CHEESECAKE FACTORY INC, 10-K filed on 2/24/2025
Annual Report
v3.25.0.1
Documents and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2024
Feb. 18, 2025
Jul. 02, 2024
Document and Entity Information      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
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     $ 1,767,523,477
Entity Common Stock, Shares Outstanding   51,643,044  
Auditor Firm ID 185    
Auditor Name KPMG LLP    
Auditor Location California    
Entity Central Index Key 0000887596    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2024
Jan. 02, 2024
Current assets:    
Cash and cash equivalents $ 84,176 $ 56,290
Accounts and other receivables 112,503 103,094
Income taxes receivable 17,417 20,670
Inventories 64,526 57,654
Prepaid expenses 54,691 63,090
Total current assets 333,313 300,798
Property and equipment, net 840,773 791,093
Other assets:    
Intangible assets, net 251,789 251,727
Operating lease assets 1,400,351 1,302,150
Other 215,534 194,615
Total other assets 1,867,674 1,748,492
Total assets 3,041,760 2,840,383
Current liabilities:    
Accounts payable 62,092 63,152
Gift card liabilities 226,810 222,915
Operating lease liabilities 157,138 134,905
Other accrued expenses 265,380 239,699
Total current liabilities 711,420 660,671
Long-term debt 452,062 470,047
Operating lease liabilities 1,299,020 1,254,955
Other noncurrent liabilities 135,803 136,648
Total liabilities 2,598,305 2,522,321
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; 108,387,574 shares issued and 51,332,298 shares outstanding at December 31, 2024 and 107,195,287 shares issued and 50,652,129 shares outstanding at January 2, 2024 1,084 1,072
Additional paid-in capital 956,107 913,442
Retained earnings 1,317,828 1,216,239
Treasury stock inclusive of excise tax, 57,055,276 and 56,543,158 shares at cost at December 31, 2024 and January 2, 2024, respectively (1,829,953) (1,811,997)
Accumulated other comprehensive loss (1,611) (694)
Total stockholders' equity 443,455 318,062
Total liabilities and stockholders' equity $ 3,041,760 $ 2,840,383
v3.25.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2024
Jan. 02, 2024
CONSOLIDATED BALANCE SHEETS    
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 108,387,574 107,195,287
Common stock, shares outstanding 51,332,298 50,652,129
Treasury stock, preferred, shares 57,055,276 56,543,158
v3.25.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
CONSOLIDATED STATEMENTS OF INCOME      
Revenues $ 3,581,699 $ 3,439,503 $ 3,303,156
Costs and expenses:      
Food and beverage costs 806,021 803,500 810,926
Labor expenses 1,264,382 1,227,895 1,211,951
Other operating costs and expenses 959,221 922,428 881,627
General and administrative expenses 228,737 217,449 205,753
Depreciation and amortization expenses 101,450 93,136 92,380
Impairment of assets and lease termination expenses 13,647 29,464 31,387
Acquisition-related contingent consideration, compensation and amortization expenses 2,429 11,686 13,368
Preopening costs 27,495 25,379 16,829
Total costs and expenses 3,403,382 3,330,937 3,264,221
Income from operations 178,317 108,566 38,935
Interest expense, net (10,107) (10,160) (7,488)
Other income, net 2,837 1,608 1,445
Income before income taxes 171,047 100,014 32,892
Income tax provision/(benefit) 14,264 (1,337) (10,231)
Net income $ 156,783 $ 101,351 $ 43,123
Net income per common share:      
Basic (in dollars per share) $ 3.28 $ 2.1 $ 0.87
Diluted (Note 1) (in dollars per share) $ 3.2 $ 2.07 $ 0.86
Weighted-average common shares outstanding:      
Basic (in shares) 47,789 48,324 49,815
Diluted (in shares) 48,974 49,050 50,414
v3.25.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME      
Net income $ 156,783 $ 101,351 $ 43,123
Other comprehensive (loss)/gain:      
Foreign currency translation adjustment (917) 288 (695)
Other comprehensive (loss)/gain (917) 288 (695)
Total comprehensive income $ 155,866 $ 101,639 $ 42,428
v3.25.0.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Common Stock
Additional Paid-in Capital
Retained Earnings
Treasury Stock
Accumulated Other Comprehensive Loss
Total
Beginning balance at Dec. 28, 2021 $ 1,054 $ 862,758 $ 1,169,150 $ (1,702,509) $ (287) $ 330,166
Beginning 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     (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     (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          
Increase (Decrease) in Stockholders' Equity            
Net income     156,783     156,783
Foreign currency translation adjustment         (917) (917)
Cash dividends declared common stock, net of forfeitures     (55,194)     (55,194)
Stock-based compensation $ 9 30,193       30,202
Stock-based compensation (in shares) 885          
Common stock issued under stock-based compensation plans $ 3 12,472       12,475
Common stock issued under stock-based compensation plans (in shares) 308          
Treasury stock purchases       (17,956)   (17,956)
Ending balance at Dec. 31, 2024 $ 1,084 $ 956,107 $ 1,317,828 $ (1,829,953) $ (1,611) $ 443,455
Ending balance (in shares) at Dec. 31, 2024 108,388          
v3.25.0.1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Increase (Decrease) in Temporary Equity [Roll Forward]      
Cash dividends declared common stock, net of forfeitures $ 1.08 $ 1.08 $ 0.81
v3.25.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Cash flows from operating activities:      
Net income $ 156,783 $ 101,351 $ 43,123
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization expenses 101,450 93,136 92,380
Impairment of assets and lease termination expenses 12,769 26,998 31,327
Deferred income taxes (6,062) (15,715) (18,646)
Stock-based compensation 29,962 25,781 24,426
Payment of deferred consideration and compensation in excess of acquisition-date fair value (6,506)    
Changes in assets and liabilities:      
Accounts and other receivables (1,719) (98) (12,266)
Income taxes receivable/payable 3,253 852 14,651
Inventories (6,883) (2,092) (12,725)
Prepaid expenses 8,347 (14,694) (11,960)
Operating lease assets/liabilities (32,303) (27,113) (18,404)
Other assets (13,995) (14,504) 13,739
Accounts payable (1,827) 3,971 17,586
Gift card liabilities 3,904 3,104 8,634
Other accrued expenses 21,152 37,424 (9,939)
Cash provided by operating activities 268,325 218,401 161,926
Cash flows from investing activities:      
Additions to property and equipment (160,364) (151,565) (112,464)
Additions to intangible assets (1,054) (1,658) (680)
Other 321 (274) 329
Cash used in investing activities (161,097) (153,497) (112,815)
Cash flows from financing activities:      
Acquisition-related deferred consideration and compensation   (24,243) (18,316)
Borrowings on credit facility   15,000 130,000
Repayments on credit facility (20,000) (15,000) (130,000)
Proceeds from exercise of stock options 12,475   84
Common stock dividends paid (53,041) (53,207) (42,272)
Treasury stock purchases, inclusive of excise tax (18,228) (46,085) (63,132)
Cash used in financing activities (78,794) (123,535) (123,636)
Foreign currency translation adjustment (548) 144 (325)
Net change in cash and cash equivalents 27,886 (58,487) (74,850)
Cash and cash equivalents at beginning of period 56,290 114,777 189,627
Cash and cash equivalents at end of period 84,176 56,290 114,777
Supplemental disclosures:      
Interest paid 12,891 9,764 7,233
Income taxes paid 19,119 14,473 14,688
Construction payable $ 24,252 $ 16,815 $ 9,346
v3.25.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 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 352 restaurants throughout the United States and Canada under brands including The Cheesecake Factory® (215 locations), North Italia® (43 locations), Flower Child® (38 locations) and a collection within our Fox Restaurant Concepts (“Other FRC”) portfolio (49 locations). Internationally, 34 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 2024 and 2023 each consisted of 52 weeks. Fiscal year 2022 consisted of 53 weeks. Fiscal year 2025 will consist of 52 weeks.

In fiscal year 2024, we separately disclosed interest expense, net and other income, net on the consolidated statement of income. Corresponding prior year balances were reclassified to conform to the current year presentation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from these estimates.

Geopolitical and Other Macroeconomic Impacts to our Operating Environment

In recent years, our operating results were impacted by geopolitical and macroeconomic events, causing supply chain challenges and significantly increased commodity and wage inflation. Our commodity and wage inflationary environment began returning to more historical levels in fiscal 2024.

The impact of ongoing geopolitical and macroeconomic events could lead to further wage inflation, product and services cost inflation, disruptions in the supply chain, staffing challenges, shifts in consumer behavior, and delays in new restaurant openings. Adverse weather conditions and natural disasters may further exacerbate a number of these factors. 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 $30.4 million and $21.0 million at December 31, 2024 and January 2, 2024, 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 2024, we recorded $13.6 million of expense primarily related to the impairment of long-lived assets for one The Cheesecake Factory (previously partially impaired) and six Other FRC locations (one previously partially impaired) and lease termination income, net for four The Cheesecake Factory restaurants, one Grand Lux Cafe location, one Flower Child location, one Social Monk location and one Other FRC location (that closed in early fiscal 2025). 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 Grand Lux Cafe 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 Grand Lux Cafe locations. 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

​

    

December 31, 2024

    

January 2, 2024

Indefinite-lived intangible assets:

​

​

  

​

​

  

Goodwill

​

$

1,451

​

$

1,451

Trade names and trademarks

​

 

234,566

​

 

234,341

Transferable alcoholic beverage licenses

​

 

8,140

​

 

7,923

Total indefinite-lived intangible assets

​

 

244,157

​

 

243,715

Definite-lived intangible assets, net:

​

 

​

​

 

​

Licensing agreements

​

 

4,111

​

 

4,602

Non-transferable alcoholic beverage licenses

​

 

3,521

​

 

3,410

Total definite-lived intangible assets

​

 

7,632

​

 

8,012

Total intangible assets, net

​

$

251,789

​

$

251,727

​

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 2024, 2023 and 2022 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 2024, 2023 and 2022. We concluded there was no impairment for fiscal 2024, fiscal 2023 and 2022. Amortization expenses related to our definite-lived intangible assets were $0.7 million, $0.8 million and $0.7 million for fiscal 2024, 2023 and 2022, respectively. Definite-lived intangible assets will be amortized over two to 51 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 three to six 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 one to 26 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, $7.3 million and $7.0 million of gift card breakage in fiscal years 2024, 2023 and 2022, 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 2024, we deferred and recognized previously deferred revenue of $31.3 million and $27.3 million, respectively, related to promotional programs. 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.

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 $36.5 million, $34.7 million and $24.0 million in fiscal 2024, 2023 and 2022, respectively. The increase in fiscal 2023 is primarily due to the launch of our Cheesecake Rewards® 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 by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards. At December 31, 2024, January 2, 2024 and January 3, 2023, 3.2 million shares, 2.9 million shares and 2.5 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 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.

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

​

2024

​

2023

​

2022

​

​

(In thousands, except per share data)

​

​

​

​

​

​

​

​

​

​

Net income

​

$

156,783

​

$

101,351

​

$

43,123

​

​

​

​

​

​

​

​

​

​

Basic weighted average shares outstanding

​

​

47,789

​

​

48,324

​

​

49,815

Dilutive effect of equity awards (1)

​

​

1,185

​

​

726

​

​

599

​

​

​

​

​

​

​

​

​

​

Diluted weighted average shares outstanding

​

​

48,974

​

​

49,050

​

​

50,414

​

​

​

​

​

​

​

​

​

​

Basic net income per share

​

$

3.28

​

$

2.10

​

$

0.87

​

​

​

​

​

​

​

​

​

​

Diluted net income per share

​

$

3.20

​

$

2.07

​

$

0.86

(1)Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 2.2 million, 2.9 million and 3.3 million for fiscal 2024, 2023 and 2022, 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 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 other income, net.

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

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 amendment is 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 amendment should be applied retrospectively to all prior periods presented in the financial statements. We adopted this standard as of the end of fiscal 2024 and such adoption did not have a significant impact on our disclosures.

