 2027

​

 

142,444

Fiscal year 2028

​

​

149,919

Thereafter

​

 

1,357,092

Total future lease payments

​

​

2,079,195

Less: Interest

​

​

(689,335)

Present value of lease liabilities

​

$

1,389,860
v3.24.0.1
Other Noncurrent Liabilities (Tables)
 12 Months Ended
Jan. 02, 2024
Other Noncurrent Liabilities  
Schedule of other noncurrent liabilities

Other noncurrent liabilities consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

January 2, 2024

    

January 3, 2023

​

​

​

​

​

​

​

Non-qualified deferred compensation liabilities (1)

​

$

93,979

​

$

78,286

Contingent consideration and compensation liability

​

​

25,495

​

​

28,565

Other

​

 

17,174

​

 

18,159

Total

​

$

136,648

​

$

125,010
v3.24.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Jan. 02, 2024
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):

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

    

2023

    

2022

    

2021

​

​

​

​

​

​

​

​

​

​

Labor expenses

​

$

9,914

​

$

9,590

​

$

8,856

Other operating costs and expenses

​

 

318

​

 

321

​

 

311

General and administrative expenses

​

 

15,549

​

 

14,515

​

 

13,821

Total stock-based compensation

​

 

25,781

​

 

24,426

​

 

22,988

Income tax benefit

​

 

6,437

​

 

6,026

​

 

5,646

Total stock-based compensation, net of taxes

​

$

19,344

​

$

18,399

​

$

17,342

​

​

​

​

​

​

​

​

​

​

Capitalized stock-based compensation (1)

​

$

185

​

$

226

​

$

194

(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 consolidated balance sheets.

​
Schedule of stock option activity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-

​

​

​

​

​

​

​

​

​

​

Average

​

​

​

​

​

​

​

Weighted-

​

Remaining

​

​

​

​

​

​

Average

​

Contractual

​

Aggregate

​

    

Shares

    

Exercise Price

    

Term

    

Intrinsic Value (1)

​

​

(In thousands)

​

(Per share)

​

(In years)

​

(In thousands)

Outstanding at beginning of year

 

1,685

​

$

46.11

​

4.2

​

$

0

Granted

 

40

​

$

40.42

​

​

​

​

​

Exercised

 

—

​

$

—

​

​

​

​

​

Forfeited or cancelled

 

(175)

​

$

48.01

​

​

​

​

​

Outstanding at end of year

 

1,550

​

$

45.75

​

3.8

​

$

0

​

​

​

​

​

​

​

​

​

​

​

Exercisable at end of year

 

1,199

​

$

47.11

​

3.1

​

$

0

(1)Aggregate intrinsic value is calculated as the difference between our closing stock price at fiscal year 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 year-end date.
Schedule of restricted share and restricted share unit activity

​

​

​

​

​

​

​

​

​

​

​

Weighted-

​

​

​

​

Average

​

    

Shares

    

Fair Value

​

​

(In thousands)

​

(Per share)

Outstanding at beginning of year

​

2,512

​

$

41.93

Granted

 

1,005

​

$

37.73

Vested

 

(501)

​

$

43.59

Forfeited

 

(130)

​

$

39.77

Outstanding at end of year

 

2,886

​

$

40.28
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Jan. 02, 2024
Income Taxes  
Schedule of provision for income taxes

The provision for income taxes consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

Fiscal Year

​

    

2023

    

2022

    

2021

​

​

​

​

​

​

​

​

​

​

Income before income taxes

​

$

100,014

​

$

32,892

​

$

71,620

Income tax provision/(benefit):

​

​

​

​

​

​

​

​

​

Current:

​

​

​

​

​

​

​

​

​

Federal

​

$

7,183

​

$

3,520

​

$

15,746

State

​

 

7,195

​

 

4,895

​

 

4,350

Total current

​

 

14,378

​

 

8,415

​

 

20,096

Deferred:

​

​

​

​

​

​

​

​

​

Federal

​

 

(15,329)

​

 

(17,733)

​

 

(20,434)

State

​

 

(386)

​

 

(913)

​

 

(415)

Total deferred

​

 

(15,715)

​

 

(18,646)

​

 

(20,849)

Total benefit

​

$

(1,337)

​

$

(10,231)

​

$

(753)

​
Schedule of reconciles the U.S. federal statutory rate to the effective tax rate

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

 

​

    

2023

    

2022

    

2021

 

​

​

​

​

​

​

​

​

U.S. federal statutory rate

 

21.0

%  

21.0

%  

21.0

%

State and district income taxes, net of federal benefit

 

5.4

​

8.9

​

4.2

​

Credit for FICA taxes paid on tips

 

(24.9)

​

(66.4)

​

(24.2)

​

Other credits and incentives

 

(2.2)

​

(10.7)

​

(4.2)

​

Impact of net operating loss carryback

 

0.0

​

0.0

​

(6.3)

​

Deferred compensation

 

(2.4)

​

9.7

​

(2.9)

​

Equity compensation

​

1.5

​

5.5

​

0.0

​

Uncertain tax positions

​

(0.7)

​

(2.3)

​

10.3

​

Non-deductible executive compensation

​

0.8

​

2.8

​

0.3

​

Other

 

0.2

​

0.4

​

0.7

​

Effective tax rate

 

(1.3)

%

(31.1)

%

(1.1)

%
Schedule of deferred tax assets and liabilities

Following are the temporary differences that created our deferred tax assets and liabilities (in thousands):

​

​

​

​

​

​

​

​

​

    

January 2, 2024

    

