Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 29, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CHEESECAKE FACTORY INC | ' |
Entity Central Index Key | '0000887596 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-30 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 49,493,524 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $22,141 | $61,751 |
Accounts receivable | 11,013 | 10,081 |
Income tax receivable | 11,539 | 4,529 |
Other receivables | 35,555 | 55,461 |
Inventories | 37,166 | 35,478 |
Prepaid expenses | 40,343 | 42,595 |
Deferred income taxes | 16,095 | 16,008 |
Total current assets | 173,852 | 225,903 |
Property and equipment, net | 824,410 | 795,379 |
Other assets: | ' | ' |
Intangible assets, net | 20,504 | 18,647 |
Prepaid rent | 45,764 | 47,064 |
Other | 40,984 | 37,121 |
Total other assets | 107,252 | 102,832 |
Total assets | 1,105,514 | 1,124,114 |
Current liabilities: | ' | ' |
Accounts payable | 50,647 | 35,418 |
Other accrued expenses | 211,993 | 228,829 |
Total current liabilities | 262,640 | 264,247 |
Deferred income taxes | 96,149 | 97,237 |
Deferred rent | 73,867 | 74,690 |
Deemed landlord financing liability | 76,653 | 66,197 |
Long term debt | 25,000 | ' |
Other noncurrent liabilities | 48,631 | 44,390 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued | ' | ' |
Common stock, $0.01 par value, 250,000,000 shares authorized; 91,342,840 and 90,632,325 issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 913 | 906 |
Additional paid-in capital | 636,255 | 602,469 |
Retained earnings | 1,043,902 | 989,451 |
Treasury stock, 41,916,080 and 38,865,951 shares at cost at September 30, 2014 and December 31, 2013, respectively | -1,158,496 | -1,015,473 |
Total stockholders' equity | 522,574 | 577,353 |
Total liabilities and stockholders' equity | $1,105,514 | $1,124,114 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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 |
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 | 91,342,840 | 90,632,325 |
Common stock, shares outstanding | 91,342,840 | 90,632,325 |
Treasury stock, shares | 41,916,080 | 38,865,951 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Oct. 01, 2013 | Sep. 30, 2014 | Oct. 01, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Revenues | $499,114 | $469,699 | $1,476,951 | $1,402,835 |
Costs and expenses: | ' | ' | ' | ' |
Cost of sales | 124,028 | 112,430 | 364,057 | 339,670 |
Labor expenses | 163,279 | 150,910 | 483,506 | 453,055 |
Other operating costs and expenses | 123,095 | 113,955 | 358,305 | 338,738 |
General and administrative expenses | 29,641 | 28,805 | 89,925 | 85,405 |
Depreciation and amortization expenses | 20,930 | 19,661 | 61,715 | 58,106 |
Impairment of assets and lease terminations | ' | 1,097 | 696 | 3,246 |
Preopening costs | 3,966 | 4,210 | 8,808 | 8,027 |
Total costs and expenses | 464,939 | 431,068 | 1,367,012 | 1,286,247 |
Income from operations | 34,175 | 38,631 | 109,939 | 116,588 |
Interest and other expense, net | -1,381 | -727 | -4,316 | -3,308 |
Income before income taxes | 32,794 | 37,904 | 105,623 | 113,280 |
Income tax provision | 8,571 | 10,423 | 28,833 | 31,924 |
Net income | $24,223 | $27,481 | $76,790 | $81,356 |
Net income per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.49 | $0.52 | $1.55 | $1.55 |
Diluted (in dollars per share) | $0.48 | $0.50 | $1.48 | $1.49 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 48,981 | 52,416 | 49,690 | 52,521 |
Diluted (in shares) | 50,963 | 54,612 | 51,722 | 54,654 |
Cash dividends declared per common share (in dollars per share) | $0.17 | $0.14 | $0.45 | $0.38 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Total |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2013 | $906 | $602,469 | $989,451 | ($1,015,473) | $577,353 |
Balance (in shares) at Dec. 31, 2013 | 90,632 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | ' | ' | 76,790 | ' | 76,790 |
Cash dividends declared | ' | ' | -22,339 | ' | -22,339 |
Issuance of common stock from stock options exercised | 6 | 12,766 | ' | ' | 12,772 |
Issuance of common stock from stock options exercised (in shares) | 658 | ' | ' | ' | ' |
Tax impact of stock options exercised, net of cancellations | ' | 6,377 | ' | ' | 6,377 |
Stock-based compensation | ' | 11,947 | ' | ' | 11,947 |
Issuance of restricted stock, net of forfeitures | 1 | ' | ' | ' | 1 |
Issuance of restricted stock, net of forfeitures (in shares) | 53 | ' | ' | ' | ' |
Treasury stock purchases | ' | 2,696 | ' | -143,023 | -140,327 |
Balance at Sep. 30, 2014 | $913 | $636,255 | $1,043,902 | ($1,158,496) | $522,574 |
Balance (in shares) at Sep. 30, 2014 | 91,343 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Oct. 01, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $76,790 | $81,356 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 61,715 | 58,106 |
Deferred income taxes | -1,175 | 6,249 |
Impairment of assets and lease terminations | 437 | 3,038 |
Stock-based compensation | 11,793 | 10,273 |
Tax impact of stock options exercised, net of cancellations | 6,377 | 4,357 |
Excess tax benefit related to stock options exercised | -6,212 | -5,150 |
Other | 1,336 | -949 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -906 | 3,393 |
Other receivables | 19,906 | 17,764 |
Inventories | -1,688 | -8,210 |
Prepaid expenses | 2,252 | 3,961 |
Other assets | -2,508 | -2,226 |
Accounts payable | 15,229 | -3,016 |
Income taxes receivable/payable | -7,010 | -3,629 |
Other accrued expenses | -15,358 | -15,000 |
Cash provided by operating activities | 160,978 | 150,317 |
Cash flows from investing activities: | ' | ' |
Additions to property and equipment | -87,873 | -67,098 |
Additions to intangible assets | -1,469 | -1,225 |
Cash used in investing activities | -89,342 | -68,323 |
Cash flows from financing activities: | ' | ' |
Deemed landlord financing proceeds | 9,257 | 5,959 |
Deemed landlord financing payments | -1,934 | -1,557 |
Proceeds from exercise of stock options | 12,772 | 63,012 |
Excess tax benefit related to stock options exercised | 6,212 | 5,150 |
Cash dividends paid | -22,226 | -19,970 |
Borrowings on credit facility | 25,000 | ' |