Recently Issued Accounting Standards

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 amendment is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendment should be applied prospectively. However, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on our disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which requires more detailed disclosures of certain categories of expenses such as inventory purchases, employee compensation and depreciation that are components of existing expense captions presented on the face of the income statement. The amendment is effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The amendment should be applied prospectively. However, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on our disclosures.

In November 2024, the FASB issued ASU 2024-04, Debt- Debt with Conversion and Other Options (Topic 470): Induced Conversions of Convertible Debt Instruments, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments in this update also clarify that the induced conversion guidance applies to a convertible debt instrument that is not currently convertible as long as it had a substantive conversion feature as of both its issuance date and the date the inducement offer is accepted. The amendment is effective for fiscal years beginning after December 15, 2025. Early adoption is permitted. The amendment should be applied prospectively. However, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on our consolidated financial statements.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 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):

​

​

​

​

​

​

​

​

​

​

​

​

    

December 31, 2024

​

    

Level 1

    

Level 2

    

Level 3

Assets/(Liabilities)

​

​

​

​

​

​

​

 

​

Non-qualified deferred compensation assets

​

$

108,093

​

$

—

​

$

—

Non-qualified deferred compensation liabilities

​

​

(108,166)

​

​

—

​

​

—

Acquisition-related contingent consideration and compensation liability

​

​

—

​

​

—

​

​

(20,155)

​

​

​

​

​

​

​

​

​

​

​

​

    

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)

​

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

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Beginning balance

​

$

25,495

​

$

28,565

Payment

​

​

(6,506)

​

​

(12,994)

Change in fair value

​

 

1,166

​

 

9,924

Ending balance

​

$

20,155

​

$

25,495

​

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 $0.0 million to $142.4 million at December 31, 2024 and $2.6 million to $235.4 million at January 2, 2024. Results could change materially if different estimates and assumptions were used. During fiscal 2024, the fair value of the contingent consideration and compensation liability decreased by $5.3 million due to a payment of $6.5 million per the FRC acquisition agreement and a $1.9 million decrease in the fair value primarily stemming from a change in the volatility factors, as well as a decrease in fiscal 2025 revenues and estimated future revenues utilized in the calculation, partially offset by $3.1 million of amortization. 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.

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. The fair value of our Revolver Facility (as defined below) approximates carrying value due to the variable interest rate.

At both December 31, 2024 and January 2, 2024, 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 December 31, 2024 and January 2, 2024 was approximately $339.5 million and $298.8 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.
v3.25.0.1
Accounts and Other Receivables
 12 Months Ended
Dec. 31, 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

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Gift card distributors

​

$

34,767

​

$

35,777

Landlord construction contributions

​

​

21,229

​

 

12,650

Bakery customers

​

​

14,711

​

​

13,863

Insurance providers

​

​

11,013

​

​

9,984

Delivery partner

​

​

7,702

​

​

7,154

Other

​

​

23,081

​

​

23,666

Total

​

$

112,503

​

$

103,094

​
v3.25.0.1
Inventories
 12 Months Ended
Dec. 31, 2024
Inventories  
Inventories

4.    Inventories

Inventories consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Restaurant food and supplies

​

$

35,141

​

$

32,283

Bakery finished goods and work in progress (1)

​

 

20,210

​

 

16,230

Bakery raw materials and supplies

​

 

9,175

​

 

9,141

Total

​

$

64,526

​

$

57,654

(1)The increase in bakery finished goods and work in progress inventory is primarily driven by a build-up of weeks on hand to improve our supply resiliency.
v3.25.0.1
Prepaid Expenses
 12 Months Ended
Dec. 31, 2024
Prepaid Expenses  
Prepaid Expenses

5.    Prepaid Expenses

Prepaid expenses consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Gift card contract assets

​

$

18,447

​

$

19,111

Prepaid rent

​

 

21,050

​

 

24,438

Other

​

 

15,194

​

 

19,541

Total

​

$

54,691

​

$

63,090

​
v3.25.0.1
Property and Equipment
 12 Months Ended
Dec. 31, 2024
Property and Equipment  
Property and Equipment

6.    Property and Equipment

Property and equipment consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Land and related improvements

​

$

17,303

​

$

15,852

Buildings

​

 

44,532

​

 

44,179

Leasehold improvements

​

 

1,330,910

​

 

1,291,153

Furnishings, fixtures and equipment

​

 

658,064

​

 

625,931

Computer software and equipment

​

 

55,667

​

 

57,952

Restaurant smallwares

​

 

39,888

​

 

38,234

Construction in progress

​

 

75,429

​

 

58,067

​

​

​

​

​

​

​

Property and equipment, total

​

 

2,221,793

​

 

2,131,368

Less: Accumulated depreciation

​

 

(1,381,020)

​

 

(1,340,275)

Property and equipment, net

​

$

840,773

​

$

791,093

​

Depreciation expenses related to property and equipment for fiscal 2024, 2023 and 2022 were $100.8 million, $92.9 million and $92.1 million, respectively. Repair and maintenance expenses for fiscal 2024, 2023 and 2022 were $103.8 million, $99.5 million and $89.1 million, respectively and are recorded in other operating costs and expenses. Net expense/(income) for property and equipment disposals was $0.4 million, ($0.4) million and $1.6 million, in fiscal 2024, 2023 and 2022, respectively.
v3.25.0.1
Other Assets
 12 Months Ended
Dec. 31, 2024
Other Assets  
Other Assets

7.    Other Assets

Other assets consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Non-qualified deferred compensation assets (1)

​

$

108,093

​

$

94,136

Deferred income taxes(2)

​

​

97,850

​

​

91,944

Other

​

​

9,591

​

​

8,535

Total

​

$

215,534

​

$

194,615

(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.
v3.25.0.1
Gift Cards
 12 Months Ended
Dec. 31, 2024
Gift Cards  
Gift Cards

8.    Gift Cards

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

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

Gift card liabilities:

​

​

​

​

​

​

Beginning balance

​

$

222,915

 

$

219,808

Activations

​

 

151,047

​

 

140,647

Redemptions and breakage

​

 

(147,152)

​

 

(137,540)

Ending balance

​

$

226,810

 

$

222,915

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

Gift card contract assets: (1)

​

​

​

​

​

​

Beginning balance

​

$

19,111

 

$

19,886

Deferrals

​

 

14,549

​

 

14,957

Amortization

​

 

(15,213)

​

 

(15,732)

Ending balance

​

$

18,447

 

$

19,111

(1)Included in prepaid expenses on the consolidated balance sheets.
v3.25.0.1
Other Accrued Expenses
 12 Months Ended
Dec. 31, 2024
Other Accrued Expenses  
Other Accrued Expenses

9.    Other Accrued Expenses

Other accrued expenses consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Self-insurance

​

$

73,562

​

$

71,546

Salaries and wages

​

 

54,435

​

 

51,040

Staff member benefits

​

 

29,699

​

 

28,951

Payroll and sales taxes

​

 

22,418

​

 

20,365

Rent

​

​

23,176

​

​

18,973

Other (1)

​

 

62,090

​

 

48,824

Total

​

$

265,380

​

$

239,699

(1)The increase in other was primarily due to the increase in the current portion of the acquisition-related contingent consideration and compensation liability. See Note 2 for further discussion of the fair value measurement.
v3.25.0.1
Long-Term Debt
 12 Months Ended
Dec. 31, 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. In the fourth quarter of fiscal 2024 we repaid $20.0

million on the Revolver Facility. As of December 31, 2024, we had net availability for borrowings of $256.5 million, based on a $110.0 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 December 31, 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 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 December 31, 2024, the conversion rate for the Notes was 13.8741 shares of common stock per $1,000 principal amount of the Notes, which represents a conversion price of approximately $72.08 per share of common stock. In connection with the cash dividend that was declared by our Board on February 13, 2025, on March 5, 2025 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 December 31, 2024, the Notes had a gross principal balance of $345.0 million and a balance of $342.1 million, net of unamortized issuance costs of $2.9 million. The unamortized balance of issuance costs was recorded as a contra-liability and netted with long-term debt on our consolidated balance sheets. Total amortization expense was $2.0 million, $2.0 million and $2.0 million in fiscal 2024, fiscal 2023 and fiscal 2022, respectively and was included in interest expense, net in the consolidated statements of income. The effective interest rate for the Notes was 0.96% as of December 31, 2024.
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases  
Leases

11.    Leases

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

​

​

​

​

​

​

​

​

​

​

​

​

    

​

Fiscal Year

​

    

​

2024

    

2023

    

2022

Operating

​

$

154,233

​

$

145,774

​

$

140,351

Variable

​

​

90,686

​

​

87,047

​

 

81,585

Short-term

​

​

158

​

​

142

​

 

116

Total

​

$

245,077

​

$

232,963

​

$

222,052

​

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

​

​

​

​

​

​

​

​

​

​

 

Fiscal Year

​

​

    

2024

    

2023

​

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

​

​

​

​

​

​

​

Operating cash flows for operating leases

​

$

142,259

​

$

145,836

​

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

​

​

169,831

​

​

114,373

​

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

​

​

14.7

​

​

14.9

​

Weighted-average discount rate — operating leases

​

​

5.6

%

​

5.3

%

​

As of December 31, 2024, the maturities of our operating lease liabilities were as follows (in thousands):

​

​

​

​

​

Fiscal year 2025

​

$

161,116

Fiscal year 2026

​

 

158,269

Fiscal year 2027

​

 

153,588

Fiscal year 2028

​

 

162,434

Fiscal year 2029

​

​

146,854

Thereafter

​

 

1,423,386

Total future lease payments

​

​

2,205,647

Less: Interest

​

​

(749,489)

Present value of lease liabilities

​

$

1,456,158

​

Operating lease liabilities include $719.1 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $243.5 million of legally binding minimum lease payments for leases signed but not yet commenced.
v3.25.0.1
Other Noncurrent Liabilities
 12 Months Ended
Dec. 31, 2024
Other Noncurrent Liabilities  
Other Noncurrent Liabilities

12.   Other Noncurrent Liabilities

Other noncurrent liabilities consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Non-qualified deferred compensation liabilities (1)

​

$

108,166

​

$

93,979

Contingent consideration and compensation liability (2)

​

​

11,986

​

​

25,495

Other

​

 

15,651

​

 

17,174

Total

​

$

135,803

​

$

136,648

(1)See Note 16 for further discussion of our non-qualified deferred compensation assets and liabilities.
(2)See Note 2 for further discussion of the fair value measurement of this liability.
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 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 $147.8 million and $101.4 million at December 31, 2024 and January 2, 2024, 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 $315.4 million and $414.8 million at December 31, 2024 and January 2, 2024, 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. The liability for this contingent consideration provision was $20.2 million at December 31, 2024. See Note 2 for discussion of the fair value measurement of this liability.

As credit guarantees to insurers, we had $33.5 million at both December 31, 2024 and January 2, 2024, 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 $73.6 million and $71.5 million at December 31, 2024 and January 2, 2024, respectively.

On June 7, 2024, the Internal Revenue Service (“IRS”) issued its examination report for tax years 2015 through 2020 in which it proposed to disallow a portion of our depreciation deductions and Domestic Production Activity Deductions and to assess penalties. On August 12, 2024, we submitted Protest Memoranda indicating our disagreement with a majority of the findings in the examination report, and our case is now under the jurisdiction of the Appeals Division. We expect to hold an opening conference with Appeals in the second quarter of fiscal 2025. Based on the current status of this matter, we have reserved an immaterial amount.

