The Cheesecake Factory Incorporated (CAKE) 10-Q 6 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 29, 2020	Oct. 30, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 29, 2020
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		45,584,074
Entity Central Index Key	0000887596
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 29, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 243,768	$ 58,416
Accounts receivable	26,265	25,619
Income taxes receivable	45,603	4,626
Other receivables	25,468	64,683
Inventories	37,727	47,225
Prepaid expenses	32,188	43,946
Total current assets	411,019	244,515
Property and equipment, net	789,604	831,599
Other assets:
Intangible assets, net	253,577	437,207
Operating lease assets	1,267,270	1,240,976
Other	106,593	86,296
Total other assets	1,627,440	1,764,479
Total assets	2,828,063	2,840,593
Current liabilities:
Accounts payable	61,549	61,946
Gift card liabilities	155,486	187,978
Operating lease liabilities	128,767	128,081
Other accrued expenses	194,575	236,582
Total current liabilities	540,377	614,587
Deferred income taxes		33,847
Long-term debt	376,000	290,000
Operating lease liabilities	1,236,612	1,189,869
Other noncurrent liabilities	142,872	140,548
Commitments and contingencies (Note 10)
Series A convertible preferred stock, $.01 par value, 200,000 shares authorized; 200,000 and 0 shares issued and outstanding at September 29, 2020 and December 31, 2019, respectively	209,926
Stockholders' equity:
Preferred stock, $.01 par value, other than Series A convertible preferred stock, 4,800,000 shares authorized; none issued
Common stock, $.01 par value, 250,000,000 shares authorized; 98,438,269 and 97,685,178 shares issued at September 29, 2020 and December 31, 2019, respectively	984	977
Additional paid-in capital	871,771	855,989
Retained earnings	1,150,726	1,408,333
Treasury stock, 53,015,995 and 52,916,434 shares at cost at September 29, 2020 and December 31, 2019, respectively	(1,696,364)	(1,693,122)
Accumulated other comprehensive loss	(4,841)	(435)
Total stockholders' equity	322,276	571,742
Total liabilities, convertible preferred stock and stockholders' equity	$ 2,828,063	$ 2,840,593

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 29, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Series A convertible preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Series A convertible preferred stock, shares authorized (in shares)	200,000	200,000
Series A convertible preferred stock, shares issued (in shares)	200,000	0
Series A convertible preferred stock, shares outstanding (in shares)	200,000	0
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	4,800,000	4,800,000
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	98,438,269	97,685,178
Treasury stock, shares	53,015,995	52,916,434

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Revenues	$ 517,716	$ 586,536	$ 1,428,673	$ 1,788,662
Costs and expenses:
Cost of sales	118,093	132,941	331,137	403,566
Labor expenses	200,666	213,600	560,460	648,831
Other operating costs and expenses	159,095	149,397	448,740	451,724
General and administrative expenses	37,795	36,556	117,467	112,926
Depreciation and amortization expenses	22,651	21,342	68,803	64,363
Impairment of assets and lease terminations	10,402		204,731
Acquisition-related costs	39	3,190	2,343	3,190
Acquisition-related contingent consideration, compensation and amortization	1,439		(3,992)
Preopening costs	2,394	2,546	7,610	6,851
Total costs and expenses	552,574	559,572	1,737,299	1,691,451
(Loss)/income from operations	(34,858)	26,964	(308,626)	97,211
Loss on investments in unconsolidated affiliates		(10,345)		(13,439)
Interest and other expense, net	(2,935)	6	(7,019)	(17)
(Loss)/income before income taxes	(37,793)	16,625	(315,645)	83,755
Income tax (benefit)/provision	(9,447)	535	(94,597)	5,171
Net (loss)/income	(28,346)	16,090	(221,048)	78,584
Dividends on preferred stock	(4,838)		(8,532)
Direct and incremental preferred stock issuance			(10,257)
Net (loss)/income available to common stockholders	$ (33,184)	$ 16,090	$ (239,837)	$ 78,584
Net (loss)/income per common share (Note 14):
Basic (in dollars per share)	$ (0.76)	$ 0.37	$ (5.47)	$ 1.78
Diluted (in dollars per share)	$ (0.76)	$ 0.36	$ (5.47)	$ 1.76
Weighted-average common shares outstanding:
Basic (in shares)	43,900	43,682	43,849	44,034
Diluted (in shares)	43,900	44,186	43,849	44,643