Treasury stock purchases | -140,327 | -135,532 |
Cash used in financing activities | -111,246 | -82,938 |
Net change in cash and cash equivalents | -39,610 | -944 |
Cash and cash equivalents at beginning of period | 61,751 | 83,569 |
Cash and cash equivalents at end of period | 22,141 | 82,625 |
Supplemental disclosures: | ' | ' |
Interest paid | 3,952 | 3,395 |
Income taxes paid | 30,434 | 25,900 |
Construction payable | $7,192 | $7,701 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation and Significant Accounting Policies | ' |
Basis of Presentation and Significant Accounting Policies | ' |
1. Basis of Presentation and Significant Accounting Policies | |
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”) prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The financial statements presented herein have not been audited by an independent registered public accounting firm, but include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for the fair statement of the financial condition, results of operations and cash flows for the period. However, these results are not necessarily indicative of results for any other interim period or for the full fiscal year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules of the Securities and Exchange Commission (“SEC”). The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013 filed with the SEC on February 27, 2014. | |
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. | |
We utilize a 52/53-week fiscal year ending on the Tuesday closest to December 31st for financial reporting purposes. Fiscal year 2014 consists of 52 weeks and will end on December 30, 2014. Fiscal 2013, which ended on December 31, 2013, was also a 52-week year. | |
Certain reclassifications have been made to prior year amounts to conform to current year presentation. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that provides a comprehensive new revenue recognition model. This will supersede most of the existing revenue recognition requirements and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. This guidance is effective for us beginning in the first quarter of fiscal 2017 and will not have a material impact on our financial statements. Early adoption is not permitted. | |
In July 2013, the FASB issued guidance that requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. This guidance was effective for us beginning in the first quarter of fiscal 2014. The adoption of this new guidance did not have any effect on our financial statements. | |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
2. Inventories | ||||||||
Inventories consisted of (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Restaurant food and supplies | $ | 14,585 | $ | 15,648 | ||||
Bakery finished goods and work in progress | 17,264 | 14,672 | ||||||
Bakery raw materials and supplies | 5,317 | 5,158 | ||||||
Total | $ | 37,166 | $ | 35,478 | ||||
LongTerm_Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2014 | |
Long-Term Debt | ' |
Long-Term Debt | ' |
3. Long-Term Debt | |
On October 16, 2013, we entered into a new loan agreement (“Facility”) which amended and restated in its entirety our prior loan agreement dated December 3, 2010. This Facility, which matures on October 16, 2018, provides us with revolving loan commitments totaling $200 million, of which $50 million may be used for issuances of letters of credit. Availability under the Facility is reduced by outstanding letters of credit, which are used to support our self-insurance programs. The Facility contains a commitment increase feature that could provide for an additional $100 million in available credit upon our request and subject to the lenders electing to increase their commitments or by means of the addition of new lenders. Our obligations under the Facility are unsecured. Certain of our material subsidiaries have guaranteed our obligations under the Facility. At September 30, 2014, we had net availability for borrowings of $152 million, based on an outstanding debt balance of $25 million and $23 million in standby letters of credit. The borrowings under this Facility were used to fund a portion of the Accelerated Stock Repurchase (“ASR”) program we entered into on February 27, 2014. See Note 5 for further discussion of our ASR program. We did not draw or repay any amounts under the current or previous credit facility during fiscal year 2013. | |
We are subject to certain financial covenants under the Facility requiring us to maintain (i) a maximum “Net Adjusted Leverage Ratio” of 4.0, comprised of debt plus eight times rent minus unrestricted cash and cash equivalents in excess of $25 million divided by “EBITDAR” (trailing 12-month earnings before interest, taxes, depreciation, amortization, noncash stock option expense, rent and permitted acquisition costs) and (ii) a trailing 12-month minimum EBITDAR to interest and rental expense ratio (“EBITDAR Ratio”) of 1.9. Our Net Adjusted Leverage and EBITDAR Ratios were 2.7 and 3.0, respectively, at September 30, 2014, and we were in compliance with the financial covenants in effect at that date. The Facility also limits cash distributions with respect to our equity interests, such as cash dividends and share repurchases, based on the Net Adjusted Leverage Ratio. | |
Borrowings under the Facility bear interest, at our option, at a rate equal to either (i) the Adjusted LIBO Rate plus a margin ranging from 1.00% to 1.75% based on our Net Adjusted Leverage Ratio or (ii) the highest of (a) the rate of interest publicly announced by JPMorgan Chase Bank as its prime rate in effect, (b) the Federal Funds Effective Rate from time to time plus 0.5% or (c) the one-month Adjusted LIBO Rate plus 1.0%, plus a margin ranging from 0.00% to 0.75% based on our Net Adjusted Leverage Ratio. Under the Facility, we paid certain customary loan origination fees and owe a fee on the unused portion of the Facility ranging from 0.15% to 0.30% also based on our Net Adjusted Leverage Ratio. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
4. Commitments and Contingencies | |