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 $3.5 million, excluding accrued potential bonuses of $3.3 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 December 31, 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.
v3.25.0.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2024
Stockholders' Equity  
Stockholders' Equity

14.   Stockholders’ Equity

Common Stock - Dividends and Share Repurchases

Our Board reinstated and declared a quarterly dividend in the second quarter of fiscal 2022 and has continued to pay quarterly dividends through fiscal 2024. Our Board declared dividends of $1.08 per common share in the aggregate during each fiscal 2024 and 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 57.1 million shares at a total cost of $1,829.7 million, excluding excise tax, through December 31, 2024. During fiscal 2024, 2023 and 2022, we repurchased 0.5 million, 1.4 million and 2.0 million shares of our common stock at a cost of $18.0 million, $46.1 million and $63.1 million, excluding excise tax, respectively. 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.)
v3.25.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 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 1.4 million of these shares were available for grant as of December 31, 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

​

    

2024

    

2023

    

2022

Labor expenses

​

$

11,208

​

$

9,914

​

$

9,590

Other operating costs and expenses

​

 

398

​

 

318

​

 

321

General and administrative expenses

​

 

18,356

​

 

15,549

​

 

14,515

Total stock-based compensation

​

 

29,962

​

 

25,781

​

 

24,426

Income tax benefit

​

 

7,487

​

 

6,437

​

 

6,026

Total stock-based compensation, net of taxes

​

$

22,475

​

$

19,344

​

$

18,399

​

​

​

​

​

​

​

​

​

​

Capitalized stock-based compensation (1)

​

$

240

​

$

185

​

$

226

(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 2024 and fiscal 2023 were $12.45 and $15.76 per share, respectively. In fiscal 2024, 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 6.9 years, (b) expected stock price volatility of 41.9%, (c) a risk-free interest rate of 4.3% and (d) a dividend yield on our stock of 3.1%. In fiscal 2023, 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.

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 2024 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

 

1,550

​

$

45.75

​

3.8

​

$

0

Granted

 

81

​

$

34.91

​

​

​

​

​

Exercised

 

(308)

​

$

40.53

​

​

​

​

​

Forfeited or cancelled

 

(156)

​

$

50.26

​

​

​

​

​

Outstanding at end of year

 

1,167

​

$

45.77

​

3.1

​

$

4,163.6

​

​

​

​

​

​

​

​

​

​

​

Exercisable at end of year

 

927

​

$

47.68

​

2.2

​

$

1,995.5

(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.

The total intrinsic value of options exercised during fiscal 2024 and 2022 was $2.0 million and $4.9 million, respectively. There were no options exercised during fiscal 2023. As of December 31, 2024, total unrecognized stock-based compensation expense

related to unvested stock options was $1.3 million, which we expect to recognize over a weighted-average period of approximately 1.9 years.

Restricted Shares and Restricted Share Units

Restricted share and restricted share unit activity during fiscal 2024 was as follows:

​

​

​

​

​

​

​

​

​

​

​

Weighted-

​

​

​

​

Average

​

    

Shares

    

Fair Value

​

​

(In thousands)

​

(Per share)

Outstanding at beginning of year

​

2,886

​

$

40.28

Granted

 

1,017

​

$

35.95

Vested

 

(532)

​

$

46.60

Forfeited

 

(132)

​

$

36.75

Outstanding at end of year

 

3,239

​

$

38.02

​

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 2024, 2023 and 2022 was $35.95, $37.73 and $36.84, respectively. The fair value of shares that vested during fiscal 2024, 2023 and 2022 was $24.8 million, $21.8 million and $18.5 million, respectively. As of December 31, 2024, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $58.6 million, which we expect to recognize over a weighted-average period of approximately 2.8 years.
v3.25.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 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 2024, 2023 and 2022 was $2.2 million, $2.3 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 2024, 2023 and 2022 was $1.4 million, $1.3 million and $1.4 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 other income, 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 $11.0 million and $11.3 million as of December 31, 2024 and January 2, 2024, respectively. (See Note 1 for further discussion of accounting for our self-insurance liabilities.)
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Taxes  
Income Taxes

17.   Income Taxes

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

​

​

​

​

​

​

​

​

​

​

​

​

​

Fiscal Year

​

    

2024

    

2023

    

2022

​

​

​

​

​

​

​

​

​

​

Income before income taxes

​

$

171,047

​

$

100,014

​

$

32,892

Income tax provision/(benefit):

​

​

​

​

​

​

​

​

​

Current:

​

​

​

​

​

​

​

​

​

Federal

​

$

10,638

​

$

7,183

​

$

3,520

State

​

 

9,688

​

 

7,195

​

 

4,895

Total current

​

 

20,326

​

 

14,378

​

 

8,415

Deferred:

​

​

​

​

​

​

​

​

​

Federal

​

 

(7,542)

​

 

(15,329)

​

 

(17,733)

State

​

 

1,480

​

 

(386)

​

 

(913)

Total deferred

​

 

(6,062)

​

 

(15,715)

​

 

(18,646)

Total provision/(benefit)

​

$

14,264

​

$

(1,337)

​

$

(10,231)

​

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

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

 

​

    

2024

    

2023

    

2022

 

​

​

​

​

​

​

​

​

U.S. federal statutory rate

 

21.0

%  

21.0

%  

21.0

%

State and district income taxes, net of federal benefit

 

5.0

​

5.4

​

8.9

​

Credit for FICA taxes paid on tips

 

(16.3)

​

(24.9)

​

(66.4)

​

Other credits and incentives

 

(1.0)

​

(2.2)

​

(10.7)

​

Deferred compensation

 

(1.6)

​

(2.4)

​

9.7

​

Equity compensation

​

1.2

​

1.5

​

5.5

​

Uncertain tax positions

​

(0.9)

​

(0.7)

​

(2.3)

​

Non-deductible executive compensation

​

1.0

​

0.8

​

2.8

​

Other

 

(0.1)

​

0.2

​

0.4

​

Effective tax rate

 

8.3

%

(1.3)

%

(31.1)

%

​

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

​

​

​

​

​

​

​

​

​

    

December 31, 2024

    

January 2, 2024

Deferred tax assets:

​

​

​

​

​

​

Staff member benefits

​

$

40,500

​

$

35,932

Insurance reserves

​

 

15,244

​

 

14,931

Operating lease liability

​

​

335,034

​

​

324,587

Deferred income

​

 

39,248

​

 

38,074

Tax credit carryforwards

​

 

79,933

​

 

74,004

Goodwill

​

 

21,393

​

 

22,743

Stock-based compensation

​

​

10,788

​

​

10,789

State and foreign net operating loss carryforwards

​

​

1,331

​

​

1,640

Other

​

​

867

​

​

674

Subtotal

​

 

544,338

​

 

523,374

Less: Valuation allowance

​

 

(601)

​

 

(1,444)

Total

​

$

543,737

​

$

521,930

​

​

​

​

​

​

​

Deferred tax liabilities:

​

​

​

​

​

​

Property and equipment

​

$

(129,504)

​

$

(121,219)

Prepaid expenses

​

 

(8,435)

​

 

(8,933)

Inventory

​

 

(9,194)

​

 

(8,882)

Accrued rent

​

​

(5,867)

​

​

(5,889)

Operating lease asset

​

​

(291,991)

​

​

(284,244)

Other

​

​

(896)

​

​

(819)

Total

​

$

(445,887)

​

$

(429,986)

​

​

​

​

​

​

​

Net deferred tax asset

​

$

97,850

​

$

91,944

​

At December 31, 2024 and January 2, 2024, we had $79.8 million and $72.8 million, respectively of U.S. federal credit carryforwards which begin to expire in 2042 and $0.2 million and $1.6 million, respectively, of state hiring and investment credits which begin to expire in 2025. At December 31, 2024 and January 2, 2024, we had $1.9 million and $2.3 million, respectively of foreign net operating loss carryforwards which begin to expire in 2037 and $23.7 million and $27.4 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 December 31, 2024 and January 2, 2024 we carried a valuation allowance of $0.6 million and $1.4 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 December 31, 2024, we had a reserve of $3.4 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

​

    

2024

    

2023

    

2022

​

​

​

​

​

​

​

​

​

​

Balance at beginning of year

​

$

3,847

​

$

3,787

​

$

4,799

(Reductions)/additions related to prior year tax positions

​

​

(419)

​

​

181

​

​

227

Reductions related to current period tax positions

​

 

(32)

​

 

(121)

​

 

(54)

Reductions related to settlements with taxing authorities

​

 

—

​

 

—

​

 

(1,185)

Balance at end of year

​

$

3,396

​

$

3,847

​

$

3,787

​

At December 31, 2024 and January 2, 2024, we had $0.1 million and $1.4 million, respectively, of accrued interest and penalties related to uncertain tax positions.

v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Information  
Segment Information

18.   Segment Information

Our chief operating decision maker (“CODM”) is the Chief Executive Officer, President and Chief Financial Officer. Our CODM allocates resources and evaluates the performance of each operating segment based on the segment’s revenue and income/(loss) from operations, comparing actual results to historical and previously forecasted financial information. Significant expenses are expenses that are regularly provided to the CODM and are include in segment income/(loss). Our operating segments, are aligned with our strategic priorities and are the businesses for which our CODM 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):

For the fifty-two weeks ended December 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

The Cheesecake

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Factory

​

North

​

​

​

​

​

​

​

​

​

​

    

Restaurants

    

Italia

    

Other FRC

    

Other

    

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues

​

$

2,661,627

​

$

299,575

​

$

299,969

​

$

320,528

​

$

3,581,699

​

 

​

​

​

​

​

​

 

​

 

​

​

 

​

​

Costs and expenses:

 

​

​

​

​

​

​

​

​

 

​

​

 

​

​

Food and beverage costs

 

​

599,899

​

​

69,505

​

 

66,665

 

​

69,952

 

​

806,021

Labor expenses

 

​

913,560

​

​

111,082

​

 

108,377

 

​

131,363

 

​

1,264,382

Other operating costs and expenses

 

​

696,739

​

​

82,290

​

 

88,672

 

​

91,520

 

​

959,221

General and administrative expenses

 

​

—

​

​

—

​

​

—

 

​

228,737

 

​

228,737

Depreciation and amortization expenses

 

​

66,010

​

​

9,244

​

 

11,389

 

​

14,807

 

​

101,450

Impairment of assets and lease termination (income)/expenses

 

​

(1,402)

​

​

—

​

​

14,893

 

​

156

 

​

13,647

Acquisition-related contingent consideration, compensation and amortization expenses

 

​

—

​

​

—

​

 

1,262

 

​

1,167

 

​

2,429

Preopening costs

 

​

7,499

​

​

7,409

​

 

9,206

 

​

3,381

 

​

27,495

Total costs and expenses

 

​

2,282,305

​

​

279,530

​

 

300,464

 

​

541,083

 

​

3,403,382

Income/(loss) from operations

 

$

379,322

​

$

20,045

​

$

(495)

​

$

(220,555)

​

$

178,317

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

 

$

65,465

​

$

37,811

​

$

30,405

​

$

26,683

​

$

160,364

Total assets

 

$

1,545,227

​

$

419,812

​

$

420,957

​

$

655,764

​

$

3,041,760

​

For the fifty-two weeks ended January 2, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

The Cheesecake

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Factory

​

North

​

​

​

​

​

​

​

​

​

​

    

Restaurants

    

Italia

    

Other FRC

    

Other

    

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues

​

$

2,595,066

​

$

258,878

​

$

263,923

​

$

321,636

​

$

3,439,503

​

 

​

​

​

​

​

 

​

​

 

​

​

 

​

​

Costs and expenses:

 

​

​

​

​

​

 

​

​

 

​

​

 

​

​

Food and beverage costs

 

​

607,439

​

​

64,425

 

​

59,865

 

​

71,771

 

​

803,500

Labor expenses

 

​

907,579

​

​

93,540

 

​

93,840

 

​

132,936

 

​

1,227,895

Other operating costs and expenses

 

​

685,521

​

​

69,918

 

​

72,554

 

​

94,435

 

​

922,428

General and administrative expenses

 

​

—

​

​

—

 

​

—

 

​

217,449

 

​

217,449

Depreciation and amortization expenses

 

​

64,206

​

​

6,407

 

​

7,916

 

​

14,607

 

​

93,136

Impairment of assets and lease termination expenses

 

​

20,401

​

​

1,015

 

​

2,582

 

​

5,466

 

​

29,464

Acquisition-related contingent consideration, compensation and amortization expenses

 

​

—

​

​

—

 

​

1,262

 

​

10,424

 

​

11,686

Preopening costs

 

​

12,857

​

​

5,058

 

​

6,482

 

​

982

 

​

25,379

Total costs and expenses

 

​

2,298,003

​

​

240,363

 

​

244,501

 

​

548,070

 

​

3,330,937

Income/(loss) from operations

 

$

297,063

​

$

18,515

​

$

19,422

​

$

(226,434)

​

$

108,566

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

 