January 3, 2023

Deferred tax assets:

​

​

​

​

​

​

Staff member benefits

​

$

35,932

​

$

31,325

Insurance reserves

​

 

14,931

​

 

14,374

Operating lease liability

​

​

324,587

​

​

323,094

Deferred income

​

 

38,074

​

 

35,928

Tax credit carryforwards

​

 

74,004

​

 

57,710

Goodwill

​

 

22,743

​

 

21,331

Stock-based compensation

​

​

10,789

​

​

10,769

State and foreign net operating loss carryforwards

​

​

1,640

​

​

2,435

Other

​

​

674

​

​

604

Subtotal

​

 

523,374

​

 

497,570

Less: Valuation allowance

​

 

(1,444)

​

 

(1,223)

Total

​

$

521,930

​

$

496,347

​

​

​

​

​

​

​

Deferred tax liabilities:

​

​

​

​

​

​

Property and equipment

​

$

(121,219)

​

$

(113,565)

Prepaid expenses

​

 

(8,933)

​

 

(8,151)

Inventory

​

 

(8,882)

​

 

(8,399)

Accrued rent

​

​

(5,889)

​

​

(5,285)

Operating lease asset

​

​

(284,244)

​

​

(283,921)

Other

​

​

(819)

​

​

(781)

Total

​

$

(429,986)

​

$

(420,102)

​

​

​

​

​

​

​

Net deferred tax asset

​

$

91,944

​

$

76,245
Schedule of reconciliation of our uncertain tax positions A reconciliation of the beginning and ending amount of our uncertain tax positions is as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

    

2023

    

2022

    

2021

​

​

​

​

​

​

​

​

​

​

Balance at beginning of year

​

$

3,787

​

$

4,799

​

$

655

Additions related to prior year tax positions

​

​

181

​

​

227

​

​

4,157

Additions related to current period tax positions

​

 

(121)

​

 

(54)

​

 

(13)

Reductions related to settlements with taxing authorities

​

 

—

​

 

(1,185)

​

 

—

Balance at end of year

​

$

3,847

​

$

3,787

​

$

4,799
v3.24.0.1
Segment Information (Tables)
 12 Months Ended
Jan. 02, 2024
Segment Information  
Schedule of segment information

Segment information is presented below (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

Fiscal Year

​

    

2023

    

2022

    

2021

Revenues:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

2,595,066

​

$

2,528,043

​

$

2,293,225

North Italia

​

​

258,878

​

​

228,622

​

​

171,901

Other FRC

​

​

263,923

​

​

237,552

​

​

182,175

Other

​

 

321,636

​

 

308,939

​

 

280,239

Total

​

$

3,439,503

​

$

3,303,156

​

$

2,927,540

​

​

​

​

​

​

​

​

​

​

Income from operations:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

297,063

​

$

220,765

​

$

242,599

North Italia

​

​

18,515

​

​

13,934

​

​

8,624

Other FRC

​

​

19,422

​

​

23,577

​

​

16,323

Other(1)

​

 

(226,434)

​

 

(219,341)

​

 

(185,228)

Total

​

$

108,566

​

$

38,935

​

$

82,318

​

​

​

​

​

​

​

​

​

​

Depreciation and amortization expenses:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

64,206

​

$

66,539

​

$

65,987

North Italia

​

​

6,407

​

​

5,713

​

​

4,078

Other FRC

​

​

7,916

​

​

6,231

​

​

4,802

Other

​

 

14,607

​

 

13,897

​

 

14,787

Total

​

$

93,136

​

$

92,380

​

$

89,654

​

​

​

​

​

​

​

​

​

​

Impairment of assets and lease termination expenses:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

20,401

​

$

19,701

​

$

11,904

North Italia

​

​

1,015

​

​

—

​

​

—

Other FRC

​

​

2,582

​

​

3,909

​

​

1,305

Other

​

​

5,466

​

​

7,777

​

​

4,930

Total

​

$

29,464

​

$

31,387

​

$

18,139

​

​

​

​

​

​

​

​

​

​

Preopening costs:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

12,857

​

$

9,525

​

$

4,868

North Italia

​

​

5,058

​

​

4,305

​

​

4,510

Other FRC

​

​

6,482

​

​

1,361

​

​

3,188

Other

​

 

982

​

​

1,638

​

​

1,145

Total

​

$

25,379

​

$

16,829

​

$

13,711

​

​

​

​

​

​

​

​

​

​

Capital expenditures:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

80,752

​

$

65,996

​

$

31,832

North Italia

​

​

26,882

​

​

14,818

​

​

12,539

Other FRC

​

​

27,562

​

​

18,895

​

​

13,524

Other

​

​

16,369

​

​

12,755

​

​

9,048

Total

​

$

151,565

​

$

112,464

​

$

66,943

​

​

​

​

​

​

​

​

​

​

Total assets:

​

​

​

​

​

​

​

​

​

The Cheesecake Factory restaurants

​

$

1,571,943

​

$

1,625,073

​

$

1,653,161

North Italia

​

​

346,810

​

​

306,642

​

​

270,029

Other FRC

​

​

399,038

​

​

301,618

​

​

276,369

Other

​

 

522,592

​

 

541,887

​

 