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net (loss)/income	$ (28,346)	$ 16,090	$ (221,048)	$ 78,584
Other comprehensive (loss)/gain:
Foreign currency translation adjustment	185	(109)	(347)	305
Unrealized loss on derivative, net of tax	(222)		(4,059)
Other comprehensive (loss)/gain	(37)	(109)	(4,406)	305
Total comprehensive (loss)/income	(28,383)	15,981	(225,454)	78,889
Comprehensive (loss)/income attributable to preferred shareholders	(4,838)		(18,789)
Total comprehensive (loss)/income available to common shareholders	$ (33,221)	$ 15,981	$ (244,243)	$ 78,889

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND CONVERTIBLE PREFERRED STOCK - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total
Increase (Decrease) in Stockholders' Equity
Cumulative effect of adopting the pronouncement related to lease accounting, net of tax			$ (41,466)			$ (41,466)
Balance (as adjusted)	$ 967	$ 828,676	1,343,028	$ (1,642,140)	$ (938)	529,593
Balance (as adjusted) (in shares)	96,622
Beginning balance at Jan. 01, 2019	$ 967	828,676	1,384,494	(1,642,140)	(938)	571,059
Beginning balance (in shares) at Jan. 01, 2019	96,622
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	97,384
Net (loss)/income			26,984			26,984
Foreign currency translation adjustment					239	239
Cash dividends declared			(14,952)			(14,952)
Stock-based compensation	$ 3	5,907				5,910
Stock-based compensation (in shares)	350
Common stock issued under stock-based compensation plans	$ 4	5,537				5,541
Common stock issued under stock-based compensation plans (in shares)	412
Treasury stock purchases				(11,071)		(11,071)
Ending balance at Apr. 02, 2019	$ 974	840,120	1,355,060	(1,653,211)	(699)	542,244
Ending balance (in shares) at Apr. 02, 2019	97,384
Beginning balance at Jan. 01, 2019	$ 967	828,676	1,384,494	(1,642,140)	(938)	571,059
Beginning balance (in shares) at Jan. 01, 2019	96,622
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	97,549
Net (loss)/income						78,584
Foreign currency translation adjustment						305
Ending balance at Oct. 01, 2019	$ 975	850,485	1,375,690	(1,692,701)	(633)	533,816
Ending balance (in shares) at Oct. 01, 2019	97,549
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	97,384
Beginning balance at Apr. 02, 2019	$ 974	840,120	1,355,060	(1,653,211)	(699)	542,244
Beginning balance (in shares) at Apr. 02, 2019	97,384
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	97,480
Net (loss)/income			35,510			35,510
Foreign currency translation adjustment					175	175
Cash dividends declared			(14,899)			(14,899)
Stock-based compensation	$ 1	4,691				4,692
Stock-based compensation (in shares)	47
Common stock issued under stock-based compensation plans		650				650
Common stock issued under stock-based compensation plans (in shares)	49
Treasury stock purchases				(28,093)		(28,093)
Ending balance at Jul. 02, 2019	$ 975	$ 845,461	1,375,671	(1,681,304)	(524)	540,279
Ending balance (in shares) at Jul. 02, 2019	97,480
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	97,480
Balance (as adjusted) (in shares)	97,549
Net (loss)/income			16,090			16,090
Foreign currency translation adjustment					(109)	(109)
Cash dividends declared			(16,071)			(16,071)
Stock-based compensation						4,699
Stock-based compensation (in shares)	13	4,699
Common stock issued under stock-based compensation plans						325