$

80,752

​

$

26,882

​

$

27,562

​

$

16,369

​

$

151,565

Total assets

 

$

1,571,943

​

$

346,810

​

$

399,038

​

$

522,592

​

$

2,840,383

​

For the fifty-three weeks ended January 3, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

The Cheesecake

​

  

​

​

    

  

    

  

​

    

  

​

​

​

Factory

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Restaurants

    

North Italia

    

Other FRC

    

Other

    

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues

​

$

2,528,043

​

$

228,622

​

$

237,552

​

$

308,939

​

$

3,303,156

​

 

​

​

​

​

​

​

​

​

 

​

​

 

​

​

Costs and expenses:

 

​

​

​

​

​

​

​

​

 

​

​

 

​

​

Food and beverage costs

 

​

627,224

​

​

59,290

​

​

56,132

 

​

68,280

 

​

810,926

Labor expenses

 

​

915,559

​

​

84,692

​

​

83,366

 

​

128,334

 

​

1,211,951

Other operating costs and expenses

 

​

668,730

​

​

60,687

​

​

61,703

 

​

90,507

 

​

881,627

General and administrative expenses

 

​

—

​

​

—

​

​

—

 

​

205,753

 

​

205,753

Depreciation and amortization expenses

 

​

66,539

​

​

5,714

​

​

6,231

 

​

13,896

 

​

92,380

Impairment of assets and lease termination expenses

 

​

19,701

​

​

—

​

​

3,909

 

​

7,777

 

​

31,387

Acquisition-related contingent consideration, compensation and amortization expenses

 

​

—

​

​

—

​

​

1,273

 

​

12,095

 

​

13,368

Preopening costs

 

​

9,525

​

​

4,305

​

​

1,361

 

​

1,638

 

​

16,829

Total costs and expenses

 

​

2,307,278

​

​

214,688

​

​

213,975

 

​

528,280

 

​

3,264,221

Income/(loss) from operations

 

$

220,765

​

$

13,934

​

$

23,577

​

$

(219,341)

​

$

38,935

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

 

$

65,996

​

$

14,818

​

$

18,895

​

$

12,755

​

$

112,464

Total assets

 

$

1,625,073

​

$

306,642

​

$

301,618

​

$

541,887

​

$

2,775,220

​
v3.25.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2024
Subsequent Events  
Subsequent Events

19.   Subsequent Events

On February 13, 2025, our Board declared a quarterly cash dividend of $0.27 per share to be paid on March 18, 2025 to the stockholders of record of each share of our common stock at the close of business on March 5, 2025.

v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Pay vs Performance Disclosure      
Net Income (Loss) $ 156,783 $ 101,351 $ 43,123
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 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
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]

Cybersecurity Risk Management and Strategy

We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. Our cybersecurity risk management program includes a cybersecurity incident response plan.

We design and assess our program generally based on the National Institute of Standards and Technology Cybersecurity Framework (“NIST CSF”). Although our program may not meet the technical requirements of the NIST CSF, we use the NIST CSF as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business. Additionally, as we accept credit cards as a form of payment, we consider the requirements of the Payment Card Industry Data Security Standards (“PCI DSS”) in relation to our program.

Our cybersecurity risk management program includes:

●risk assessments designed to help identify material cybersecurity risks to our critical systems, information, and our broader enterprise information technology environment, including, by regularly scanning our environment for vulnerabilities, performing penetration testing and engaging third parties to assess the effectiveness of our technical cybersecurity practices;
●a multi-disciplinary security team overseen by our Information Security Council, principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents;
●the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls, including, third-party network security reviews, scans, and audits, on at least an annual basis;
●the use of a third-party Managed Security Service Provider (“MSSP”) that includes a 24x7 security operations center (“SOC”) that is designed to monitor and analyze suspected suspicious activity on our internal network and remediate or escalate activity as appropriate;
●regular cybersecurity awareness training for employees with access to our information systems, incident response personnel, and senior management;
●a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents;
●a disaster recovery plan and controls designed to protect against business interruption, including by backing up our critical systems;
●use of end-to-end encryption and tokenization technology, a public key infrastructure, designed to ensure that only trusted devices can access our enterprise information technology network, and Intrusion Detection and Intrusion Prevention (IDS/IPS) that scans data in transit to help detect and prevent the execution of harmful code; and
●a third-party risk management process for service providers, suppliers, and vendors who have access to our information systems.

There can be no assurance that our cybersecurity risk management program and processes, including our policies, controls or procedures, will be fully implemented, complied with or are effective in protecting our systems and information. We are not currently aware of risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. Our cybersecurity risk management program includes a cybersecurity incident response plan.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]

Cybersecurity Governance

Our Board of Directors considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (Committee) oversight of steps the Company has taken to monitor or mitigate significant cybersecurity risks. The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.

The Committee reports to the full Board of Directors regarding its activities, including those related to cybersecurity. The full Board of Directors also receives briefings from management on our cyber risk management program. Board of Directors members

receive presentations on cybersecurity topics from our Chief Information Officer (“CIO”), internal security staff and/or external experts, as appropriate, as part of the Board of Directors’ continuing education.

Our management formed an interdepartmental Information Security Council (“ISC”), comprised of senior executives from multiple disciplines, including our CIO and Vice President of Infrastructure Services, to assess and manage our material risks from cybersecurity threats. The ISC has primary responsibility for our overall cybersecurity risk management program. Our CIO, Vice President of Infrastructure Services, and others within our Information Technology department supervise both our internal cybersecurity personnel and our retained external cybersecurity consultants. Our CIO and Vice President of Infrastructure Services have a combined 50+ years of experience in information technology, with increasing oversight of cybersecurity responsibilities over the past 20+ years.

Our management teams, including the ISC, our CIO, Vice President of Infrastructure Services, and others within our Information Technology department, as appropriate, supervise efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the information technology environment.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Audit Committee (Committee)
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The Committee reports to the full Board of Directors regarding its activities, including those related to cybersecurity.
Cybersecurity Risk Role of Management [Text Block]

The Committee reports to the full Board of Directors regarding its activities, including those related to cybersecurity. The full Board of Directors also receives briefings from management on our cyber risk management program. Board of Directors members

receive presentations on cybersecurity topics from our Chief Information Officer (“CIO”), internal security staff and/or external experts, as appropriate, as part of the Board of Directors’ continuing education.

Our management formed an interdepartmental Information Security Council (“ISC”), comprised of senior executives from multiple disciplines, including our CIO and Vice President of Infrastructure Services, to assess and manage our material risks from cybersecurity threats. The ISC has primary responsibility for our overall cybersecurity risk management program. Our CIO, Vice President of Infrastructure Services, and others within our Information Technology department supervise both our internal cybersecurity personnel and our retained external cybersecurity consultants. Our CIO and Vice President of Infrastructure Services have a combined 50+ years of experience in information technology, with increasing oversight of cybersecurity responsibilities over the past 20+ years.

Our management teams, including the ISC, our CIO, Vice President of Infrastructure Services, and others within our Information Technology department, as appropriate, supervise efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the information technology environment.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] CIO, Vice President of Infrastructure Services
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CIO and Vice President of Infrastructure Services have a combined 50+ years of experience in information technology, with increasing oversight of cybersecurity responsibilities over the past 20+ years.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]

Our management teams, including the ISC, our CIO, Vice President of Infrastructure Services, and others within our Information Technology department, as appropriate, supervise efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the information technology environment.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 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 2024 and 2023 each consisted of 52 weeks. Fiscal year 2022 consisted of 53 weeks. Fiscal year 2025 will consist of 52 weeks.

In fiscal year 2024, we separately disclosed interest expense, net and other income, net on the consolidated statement of income. Corresponding prior year balances were reclassified to conform to the current year presentation.
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from these estimates.
Geopolitical and Other Macroeconomic Impacts to our Operating Environment

Geopolitical and Other Macroeconomic Impacts to our Operating Environment

In recent years, our operating results were impacted by geopolitical and macroeconomic events, causing supply chain challenges and significantly increased commodity and wage inflation. Our commodity and wage inflationary environment began returning to more historical levels in fiscal 2024.

The impact of ongoing geopolitical and macroeconomic events could lead to further wage inflation, product and services cost inflation, disruptions in the supply chain, staffing challenges, shifts in consumer behavior, and delays in new restaurant openings. Adverse weather conditions and natural disasters may further exacerbate a number of these factors. 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 $30.4 million and $21.0 million at December 31, 2024 and January 2, 2024, 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 2024, we recorded $13.6 million of expense primarily related to the impairment of long-lived assets for one The Cheesecake Factory (previously partially impaired) and six Other FRC locations (one previously partially impaired) and lease termination income, net for four The Cheesecake Factory restaurants, one Grand Lux Cafe location, one Flower Child location, one Social Monk location and one Other FRC location (that closed in early fiscal 2025). 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 Grand Lux Cafe 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 Grand Lux Cafe locations. 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

​

    

December 31, 2024

    

January 2, 2024

Indefinite-lived intangible assets:

​

​

  

​

​

  

Goodwill

​

$

1,451

​

$

1,451

Trade names and trademarks

​

 

234,566

​

 

234,341

Transferable alcoholic beverage licenses

​

 

8,140

​

 

7,923

Total indefinite-lived intangible assets

​

 

244,157

​

 

243,715

Definite-lived intangible assets, net:

​

 

​

​

 

​

Licensing agreements

​

 

4,111

​

 

4,602

Non-transferable alcoholic beverage licenses

​

 

3,521

​

 

3,410

Total definite-lived intangible assets

​

 

7,632

​

 

8,012

Total intangible assets, net

​

$

251,789

​

$

251,727

​

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 2024, 2023 and 2022 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 2024, 2023 and 2022. We concluded there was no impairment for fiscal 2024, fiscal 2023 and 2022. Amortization expenses related to our definite-lived intangible assets were $0.7 million, $0.8 million and $0.7 million for fiscal 2024, 2023 and 2022, respectively. Definite-lived intangible assets will be amortized over two to 51 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 three to six 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 one to 26 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, $7.3 million and $7.0 million of gift card breakage in fiscal years 2024, 2023 and 2022, 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 2024, we deferred and recognized previously deferred revenue of $31.3 million and $27.3 million, respectively, related to promotional programs. 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.

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 $36.5 million, $34.7 million and $24.0 million in fiscal 2024, 2023 and 2022, respectively. The increase in fiscal 2023 is primarily due to the launch of our Cheesecake Rewards® 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 by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards. At December 31, 2024, January 2, 2024 and January 3, 2023, 3.2 million shares, 2.9 million shares and 2.5 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 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.

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

​

2024

​

2023

​

2022

​

​

(In thousands, except per share data)

​

​

​

​

​

​

​

​

​

​

Net income

​

$

156,783

​

$

101,351

​

$

43,123

​

​

​

​

​

​

​

​

​

​

Basic weighted average shares outstanding

​

​

47,789

​

​

48,324

​

​

49,815

Dilutive effect of equity awards (1)

​

​

1,185

​

​

726

​

​

599

​

​

​

​

​

​

​

​

​

​

Diluted weighted average shares outstanding

​

​

48,974

​

​

49,050

​

​

50,414

​

​

​

​

​

​

​

​

​

​

Basic net income per share

​

$

3.28

​

$

2.10

​

$

0.87

​

​

​

​

​

​

​

​

​

​

Diluted net income per share

​

$

3.20

​

$

2.07

​

$

0.86

(1)Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 2.2 million, 2.9 million and 3.3 million for fiscal 2024, 2023 and 2022, 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 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 other income, net.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

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 amendment is 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 amendment should be applied retrospectively to all prior periods presented in the financial statements. We adopted this standard as of the end of fiscal 2024 and such adoption did not have a significant impact on our disclosures.

Recently Issued Accounting Standards

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 amendment is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendment should be applied prospectively. However, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on our disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which requires more detailed disclosures of certain categories of expenses such as inventory purchases, employee compensation and depreciation that are components of existing expense captions presented on the face of the income statement. The amendment is effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The amendment should be applied prospectively. However, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on our disclosures.