598,566

Total

​

$

2,840,383

​

$

2,775,220

​

$

2,798,125

(1)Fiscal 2023, 2022 and fiscal 2021 include $11.7 million, $13.4 million and $19.5 million, respectively, of acquisition-related expenses. These amounts were recorded in acquisition-related costs and acquisition-related contingent consideration, compensation and amortization expenses in the consolidated statements of income.
v3.24.0.1
Summary of Significant Accounting Policies (Details)
$ in Millions
 12 Months Ended
Jan. 02, 2024
USD ($)
restaurant
Jan. 03, 2023
USD ($)
Dec. 28, 2021
Description of Business      
Number of company-owned upscale, casual, full-service dining restaurants 334    
Number of International locations operating under licensing agreements 33    
Number of bakery production facilities 2    
Basis of Presentation      
Length of fiscal year 364 days 371 days 364 days
Cash and Cash Equivalents      
Amounts receivable from credit card processors | $ $ 21.0 $ 19.1  
Conversion period, credit card sales 3 days    
v3.24.0.1
Summary of Significant Accounting Policies - Property and Equipment (Details)
Jan. 02, 2024
Buildings and land improvements  
Summary of Significant Accounting Policies  
Useful life 30 years
Leasehold improvements | Minimum  
Summary of Significant Accounting Policies  
Useful life 10 years
Leasehold improvements | Maximum  
Summary of Significant Accounting Policies  
Useful life 30 years
Furnishings, fixtures and equipment | Minimum  
Summary of Significant Accounting Policies  
Useful life 3 years
Furnishings, fixtures and equipment | Maximum  
Summary of Significant Accounting Policies  
Useful life 15 years
Computer software and equipment  
Summary of Significant Accounting Policies  
Useful life 5 years
v3.24.0.1
Summary of Significant Accounting Policies - Impairment of Long-Lived Assets and Lease Termination Expenses (Details)
$ in Millions
 12 Months Ended
Jan. 02, 2024
USD ($)
restaurant
Jan. 03, 2023
USD ($)
restaurant
Dec. 28, 2021
USD ($)
restaurant
The Cheesecake Factory restaurants      
Summary of Significant Accounting Policies      
Number of restaurants for which impairment and lease termination expenses were recorded 1   3
Three, The Cheesecake Factory restaurants      
Summary of Significant Accounting Policies      
Impairment of long-lived assets | $ $ 29.5 $ 31.4 $ 16.3
Number of restaurants for which impairment and lease termination expenses were recorded 3 3  
North Italia      
Summary of Significant Accounting Policies      
Number of restaurants for which impairment and lease termination expenses were recorded 1    
Other FRC      
Summary of Significant Accounting Policies      
Number of restaurants for which impairment and lease termination expenses were recorded 1 1  
Other      
Summary of Significant Accounting Policies      
Number of restaurants for which impairment and lease termination expenses were recorded 2 3 2
v3.24.0.1
Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended 24 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Jan. 02, 2024
Goodwill and Other Intangible Assets        
Goodwill $ 1,451 $ 1,451   $ 1,451
Other intangible assets        
Total indefinite-lived intangible assets 243,715 243,211   243,715
Total definite-lived intangible assets 8,012 8,313   8,012
Total intangible assets, net $ 251,727 251,524   $ 251,727
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] General and Administrative Expense      
Amortization expenses related to our definite-lived intangible assets $ 800 700 $ 700  
Minimum        
Other intangible assets        
Definite-lived intangible assets, amortization period 1 year     1 year
Maximum        
Other intangible assets        
Definite-lived intangible assets, amortization period 52 years     52 years
Licensing agreements        
Other intangible assets        
Total definite-lived intangible assets $ 4,602 5,092   $ 4,602
Impairment expense of Intangible assets     $ 1,300 0
Non-transferable alcoholic beverage licenses        
Other intangible assets        
Total definite-lived intangible assets 3,410 3,221   3,410
Trade names and trademarks        
Other intangible assets        
Total indefinite-lived intangible assets 234,341 234,077   234,341
Transferable alcoholic beverage licenses        
Other intangible assets        
Total indefinite-lived intangible assets $ 7,923 $ 7,683   $ 7,923
v3.24.0.1
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Revenue Recognition      
Gift card breakage period 3 years    
Revenue recognized $ 7.3 $ 7.0 $ 6.8
Promotional programs      
Revenue Recognition      
Deferred revenue 27.5 27.3 27.5
Deferred revenue recognized $ 23.3 $ 23.6 $ 15.2
Minimum      
Revenue Recognition      
Revenue recognition agreement term 5 years    
Revenue recognition for development and site fees over the life of the applicable licensee agreements (in years) 8 years    
Maximum      
Revenue Recognition      
Revenue recognition agreement term 7 years    
Revenue recognition for development and site fees over the life of the applicable licensee agreements (in years) 30 years    
v3.24.0.1
Summary of Significant Accounting Policies - Leases (Details)
 12 Months Ended
Jan. 02, 2024
lease
Summary of Significant Accounting Policies  
Number of leases that have been executed but have not yet commenced 2
Renewal term of leases, Restaurant locations 5 years
Minimum  
Summary of Significant Accounting Policies  
Initial term of leases, Restaurant locations 10 years
Percentage of revenue 2.00%
Maximum  