Common stock issued under stock-based compensation plans (in shares)	56	325
Treasury stock purchases				(11,397)		(11,397)
Ending balance at Oct. 01, 2019	$ 975	$ 850,485	1,375,690	(1,692,701)	(633)	533,816
Ending balance (in shares) at Oct. 01, 2019	97,549
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	97,549
Balance (as adjusted) (in shares)	97,685
Beginning balance at Dec. 31, 2019	$ 977	855,989	1,408,333	(1,693,122)	(435)	571,742
Beginning balance (in shares) at Dec. 31, 2019	97,685
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	98,454
Net (loss)/income			(136,163)			(136,163)
Foreign currency translation adjustment					(936)	(936)
Change in derivative, net of tax					(2,370)	(2,370)
Cash dividends declared			(16,376)			(16,376)
Stock-based compensation	$ 6	5,541				5,547
Stock-based compensation (in shares)	566
Common stock issued under stock-based compensation plans	$ 2	111				113
Common stock issued under stock-based compensation plans (in shares)	203
Treasury stock purchases				(2,586)		(2,586)
Ending balance at Mar. 31, 2020	$ 985	861,641	1,255,794	(1,695,708)	(3,741)	418,971
Ending balance (in shares) at Mar. 31, 2020	98,454
Beginning balance at Dec. 31, 2019	$ 977	855,989	1,408,333	(1,693,122)	(435)	571,742
Beginning balance (in shares) at Dec. 31, 2019	97,685
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	98,438
Net (loss)/income						(221,048)
Foreign currency translation adjustment						(347)
Change in derivative, net of tax						(4,059)
Preferred stock direct costs						(10,257)
Ending balance at Sep. 29, 2020	$ 984	871,771	1,150,726	(1,696,364)	(4,841)	322,276
Ending balance (in shares) at Sep. 29, 2020	98,438
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	98,454
Beginning balance at Mar. 31, 2020	$ 985	861,641	1,255,794	(1,695,708)	(3,741)	418,971
Beginning balance (in shares) at Mar. 31, 2020	98,454
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	98,465
Net (loss)/income			(56,539)			(56,539)
Foreign currency translation adjustment					404	404
Change in derivative, net of tax					(1,467)	(1,467)
Stock-based compensation		5,162				5,162
Stock-based compensation (in shares)	(24)
Common stock issued under stock-based compensation plans (in shares)	35
Preferred stock direct costs			(10,257)			(10,257)
Preferred stock direct costs						10,257
Paid-in-kind preferred stock dividend, including beneficial conversion feature			(4,079)			(4,079)
Treasury stock purchases				(266)		(266)
Ending balance at Jun. 30, 2020	$ 985	866,803	1,184,919	(1,695,974)	(4,804)	351,929
Ending balance (in shares) at Jun. 30, 2020	98,465
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	98,465
Balance (as adjusted) (in shares)	98,438
Net (loss)/income			(28,346)			(28,346)
Foreign currency translation adjustment					185	185
Change in derivative, net of tax					(222)	(222)
Stock-based compensation	$ (1)	4,968				4,967
Stock-based compensation (in shares)	(64)
Common stock issued under stock-based compensation plans	$ 37
Paid-in-kind preferred stock dividend, including beneficial conversion feature			(5,847)			(5,847)
Treasury stock purchases				(390)		(390)
Ending balance at Sep. 29, 2020	$ 984	$ 871,771	$ 1,150,726	$ (1,696,364)	$ (4,841)	$ 322,276
Ending balance (in shares) at Sep. 29, 2020	98,438
Increase (Decrease) in Stockholders' Equity
Balance (as adjusted) (in shares)	98,438