In November 2024, the FASB issued ASU 2024-04, Debt- Debt with Conversion and Other Options (Topic 470): Induced Conversions of Convertible Debt Instruments, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments in this update also clarify that the induced conversion guidance applies to a convertible debt instrument that is not currently convertible as long as it had a substantive conversion feature as of both its issuance date and the date the inducement offer is accepted. The amendment is effective for fiscal years beginning after December 15, 2025. Early adoption is permitted. The amendment should be applied prospectively. However, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on our consolidated financial statements.
v3.25.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 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

​

    

December 31, 2024

    

January 2, 2024

Indefinite-lived intangible assets:

​

​

  

​

​

  

Goodwill

​

$

1,451

​

$

1,451

Trade names and trademarks

​

 

234,566

​

 

234,341

Transferable alcoholic beverage licenses

​

 

8,140

​

 

7,923

Total indefinite-lived intangible assets

​

 

244,157

​

 

243,715

Definite-lived intangible assets, net:

​

 

​

​

 

​

Licensing agreements

​

 

4,111

​

 

4,602

Non-transferable alcoholic beverage licenses

​

 

3,521

​

 

3,410

Total definite-lived intangible assets

​

 

7,632

​

 

8,012

Total intangible assets, net

​

$

251,789

​

$

251,727
Schedule of basic and diluted net income per share

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

​

2024

​

2023

​

2022

​

​

(In thousands, except per share data)

​

​

​

​

​

​

​

​

​

​

Net income

​

$

156,783

​

$

101,351

​

$

43,123

​

​

​

​

​

​

​

​

​

​

Basic weighted average shares outstanding

​

​

47,789

​

​

48,324

​

​

49,815

Dilutive effect of equity awards (1)

​

​

1,185

​

​

726

​

​

599

​

​

​

​

​

​

​

​

​

​

Diluted weighted average shares outstanding

​

​

48,974

​

​

49,050

​

​

50,414

​

​

​

​

​

​

​

​

​

​

Basic net income per share

​

$

3.28

​

$

2.10

​

$

0.87

​

​

​

​

​

​

​

​

​

​

Diluted net income per share

​

$

3.20

​

$

2.07

​

$

0.86

(1)Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 2.2 million, 2.9 million and 3.3 million for fiscal 2024, 2023 and 2022, 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.
v3.25.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 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):

​

​

​

​

​

​

​

​

​

​

​

​

    

December 31, 2024

​

    

Level 1

    

Level 2

    

Level 3

Assets/(Liabilities)

​

​

​

​

​

​

​

 

​

Non-qualified deferred compensation assets

​

$

108,093

​

$

—

​

$

—

Non-qualified deferred compensation liabilities

​

​

(108,166)

​

​

—

​

​

—

Acquisition-related contingent consideration and compensation liability

​

​

—

​

​

—

​

​

(20,155)

​

​

​

​

​

​

​

​

​

​

​

​

    

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)
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

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Beginning balance

​

$

25,495

​

$

28,565

Payment

​

​

(6,506)

​

​

(12,994)

Change in fair value

​

 

1,166

​

 

9,924

Ending balance

​

$

20,155

​

$

25,495
v3.25.0.1
Accounts and Other Receivables (Tables)
 12 Months Ended
Dec. 31, 2024
Accounts and Other Receivables  
Schedule of accounts and other receivables

Accounts and other receivables consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Gift card distributors

​

$

34,767

​

$

35,777

Landlord construction contributions

​

​

21,229

​

 

12,650

Bakery customers

​

​

14,711

​

​

13,863

Insurance providers

​

​

11,013

​

​

9,984

Delivery partner

​

​

7,702

​

​

7,154

Other

​

​

23,081

​

​

23,666

Total

​

$

112,503

​

$

103,094

​
v3.25.0.1
Inventories (Tables)
 12 Months Ended
Dec. 31, 2024
Inventories  
Schedule of inventories

Inventories consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Restaurant food and supplies

​

$

35,141

​

$

32,283

Bakery finished goods and work in progress (1)

​

 

20,210

​

 

16,230

Bakery raw materials and supplies

​

 

9,175

​

 

9,141

Total

​

$

64,526

​

$

57,654

(1)The increase in bakery finished goods and work in progress inventory is primarily driven by a build-up of weeks on hand to improve our supply resiliency.
v3.25.0.1
Prepaid Expenses (Tables)
 12 Months Ended
Dec. 31, 2024
Prepaid Expenses  
Schedule of prepaid expenses

Prepaid expenses consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Gift card contract assets

​

$

18,447

​

$

19,111

Prepaid rent

​

 

21,050

​

 

24,438

Other

​

 

15,194

​

 

19,541

Total

​

$

54,691

​

$

63,090
v3.25.0.1
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2024
Property and Equipment  
Schedule of property and equipment

Property and equipment consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Land and related improvements

​

$

17,303

​

$

15,852

Buildings

​

 

44,532

​

 

44,179

Leasehold improvements

​

 

1,330,910

​

 

1,291,153

Furnishings, fixtures and equipment

​

 

658,064

​

 

625,931

Computer software and equipment

​

 

55,667

​

 

57,952

Restaurant smallwares

​

 

39,888

​

 

38,234

Construction in progress

​

 

75,429

​

 

58,067

​

​

​

​

​

​

​

Property and equipment, total

​

 

2,221,793

​

 

2,131,368

Less: Accumulated depreciation

​

 

(1,381,020)

​

 

(1,340,275)

Property and equipment, net

​

$

840,773

​

$

791,093

​
v3.25.0.1
Other Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Other Assets  
Schedule of other assets

Other assets consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Non-qualified deferred compensation assets (1)

​

$

108,093

​

$

94,136

Deferred income taxes(2)

​

​

97,850

​

​

91,944

Other

​

​

9,591

​

​

8,535

Total

​

$

215,534

​

$

194,615

(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.
v3.25.0.1
Gift Cards (Tables)
 12 Months Ended
Dec. 31, 2024
Gift Cards  
Schedule of gift card liabilities

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

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

Gift card liabilities:

​

​

​

​

​

​

Beginning balance

​

$

222,915

 

$

219,808

Activations

​

 

151,047

​

 

140,647

Redemptions and breakage

​

 

(147,152)

​

 

(137,540)

Ending balance

​

$

226,810

 

$

222,915

​
Schedule of gift card contract assets

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

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

Gift card contract assets: (1)

​

​

​

​

​

​

Beginning balance

​

$

19,111

 

$

19,886

Deferrals

​

 

14,549

​

 

14,957

Amortization

​

 

(15,213)

​

 

(15,732)

Ending balance

​

$

18,447

 

$

19,111

(1)Included in prepaid expenses on the consolidated balance sheets.
v3.25.0.1
Other Accrued Expenses (Tables)
 12 Months Ended
Dec. 31, 2024
Other Accrued Expenses  
Schedule of other accrued expenses

Other accrued expenses consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Self-insurance

​

$

73,562

​

$

71,546

Salaries and wages

​

 

54,435

​

 

51,040

Staff member benefits

​

 

29,699

​

 

28,951

Payroll and sales taxes

​

 

22,418

​

 

20,365

Rent

​

​

23,176

​

​

18,973

Other (1)

​

 

62,090

​

 

48,824

Total

​

$

265,380

​

$

239,699

(1)The increase in other was primarily due to the increase in the current portion of the acquisition-related contingent consideration and compensation liability. See Note 2 for further discussion of the fair value measurement.
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases  
Schedule of components for lease expense

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

​

​

​

​

​

​

​

​

​

​

​

​

    

​

Fiscal Year

​

    

​

2024

    

2023

    

2022

Operating

​

$

154,233

​

$

145,774

​

$

140,351

Variable

​

​

90,686

​

​

87,047

​

 

81,585

Short-term

​

​

158

​

​

142

​

 

116

Total

​

$

245,077

​

$

232,963

​

$

222,052
Schedule of supplemental information related to leases

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

​

​

​

​

​

​

​

​

​

​

 

Fiscal Year

​

​

    

2024

    

2023

​

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

​

​

​

​

​

​

​

Operating cash flows for operating leases

​

$

142,259

​

$

145,836

​

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

​

​

169,831

​

​

114,373

​

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

​

​

14.7

​

​

14.9

​

Weighted-average discount rate — operating leases

​

​

5.6

%

​

5.3

%
Schedule of operating lease liabilities maturity

As of December 31, 2024, the maturities of our operating lease liabilities were as follows (in thousands):

​

​

​

​

​

Fiscal year 2025

​

$

161,116

Fiscal year 2026

​

 

158,269

Fiscal year 2027

​

 

153,588

Fiscal year 2028

​

 

162,434

Fiscal year 2029

​

​

146,854

Thereafter

​

 

1,423,386

Total future lease payments

​

​

2,205,647

Less: Interest

​

​

(749,489)

Present value of lease liabilities

​

$

1,456,158
v3.25.0.1
Other Noncurrent Liabilities (Tables)
 12 Months Ended
Dec. 31, 2024
Other Noncurrent Liabilities  
Schedule of other noncurrent liabilities

Other noncurrent liabilities consisted of (in thousands):

​

​

​

​

​

​

​

​

​

    

Fiscal year ended

​

    

December 31, 2024

    

January 2, 2024

​

​

​

​

​

​

​

Non-qualified deferred compensation liabilities (1)

​

$

108,166

​

$

93,979

Contingent consideration and compensation liability (2)

​

​

11,986

​

​

25,495

Other

​

 

15,651

​

 

17,174

Total

​

$

135,803

​

$

136,648

(1)See Note 16 for further discussion of our non-qualified deferred compensation assets and liabilities.
(2)See Note 2 for further discussion of the fair value measurement of this liability.
v3.25.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 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

​

    

2024

    

2023

    

2022

Labor expenses

​

$

11,208

​

$

9,914

​

$

9,590

Other operating costs and expenses

​

 

398

​

 

318

​

 

321

General and administrative expenses

​

 

18,356

​

 

15,549

​

 

14,515

Total stock-based compensation

​

 

29,962

​

 

25,781

​

 

24,426

Income tax benefit

​

 

7,487

​

 

6,437

​

 

6,026

Total stock-based compensation, net of taxes

​

$

22,475

​

$

19,344

​

$

18,399

​

​

​

​

​

​

​

​

​

​

Capitalized stock-based compensation (1)

​

$

240

​

$

185

​

$

226

(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

Stock option activity during fiscal 2024 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

 

1,550

​

$

45.75

​

3.8

​

$

0

Granted

 

81

​

$

34.91

​

​

​

​

​

Exercised

 

(308)

​

$

40.53

​

​

​

​

​

Forfeited or cancelled

 

(156)

​

$

50.26

​

​

​

​

​

Outstanding at end of year

 

1,167

​

$

45.77

​

3.1

​

$

4,163.6

​

​

​

​

​

​

​

​

​

​

​

Exercisable at end of year

 

927

​

$

47.68

​

2.2

​

$

1,995.5

(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

Restricted share and restricted share unit activity during fiscal 2024 was as follows:

​

​

​

​

​

​

​

​

​

​

​

Weighted-

​

​

​

​

Average

​

    

Shares

    

Fair Value

​

​

(In thousands)

​

(Per share)

Outstanding at beginning of year

​

2,886

​

$

40.28

Granted

 

1,017

​

$

35.95

Vested

 

(532)

​

$

46.60

Forfeited

 

(132)

​

$

36.75

Outstanding at end of year

 

3,239

​

$

38.02
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Taxes  
Schedule of provision for income taxes

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

​

​

​

​

​

​

​

​

​

​

​

​

​

Fiscal Year

​

    

2024

    

2023

    

2022

​

​

​

​

​

​

​

​

​

​

Income before income taxes

​

$

171,047

​

$

100,014

​

$

32,892

Income tax provision/(benefit):

​

​

​

​

​

​

​

​

​

Current:

​

​

​

​

​

​

​

​

​

Federal

​

$

10,638

​

$

7,183

​

$

3,520

State

​

 

9,688

​

 

7,195

​

 

4,895

Total current

​

 

20,326

​

 

14,378

​

 

8,415

Deferred:

​

​

​

​

​

​

​

​

​

Federal

​

 

(7,542)

​

 

(15,329)

​

 

(17,733)

State

​

 