Summary of Significant Accounting Policies  
Initial term of leases, Restaurant locations 20 years
Percentage of revenue 10.00%
v3.24.0.1
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Advertising Costs      
Advertising costs $ 34.7 $ 24.0 $ 19.9
v3.24.0.1
Summary of Significant Accounting Policies - Net income per share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Jun. 15, 2021
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Basic net income per common share:        
Net Income (Loss)   $ 101,351 $ 43,123 $ 72,373
Dividends on Series A preferred stock       (18,661)
Direct and incremental Series A preferred stock issuance costs $ (8,000)      
Undistributed earnings allocated to Series A preferred stock       (4,581)
Net income available to common stockholders   $ 101,351 $ 43,123 $ 49,131
Basic weighted-average shares outstanding   48,324 49,815 47,529
Basic net income per common share   $ 2.10 $ 0.87 $ 1.03
Diluted net income per common share:        
Net income available to common stockholders   $ 101,351 $ 43,123 $ 49,131
Reallocation of undistributed earnings to Series A preferred stock       85
Net income available to common stockholders for diluted EPS   $ 101,351 $ 43,123 $ 49,216
Basic weighted-average shares outstanding   48,324 49,815 47,529
Dilutive effect of equity awards   726 599 981
Diluted weighted average shares outstanding (in shares)   49,050 50,414 48,510
Diluted net income per common share   $ 2.07 $ 0.86 $ 1.01
Series A convertible preferred stock, par value (in dollars per share)   $ 0.01 $ 0.01  
Restricted stock        
Diluted net income per common share:        
Antidilutive securities excluded from calculation of basic earnings per share (in shares)   2,900 2,500 2,100
Restricted Shares and Restricted Share Units        
Diluted net income per common share:        
Antidilutive securities excluded from calculation of basic earnings per share (in shares)   2,900 3,300 1,900
Common Stock        
Diluted net income per common share:        
Antidilutive securities excluded from calculation of basic earnings per share (in shares)   0    
v3.24.0.1
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($)
$ in Thousands
Jan. 02, 2024
Jan. 03, 2023
Summary of Significant Accounting Policies    
Retained earnings $ 1,216,239 $ 1,170,078
v3.24.0.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Jan. 02, 2024
Jan. 03, 2023
Assets/(Liabilities)    
Acquisition-related deferred consideration $ 11,300  
Level 1    
Assets/(Liabilities)    
Non-qualified deferred compensation assets 94,136 $ 78,542
Non-qualified deferred compensation liabilities (93,979) (78,286)
Level 2    
Assets/(Liabilities)    
Acquisition-related deferred consideration   (10,751)
Level 3    
Assets/(Liabilities)    
Acquisition-related contingent consideration and compensation liability $ (25,495) $ (28,565)
v3.24.0.1
Fair Value Measurements - Beginning and ending amounts of the fair value (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Fair Value Measurements    
Payment $ 9,900 $ 7,200
Level 3    
Fair Value Measurements    
Beginning balance 28,565 23,894
Payment (12,994) (7,187)
Change in fair value 9,924 11,858
Ending balance $ 25,495 $ 28,565
v3.24.0.1
Fair Value Measurements - Additional information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Jun. 15, 2021
Fair Value Measurements      
Payments $ 9.9 $ 7.2  
Increase (Decrease) in the fair value of the contingent consideration and compensation liability (3.1) 4.7  
Increase in fair value due to volatility factors 13.0 11.9  
Minimum      
Fair Value Measurements      
Undiscounted range of outcomes per the Monte Carlo model 2.6 0.0  
Maximum      
Fair Value Measurements      
Undiscounted range of outcomes per the Monte Carlo model 235.4 276.0  
Convertible Senior Notes      
Fair Value Measurements      
Aggregate principal amount 345.0 345.0 $ 345.0
Estimated fair value of the Notes $ 298.8 $ 282.9  
v3.24.0.1
Accounts and Other Receivables (Details) - USD ($)
$ in Thousands
Jan. 02, 2024
Jan. 03, 2023
Accounts and Other Receivables    
Gift card distributors $ 35,777 $ 37,586
Bakery customers 13,863 16,561
Landlord construction contributions 12,650 9,862
Insurance providers 9,984 10,529
Delivery partner 7,154 7,757
Other 23,666 23,216
Total $ 103,094 $ 105,511
v3.24.0.1
Inventories (Details) - USD ($)
$ in Thousands
Jan. 02, 2024
Jan. 03, 2023
Inventories    
Restaurant food and supplies $ 32,283 $ 30,783
Bakery finished goods and work in progress 16,230 17,250
Bakery raw materials and supplies 9,141 7,526
Total $ 57,654 $ 55,559
v3.24.0.1
Prepaid Expenses (Details) - USD ($)
$ in Thousands
Jan. 02, 2024
Jan. 03, 2023
Prepaid Expenses    
Gift card contract assets $ 19,111 $ 19,886
Prepaid rent 24,438 12,165
Other 19,541 16,348
Total $ 63,090 $ 48,399
v3.24.0.1
Property and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Property and Equipment      
Property and equipment, total $ 2,131,368 $ 2,004,804  
Less: Accumulated depreciation (1,340,275) (1,258,753)  
Property and equipment, net 791,093 746,051  
Depreciation expenses 92,900 92,100 $ 89,400
Repair and maintenance expenses 99,500 89,100 77,400
Net (income)/expense on property and equipment disposals (400) 1,600 $ 1,100
Land and related improvements      
Property and Equipment      
Property and equipment, total 15,852 15,852  
Buildings      
Property and Equipment      
Property and equipment, total 44,179 44,138  
Leasehold improvements      
Property and Equipment      