On April 11, 2013, a current restaurant hourly employee filed a class action lawsuit in the California Superior Court, Placer County, alleging that the Company violated the California Labor Code and California Business and Professions Code, by requiring employees to purchase uniforms for work (Sikora v. The Cheesecake Factory Restaurants, Inc., et al; Case No SCV0032820). A similar lawsuit covering a different time period was also filed in Placer County (Reed v. The Cheesecake Factory Restaurants, Inc. et al; Case No. SCV27073). By stipulation the parties agreed to transfer the Reed and Sikora cases to Los Angeles County. Both cases (Case Nos. SCV0032820 and SCV27073) were subsequently coordinated together in Los Angeles County by order of the Judicial Council. On November 15, 2013, the Company filed a motion to strike certain causes of action raised in Case No. SCV003820, which motion is currently scheduled for hearing on November 10, 2014. We were also arbitrating similar uniform and related issues under federal law in separate collective actions in Alabama, Colorado, Ohio, Tennessee, and Texas (Smith v. The Cheesecake Factory Restaurants, Inc. et al; Case No. 3 06 0829). On October 24, 2013, the arbitrator in the Tennessee matter (Case No. 3 06 0829) denied summary judgment motions filed both by the claimants and by us on the uniform issue. In January 2013, the arbitrator in the Ohio matter (Case No. 3 06 0829) ruled in favor of the Company on the material claims raised in the Ohio arbitration, including uniform, minimum wage and overtime issues, while finding in favor of the claimants on two non-material claims. The claimants then filed a motion to vacate the Ohio arbitration decision. These lawsuits and arbitrations sought unspecified amounts of penalties and other monetary payments on behalf of the respective claimants and other purported class members. On May 29, 2014, the parties agreed to a confidential settlement that was approved by the arbitrator in Case No. 3 06 0829. We expensed immaterial amounts for this settlement in the first and third quarters of fiscal 2014. | |
Within the ordinary course of our business, we are subject to private lawsuits, government audits, administrative proceedings and other claims. These matters typically involve claims from guests, staff members and others related to operational 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 these allegations are valid or whether we are legally determined to be liable. At this time, we believe that the final disposition of any pending lawsuits, audits, 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. | |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2014 | |
Stockholders' Equity | ' |
Stockholders' Equity | ' |
5. Stockholders’ Equity | |
During the third quarter of fiscal 2014, our Board of Directors approved a cash dividend of $0.165 per share which was paid on August 19, 2014 to stockholders of record as of the close of business on August 6, 2014. On October 20, 2014, our Board approved a cash dividend of $0.165 per share to be paid on November 18, 2014 to stockholders of record as of the close of business on November 5, 2014. Future decisions to pay, increase or decrease dividends continue to be at the discretion of the Board and will be dependent on our operating performance, financial condition, capital expenditure requirements and other such factors that the Board considers relevant. | |
In July 2013, our Board increased the authorization to repurchase our common stock by 7.5 million shares to 48.5 million shares. Under this and all previous authorizations, we have cumulatively repurchased 41.9 million shares at a total cost of $1,158.5 million through September 30, 2014, including 0.5 million shares of our common stock at a cost of $19.8 million during the third quarter of fiscal 2014. | |
Our share repurchase authorization does not have an expiration date, does not require us to purchase a specific number of shares and may be modified, suspended or terminated at any time. The timing and number of shares repurchased pursuant to the share repurchase authorization are subject to a number of factors, including legal constraints and financial covenants under our Facility that limit share repurchases based on a defined ratio. See Note 3 for further discussion of our long-term debt. Shares may be repurchased in the open market or through privately negotiated transactions at times and prices considered appropriate by us. Purchases in the open market are made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934 (the “Act”). We make the determination to repurchase shares based on several factors, including an evaluation of current and future capital needs associated with new restaurant development, current and forecasted cash flows, including dividend payments, a review of our capital structure and cost of capital, our share price and current market conditions. Our objectives with regard to share repurchases are to offset the dilution to our shares outstanding that results from equity compensation grants and to supplement our earnings per share growth. | |
In October 2013, our Board approved the adoption of a prearranged share repurchase plan under Rule 10b5-1 (“10b5-1 Plan”) of the Act, effective from January 2, 2014 through July 1, 2014. This 10b5-1 Plan terminated on July 1, 2014 in accordance with its terms. On July 21, 2014, our Board approved the adoption of a new 10b5-1 Plan, effective from September 5, 2014 through December 31, 2014. On October 20, 2014, our Board approved the adoption of an additional 10b5-1 Plan, which is effective from January 2, 2015 through June 30, 2015. | |
On July 21, 2014, our Board approved the terms of a share repurchase plan (“10b-18 Plan”) under which we are authorized to repurchase shares of our common stock in open market transactions in accordance with Rule 10b-18 under the Act, which plan was effective from July 28, 2014 through August 12, 2014. | |
On February 27, 2014, we entered into a collared accelerated stock repurchase (“ASR”) agreement with a financial institution to repurchase $75 million of our common stock. The minimum number of shares to be repurchased, 1.4 million, was delivered in March 2014. Upon settlement of the ASR program, we received an additional 0.2 million shares on July 21, 2014. | |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