1,480

​

 

(386)

​

 

(913)

Total deferred

​

 

(6,062)

​

 

(15,715)

​

 

(18,646)

Total provision/(benefit)

​

$

14,264

​

$

(1,337)

​

$

(10,231)

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

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

 

​

    

2024

    

2023

    

2022

 

​

​

​

​

​

​

​

​

U.S. federal statutory rate

 

21.0

%  

21.0

%  

21.0

%

State and district income taxes, net of federal benefit

 

5.0

​

5.4

​

8.9

​

Credit for FICA taxes paid on tips

 

(16.3)

​

(24.9)

​

(66.4)

​

Other credits and incentives

 

(1.0)

​

(2.2)

​

(10.7)

​

Deferred compensation

 

(1.6)

​

(2.4)

​

9.7

​

Equity compensation

​

1.2

​

1.5

​

5.5

​

Uncertain tax positions

​

(0.9)

​

(0.7)

​

(2.3)

​

Non-deductible executive compensation

​

1.0

​

0.8

​

2.8

​

Other

 

(0.1)

​

0.2

​

0.4

​

Effective tax rate

 

8.3

%

(1.3)

%

(31.1)

%
Schedule of deferred tax assets and liabilities

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

​

​

​

​

​

​

​

​

​

    

December 31, 2024

    

January 2, 2024

Deferred tax assets:

​

​

​

​

​

​

Staff member benefits

​

$

40,500

​

$

35,932

Insurance reserves

​

 

15,244

​

 

14,931

Operating lease liability

​

​

335,034

​

​

324,587

Deferred income

​

 

39,248

​

 

38,074

Tax credit carryforwards

​

 

79,933

​

 

74,004

Goodwill

​

 

21,393

​

 

22,743

Stock-based compensation

​

​

10,788

​

​

10,789

State and foreign net operating loss carryforwards

​

​

1,331

​

​

1,640

Other

​

​

867

​

​

674

Subtotal

​

 

544,338

​

 

523,374

Less: Valuation allowance

​

 

(601)

​

 

(1,444)

Total

​

$

543,737

​

$

521,930

​

​

​

​

​

​

​

Deferred tax liabilities:

​

​

​

​

​

​

Property and equipment

​

$

(129,504)

​

$

(121,219)

Prepaid expenses

​

 

(8,435)

​

 

(8,933)

Inventory

​

 

(9,194)

​

 

(8,882)

Accrued rent

​

​

(5,867)

​

​

(5,889)

Operating lease asset

​

​

(291,991)

​

​

(284,244)

Other

​

​

(896)

​

​

(819)

Total

​

$

(445,887)

​

$

(429,986)

​

​

​

​

​

​

​

Net deferred tax asset

​

$

97,850

​

$

91,944
Schedule of reconciliation of our uncertain tax positions

​

​

​

​

​

​

​

​

​

​

​

​

    

Fiscal Year

​

    

2024

    

2023

    

2022

​

​

​

​

​

​

​

​

​

​

Balance at beginning of year

​

$

3,847

​

$

3,787

​

$

4,799

(Reductions)/additions related to prior year tax positions

​

​

(419)

​

​

181

​

​

227

Reductions related to current period tax positions

​

 

(32)

​

 

(121)

​

 

(54)

Reductions related to settlements with taxing authorities

​

 

—

​

 

—

​

 

(1,185)

Balance at end of year

​

$

3,396

​

$

3,847

​

$

3,787
v3.25.0.1
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Information  
Schedule of segment information

Segment information is presented below (in thousands):

For the fifty-two weeks ended December 31, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

The Cheesecake

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Factory

​

North

​

​

​

​

​

​

​

​

​

​

    

Restaurants

    

Italia

    

Other FRC

    

Other

    

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues

​

$

2,661,627

​

$

299,575

​

$

299,969

​

$

320,528

​

$

3,581,699

​

 

​

​

​

​

​

​

 

​

 

​

​

 

​

​

Costs and expenses:

 

​

​

​

​

​

​

​

​

 

​

​

 

​

​

Food and beverage costs

 

​

599,899

​

​

69,505

​

 

66,665

 

​

69,952

 

​

806,021

Labor expenses

 

​

913,560

​

​

111,082

​

 

108,377

 

​

131,363

 

​

1,264,382

Other operating costs and expenses

 

​

696,739

​

​

82,290

​

 

88,672

 

​

91,520

 

​

959,221

General and administrative expenses

 

​

—

​

​

—

​

​

—

 

​

228,737

 

​

228,737

Depreciation and amortization expenses

 

​

66,010

​

​

9,244

​

 

11,389

 

​

14,807

 

​

101,450

Impairment of assets and lease termination (income)/expenses

 

​

(1,402)

​

​

—

​

​

14,893

 

​

156

 

​

13,647

Acquisition-related contingent consideration, compensation and amortization expenses

 

​

—

​

​

—

​

 

1,262

 

​

1,167

 

​

2,429

Preopening costs

 

​

7,499

​

​

7,409

​

 

9,206

 

​

3,381

 

​

27,495

Total costs and expenses

 

​

2,282,305

​

​

279,530

​

 

300,464

 

​

541,083

 

​

3,403,382

Income/(loss) from operations

 

$

379,322

​

$

20,045

​

$

(495)

​

$

(220,555)

​

$

178,317

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

 

$

65,465

​

$

37,811

​

$

30,405

​

$

26,683

​

$

160,364

Total assets

 

$

1,545,227

​

$

419,812

​

$

420,957

​

$

655,764

​

$

3,041,760

​

For the fifty-two weeks ended January 2, 2024

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

The Cheesecake

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Factory

​

North

​

​

​

​

​

​

​

​

​

​

    

Restaurants

    

Italia

    

Other FRC

    

Other

    

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues

​

$

2,595,066

​

$

258,878

​

$

263,923

​

$

321,636

​

$

3,439,503

​

 

​

​

​

​

​

 

​

​

 

​

​

 

​

​

Costs and expenses:

 

​

​

​

​

​

 

​

​

 

​

​

 

​

​

Food and beverage costs

 

​

607,439

​

​

64,425

 

​

59,865

 

​

71,771

 

​

803,500

Labor expenses

 

​

907,579

​

​

93,540

 

​

93,840

 

​

132,936

 

​

1,227,895

Other operating costs and expenses

 

​

685,521

​

​

69,918

 

​

72,554

 

​

94,435

 

​

922,428

General and administrative expenses

 

​

—

​

​

—

 

​

—

 

​

217,449

 

​

217,449

Depreciation and amortization expenses

 

​

64,206

​

​

6,407

 

​

7,916

 

​

14,607

 

​

93,136

Impairment of assets and lease termination expenses

 

​

20,401

​

​

1,015

 

​

2,582

 

​

5,466

 

​

29,464

Acquisition-related contingent consideration, compensation and amortization expenses

 

​

—

​

​

—

 

​

1,262

 

​

10,424

 

​

11,686

Preopening costs

 

​

12,857

​

​

5,058

 

​

6,482

 

​

982

 

​

25,379

Total costs and expenses

 

​

2,298,003

​

​

240,363

 

​

244,501

 

​

548,070

 

​

3,330,937

Income/(loss) from operations

 

$

297,063

​

$

18,515

​

$

19,422

​

$

(226,434)

​

$

108,566

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

 

$

80,752

​

$

26,882

​

$

27,562

​

$

16,369

​

$

151,565

Total assets

 

$

1,571,943

​

$

346,810

​

$

399,038

​

$

522,592

​

$

2,840,383

​

For the fifty-three weeks ended January 3, 2023

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

The Cheesecake

​

  

​

​

    

  

    

  

​

    

  

​

​

​

Factory

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Restaurants

    

North Italia

    

Other FRC

    

Other

    

Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues

​

$

2,528,043

​

$

228,622

​

$

237,552

​

$

308,939

​

$

3,303,156

​

 

​

​

​

​

​

​

​

​

 

​

​

 

​

​

Costs and expenses:

 

​

​

​

​

​

​

​

​

 

​

​

 

​

​

Food and beverage costs

 

​

627,224

​

​

59,290

​

​

56,132

 

​

68,280

 

​

810,926

Labor expenses

 

​

915,559

​

​

84,692

​

​

83,366

 

​

128,334

 

​

1,211,951

Other operating costs and expenses

 

​

668,730

​

​

60,687

​

​

61,703

 

​

90,507

 

​

881,627

General and administrative expenses

 

​

—

​

​

—

​

​

—

 

​

205,753

 

​

205,753

Depreciation and amortization expenses

 

​

66,539

​

​

5,714

​

​

6,231

 

​

13,896

 

​

92,380

Impairment of assets and lease termination expenses

 

​

19,701

​

​

—

​

​

3,909

 

​

7,777

 

​

31,387

Acquisition-related contingent consideration, compensation and amortization expenses

 

​

—

​

​

—

​

​

1,273

 

​

12,095

 

​

13,368

Preopening costs

 

​

9,525

​

​

4,305

​

​

1,361

 

​

1,638

 

​

16,829

Total costs and expenses

 

​

2,307,278

​

​

214,688

​

​

213,975

 

​

528,280

 

​

3,264,221

Income/(loss) from operations

 

$

220,765

​

$

13,934

​

$

23,577

​

$

(219,341)

​

$

38,935

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Capital expenditures

 

$

65,996

​

$

14,818

​

$

18,895

​

$

12,755

​

$

112,464

Total assets

 