Property and equipment, total 1,291,153 1,225,860  
Furnishings, fixtures and equipment      
Property and Equipment      
Property and equipment, total 625,931 584,924  
Computer software and equipment      
Property and Equipment      
Property and equipment, total 57,952 60,861  
Restaurant smallwares      
Property and Equipment      
Property and equipment, total 38,234 36,494  
Construction in progress      
Property and Equipment      
Property and equipment, total $ 58,067 $ 36,675  
v3.24.0.1
Other Assets (Details) - USD ($)
$ in Thousands
Jan. 02, 2024
Jan. 03, 2023
Other Assets    
Non-qualified deferred compensation assets $ 94,136 $ 78,542
Deferred income taxes 91,944 76,245
Other 8,535 8,104
Total $ 194,615 $ 162,891
v3.24.0.1
Gift Cards (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Gift card liabilities:    
Beginning balance $ 219,808 $ 211,182
Activations 140,647 152,368
Redemptions and breakage (137,540) (143,743)
Ending balance 222,915 219,808
Gift card contract assets:    
Beginning balance 19,886 18,468
Deferrals 14,957 16,440
Amortization (15,732) (15,022)
Ending balance $ 19,111 $ 19,886
v3.24.0.1
Other Accrued Expenses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Other Accrued Expenses    
Self-insurance $ 71,546 $ 71,872
Salaries and wages 51,040 43,402
Staff member benefits 28,951 27,332
Payroll and sales taxes 20,365 24,861
Rent 18,973 12,713
Deferred consideration   10,751
Other 48,824 40,202
Total 239,699 $ 231,133
Payment related to deferred consideration $ 11,300  
v3.24.0.1
Long-Term Debt - Credit Facility (Details)
$ in Millions
 12 Months Ended
Jan. 02, 2024
USD ($)
item
Nov. 23, 2023
USD ($)
Jan. 03, 2023
USD ($)
Oct. 06, 2022
USD ($)
Long-Term Debt        
Outstanding letters of credit $ 33.5   $ 31.5  
Revolving facility   $ 15.0    
Revolving Credit Facility        
Long-Term Debt        
Net availability for borrowings 236.5      
Outstanding debt balance 130.0      
Outstanding letters of credit $ 33.5      
Base Rate | Maximum | Revolving Credit Facility        
Long-Term Debt        
Credit facility, basis spread on variable rate, (as a percent) 0.75%      
Base Rate | Minimum | Revolving Credit Facility        
Long-Term Debt        
Credit facility, basis spread on variable rate, (as a percent) 0.00%      
Fourth amendment | Revolving Credit Facility        
Long-Term Debt        
Maximum commitments       $ 400.0
Maximum commitments, letter of credit sub-facility       50.0
Additional commitments available       $ 200.0
Fourth amendment | Maximum | Revolving Credit Facility        
Long-Term Debt        
Net adjusted leverage ratio 4.25      
Credit facility, basis spread on variable rate, (as a percent) 1.75%      
Commitment fee (as a percent) 0.25%      
Fourth amendment | Minimum | Revolving Credit Facility        
Long-Term Debt        
EBITDAR ratio 1.90      
Credit facility, basis spread on variable rate, (as a percent) 1.00%      
Commitment fee (as a percent) 0.125%      
Fourth amendment | One-month Term SOFR Rate | Maximum | Revolving Credit Facility        
Long-Term Debt        
Credit facility, basis spread on variable rate, (as a percent) 1.00%      
Fourth amendment | Overnight bank funding rate | Maximum | Revolving Credit Facility        
Long-Term Debt        
Credit facility, basis spread on variable rate, (as a percent) 0.50%      
Amended Credit Agreement | Maximum | Revolving Credit Facility        
Long-Term Debt        
Multiplier of rent used to compute adjusted debt | item 8      
Amended Credit Agreement | Minimum | Revolving Credit Facility        
Long-Term Debt        
Multiplier of rent used to compute adjusted debt | item 6      
v3.24.0.1
Long-Term Debt - Convertible Senior Notes (Details)
 12 Months Ended
Jun. 15, 2021
USD ($)
$ / shares
Jan. 02, 2024
USD ($)
D
$ / shares
Jan. 03, 2023
USD ($)
Dec. 28, 2021
USD ($)
Long-Term Debt        
Net proceeds from the sale of the notes       $ 345,000,000
Convertible Senior Notes        
Long-Term Debt        
Aggregate principal amount of debt issued $ 345,000,000.0 $ 345,000,000.0 $ 345,000,000.0  
Net proceeds from the sale of the notes 334,900,000      
Interest rate   0.375%    
Observation period   30 days    
Threshold percentage of stock price trigger   130.00%    
Number of threshold trading days | D   20    
Number of consecutive threshold trading days | D   30    
Minimum threshold aggregate principal amount of notes outstanding and not called for redemption   $ 150,000,000.0    
Cure period in case of a default in the payment of interest   30 days    
Threshold cured period in case of default in other obligations   60 days    
Threshold limit of default with respect to indebtedness for borrowed money   $ 20,000,000    
Threshold limit for occurrence of default in case of rendering of certain judgments against to company or on its subsidiaries   $ 25,000,000    
Minimum percentage of notice holders can give notice in case of default   25    
Maximum period of which noteholders to receive special interest as a remedy in case of default   180 days    
Special interest rate as a default remedy   0.50    
Gross principal balance outstanding   $ 345,000,000.0    
Outstanding debt balance   340,000,000.0    
Unamortized debt issuance costs   5,000,000.0    
Amortized debt issuance costs   $ 2,000,000.0 $ 2,000,000.0 $ 1,100,000
Effective interest rate   0.96%    
Convertible Senior Notes | Convertible Debt Securities | Common Stock        
Long-Term Debt        
Aggregate principal amount of debt issued $ 1,000 $ 1,000    