6. Stock-Based Compensation | ||||||||||||||
The following table presents information related to stock-based compensation (in thousands): | ||||||||||||||
Thirteen | Thirteen | Thirty-nine | Thirty-nine | |||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||
September 30, 2014 | October 1, 2013 | September 30, 2014 | October 1, 2013 | |||||||||||
Labor expenses | $ | 1,309 | $ | 1,158 | $ | 3,845 | $ | 3,251 | ||||||
Other operating costs and expenses | 52 | 35 | 141 | 133 | ||||||||||
General and administrative expenses | 2,694 | 2,267 | 7,807 | 6,889 | ||||||||||
Total stock-based compensation | 4,055 | 3,460 | 11,793 | 10,273 | ||||||||||
Income tax benefit | 1,551 | 1,324 | 4,511 | 3,930 | ||||||||||
Total stock-based compensation, net of taxes | $ | 2,504 | $ | 2,136 | $ | 7,282 | $ | 6,343 | ||||||
Capitalized stock-based compensation (1) | $ | 55 | $ | 41 | $ | 154 | $ | 129 | ||||||
-1 | It is our policy to capitalize the portion of stock-based compensation costs for our internal development and construction, legal, and facilities departments that relates to capitalizable activities such as the design and construction of new restaurants, remodeling existing locations, lease, intellectual property and liquor license acquisition activities and equipment installation. Capitalized stock-based compensation is included in property and equipment, net and other assets on the consolidated balance sheets. | |||||||||||||
Stock Options | ||||||||||||||
We did not issue any stock options during the third quarter of either fiscal 2014 or fiscal 2013. Stock option activity during the thirty-nine weeks ended September 30, 2014 was as follows: | ||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic Value (1) | ||||||||||||
Exercise Price | Remaining | |||||||||||||
Contractual | ||||||||||||||
Term | ||||||||||||||
(In thousands) | (Per share) | (In years) | (In thousands) | |||||||||||
Outstanding at December 31, 2013 | 4,823 | $ | 23.7 | 4.1 | $ | 118,505 | ||||||||
Granted | 329 | 48.19 | ||||||||||||
Exercised | (648 | ) | 19.66 | |||||||||||
Forfeited or cancelled | (37 | ) | 30.89 | |||||||||||
Outstanding at September 30, 2014 | 4,467 | $ | 26.03 | 3.7 | $ | 87,875 | ||||||||
Exercisable at September 30, 2014 | 2,556 | $ | 23.56 | 2.9 | $ | 56,076 | ||||||||
-1 | Aggregate intrinsic value is calculated as the difference between our closing stock price at fiscal period end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised their options on the fiscal period end date. | |||||||||||||
The total intrinsic value of options exercised during the thirteen and thirty-nine weeks ended September 30, 2014 was $4.8 million and $17.5 million, respectively. The total intrinsic value of options exercised during the thirteen and thirty-nine weeks ended October 1, 2013 was $9.7 million and $29.4 million, respectively. As of September 30, 2014, the total unrecognized stock-based compensation expense related to unvested stock options was $12.5 million, which we expect to recognize over a weighted average period of approximately 2.1 years. | ||||||||||||||
Restricted Shares and Restricted Share Units | ||||||||||||||
Restricted share and restricted share unit activity during the thirty-nine weeks ended September 30, 2014 was as follows: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Fair Value | ||||||||||||||
(In thousands) | (Per share) | |||||||||||||
Outstanding at December 31, 2013 | 1,672 | $ | 32.81 | |||||||||||
Granted | 374 | 47.27 | ||||||||||||
Vested | (180 | ) | 23.31 | |||||||||||
Forfeited | (92 | ) | 36.4 | |||||||||||
Outstanding at September 30, 2014 | 1,774 | $ | 36.63 | |||||||||||
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 at the grant date for restricted shares and restricted share units issued during the third quarter of fiscal 2014 and fiscal 2013 was $43.41 and $42.63, respectively. The fair value of shares that vested during the thirteen and thirty-nine weeks ended September 30, 2014 was $0.4 million and $4.2 million, respectively. The fair value of shares that vested during the thirteen and thirty-nine weeks ended October 1, 2013 was $0.1 million and $2.5 million, respectively. As of September 30, 2014, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $36.2 million, which we expect to recognize over a weighted average period of approximately 3.2 years. | ||||||||||||||
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net Income Per Share | ' | |||||||||||||
Net Income Per Share | ' | |||||||||||||
7. Net Income Per Share | ||||||||||||||
At September 30, 2014 and October 1, 2013, 1.8 million and 1.6 million shares, respectively, of restricted stock issued to employees were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal quarters ended on those dates. Diluted net income per share includes the dilutive effect of outstanding equity awards, calculated using the treasury stock method. Assumed proceeds from the in-the-money options include the windfall tax benefits, net of shortfalls, calculated under the “as-if” method as prescribed by FASB Accounting Standards Codification (“ASC”) 718, “Compensation — Stock Option Compensation.” | ||||||||||||||
Thirteen | Thirteen | Thirty-nine | Thirty-nine | |||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||
September 30, 2014 | October 1, 2013 | September 30, 2014 | October 1, 2013 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Net income | $ | 24,223 | $ | 27,481 | $ | 76,790 | $ | 81,356 | ||||||
Basic weighted average shares outstanding | 48,981 | 52,416 | 49,690 | 52,521 | ||||||||||
Dilutive effect of equity awards | 1,982 | 2,196 | 2,032 | 2,133 | ||||||||||
Diluted weighted average shares outstanding | 50,963 | 54,612 | 51,722 | 54,654 | ||||||||||
Basic net income per share | $ | 0.49 | $ | 0.52 | $ | 1.55 | $ | 1.55 | ||||||
Diluted net income per share | $ | 0.48 | $ | 0.50 | $ | 1.48 | $ | 1.49 | ||||||