$

1,625,073

​

$

306,642

​

$

301,618

​

$

541,887

​

$

2,775,220

​
v3.25.0.1
Summary of Significant Accounting Policies (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
restaurant
Jan. 02, 2024
USD ($)
Jan. 03, 2023
Description of Business      
Number of company-owned upscale, casual, full-service dining restaurants 352    
Number of International locations operating under licensing agreements 34    
Number of bakery production facilities 2    
Basis of Presentation      
Length of fiscal year 364 days 364 days 371 days
Cash and Cash Equivalents      
Amounts receivable from credit card processors | $ $ 30.4 $ 21.0  
Conversion period, credit card sales 3 days    
v3.25.0.1
Summary of Significant Accounting Policies - Property and Equipment (Details)
Dec. 31, 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
v3.25.0.1
Summary of Significant Accounting Policies - Impairment of Long-Lived Assets and Lease Termination Expenses (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
restaurant
Jan. 02, 2024
USD ($)
restaurant
Jan. 03, 2023
USD ($)
restaurant
The Cheesecake Factory restaurants      
Summary of Significant Accounting Policies      
Impairment of long-lived assets | $ $ 13.6    
Number of restaurants, impairment of long-lived assets 1 1  
Three, The Cheesecake Factory restaurants      
Summary of Significant Accounting Policies      
Impairment of long-lived assets | $   $ 29.5 $ 31.4
Number of restaurants, impairment of long-lived assets   3 3
Four, The Cheesecake Factory restaurants      
Summary of Significant Accounting Policies      
Lease termination income, net 4    
Six, Other FRC Llc      
Summary of Significant Accounting Policies      
Number of restaurants, impairment of long-lived assets 6    
Other FRC      
Summary of Significant Accounting Policies      
Number of restaurants, impairment of long-lived assets 1 1 1
Lease termination income, net 1    
Grand Lux Cafe      
Summary of Significant Accounting Policies      
Number of restaurants, impairment of long-lived assets     3
Lease termination income, net 1 2  
Flower Child      
Summary of Significant Accounting Policies      
Lease termination income, net 1    
Social Monk Asian Kitchen      
Summary of Significant Accounting Policies      
Lease termination income, net 1    
North Italia      
Summary of Significant Accounting Policies      
Number of restaurants, impairment of long-lived assets   1  
v3.25.0.1
Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Goodwill and Other Intangible Assets      
Goodwill $ 1,451 $ 1,451  
Other intangible assets      
Total indefinite-lived intangible assets 244,157 243,715  
Total definite-lived intangible assets 7,632 8,012  
Total intangible assets, net 251,789 251,727  
Amortization expenses related to our definite-lived intangible assets $ 700 800 $ 700
Minimum      
Other intangible assets      
Definite-lived intangible assets, amortization period 2 years    
Maximum      
Other intangible assets      
Definite-lived intangible assets, amortization period 51 years    
Licensing agreements      
Other intangible assets      
Total definite-lived intangible assets $ 4,111 4,602  
Impairment expense of Intangible assets 0 0 $ 0
Non-transferable alcoholic beverage licenses      
Other intangible assets      
Total definite-lived intangible assets 3,521 3,410  
Trade names and trademarks      
Other intangible assets      
Total indefinite-lived intangible assets 234,566 234,341  
Transferable alcoholic beverage licenses      
Other intangible assets      
Total indefinite-lived intangible assets $ 8,140 $ 7,923  
v3.25.0.1
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Revenue Recognition      
Gift card breakage period 3 years    
Revenue recognized $ 7.3 $ 7.3 $ 7.0
Promotional programs      
Revenue Recognition      
Deferred revenue 31.3 27.5 27.3
Deferred revenue recognized $ 27.3 $ 23.3 $ 23.6
Minimum      
Revenue Recognition      
Revenue recognition agreement term 3 years    
Revenue recognition for development and site fees over the life of the applicable licensee agreements (in years) 1 year    
Maximum      
Revenue Recognition      
Revenue recognition agreement term 6 years    
Revenue recognition for development and site fees over the life of the applicable licensee agreements (in years) 26 years    
v3.25.0.1
Summary of Significant Accounting Policies - Leases (Details)
 12 Months Ended
Dec. 31, 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%
v3.25.0.1
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Advertising Costs      
Advertising costs $ 36.5 $ 34.7 $ 24.0
v3.25.0.1
Summary of Significant Accounting Policies - Net Income per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Basic net income per common share:      
Net income $ 156,783 $ 101,351 $ 43,123
Basic weighted average shares outstanding 47,789 48,324 49,815
Basic net income per share $ 3.28 $ 2.1 $ 0.87
Diluted net income per common share:      
Dilutive effect of equity awards 1,185 726 599
Diluted weighted average shares outstanding 48,974 49,050 50,414
Diluted net income per share $ 3.2 $ 2.07 $ 0.86
Restricted stock      
Diluted net income per common share:      
Antidilutive securities excluded from calculation of basic earnings per share (in shares) 3,200 2,900 2,500
Stock options, Restricted stock and Restricted stock      
Diluted net income per common share:      
Antidilutive securities excluded from calculation of basic earnings per share (in shares) 2,200 2,900 3,300
Common stock      
Diluted net income per common share:      
Antidilutive securities excluded from calculation of basic earnings per share (in shares) 0    
v3.25.0.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jan. 02, 2024
Level 1    
Assets/(Liabilities)    
Non-qualified deferred compensation assets $ 108,093 $ 94,136
Non-qualified deferred compensation liabilities (108,166) (93,979)
Level 3    
Assets/(Liabilities)    
Acquisition-related contingent consideration and compensation liability $ (20,155) $ (25,495)
v3.25.0.1
Fair Value Measurements - Beginning and ending amounts of the fair value (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Fair Value Measurements      
Payment $ (6,500) $ (13,000)  
Change in fair value 2,429 11,686 $ 13,368
Level 3      
Fair Value Measurements      
Beginning balance 25,495 28,565  
Payment (6,506) (12,994)  
Change in fair value 1,166 9,924  
Ending balance $ 20,155 $ 25,495 $ 28,565
v3.25.0.1
Fair Value Measurements - Additional information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jun. 15, 2021
Fair Value Measurements      
Decrease in the fair value of the contingent consideration and compensation liability $ (5.3) $ (3.1)  
Payment 6.5 13.0  
Increase (decrease) in the fair value (1.9) 9.9  
Amount of Amortization 3.1    
Convertible Senior Notes      
Fair Value Measurements      
Aggregate principal amount 345.0 345.0 $ 345.0
Estimated fair value of the Notes 339.5 298.8  
Minimum      
Fair Value Measurements      
Undiscounted range of outcomes per the Monte Carlo model 0.0 2.6  
Maximum      
Fair Value Measurements      
Undiscounted range of outcomes per the Monte Carlo model $ 142.4 $ 235.4  
v3.25.0.1
Accounts and Other Receivables (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jan. 02, 2024
Accounts and Other Receivables    
Gift card distributors $ 34,767 $ 35,777
Landlord construction contributions 21,229 12,650
Bakery customers 14,711 13,863
Insurance providers 11,013 9,984
Delivery partner 7,702 7,154
Other 23,081 23,666
Total $ 112,503 $ 103,094
v3.25.0.1
Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jan. 02, 2024
Inventories    
Restaurant food and supplies $ 35,141 $ 32,283
Bakery finished goods and work in progress 20,210 16,230
Bakery raw materials and supplies 9,175 9,141
Total $ 64,526 $ 57,654
v3.25.0.1
Prepaid Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jan. 02, 2024
Prepaid Expenses    
Gift card contract assets $ 18,447 $ 19,111
Prepaid rent 21,050 24,438
Other 15,194 19,541
Total $ 54,691 $ 63,090
v3.25.0.1
Property and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Property and Equipment      
Property and equipment, total $ 2,221,793 $ 2,131,368  
Less: Accumulated depreciation (1,381,020) (1,340,275)  
Property and equipment, net 840,773 791,093  
Depreciation expenses 100,800 92,900 $ 92,100
Repair and maintenance expenses 103,800 99,500 89,100
Net expense/(income) on property and equipment disposals 400 (400) $ 1,600
Land and related improvements      
Property and Equipment      
Property and equipment, total 17,303 15,852  
Buildings      
Property and Equipment      
Property and equipment, total 44,532 44,179  
Leasehold improvements      
Property and Equipment      
Property and equipment, total 1,330,910 1,291,153  
Furnishings, fixtures and equipment      
Property and Equipment      
Property and equipment, total 658,064 625,931  
Computer software and equipment      
Property and Equipment      
Property and equipment, total 55,667 57,952  
Restaurant smallwares      
Property and Equipment      
Property and equipment, total 39,888 38,234  
Construction in progress      
Property and Equipment      
Property and equipment, total $ 75,429 $ 58,067  
v3.25.0.1
Other Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jan. 02, 2024
Other Assets    
Non-qualified deferred compensation assets $ 108,093 $ 94,136
Deferred income taxes 97,850 91,944
Other 9,591 8,535
Total $ 215,534 $ 194,615
v3.25.0.1
Gift Cards (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Gift card liabilities:    
Beginning balance $ 222,915 $ 219,808
Activations 151,047 140,647
Redemptions and breakage (147,152) (137,540)
Ending balance 226,810 222,915
Gift card contract assets:    
Beginning balance 19,111 19,886
Deferrals 14,549 14,957
Amortization (15,213) (15,732)
Ending balance $ 18,447 $ 19,111
v3.25.0.1
Other Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jan. 02, 2024
Other Accrued Expenses    
Self-insurance $ 73,562 $ 71,546
Salaries and wages 54,435 51,040
Staff member benefits 29,699 28,951
Payroll and sales taxes 22,418 20,365
Rent 23,176 18,973
Other 62,090 48,824
Total $ 265,380 $ 239,699
v3.25.0.1
Long-Term Debt - Revolving Credit Facility (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
item
Jan. 02, 2024
USD ($)
Nov. 23, 2023
USD ($)
Oct. 06, 2022
USD ($)
Long-Term Debt        
Revolving facility     $ 15.0  
Outstanding letters of credit $ 33.5 $ 33.5    
Revolving Credit Facility        
Long-Term Debt        
Net availability for borrowings 256.5 236.5    
Outstanding debt balance 110.0 130.0    
Outstanding letters of credit 33.5 $ 33.5    
Repaid revolver facility $ 20.0      
Base Rate | Minimum | Revolving Credit Facility        
Long-Term Debt        
Credit facility, basis spread on variable rate (as a percent) 0.00%      
Base Rate | Maximum | Revolving Credit Facility        
Long-Term Debt        
Credit facility, basis spread on variable rate (as a percent) 0.75%      
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 | Minimum | Revolving Credit Facility        
Long-Term Debt        
EBITDAR ratio 1.9      
Credit facility, basis spread on variable rate (as a percent) 1.00%      
Commitment fee (as a percent) 0.125%      
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 | Overnight bank funding rate | Maximum | Revolving Credit Facility        
Long-Term Debt        
Credit facility, basis spread on variable rate (as a percent) 0.50%      
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%      
Amended Credit Agreement | Minimum | Revolving Credit Facility        
Long-Term Debt        
Multiplier of rent used to compute adjusted debt | item 6      
Amended Credit Agreement | Maximum | Revolving Credit Facility        
Long-Term Debt        
Multiplier of rent used to compute adjusted debt | item 8      
v3.25.0.1
Long-Term Debt - Convertible Senior Notes (Details) - Convertible Senior Notes
 12 Months Ended
Jun. 15, 2021
USD ($)
$ / shares
Dec. 31, 2024
USD ($)
D
$ / shares
Jan. 02, 2024
USD ($)
Jan. 03, 2023
USD ($)
Long-Term Debt        
Aggregate principal amount of debt issued $ 345,000,000 $ 345,000,000 $ 345,000,000  
Net proceeds from the sale 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    
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   0.5    
Gross principal balance outstanding   $ 345,000,000    
Outstanding debt balance   342,100,000    
Unamortized debt issuance costs   2,900,000    
Amortized debt issuance costs   $ 2,000,000 $ 2,000,000 $ 2,000,000
Effective interest rate   0.96%    
Convertible Debt Securities | Common Stock        
Long-Term Debt        
Aggregate principal amount of debt issued $ 1,000 $ 1,000    
Conversion ratio 12.7551 13.8741    
Conversion price | $ / shares $ 78.4 $ 72.08    
v3.25.0.1
Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Leases      
Operating $ 154,233 $ 145,774 $ 140,351
Variable 90,686 87,047 81,585
Short-term 158 142 116
Total 245,077 232,963 $ 222,052
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows for operating leases 142,259 145,836  
Right-of-use assets obtained in exchange for new operating lease liabilities $ 169,831 $ 114,373  
Weighted-average remaining lease term - operating leases (in years) 14 years 8 months 12 days 14 years 10 months 24 days  
Weighted-average discount rate - operating leases 5.60% 5.30%  
v3.25.0.1
Leases - Maturity of operating lease liabilities (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Operating Leases  
Fiscal year 2024 $ 161,116
Fiscal year 2025 158,269
Fiscal year 2026 153,588
Fiscal year 2027 162,434
Fiscal year 2028 146,854
Thereafter 1,423,386