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND CONVERTIBLE PREFERRED STOCK (Parenthetical) - USD ($) $ in Thousands	3 Months Ended					9 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Oct. 01, 2019	Jul. 02, 2019	Apr. 02, 2019	Sep. 29, 2020
Convertible Preferred Stock
Balance (in shares)		0				0
Preferred stock issuance	$ 189,743
Preferred stock issuance (in shares)	200,000
Preferred stock direct costs	$ 10,257					$ (10,257)
Balance	$ 204,079					$ 209,926
Balance (in shares)	200,000					200,000
Cash dividends declared per common share (in dollars per share)		$ 0.36	$ 0.33	$ 0.33	$ 0.33

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019
Cash flows from operating activities:
Net (loss)/income	$ (221,048)	$ 78,584
Adjustments to reconcile net (loss)/income to cash (used in)/provided by operating activities:
Depreciation and amortization expenses	68,803	64,363
Impairment of assets and lease terminations	195,981
Deferred income taxes	(52,979)	(2,640)
Stock-based compensation	15,533	15,135
Loss from investments in unconsolidated affiliates		13,439
Changes in assets and liabilities:
Accounts and other receivable	40,460	40,634
Income taxes receivable/payable	(40,977)	(9,127)
Inventories	9,495	(8,890)
Prepaid expenses	11,695	(2,746)
Operating lease assets/liabilities	17,465	(5,234)
Other assets	540	(8,985)
Accounts payable	3,101	(15,654)
Gift card liabilities	(32,488)	(36,774)
Other accrued expenses	(48,317)	(5,898)
Cash (used in)/provided by operating activities	(32,736)	116,207
Cash flows from investing activities:
Additions to property and equipment	(38,270)	(46,702)
Additions to intangible assets	(365)	(353)
Investments in unconsolidated affiliates		(3,000)
Loans made to unconsolidated affiliates		(22,500)
Cash used in investing activities	(38,635)	(72,555)
Cash flows from financing activities:
Preferred stock issuance	200,000
Preferred stock direct costs	(10,257)
Borrowings on credit facility	90,000	335,000
Repayments on credit facility	(4,000)	(10,000)
Proceeds from exercise of stock options	113	6,516
Cash dividends paid	(15,791)	(44,990)
Treasury stock purchases	(3,242)	(50,561)
Cash provided by financing activities	256,823	235,965
Foreign currency translation adjustment	(100)	57
Net change in cash and cash equivalents	185,352	279,674
Cash and cash equivalents at beginning of period	58,416	26,578
Cash and cash equivalents at end of period	243,768	306,252
Supplemental disclosures:
Interest paid	10,347	854
Income taxes paid	6,712	16,966
Construction payable	$ 3,029	$ 6,400

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 29, 2020
Significant Accounting Policies
Significant Accounting Policies	1. Significant Accounting Policies ​ Basis of Presentation ​ The accompanying condensed 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. The unaudited financial statements presented herein 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 that may be achieved 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 condensed 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, 2019 filed with the SEC on March 12, 2020, as amended on June 22, 2020 (“fiscal 2019 10-K”). ​ On October 2, 2019, we completed the acquisition of North Italia and the remaining business of Fox Restaurant Concepts LLC (“FRC”), including Flower Child and all other FRC brands (the "Acquisitions"). The results of operations, financial position and cash flows of the acquired businesses are included in our consolidated financial statements as of the acquisition date. ​ We utilize a 52/53-week fiscal year ending on the Tuesday closest to December 31 for financial reporting purposes. Fiscal 2020 consists of 52 weeks and will end on December 29, 2020. Fiscal 2019, which ended on December 31, 2019, was also a 52-week year. ​ Beginning with our fiscal 2019 10-K, we separately disclosed our acquisition-related costs on the consolidated statement of income. Corresponding balances for the thirteen and thirty-nine weeks ended October 1, 2019 were reclassified to conform to the current 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. ​ COVID-19 Pandemic ​ The Company is subject to risks and uncertainties as a result of the outbreak of, and local, state and federal governmental responses to, the COVID-19 pandemic which was declared a National Public Health Emergency on March 13, 2020. We have experienced significant disruptions to our business due to suggested and mandated social distancing and shelter-in-place orders, which resulted in the temporary closure of a number of restaurants across our portfolio while the remaining locations shifted to an off-premise only operating model on an interim basis. In late April 2020, certain jurisdictions began allowing the reopening of restaurant dining rooms, and we began to reopen dining rooms across our concepts the second week of May. However, restrictions on the type of operating model and occupancy capacity continue to change. The following table