Shares of common stock equivalents of 0.4 million and 0.9 million for the thirteen and thirty-nine weeks ended September 30, 2014, respectively, and 0.6 million and 1.3 million for the thirteen and thirty-nine weeks ended October 1, 2013, respectively, were excluded from the diluted calculation due to their anti-dilutive effect. | ||||||||||||||
Certain of our restricted stock awards are considered participating securities as these awards include non-forfeitable rights to dividends with respect to unvested shares. As such, they must be included in the computation of earnings per share pursuant to the two-class method. Under the two-class method, a portion of net income is allocated to participating securities and, therefore, is excluded from the calculation of earnings per share allocated to common shares. The calculation of basic and diluted earnings per share pursuant to the two-class method resulted in an immaterial difference from the amounts displayed in the consolidated statements of comprehensive income. | ||||||||||||||
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Segment Information | ' | |||||||||||||
Segment Information | ' | |||||||||||||
8. Segment Information | ||||||||||||||
For decision-making purposes, our management reviews discrete financial information for The Cheesecake Factory, Grand Lux Cafe and RockSugar Pan Asian Kitchen restaurants, our bakery division and our international licensing operations. Based on quantitative thresholds set forth in ASC 280, “Segment Reporting,” The Cheesecake Factory is our only business that meets the criteria of a reportable operating segment. Grand Lux Cafe, RockSugar Pan Asian Kitchen, bakery and international licensing operations are combined in Other. Unallocated corporate expenses, assets and capital expenditures are presented below as reconciling items to the amounts presented in the consolidated financial statements. | ||||||||||||||
Segment information is presented below (in thousands): | ||||||||||||||
Thirteen | Thirteen | Thirty-nine | Thirty-nine | |||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||
September 30, 2014 | October 1, 2013 | September 30, 2014 | October 1, 2013 | |||||||||||
Revenues: | ||||||||||||||
The Cheesecake Factory restaurants | $ | 454,271 | $ | 425,084 | $ | 1,342,331 | $ | 1,262,480 | ||||||
Other | 44,843 | 44,615 | 134,620 | 140,355 | ||||||||||
Total | $ | 499,114 | $ | 469,699 | $ | 1,476,951 | $ | 1,402,835 | ||||||
Income from operations: | ||||||||||||||
The Cheesecake Factory restaurants (1) | $ | 59,214 | $ | 61,686 | $ | 182,250 | $ | 183,641 | ||||||
Other (2) | 2,418 | 4,727 | 11,433 | 14,333 | ||||||||||
Corporate | (27,457 | ) | (27,782 | ) | (83,744 | ) | (81,386 | ) | ||||||
Total | $ | 34,175 | $ | 38,631 | $ | 109,939 | $ | 116,588 | ||||||
Depreciation and amortization: | ||||||||||||||
The Cheesecake Factory restaurants | $ | 17,302 | $ | 15,826 | $ | 50,953 | $ | 46,892 | ||||||
Other | 2,595 | 2,634 | 7,795 | 7,859 | ||||||||||
Corporate | 1,033 | 1,201 | 2,967 | 3,355 | ||||||||||
Total | $ | 20,930 | $ | 19,661 | $ | 61,715 | $ | 58,106 | ||||||
Capital expenditures: | ||||||||||||||
The Cheesecake Factory restaurants | $ | 27,495 | $ | 26,842 | $ | 81,517 | $ | 60,837 | ||||||
Other | 811 | 1,604 | 2,223 | 3,087 | ||||||||||
Corporate | 1,757 | 1,135 | 4,133 | 3,174 | ||||||||||
Total | $ | 30,063 | $ | 29,581 | $ | 87,873 | $ | 67,098 | ||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
Total assets: | ||||||||||||||
The Cheesecake Factory restaurants | $ | 806,988 | $ | 813,780 | ||||||||||
Other | 152,046 | 155,231 | ||||||||||||
Corporate | 146,480 | 155,103 | ||||||||||||
Total | $ | 1,105,514 | $ | 1,124,114 | ||||||||||
-1 | Includes $0.2 million and $0.5 million in the first and second quarters of fiscal 2014, respectively, related to the relocation of one restaurant. Also includes $1.5 million and $1.1 million in the second and third quarters of fiscal 2013, respectively, related to the relocation of four restaurants. These items were recorded in impairment of assets and lease terminations | |||||||||||||
-2 | Includes $0.6 million in the first quarter of fiscal 2013 for three Grand Lux Cafe locations where we discontinued operations. This item was recorded in impairment of assets and lease terminations. | |||||||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
9. Subsequent Events | |
On October 20, 2014, our Board approved a cash dividend of $0.165 per share to be paid on November 18, 2014 to stockholders of record as of the close of business on November 5, 2014. | |
On October 20, 2014, our Board approved the adoption of a 10b5-1 Plan, which is effective from January 2, 2015 through June 30, 2015. | |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Basis of Presentation and Significant Accounting Policies | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued accounting guidance that provides a comprehensive new revenue recognition model. This will supersede most of the existing revenue recognition requirements and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. This guidance is effective for us beginning in the first quarter of fiscal 2017 and will not have a material impact on our financial statements. Early adoption is not permitted. | |
In July 2013, the FASB issued guidance that requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. This guidance was effective for us beginning in the first quarter of fiscal 2014. The adoption of this new guidance did not have any effect on our financial statements. | |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
Inventories consisted of (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Restaurant food and supplies | $ | 14,585 | $ | 15,648 | ||||
Bakery finished goods and work in progress | 17,264 | 14,672 | ||||||
Bakery raw materials and supplies | 5,317 | 5,158 | ||||||
Total | $ | 37,166 | $ | 35,478 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Schedule of information related to stock-based compensation | ' | |||||||||||||
The following table presents information related to stock-based compensation (in thousands): | ||||||||||||||