Conversion ratio 12.7551 13.4936    
Conversion price | $ / shares $ 78.40 $ 74.11    
v3.24.0.1
Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Leases      
Operating $ 145,774 $ 140,351 $ 131,834
Variable 87,047 81,585 73,909
Short-term 142 116 283
Total 232,963 222,052 $ 206,026
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases 145,836 149,624  
Right-of-use assets obtained in exchange for new operating lease liabilities $ 114,373 $ 86,187  
Weighted-average remaining lease term - operating leases (in years) 14 years 10 months 24 days 15 years 2 months 12 days  
Weighted-average discount rate - operating leases 5.30% 5.00%  
v3.24.0.1
Leases - Maturity of operating lease liabilities (Details)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
USD ($)
Operating Leases  
Fiscal year 2024 $ 138,459
Fiscal year 2025 146,828
Fiscal year 2026 144,453
Fiscal year 2027 142,444
Fiscal year 2028 149,919
Thereafter 1,357,092
Total future lease payments 2,079,195
Less: Interest (689,335)
Present value of lease liabilities 1,389,860
Operating lease liabilities related to options extend $ 710,300
Options to extend lease terms options to extend lease terms
Minimum lease payment for leases $ 280,700
v3.24.0.1
Other Noncurrent Liabilities (Details) - USD ($)
$ in Thousands
Jan. 02, 2024
Jan. 03, 2023
Other Noncurrent Liabilities    
Non-qualified deferred compensation liabilities $ 93,979 $ 78,286
Contingent consideration and compensation liability 25,495 28,565
Other 17,174 18,159
Total $ 136,648 $ 125,010
v3.24.0.1
Commitments and Contingencies (Details)
 12 Months Ended
Oct. 02, 2019
Jun. 07, 2018
USD ($)
item
Jan. 02, 2024
USD ($)
Jan. 03, 2023
USD ($)
Commitments and Contingencies        
Purchase obligations     $ 101,400,000 $ 129,900,000
Purchase obligations due within terms recorded     3 years  
Minimum payments for real estate and leases     $ 414,800,000 252,400,000
Outstanding standby letters of credit     33,500,000 31,500,000
Total accrued liability for self-insured plans     71,500,000 $ 71,900,000
Wage citation   $ 4,200,000    
Number of restaurants receiving janitorial services | item   8    
Liability for contingent consideration provision     25,500,000  
Payments required under event of an actual or constructive termination of employment     3,400,000  
Accrued potential bonuses     2,600,000  
Annual founder's retirement benefit for ten years after termination of full time employment     $ 650,000  
Number of years annual founder's retirement benefit after termination of full time employment     10 years  
Number of months annual founder's retirement benefit after termination of full time employment     6 months  
FRC Acquisition        
Commitments and Contingencies        
Number of years for providing finance to achieve the targets 5 years      
v3.24.0.1
Stockholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Jun. 15, 2021
Apr. 20, 2020
Mar. 30, 2021
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Oct. 26, 2022
Stockholders' Equity              
Common stock issuance (in shares) 3,125,000            
Common stock issuance $ 175,000         $ 167,050  
Issuance costs 8,000            
Cash dividends declared common stock, net of forfeitures       $ 1.08 $ 0.81  
Number of shares authorized to be repurchased             61,000,000.0
Repurchased shares since program inception       56,543,158 55,149,520    
Value of treasury stock       $ 1,811,997 $ 1,765,641    
Treasury stock repurchased during period       $ 46,356 $ 63,132 $ 5,766  
Common stock issuance direct and incremental costs           7,950  
Common stock issuance           175,000  
Cash dividend           $ 5,070  
Cash dividends declared Series A preferred stock       $ 25.35  
Cumulative adjustment to retained earnings       $ 1,216,239 $ 1,170,078    
Treasury Stock              
Stockholders' Equity              
Repurchased shares since program inception       56,500,000      
Value of treasury stock       $ 1,811,700      
Shares repurchased during period       1,400,000 2,000,000.0 100,000  
Treasury stock repurchased during period       $ 46,100 $ 63,100 $ 5,800  
Stock Repurchase Program, Additional Number of Shares Authorized to be Repurchased             5,000,000.0
Series A Redeemable Convertible Preferred Stock              
Stockholders' Equity              
Series A preferred stock cash-settled conversion $ 443,800            
Number of preferred stock shares repurchased 150,000            
Number of preferred stock shares converted 50,000            
Number of common shares issued upon conversion 2,400,864            
Liquidation preference value per shares $ 1,067.42            
Deemed dividend in connection with conversion and repurchase of the preferred stock           13,600  
Accrued dividend           3,900  
Dividend inducement           $ 9,700  
Cash dividend     $ 5,100        
Cash dividends declared Series A preferred stock     $ 25.35     $ 19.72  
Number of shares issued (in shares)   200,000          
Value of shares issued   $ 200,000          
Price per share (in dollars per share)   $ 1,000          
Preferred stock direct costs   $ 10,300          
Cumulative adjustment to retained earnings     $ 4,800        
Conversion price (in dollars per share) $ 22.23 $ 0.01          
v3.24.0.1
Stock-Based Compensation (Details) - shares
shares in Millions
 12 Months Ended
Jan. 02, 2024
Apr. 05, 2017
Apr. 04, 2017
Stock-Based Compensation      
Shares authorized for issuance under share-based compensation plan   19.8 17.5