presents the number of restaurants and their operating model as of October 29, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake ​ ​ ​ ​ ​ ​ Factory ​ North Italia ​ Other FRC ​ Other ​ Total Indoor dining with limited capacity ​ 187 (1) 21 ​ 24 ​ 36 ​ 268 Outdoor only with social distancing ​ 17 ​ 2 ​ — ​ 1 ​ 20 Off-premise only ​ 1 ​ — ​ — ​ 1 ​ 2 Currently closed — — 1 4 5 Total 205 23 25 42 295 (1) On average, The Cheesecake Factory restaurants with reopened dining rooms were operating at 50% capacity. ​ In our initial response to the pandemic, the Company and its Board of Directors (the "Board") implemented the following measures to preserve liquidity and enhance financial flexibility: ​ ● Eliminated non-essential capital expenditures and expenses; ● Suspended new unit development; ● Reduced Board, executive and corporate support staff compensation; ● Furloughed approximately 41,000 hourly staff members; ● Engaged in discussions with our landlords regarding ongoing rent obligations, including the potential deferral, abatement and/or restructuring of rent otherwise payable during the period of the COVID-19 pandemic related closure; ● Increased borrowings under our revolving credit facility; ● Raised additional equity capital; and ● Suspended the dividend on our common stock and share repurchases. ​ During the third quarter of fiscal 2020, we called back to work a majority of our staff members who were previously furloughed, and restored Board, executive and corporate support staff compensation. In addition, we resumed new unit development on a limited basis and will continue to evaluate the pace and quantity of new unit development as more clarity on the restaurant industry operating environment emerges. ​ We cannot predict how long the COVID-19 pandemic will last or whether it will reoccur, what additional restrictions may be enacted, to what extent we can maintain off-premise sales volumes or if individuals will be comfortable returning to our dining rooms during or following social distancing protocols and what long-lasting effects the COVID-19 pandemic may have on the full-service segment of the restaurant industry. The extent of the reopening process, along with the potential impact of the COVID-19 pandemic on economic conditions and consumer spending behavior, will determine the significance of the impact to our operating results and financial position. ​ In the first quarter of fiscal 2020, these considerable developments triggered the need to perform impairment assessments of our long-lived assets, goodwill and other intangible assets and a revaluation of contingent consideration associated with the Acquisitions. No additional impairment assessments were required in the second or third quarters of fiscal 2020. Future changes in estimates could further impact the carrying value of these items. (See Notes 3 and 4 for further discussion of impairment of long-lived and intangible assets, respectively. See Note 9 for further discussion of the revaluation of contingent consideration.) ​ See “Risk Factors” included in Part II, Item 1A for further discussion of risks associated with the COVID-19 pandemic. ​ Derivative Financial Instruments ​ We recognize derivative financial instruments on the balance sheet at fair value under a Level 2 categorization. Our only derivative is an interest rate swap which is designated as a cash flow hedge. Therefore, the effective portion of the changes in fair value are recognized in accumulated other comprehensive income when the hedged item is recognized in earnings, and the ineffective portion of changes in the fair value are immediately recognized in earnings as interest expense. We classify cash inflows and outflows from derivatives within operating activities on the consolidated statements of cash flows. See Note 8 for further discussion of this interest rate swap. ​ Recent Accounting Pronouncements ​ In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update eliminates, adds and modifies certain disclosure requirements for fair value measurements. We adopted this standard as of the beginning of fiscal 2020 and such adoption did not have a significant impact on our consolidated financial statements. ​ In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which is intended to simplify the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity's own equity. This pronouncement is effective for fiscal years beginning after December 15, 2021 and early adoption is permitted. The guidance allows for either full retrospective adoption or modified retrospective adoption. We plan to adopt this pronouncement for our fiscal year beginning December 30, 2020 utilizing the modified retrospective method. Depending on the future value of our stock price, the adoption of this standard could have a material impact on our additional paid-in capital and retained earnings balances due to the elimination of the beneficial conversion feature provision.