Thirteen | Thirteen | Thirty-nine | Thirty-nine | |||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||
September 30, 2014 | October 1, 2013 | September 30, 2014 | October 1, 2013 | |||||||||||
Labor expenses | $ | 1,309 | $ | 1,158 | $ | 3,845 | $ | 3,251 | ||||||
Other operating costs and expenses | 52 | 35 | 141 | 133 | ||||||||||
General and administrative expenses | 2,694 | 2,267 | 7,807 | 6,889 | ||||||||||
Total stock-based compensation | 4,055 | 3,460 | 11,793 | 10,273 | ||||||||||
Income tax benefit | 1,551 | 1,324 | 4,511 | 3,930 | ||||||||||
Total stock-based compensation, net of taxes | $ | 2,504 | $ | 2,136 | $ | 7,282 | $ | 6,343 | ||||||
Capitalized stock-based compensation (1) | $ | 55 | $ | 41 | $ | 154 | $ | 129 | ||||||
It is our policy to capitalize the portion of stock-based compensation costs for our internal development and construction, legal, and facilities departments that relates to capitalizable activities such as the design and construction of new restaurants, remodeling existing locations, lease, intellectual property and liquor license acquisition activities and equipment installation. Capitalized stock-based compensation is included in property and equipment, net and other assets on the consolidated balance sheets. | ||||||||||||||
Schedule of stock option activity | ' | |||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic Value (1) | ||||||||||||
Exercise Price | Remaining | |||||||||||||
Contractual | ||||||||||||||
Term | ||||||||||||||
(In thousands) | (Per share) | (In years) | (In thousands) | |||||||||||
Outstanding at December 31, 2013 | 4,823 | $ | 23.7 | 4.1 | $ | 118,505 | ||||||||
Granted | 329 | 48.19 | ||||||||||||
Exercised | (648 | ) | 19.66 | |||||||||||
Forfeited or cancelled | (37 | ) | 30.89 | |||||||||||
Outstanding at September 30, 2014 | 4,467 | $ | 26.03 | 3.7 | $ | 87,875 | ||||||||
Exercisable at September 30, 2014 | 2,556 | $ | 23.56 | 2.9 | $ | 56,076 | ||||||||
Aggregate intrinsic value is calculated as the difference between our closing stock price at fiscal period end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised their options on the fiscal period end date. | ||||||||||||||
Schedule of restricted share and restricted share unit activity | ' | |||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Fair Value | ||||||||||||||
(In thousands) | (Per share) | |||||||||||||
Outstanding at December 31, 2013 | 1,672 | $ | 32.81 | |||||||||||
Granted | 374 | 47.27 | ||||||||||||
Vested | (180 | ) | 23.31 | |||||||||||
Forfeited | (92 | ) | 36.4 | |||||||||||
Outstanding at September 30, 2014 | 1,774 | $ | 36.63 | |||||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net Income Per Share | ' | |||||||||||||
Schedule of basic and diluted income (loss) per share | ' | |||||||||||||
Thirteen | Thirteen | Thirty-nine | Thirty-nine | |||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||
September 30, 2014 | October 1, 2013 | September 30, 2014 | October 1, 2013 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Net income | $ | 24,223 | $ | 27,481 | $ | 76,790 | $ | 81,356 | ||||||
Basic weighted average shares outstanding | 48,981 | 52,416 | 49,690 | 52,521 | ||||||||||
Dilutive effect of equity awards | 1,982 | 2,196 | 2,032 | 2,133 | ||||||||||
Diluted weighted average shares outstanding | 50,963 | 54,612 | 51,722 | 54,654 | ||||||||||
Basic net income per share | $ | 0.49 | $ | 0.52 | $ | 1.55 | $ | 1.55 | ||||||
Diluted net income per share | $ | 0.48 | $ | 0.50 | $ | 1.48 | $ | 1.49 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Segment Information | ' | |||||||||||||
Schedule of segment information | ' | |||||||||||||
Segment information is presented below (in thousands): | ||||||||||||||
Thirteen | Thirteen | Thirty-nine | Thirty-nine | |||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||
September 30, 2014 | October 1, 2013 | September 30, 2014 | October 1, 2013 | |||||||||||
Revenues: | ||||||||||||||
The Cheesecake Factory restaurants | $ | 454,271 | $ | 425,084 | $ | 1,342,331 | $ | 1,262,480 | ||||||
Other | 44,843 | 44,615 | 134,620 | 140,355 | ||||||||||
Total | $ | 499,114 | $ | 469,699 | $ | 1,476,951 | $ | 1,402,835 | ||||||
Income from operations: | ||||||||||||||
The Cheesecake Factory restaurants (1) | $ | 59,214 | $ | 61,686 | $ | 182,250 | $ | 183,641 | ||||||
Other (2) | 2,418 | 4,727 | 11,433 | 14,333 | ||||||||||
Corporate | (27,457 | ) | (27,782 | ) | (83,744 | ) | (81,386 | ) | ||||||
Total | $ | 34,175 | $ | 38,631 | $ | 109,939 | $ | 116,588 | ||||||
Depreciation and amortization: | ||||||||||||||
The Cheesecake Factory restaurants | $ | 17,302 | $ | 15,826 | $ | 50,953 | $ | 46,892 | ||||||
Other | 2,595 | 2,634 | 7,795 | 7,859 | ||||||||||
Corporate | 1,033 | 1,201 | 2,967 | 3,355 | ||||||||||
Total | $ | 20,930 | $ | 19,661 | $ | 61,715 | $ | 58,106 | ||||||
Capital expenditures: | ||||||||||||||
The Cheesecake Factory restaurants | $ | 27,495 | $ | 26,842 | $ | 81,517 | $ | 60,837 | ||||||
Other | 811 | 1,604 | 2,223 | 3,087 | ||||||||||
Corporate | 1,757 | 1,135 | 4,133 | 3,174 | ||||||||||
Total | $ | 30,063 | $ | 29,581 | $ | 87,873 | $ | 67,098 | ||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
Total assets: | ||||||||||||||
The Cheesecake Factory restaurants | $ | 806,988 | $ | 813,780 | ||||||||||
Other | 152,046 | 155,231 | ||||||||||||
Corporate | 146,480 | 155,103 | ||||||||||||
Total | $ | 1,105,514 | $ | 1,124,114 | ||||||||||
-1 | Includes $0.2 million and $0.5 million in the first and second quarters of fiscal 2014, respectively, related to the relocation of one restaurant. Also includes $1.5 million and $1.1 million in the second and third quarters of fiscal 2013, respectively, related to the relocation of four restaurants. These items were recorded in impairment of assets and lease terminations | |||||||||||||
-2 | Includes $0.6 million in the first quarter of fiscal 2013 for three Grand Lux Cafe locations where we discontinued operations. This item was recorded in impairment of assets and lease terminations. | |||||||||||||
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Basis of Presentation and Significant Accounting Policies | ' | ' |