Shares available for grant 3.1    
Employee Stock Option      
Stock-Based Compensation      
Annual vesting rights (as a percent) 20.00%    
Employee Stock Option | Minimum      
Stock-Based Compensation      
Option expiration period (in years) 8 years    
Employee Stock Option | Maximum      
Stock-Based Compensation      
Option expiration period (in years) 10 years    
Restricted Shares and Restricted Share Units | Minimum      
Stock-Based Compensation      
Annual vesting rights (as a percent) 0.00%    
Vesting period (in years) 3 years    
Restricted Shares and Restricted Share Units | Maximum      
Stock-Based Compensation      
Annual vesting rights (as a percent) 150.00%    
Vesting period (in years) 5 years    
v3.24.0.1
Stock-Based Compensation - Net of forfeitures (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Stock-Based Compensation      
Total stock-based compensation $ 25,781 $ 24,426 $ 22,988
Income tax benefit 6,437 6,026 5,646
Total stock-based compensation, net of taxes 19,344 18,399 17,342
Capitalized stock-based compensation 185 226 194
Labor expenses      
Stock-Based Compensation      
Total stock-based compensation 9,914 9,590 8,856
Other operating costs and expenses      
Stock-Based Compensation      
Total stock-based compensation 318 321 311
General and administrative expenses      
Stock-Based Compensation      
Total stock-based compensation $ 15,549 $ 14,515 $ 13,821
v3.24.0.1
Stock-Based Compensation - Stock Options (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Stock options      
Stock-Based Compensation      
Weighted-average fair value at the grant date for options issued (in dollars per share) $ 15.76    
Weighted average assumptions under Black-Scholes valuation model      
Expected option term 6 years 8 months 12 days    
Expected stock price volatility (as a percent) 45.20%    
Risk-free interest rate (as a percent) 4.00%    
Dividend yield (as a percent) 2.70%    
Stock option activity, Shares      
Outstanding at beginning of year (in shares) 1,685    
Granted (in shares) 40    
Exercised (in shares) 0    
Forfeited or cancelled (in shares) (175)    
Outstanding at end of the period (in shares) 1,550 1,685  
Exercisable at end of the period (in shares) 1,199    
Weighted Average Exercise Price      
Outstanding at beginning of year (in dollars per share) $ 46.11    
Granted (in dollars per share) 40.42    
Forfeited or cancelled (in dollars per share) 48.01    
Outstanding at end of the period (in dollars per share) 45.75 $ 46.11  
Exercisable at end of the period (in dollars per share) $ 47.11    
Weighted Average Remaining Contractual Term (In years)      
Weighted Average Remaining Contractual Term (In years) 3 years 9 months 18 days 4 years 2 months 12 days  
Exercisable at end of the period (In years) 3 years 1 month 6 days    
Aggregate Intrinsic Value      
Outstanding at beginning of year $ 0    
Outstanding at end of the period 0 $ 0  
Exercisable at end of the period 0    
Total intrinsic value of options exercised   $ 4,900 $ 7,100
Unrecognized Stock-based Compensation Expense      
Total unrecognized stock-based compensation expenses related to unvested stock options, restricted shares and restricted share units $ 1,500    
Expected weighted average period for recognition of compensation expense related to unvested stock option 1 year 3 months 18 days    
Restricted Shares and Restricted Share Units      
Restricted Shares and Restricted Share Units, Shares      
Outstanding at beginning of year (in shares) 2,512    
Granted (in shares) 1,005    
Vested (in shares) (501)    
Forfeited (in shares) (130)    
Outstanding at end of the period (in shares) 2,886 2,512  
Fair value of shares vested $ 21,800 $ 18,500 $ 15,400
Weighted Average Fair Value      
Outstanding at beginning of year (in dollars per share) $ 41.93    
Granted (in dollars per share) 37.73 $ 36.84 $ 49.57
Vested (in dollars per share) 43.59    
Forfeited (in dollars per share) 39.77    
Outstanding at end of the period (in dollars per share) $ 40.28 $ 41.93  
Unrecognized Stock-based Compensation Expense      
Total unrecognized stock-based compensation expenses related to unvested stock options, restricted shares and restricted share units $ 57,100    
Expected weighted average period for recognition of compensation expense related to unvested stock option 2 years 10 months 24 days    
v3.24.0.1
Employee Benefit Plans (Details)
$ in Millions
 12 Months Ended
Jan. 02, 2024
USD ($)
item
Jan. 03, 2023
USD ($)
Dec. 28, 2021
USD ($)
Employee Benefit Plans      
Minimum number of investment options available to participating plan members | item 1    
Accrued liability for self-insured benefit plans $ 11.3 $ 14.0  
401(k) Plan      
Employee Benefit Plans      
Expense recognized 2.3 2.1 $ 2.1
ESP      
Employee Benefit Plans      
Expense recognized $ 1.3 $ 1.4 $ 1.2
v3.24.0.1
Income Taxes - Provision & Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Jan. 31, 2022
Dec. 29, 2020
Income tax provision/(benefit):          
Income before income taxes $ 100,014 $ 32,892 $ 71,620    
Current:          
Federal 7,183 3,520 15,746    
State 7,195 4,895 4,350    
Total current 14,378 8,415 20,096    
Deferred:          
Federal (15,329) (17,733) (20,434)    
State (386) (913) (415)    
Total deferred (15,715) (18,646) (20,849)    
Total benefit $ (1,337) $ (10,231) $ (753)    
Income Taxes          
U.S. federal statutory rate 21.00% 21.00% 21.00%    
