The company is traded on the Nasdaq Stock Market LLC (NASDAQ Global Select Market). The share price at the fiscal year end (December 28, 2021) was $39.66 per share. During fiscal 2021, the price of our common stock fluctuated between $34.64 and $65.81 per share. The common stock par value was $0.01 per share.
The audit was conducted by KPMG International Limited, which is one the Bog 4 accounting firms.
The company operates in multiple segments, including fine dining, casual dining, fast casual, and quick-service. The Cheesecake Factory restaurants operate in the upscale casual dining segment, which is differentiated by freshly prepared and innovative food, flavorful recipes with creative presentations, unique restaurant layouts, eye-catching design elements and more personalized service. Upscale casual dining is positioned above core casual dining, with standards that are closer to fine dining.
Total assets of a firm include all the assets a company has, such as cash, accounts receivable, property, plant, equipment, and intangible assets. The company’s total assets were $2,798,125,000 in 2021 and $2,747,054,000 in 2020.
Diluted net income per share is also known as diluted EPS. It is a calculation used to gauge the quality of a company’s earnings per share (EPS) if all convertible securities were exercised. Convertible securities are all outstanding convertible preferred shares, convertible debentures, stock options, and warrants. The company’s diluted net income per common share was $1.01 in 2021, -$6.32 in 2020, and $2.86 in 2019.
Competitive strengths are factors that allow a company to produce goods or services better or more cheaply than its rivals. Cheesecake Factory acknowledges numerous competitive strengths in the 10k form. Some of them are included below.
- Extensive and Innovative Menu. The company states that it offers the broadest menus in the industry, which are updated every six months, which allows to keep the interest of the customers.
- Value Proposition. The company believed that the customers see the restaurants proposing generous portions at moderate prices.
- Commitment to Excellent Service and Hospitality through an excellent HR strategy. The company’s mission is “to create an environment where absolute guest satisfaction is our highest priority.” Such an environment is achieved through careful selection, training and retention of high-quality staff members.
- Distinctive Restaurant Design and Décor. The company sees the quality interior design as one of the key priorities that help to attract and retain the customers.
- Integration of our Bakery Operations. Such integration allows the company to control the quality and creativity of baked goods.
Risk factors are possible events that can negatively affect a company’s financial performance. The discussion of risk factors provided in an annual report includes an assessment of the most probable events that could affect the company’s business, operations, industry, financial position or future financial performance. Two risk factors for the Cheesecake Factory are provided below.
- Risk related to the COVID-19 pandemic. The company sees pandemic-related risks as the most impactful on the company. In particular, the measures associated with fighting the pandemic can lead to further restrictions and lockdowns that can affect the company’s ability to generate income.
- Industry-related risks. The company acknowledges numerous risks associated with the industry, including negative impact of domestic and foreign economic conditions, inability to grow restaurant sales, inability to protect reputation, and failure to comply with regulations.
- Non-GAAP net income was adjusted by excluding the preferred dividend and assuming that all convertible preferred shares have been converted into common stock. It was done because the impact of items was not considered to be indicative of the ongoing operations.