Length of fiscal year | '364 days | '364 days |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Restaurant food and supplies | $14,585 | $15,648 |
Bakery finished goods and work in progress | 17,264 | 14,672 |
Bakery raw materials and supplies | 5,317 | 5,158 |
Total | $37,166 | $35,478 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Oct. 16, 2013 |
item | ||
Long-term debt | ' | ' |
Maximum commitments | ' | $200 |
Maximum commitments, letter of credit subfacility | ' | 50 |
Additional available credit | ' | 100 |
Net availability for borrowings | 152 | ' |
Outstanding borrowings | 25 | ' |
Outstanding letters of credit | 23 | ' |
Multiplier of rent used to compute Adjusted Debt | 8 | ' |
Threshold amount of unrestricted cash and cash equivalents above which amounts are netted against debt for calculation of net adjusted leverage ratio | $25 | ' |
Trailing period for which EBITDAR is computed | '12 months | ' |
Net Adjusted Leverage Ratio | 2.7 | ' |
EBITDAR Ratio | 3 | ' |
Minimum | ' | ' |
Long-term debt | ' | ' |
Financial covenant, EBITDAR Ratio | 1.9 | ' |
Commitment fee (as a percent) | 0.15% | ' |
Maximum | ' | ' |
Long-term debt | ' | ' |
Financial covenant, EBITDAR Ratio | 4 | ' |
Commitment fee (as a percent) | 0.30% | ' |
Adjusted LIBO Rate | ' | ' |
Long-term debt | ' | ' |
Credit facility, floating interest rate basis | 'Adjusted LIBO Rate | ' |
Adjusted LIBO Rate | Minimum | ' | ' |
Long-term debt | ' | ' |
Credit facility, basis spread on variable rate, (as a percent) | 1.00% | ' |
Adjusted LIBO Rate | Maximum | ' | ' |
Long-term debt | ' | ' |
Credit facility, basis spread on variable rate, (as a percent) | 1.75% | ' |
Federal Funds Effective Rate | ' | ' |
Long-term debt | ' | ' |
Credit facility, floating interest rate basis | 'Federal Funds Effective Rate | ' |
Credit facility, basis spread on variable rate, (as a percent) | 0.50% | ' |
One-month Adjusted LIBO Rate | ' | ' |
Long-term debt | ' | ' |
Credit facility, floating interest rate basis | 'one-month Adjusted LIBO Rate | ' |
Fixed percentage added to variable rate | 1.00% | ' |
One-month Adjusted LIBO Rate | Minimum | ' | ' |
Long-term debt | ' | ' |
Credit facility, basis spread on variable rate, (as a percent) | 0.00% | ' |
One-month Adjusted LIBO Rate | Maximum | ' | ' |
Long-term debt | ' | ' |
Credit facility, basis spread on variable rate, (as a percent) | 0.75% | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 9 Months Ended |
Sep. 30, 2014 | |
item | |
Commitments and Contingencies | ' |
Number of non-material claims | 2 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Oct. 20, 2014 | Sep. 30, 2014 | Oct. 01, 2013 | Sep. 30, 2014 | Oct. 01, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jul. 31, 2013 |
Treasury Stock | Treasury Stock | |||||||
Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends declared per common share (in dollars per share) | $0.17 | $0.17 | $0.14 | $0.45 | $0.38 | ' | ' | ' |
Stockholders Equity: | ' | ' | ' | ' | ' | ' | ' | ' |
Additional number of shares authorized to repurchase | ' | ' | ' | ' | ' | ' | ' | 7,500,000 |
Number of shares authorized to be repurchased | ' | ' | ' | ' | ' | ' | ' | 48,500,000 |
Repurchased shares since program inception | ' | 41,916,080 | ' | 41,916,080 | ' | 38,865,951 | 41,900,000 | ' |
Value of shares repurchased since program inception | ' | $1,158,496 | ' | $1,158,496 | ' | $1,015,473 | $1,158,500 | ' |
Shares repurchased during period | ' | ' | ' | ' | ' | ' | 500,000 | ' |
Treasury stock repurchased during period | ' | ' | ' | $140,327 | ' | ' | $19,800 | ' |
Stockholders_Equity_Details_2
Stockholders' Equity (Details 2) (Collared Accelerated Repurchase Program, USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Jul. 21, 2014 | Feb. 27, 2014 |
Share Repurchase Program | ' | ' |
Common stock repurchase authorized amount | $0.20 | $75 |
Minimum | ' | ' |
Share Repurchase Program | ' | ' |
Number of shares authorized to be repurchased | ' | 1.4 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Oct. 01, 2013 | Sep. 30, 2014 | Oct. 01, 2013 |
Stock-based compensation | ' | ' | ' | ' |
Total stock-based compensation | $4,055 | $3,460 | $11,793 | $10,273 |
Income tax benefit | 1,551 | 1,324 | 4,511 | 3,930 |
Total stock-based compensation, net of taxes | 2,504 | 2,136 | 7,282 | 6,343 |
Capitalized stock-based compensation | 55 | 41 | 154 | 129 |
Labor expenses | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Total stock-based compensation | 1,309 | 1,158 | 3,845 | 3,251 |
Other operating costs and expenses | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Total stock-based compensation | 52 | 35 | 141 | 133 |
General and administrative expenses | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Total stock-based compensation | $2,694 | $2,267 | $7,807 | $6,889 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Oct. 01, 2013 | Sep. 30, 2014 | Oct. 01, 2013 | Dec. 31, 2013 |
Stock options | ' | ' | ' | ' | ' |
Stock option activity, shares | ' | ' | ' | ' | ' |
Outstanding, at the beginning of the period (in shares) | ' | ' | 4,823 | ' | ' |
Granted (in shares) | ' | ' | 329 | ' | ' |
Exercised (in shares) | ' | ' | -648 | ' | ' |
Forfeited or cancelled (in shares) | ' | ' | -37 | ' | ' |
Outstanding at the end of the period (in shares) | 4,467 | ' | 4,467 | ' | 4,823 |
Exercisable at the end of the period (in shares) | 2,556 | ' | 2,556 | ' | ' |
Weighted Average Exercise price | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | $23.70 | ' | ' |
Granted (in dollars per share) | ' | ' | $48.19 | ' | ' |
Exercised (in dollars per share) | ' | ' | $19.66 | ' | ' |
Forfeited or cancelled (in dollars per share) | ' | ' | $30.89 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $26.03 | ' | $26.03 | ' | $23.70 |
Exercisable at the end of the period (in dollars per share) | $23.56 | ' | $23.56 | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period | ' | ' | '3 years 8 months 12 days | ' | '4 years 1 month 6 days |
Outstanding at the end of the period | ' | ' | '3 years 8 months 12 days | ' | '4 years 1 month 6 days |