Total future lease payments 2,205,647
Less: Interest (749,489)
Present value of lease liabilities 1,456,158
Operating lease liabilities related to options extend $ 719,100
Options to extend lease terms options to extend lease terms
Minimum lease payment for leases $ 243,500
v3.25.0.1
Other Noncurrent Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jan. 02, 2024
Other Noncurrent Liabilities    
Non-qualified deferred compensation liabilities $ 108,166 $ 93,979
Contingent consideration and compensation liability 11,986 25,495
Other 15,651 17,174
Total $ 135,803 $ 136,648
v3.25.0.1
Commitments and Contingencies (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Commitments and Contingencies.    
Purchase obligations $ 147,800,000 $ 101,400,000
Purchase obligations due within terms recorded 3 years  
Minimum payments for real estate and leases $ 315,400,000 414,800,000
Outstanding standby letters of credit 33,500,000 33,500,000
Total accrued liability for self-insured plans 73,600,000 $ 71,500,000
Liability for contingent consideration provision 20,200,000  
Payments required under event of an actual or constructive termination of employment 3,500,000  
Accrued potential bonuses 3,300,000  
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  
v3.25.0.1
Stockholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Oct. 26, 2022
Stockholders' Equity        
Cash dividends declared common stock, net of forfeitures $ 1.08 $ 1.08 $ 0.81  
Number of shares authorized to be repurchased       61,000,000
Repurchased shares since program inception 57,055,276 56,543,158    
Value of treasury stock $ 1,829,953 $ 1,811,997    
Treasury stock repurchased during period $ 17,956 $ 46,356 $ 63,132  
Treasury Stock        
Stockholders' Equity        
Repurchased shares since program inception 57,100,000      
Value of treasury stock $ 1,829,700      
Shares repurchased during period 500,000 1,400,000 2,000,000  
Treasury stock repurchased during period $ 18,000 $ 46,100 $ 63,100  
Stock Repurchase Program, Additional Number of Shares Authorized to be Repurchased       5,000,000
v3.25.0.1
Stock-Based Compensation (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 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 1.4    
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    
Stock options, Restricted stock and Restricted stock | Minimum      
Stock-Based Compensation      
Annual vesting rights (as a percent) 0.00%    
Vesting period (in years) 3 years    
Stock options, Restricted stock and Restricted stock | Maximum      
Stock-Based Compensation      
Annual vesting rights (as a percent) 150.00%    
Vesting period (in years) 5 years    
v3.25.0.1
Stock-Based Compensation - Net of forfeitures (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Stock-Based Compensation      
Total stock-based compensation $ 29,962 $ 25,781 $ 24,426
Income tax benefit 7,487 6,437 6,026
Total stock-based compensation, net of taxes 22,475 19,344 18,399
Capitalized stock-based compensation 240 185 226
Labor expenses      
Stock-Based Compensation      
Total stock-based compensation 11,208 9,914 9,590
Other operating costs and expenses      
Stock-Based Compensation      
Total stock-based compensation 398 318 321
General and administrative expenses      
Stock-Based Compensation      
Total stock-based compensation $ 18,356 $ 15,549 $ 14,515
v3.25.0.1
Stock-Based Compensation - Stock Options (Details) - USD ($)
$ / shares in Units, shares in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Stock options      
Stock-Based Compensation      
Weighted-average fair value at the grant date for options issued (in dollars per share) $ 12.45 $ 15.76  
Weighted average assumptions under Black-Scholes valuation model      
Expected option term 6 years 10 months 24 days 6 years 8 months 12 days  
Expected stock price volatility (as a percent) 41.90% 45.20%  
Risk-free interest rate (as a percent) 4.30% 4.00%  
Dividend yield (as a percent) 3.10% 2.70%  
Stock option activity, Shares      
Outstanding at beginning of year (in shares) 1,550    
Granted (in shares) 81    
Exercised (in shares) (308) 0  
Forfeited or cancelled (in shares) (156)    
Outstanding at end of the period (in shares) 1,167 1,550  
Exercisable at end of the period (in shares) 927    
Weighted Average Exercise Price      
Outstanding at beginning of year (in dollars per share) $ 45.75    
Granted (in dollars per share) 34.91    
Exercised (in dollars per share) 40.53    
Forfeited or cancelled (in dollars per share) 50.26    
Outstanding at end of the period (in dollars per share) 45.77 $ 45.75  
Exercisable at end of the period (in dollars per share) $ 47.68    
Weighted Average Remaining Contractual Term (In years)      
Weighted Average Remaining Contractual Term (In years) 3 years 1 month 6 days 3 years 9 months 18 days  
Exercisable at end of the period (In years) 2 years 2 months 12 days    
Aggregate Intrinsic Value      
Outstanding at beginning of year $ 0    
Outstanding at end of the period 4,163,600 $ 0  
Exercisable at end of the period 1,995,500    
Total intrinsic value of options exercised 2,000,000   $ 4,900,000
Unrecognized Stock-based Compensation Expense      
Total unrecognized stock-based compensation expenses related to unvested stock options, restricted shares and restricted share units $ 1,300,000    
Expected weighted average period for recognition of compensation expense related to unvested stock option 1 year 10 months 24 days    
Stock options, Restricted stock and Restricted stock      
Restricted Shares and Restricted Share Units, Shares      
Outstanding at beginning of year (in shares) 2,886    
Granted (in shares) 1,017    
Vested (in shares) (532)    
Forfeited (in shares) (132)    
Outstanding at end of the period (in shares) 3,239 2,886  
Fair value of shares vested $ 24,800,000 $ 21,800,000 $ 18,500,000
Weighted Average Fair Value      
Outstanding at beginning of year (in dollars per share) $ 40.28    
Granted (in dollars per share) 35.95 $ 37.73 $ 36.84
Vested (in dollars per share) 46.6    
Forfeited (in dollars per share) 36.75    
Outstanding at end of the period (in dollars per share) $ 38.02 $ 40.28  
Unrecognized Stock-based Compensation Expense      
Total unrecognized stock-based compensation expenses related to unvested stock options, restricted shares and restricted share units $ 58,600,000    
Expected weighted average period for recognition of compensation expense related to unvested stock option 2 years 9 months 18 days    
v3.25.0.1
Employee Benefit Plans (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
item
Jan. 02, 2024
USD ($)
Jan. 03, 2023
USD ($)
Employee Benefit Plans      
Minimum number of investment options available to participating plan members | item 1    
Accrued liability for self-insured benefit plans $ 11.0 $ 11.3  
401(k) Plan      
Employee Benefit Plans      
Expense recognized 2.2 2.3 $ 2.1
ESP      
Employee Benefit Plans      
Expense recognized $ 1.4 $ 1.3 $ 1.4
v3.25.0.1
Income Taxes - Provision & Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Income tax provision/(benefit):      
Income before income taxes $ 171,047 $ 100,014 $ 32,892
Current:      
Federal 10,638 7,183 3,520
State 9,688 7,195 4,895
Total current 20,326 14,378 8,415
Deferred:      
Federal (7,542) (15,329) (17,733)
State 1,480 (386) (913)
Total deferred (6,062) (15,715) (18,646)
Total provision/(benefit) $ 14,264 $ (1,337) $ (10,231)
Income Taxes      
U.S. federal statutory rate 21.00% 21.00% 21.00%
State and district income taxes, net of federal benefit 5.00% 5.40% 8.90%
Credit for FICA taxes paid on tips (16.30%) (24.90%) (66.40%)
Other credits and incentives (1.00%) (2.20%) (10.70%)
Deferred compensation (1.60%) (2.40%) 9.70%
Equity compensation 1.20% 1.50% 5.50%
Uncertain tax positions (0.90%) (0.70%) (2.30%)
Non-deductible executive compensation 1.00% 0.80% 2.80%
Other (as a percent) (0.10%) 0.20% 0.40%
Effective tax rate 8.30% (1.30%) (31.10%)
v3.25.0.1
Income Taxes - Temporary Differences (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Deferred tax assets:      
Staff member benefits $ 40,500 $ 35,932  
Insurance reserves 15,244 14,931  
Operating lease liability 335,034 324,587  
Deferred income 39,248 38,074  
Tax credit carryforwards 79,933 74,004  
Goodwill 21,393 22,743  
Stock-based compensation 10,788 10,789  
State and foreign net operating loss carryforwards 1,331 1,640  
Other 867 674  
Subtotal 544,338 523,374  
Less: Valuation allowance (601) (1,444)  
Total 543,737 521,930  
Deferred tax liabilities:      
Property and equipment (129,504) (121,219)  
Prepaid expenses (8,435) (8,933)  
Inventory (9,194) (8,882)  
Accrued rent (5,867) (5,889)  
Operating lease asset (291,991) (284,244)  
Other (896) (819)  
Total (445,887) (429,986)  
Net deferred tax asset 97,850 91,944  
Reconciliation of beginning and ending amount of our uncertain tax positions      
Balance at beginning of year 3,847 3,787 $ 4,799
(Reductions) related to prior year tax positions (419)    
Additions related to prior year tax positions   181 227
Reductions related to current period tax positions (32) (121) (54)
Reductions related to settlements with taxing authorities     (1,185)
Balance at end of year 3,396 3,847 $ 3,787
Accrued interest and penalties related with uncertain tax positions 100 1,400  
Tax credit carryforward valuation allowance $ 600 $ 1,400  
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 $ 23,700 $ 27,400  
Reconciliation of beginning and ending amount of our uncertain tax positions      
Tax credit carryforwards 200 1,600  
Foreign      
Deferred tax assets:      
Tax credit carryforwards 1,900 2,300  
Domestic      
Reconciliation of beginning and ending amount of our uncertain tax positions      
Tax credit carryforwards $ 79,800 $ 72,800  
v3.25.0.1
Segment Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Segment Information      
Revenues $ 3,581,699 $ 3,439,503 $ 3,303,156
Costs and expenses:      
Food and beverage costs 806,021 803,500 810,926
Labor expenses 1,264,382 1,227,895 1,211,951
Other operating costs and expenses 959,221 922,428 881,627
General and administrative expenses 228,737 217,449 205,753
Depreciation and amortization expenses 101,450 93,136 92,380
Impairment of assets and lease termination (income)/expenses 13,647 29,464 31,387
Acquisition-related contingent consideration, compensation and amortization expenses 2,429 11,686 13,368
Preopening costs 27,495 25,379 16,829
Total costs and expenses 3,403,382 3,330,937 3,264,221
Income/(loss) from operations 178,317 108,566 38,935
Capital expenditures 160,364 151,565 112,464
Total assets 3,041,760 2,840,383 2,775,220
The Cheesecake Factory Restaurants      
Segment Information      
Revenues 2,661,627 2,595,066 2,528,043
Costs and expenses:      
Food and beverage costs 599,899 607,439 627,224
Labor expenses 913,560 907,579 915,559
Other operating costs and expenses 696,739 685,521 668,730
Depreciation and amortization expenses 66,010 64,206 66,539
Impairment of assets and lease termination (income)/expenses (1,402) 20,401 19,701
Preopening costs 7,499 12,857 9,525
Total costs and expenses 2,282,305 2,298,003 2,307,278
Income/(loss) from operations 379,322 297,063 220,765
Capital expenditures 65,465 80,752 65,996
Total assets 1,545,227 1,571,943 1,625,073
North Italia      
Segment Information      
Revenues 299,575 258,878 228,622
Costs and expenses:      
Food and beverage costs 69,505 64,425 59,290
Labor expenses 111,082 93,540 84,692
Other operating costs and expenses 82,290 69,918 60,687
Depreciation and amortization expenses 9,244 6,407 5,714
Impairment of assets and lease termination (income)/expenses   1,015  
Preopening costs 7,409 5,058 4,305
Total costs and expenses 279,530 240,363 214,688
Income/(loss) from operations 20,045 18,515 13,934
Capital expenditures 37,811 26,882 14,818
Total assets 419,812 346,810 306,642
Other FRC      
Segment Information      
Revenues 299,969 263,923 237,552
Costs and expenses:      
Food and beverage costs 66,665 59,865 56,132
Labor expenses 108,377 93,840 83,366
Other operating costs and expenses 88,672 72,554 61,703
Depreciation and amortization expenses 11,389 7,916 6,231
Impairment of assets and lease termination (income)/expenses 14,893 2,582 3,909
Acquisition-related contingent consideration, compensation and amortization expenses 1,262 1,262 1,273
Preopening costs 9,206 6,482 1,361
Total costs and expenses 300,464 244,501 213,975
Income/(loss) from operations (495) 19,422 23,577
Capital expenditures 30,405 27,562 18,895
Total assets 420,957 399,038 301,618
Other      
Segment Information      
Revenues 320,528 321,636 308,939
Costs and expenses:      
Food and beverage costs 69,952 71,771 68,280
Labor expenses 131,363 132,936 128,334
Other operating costs and expenses 91,520 94,435 90,507
General and administrative expenses 228,737 217,449 205,753
Depreciation and amortization expenses 14,807 14,607 13,896
Impairment of assets and lease termination (income)/expenses 156 5,466 7,777
Acquisition-related contingent consideration, compensation and amortization expenses 1,167 10,424 12,095
Preopening costs 3,381 982 1,638
Total costs and expenses 541,083 548,070 528,280
Income/(loss) from operations (220,555) (226,434) (219,341)
Capital expenditures 26,683 16,369 12,755
Total assets $ 655,764 $ 522,592 $ 541,887
v3.25.0.1
Subsequent Events (Details) - $ / shares
 12 Months Ended
Feb. 13, 2025
Dec. 31, 2024
Jan. 02, 2024
Jan. 03, 2023
Subsequent Events        
Quarterly cash dividend declared (in dollars per share)   $ 1.08 $ 1.08 $ 0.81
Subsequent Events        
Subsequent Events        
Quarterly cash dividend declared (in dollars per share) $ 0.27