Inventories

Inventories	9 Months Ended
	Sep. 29, 2020
Inventories
Inventories	2. Inventories ​ Inventories consisted of (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 29, 2020 December 31, 2019 Restaurant food and supplies ​ $ 23,921 ​ $ 25,057 Bakery finished goods and work in progress ​ 7,183 ​ 16,000 Bakery raw materials and supplies ​ 6,623 ​ 6,168 Total ​ $ 37,727 ​ $ 47,225 ​ The decrease in bakery finished goods and work in progress inventories is due to strong demand coupled with manufacturing disruptions resulting from the COVID-19 pandemic.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets	9 Months Ended
	Sep. 29, 2020
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets	3. Impairment of Long-Lived Assets ​ 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. Due to the significant impact of the COVID-19 pandemic on our operations, we determined it was necessary to perform an interim test of our long-lived assets during the first quarter of fiscal 2020. Based on the results of these assessments, we recorded $8.9 million of expense primarily related to the impairment of one The Cheesecake Factory, one North Italia, two Other FRC and four Other restaurants. These amounts were recorded in impairment of assets and lease terminations on the consolidated statements of income.

Intangible Assets, net

Intangible Assets, net	9 Months Ended
	Sep. 29, 2020
Intangible Assets, net
Intangible Assets, net	4. Intangible Assets, net ​ The following table presents the components of our intangible assets, net (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 29, 2020 December 31, 2019 Indefinite-lived intangible assets: ​ ​ ​ ​ Goodwill ​ $ 1,451 ​ $ 78,355 Trade names and trademarks ​ 233,628 ​ 337,027 Transferable alcoholic beverage licenses ​ 7,871 ​ 8,575 Total indefinite-lived intangible assets ​ 242,950 ​ 423,957 Definite-lived intangible assets, net: ​ ​ ​ Licensing agreements ​ 7,382 ​ 10,060 Non-transferable alcoholic beverage licenses ​ 3,245 ​ 3,190 Total definite-lived intangible assets ​ 10,627 ​ 13,250 Total intangible assets, net ​ $ 253,577 ​ $ 437,207 ​ During the first quarter of fiscal 2020, we finalized our purchase accounting for the Acquisitions, increasing goodwill by $2.5 million with an offsetting decrease in trade names and trademarks. ​ Goodwill and other indefinite-lived intangible assets 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. Definite-lived intangible assets are 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. ​ Due to the decrease in our stock price coupled with the dining room closures related to the COVID-19 pandemic and significant decline to the equity value of our peers and overall U.S. stock market, we determined it was necessary to perform an interim assessment of our indefinite and definite-lived intangible assets during the first quarter of fiscal 2020. For the goodwill impairment test, the estimated fair value of the reporting units was determined using a blend of the income and market capitalization approaches. For the income approach, we performed a discounted cash flow analysis. The fair value of the other indefinite-lived assets was estimated using the relief from royalty method. There were a number of estimates and significant judgments made by management in performing these evaluations, such as future unit growth, average unit volumes, cash flows and discount rates. Accordingly, actual results could vary significantly from such estimates. Based on the results of these assessments, we recorded goodwill impairment expense related to the Other FRC, North Italia and Flower Child operating segments of $33.8 million, $27.7 million and $17.9 million, respectively, in the first quarter of fiscal 2020. In addition, we recorded impairment expense of $101.0 million and $2.3 million related to trade names and trademarks, and licensing agreements, respectively, in the first quarter of fiscal 2020. More than half of the total impairment amount was driven by the impact on our market capitalization, with the balance related to lower future cash flow estimates. The reduced projections stemmed primarily from our decision to delay fiscal 2020 unit development, thereby moving our expected unit growth trajectory out by one year. The cash flow estimates assumed that average unit volumes and margins would substantially return to pre-COVID-19 levels by mid-fiscal 2021.

Gift Cards

Gift Cards	9 Months Ended
	Sep. 29, 2020
Gift Cards
Gift Cards	5. Gift Cards ​ The following tables present information related to gift cards (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ September 29, 2020 October 1, 2019 September 29, 2020 October 1, 2019 Gift card liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 162,241 ​ $ 142,361 ​ $ 187,978 ​ $ 172,336 Activations ​ 23,056 ​ 21,577 ​ 57,162 ​ 70,949 Redemptions and breakage ​ (29,811) ​ (28,372) ​ (89,654) ​ (107,719) Ending balance ​ $ 155,486 ​ $ 135,566 ​ $ 155,486 ​ $ 135,566 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ September 29, 2020 October 1, 2019 September 29, 2020 October 1, 2019 Gift card contract assets: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 18,255 ​ $ 20,092 ​ $ 23,172 ​ $ 23,388 Deferrals ​ 1,819 ​ 2,929 ​ 5,944 ​ 8,993 Amortization ​ (4,317) ​ (4,689) ​ (13,359) ​ (14,049) Ending balance ​ $ 15,757 ​ $ 18,332 ​ $ 15,757 ​ $ 18,332 (1) Included in prepaid expenses on the consolidated balance sheets.