Exercisable at the end of the period | ' | ' | '2 years 10 months 24 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period | ' | ' | $118,505,000 | ' | ' |
Outstanding at the end of the period | 87,875,000 | ' | 87,875,000 | ' | 118,505,000 |
Exercisable at the end of the period | 56,076,000 | ' | 56,076,000 | ' | ' |
Total intrinsic value of options exercised | 4,800,000 | 9,700,000 | 17,500,000 | 29,400,000 | ' |
Unrecognized Stock-based Compensation Expense | ' | ' | ' | ' | ' |
Total unrecognized stock-based compensation expenses related to unvested stock options, restricted shares and restricted share units | 12,500,000 | ' | 12,500,000 | ' | ' |
Expected weighted average period for recognition of compensation expense related to unvested stock option | ' | ' | '2 years 1 month 6 days | ' | ' |
Restricted Shares and Restricted Share Units | ' | ' | ' | ' | ' |
Unrecognized Stock-based Compensation Expense | ' | ' | ' | ' | ' |
Total unrecognized stock-based compensation expenses related to unvested stock options, restricted shares and restricted share units | 36,200,000 | ' | 36,200,000 | ' | ' |
Expected weighted average period for recognition of compensation expense related to unvested stock option | ' | ' | '3 years 2 months 12 days | ' | ' |
Restricted Shares and Restricted Share Units | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | 1,672 | ' | ' |
Granted (in shares) | ' | ' | 374 | ' | ' |
Vested (in shares) | ' | ' | -180 | ' | ' |
Forfeited (in shares) | ' | ' | -92 | ' | ' |
Outstanding at the end of the period (in shares) | 1,774 | ' | 1,774 | ' | ' |
Fair value of shares vested | $400,000 | $100,000 | $4,200,000 | $2,500,000 | ' |
Weighted Average Fair Value | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | $32.81 | ' | ' |
Granted (in dollars per share) | $43.41 | $42.63 | $47.27 | ' | ' |
Vested (in dollars per share) | ' | ' | $23.31 | ' | ' |
Forfeited (in dollars per share) | ' | ' | $36.40 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $36.63 | ' | $36.63 | ' | ' |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Oct. 01, 2013 | Sep. 30, 2014 | Oct. 01, 2013 |
Net income per share | ' | ' | ' | ' |
Antidilutive securities excluded from calculation of basic earnings per share (in shares) | 400,000 | 600,000 | 900,000 | 1,300,000 |
Net income per share, basic and diluted | ' | ' | ' | ' |
Net income | $24,223 | $27,481 | $76,790 | $81,356 |
Basic weighted average shares outstanding (in shares) | 48,981,000 | 52,416,000 | 49,690,000 | 52,521,000 |
Dilutive effect of equity awards (in shares) | 1,982,000 | 2,196,000 | 2,032,000 | 2,133,000 |
Diluted weighted average shares outstanding (in shares) | 50,963,000 | 54,612,000 | 51,722,000 | 54,654,000 |
Basic net income per share (in dollars per share) | $0.49 | $0.52 | $1.55 | $1.55 |
Diluted net income per share (in dollars per share) | $0.48 | $0.50 | $1.48 | $1.49 |
Restricted Shares and Restricted Share Units | ' | ' | ' | ' |
Net income per share | ' | ' | ' | ' |
Antidilutive securities excluded from calculation of basic earnings per share (in shares) | ' | ' | 1,800,000 | 1,600,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | Oct. 01, 2013 | Sep. 30, 2014 | Oct. 01, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jul. 01, 2014 | Apr. 01, 2014 | Oct. 01, 2013 | Jul. 02, 2013 | Sep. 30, 2014 | Oct. 01, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Oct. 01, 2013 | Sep. 30, 2014 | Oct. 01, 2013 | Dec. 31, 2013 | Apr. 02, 2013 | Sep. 30, 2014 | Oct. 01, 2013 | Sep. 30, 2014 | Oct. 01, 2013 | Dec. 31, 2013 | |
The Cheesecake Factory restaurants | The Cheesecake Factory restaurants | The Cheesecake Factory restaurants | The Cheesecake Factory restaurants | The Cheesecake Factory restaurants | The Cheesecake Factory restaurants | The Cheesecake Factory restaurants | The Cheesecake Factory restaurants | Other | Other | Other | Other | Other | Other | Corporate | Corporate | Corporate | Corporate | Corporate | ||||||
item | item | item | item | Grand Lux Cafe | ||||||||||||||||||||
item | ||||||||||||||||||||||||
Segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $499,114,000 | $469,699,000 | $1,476,951,000 | $1,402,835,000 | ' | $454,271,000 | ' | ' | $425,084,000 | ' | $1,342,331,000 | $1,262,480,000 | ' | $44,843,000 | $44,615,000 | $134,620,000 | $140,355,000 | ' | ' | ' | ' | ' | ' | ' |
Income from operations | 34,175,000 | 38,631,000 | 109,939,000 | 116,588,000 | ' | 59,214,000 | ' | ' | 61,686,000 | ' | 182,250,000 | 183,641,000 | ' | 2,418,000 | 4,727,000 | 11,433,000 | 14,333,000 | ' | ' | -27,457,000 | -27,782,000 | -83,744,000 | -81,386,000 | ' |
Depreciation and amortization | 20,930,000 | 19,661,000 | 61,715,000 | 58,106,000 | ' | 17,302,000 | ' | ' | 15,826,000 | ' | 50,953,000 | 46,892,000 | ' | 2,595,000 | 2,634,000 | 7,795,000 | 7,859,000 | ' | ' | 1,033,000 | 1,201,000 | 2,967,000 | 3,355,000 | ' |
Capital expenditures | 30,063,000 | 29,581,000 | 87,873,000 | 67,098,000 | ' | 27,495,000 | ' | ' | 26,842,000 | ' | 81,517,000 | 60,837,000 | ' | 811,000 | 1,604,000 | 2,223,000 | 3,087,000 | ' | ' | 1,757,000 | 1,135,000 | 4,133,000 | 3,174,000 | ' |
Total assets | 1,105,514,000 | ' | 1,105,514,000 | ' | 1,124,114,000 | 806,988,000 | ' | ' | ' | ' | 806,988,000 | ' | 813,780,000 | 152,046,000 | ' | 152,046,000 | ' | 155,231,000 | ' | 146,480,000 | ' | 146,480,000 | ' | 155,103,000 |
Number of restaurants for which impairment and lease termination expenses were recorded | ' | ' | ' | ' | ' | ' | 1 | 1 | 4 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Pre-tax lease termination expenses | ' | ' | ' | ' | ' | ' | 500,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' |
Pre-tax impairment expense | ' | ' | ' | ' | ' | ' | ' | ' | $1,100,000 | $1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of restaurants discontinued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||
Oct. 20, 2014 | Sep. 30, 2014 | Oct. 01, 2013 | Sep. 30, 2014 | Oct. 01, 2013 | Oct. 20, 2014 | |
Subsequent event | ||||||
Subsequent events | ' | ' | ' | ' | ' | ' |
Cash dividends declared per common share (in dollars per share) | $0.17 | $0.17 | $0.14 | $0.45 | $0.38 | $0.17 |