State and district income taxes, net of federal benefit 5.40% 8.90% 4.20%    
Credit for FICA taxes paid on tips (24.90%) (66.40%) (24.20%)    
Other credits and incentives (2.20%) (10.70%) (4.20%)    
Impact of net operating loss carryback (0.00%) (0.00%) (6.30%)    
Deferred compensation (2.40%) 9.70% (2.90%)    
Equity compensation 1.50% 5.50% 0.00%    
Uncertain tax positions (0.70%) (2.30%) 10.30%    
Non-deductible executive compensation 0.80% 2.80% 0.30%    
Other (as a percent) 0.20% 0.40% 0.70%    
Effective tax rate (1.30%) (31.10%) (1.10%)    
Cash refunds of carryback claims     $ 18,400 $ 21,300  
Deferred FICA tax remittance         $ 4,300
v3.24.0.1
Income Taxes - Temporary Differences (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Deferred tax assets:      
Staff member benefits $ 35,932 $ 31,325  
Insurance reserves 14,931 14,374  
Operating lease liability 324,587 323,094  
Deferred income 38,074 35,928  
Tax credit carryforwards 74,004 57,710  
Goodwill 22,743 21,331  
Stock-based compensation 10,789 10,769  
State and foreign net operating loss carryforwards 1,640 2,435  
Other 674 604  
Subtotal 523,374 497,570  
Less: Valuation allowance (1,444) (1,223)  
Total 521,930 496,347  
Deferred tax liabilities:      
Property and equipment (121,219) (113,565)  
Prepaid expenses (8,933) (8,151)  
Inventory (8,882) (8,399)  
Accrued rent (5,889) (5,285)  
Operating lease asset (284,244) (283,921)  
Other (819) (781)  
Total (429,986) (420,102)  
Net deferred tax asset 91,944 76,245  
Reconciliation of beginning and ending amount of our uncertain tax positions      
Balance at beginning of year 3,787 4,799 $ 655
Additions related to prior year tax positions 181 227 4,157
Additions related to current period tax positions (121) (54) (13)
Reductions related to settlements with taxing authorities   (1,185)  
Balance at end of year 3,847 3,787 $ 4,799
Accrued interest and penalties related with uncertain tax positions 1,400 2,200  
Decrease in uncertain tax positions during the next twelve months based on the lapses of statutes of limitations for certain jurisdictions 300    
Tax credit carryforward valuation allowance $ 1,400 $ 1,200  
Minimum      
Reconciliation of beginning and ending amount of our uncertain tax positions      
Expiration period   0 years  
Maximum      
Reconciliation of beginning and ending amount of our uncertain tax positions      
Expiration period 5 years    
State      
Deferred tax assets:      
Tax credit carryforwards $ 27,400 $ 46,600  
Reconciliation of beginning and ending amount of our uncertain tax positions      
Tax credit carryforwards 1,600 1,600  
Foreign      
Deferred tax assets:      
Tax credit carryforwards 2,300 2,500  
Federal      
Reconciliation of beginning and ending amount of our uncertain tax positions      
Tax credit carryforwards $ 72,800 $ 56,500  
v3.24.0.1
Segment Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Segment Information      
Revenues: $ 3,439,503 $ 3,303,156 $ 2,927,540
Income from operations 108,566 38,935 82,318
Depreciation and amortization expenses 93,136 92,380 89,654
Impairment of assets and lease termination expenses 29,464 31,387 18,139
Preopening costs 25,379 16,829 13,711
Capital expenditures 151,565 112,464 66,943
Total assets 2,840,383 2,775,220 2,798,125
Acquisition-related expenses 11,700 13,400 19,500
The Cheesecake Factory restaurants [Member]      
Segment Information      
Revenues: 2,595,066 2,528,043 2,293,225
Income from operations 297,063 220,765 242,599
Depreciation and amortization expenses 64,206 66,539 65,987
Impairment of assets and lease termination expenses 20,401 19,701 11,904
Preopening costs 12,857 9,525 4,868
Capital expenditures 80,752 65,996 31,832
Total assets 1,571,943 1,625,073 1,653,161
North Italia [Member]      
Segment Information      
Revenues: 258,878 228,622 171,901
Income from operations 18,515 13,934 8,624
Depreciation and amortization expenses 6,407 5,713 4,078
Impairment of assets and lease termination expenses 1,015    
Preopening costs 5,058 4,305 4,510
Capital expenditures 26,882 14,818 12,539
Total assets 346,810 306,642 270,029
Other FRC [Member]      
Segment Information      
Revenues: 263,923 237,552 182,175
Income from operations 19,422 23,577 16,323
Depreciation and amortization expenses 7,916 6,231 4,802
Impairment of assets and lease termination expenses 2,582 3,909 1,305
Preopening costs 6,482 1,361 3,188
Capital expenditures 27,562 18,895 13,524
Total assets 399,038 301,618 276,369
Other Segments [Member]      
Segment Information      
Revenues: 321,636 308,939 280,239
Income from operations (226,434) (219,341) (185,228)
Depreciation and amortization expenses 14,607 13,897 14,787
Impairment of assets and lease termination expenses 5,466 7,777 4,930
Preopening costs 982 1,638 1,145
Capital expenditures 16,369 12,755 9,048
Total assets $ 522,592 $ 541,887 $ 598,566
v3.24.0.1
Subsequent Events (Details) - $ / shares
 12 Months Ended
Feb. 15, 2024
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Subsequent Events        
Quarterly cash dividend declared (in dollars per share)   $ 1.08 $ 0.81
Subsequent Events        
Subsequent Events        
Quarterly cash dividend declared (in dollars per share) $ 0.27      
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Jan. 02, 2024
Jan. 03, 2023
Dec. 28, 2021
Pay vs Performance Disclosure      
Net Income (Loss) $ 101,351 $ 43,123 $ 72,373
v3.24.0.1
Insider Trading Arrangements
 12 Months Ended
Jan. 02, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false