Leases

Leases	9 Months Ended
	Sep. 29, 2020
Leases
Leases	6. Leases ​ Components of lease expense were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ September 29, 2020 ​ October 1, 2019 ​ September 29, 2020 ​ October 1, 2019 Operating ​ $ 31,267 ​ $ 26,270 ​ $ 97,222 ​ $ 77,875 Variable ​ 15,304 ​ 15,768 ​ ​ 42,292 ​ ​ 48,529 Short-term ​ 93 ​ 81 ​ ​ 346 ​ ​ 234 Total ​ $ 46,664 ​ $ 42,119 ​ $ 139,860 ​ $ 126,638 ​ Supplemental cash flow information related to leases (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Thirty-Nine ​ ​ ​ September 29, 2020 ​ October 1, 2019 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 85,076 ​ $ 73,163 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ 46,068 ​ ​ 35,271 ​ ​ In April 2020, the FASB staff issued interpretive guidance that indicated it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under Topic 842, as though enforceable rights and obligations for those concessions existed (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract) rather than as a lease modification. Lessees may make the election for any lessor-provided lease concession related to the impact of the COVID-19 pandemic if the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. ​ During the second and third quarters of fiscal 2020, we received a number of lease concessions, primarily in the form of rent deferral or reduction over the period of time when our restaurant business was adversely impacted and have elected to apply the interpretive guidance. This election did not have a material impact on our consolidated financial statements. Three concession agreements did not qualify for this accounting election and were treated as lease modifications. We deferred rent payments of $7.6 million, the majority of which is due in fiscal 2021.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 29, 2020
Long-Term Debt
Long-Term Debt	7. Long-Term Debt ​ On July 30, 2019, we entered into a Third Amended and Restated Loan Agreement (the “Facility”) which amends and restates in its entirety our prior Second Amended and Restated Loan Agreement dated as of December 22, 2015. The Facility, which terminates on July 30, 2024, provides us with revolving loan commitments that total $400 million (of which $40 million may be used for issuances of letters of credit). The Facility contains a commitment increase feature that could provide for additional available credit upon our request and subject to the participating lenders electing to increase their commitments or new lenders being added to the Facility. ​ Certain financial covenants under the Facility require us to maintain (i) a maximum "Net Adjusted Leverage Ratio" of 4.75 and (ii) a minimum ratio of EBITDAR to interest and rent expense of 1.9 ("EBITDAR Ratio"), as well as customary events of default that, if triggered, could result in acceleration of the maturity of the Facility. The Facility also limits cash distributions with respect to our equity interests, such as cash dividends and share repurchases, based on a defined ratio, and sets forth negative covenants that restrict indebtedness, liens, investments, sales of assets, fundamental changes and other matters. ​ During the first quarter of fiscal 2020, we increased our borrowings under the Facility to bolster our cash position and enhance financial flexibility given the impact of the COVID-19 pandemic on our operations. To provide additional financial flexibility, on May 1, 2020 (the “Effective Date”), we entered into a First Amendment (the “Amendment”) to the Facility (as amended by the Amendment, the “Amended Facility”). The Amended Facility provides for, among other things, (i) a covenant relief period (the “Covenant Relief Period”) from the Effective Date until we demonstrate compliance with our financial covenants as of the quarter ending on or after June 29, 2021, during which we are not required to comply with financial covenants requiring maintenance of the maximum Net Adjusted Leverage Ratio and minimum EBITDAR Ratio, (ii) a substitution of the Net Adjusted Leverage Ratio and EBITDAR Ratio covenants with a liquidity covenant for the calendar month ending May 31, 2020 and continuing through the calendar month ending February 28, 2021 that requires our Liquidity to be at least $65,000,000 at the end of each calendar month (with Liquidity being the sum of (a) unrestricted cash and cash equivalents and (b) the unused portion of the revolving facility) (and solely for the fiscal quarter ending March 30, 2021, we can meet either (x) both the Net Adjusted Leverage Ratio test and the EBITDAR Ratio test or (y) meet the minimum Liquidity test), with the minimum Liquidity covenant to be tested again from the calendar month ending April 30, 2021 until we demonstrate compliance with the Net Adjusted Leverage Ratio and EBITDAR Ratio for a fiscal quarter ending on or after March 30, 2021, (iii) a lowered amount of permitted increases to revolving loan commitments under the Amended Facility during the Covenant Relief Period from $200,000,000 to $125,000,000, (iv) a limit on capital expenditures not to exceed $90,000,000 during the Covenant Relief Period, and (v) increased limitations on our ability to make restricted payments, incur debt, and consummate acquisitions during the Covenant Relief Period. ​ Borrowings under the Amended Facility during the Covenant Relief Period bear interest, at our option, at a rate equal to either: (i) the adjusted LIBO Rate (as customarily defined, the “Adjusted LIBO Rate”) plus 2.5%, or (ii) the sum of (a) the highest of (1) the rate of interest last quoted by The Wall Street Journal as the prime rate in effect in the United States, (2) the greater of the rate calculated by the Federal Reserve Bank of New York as the effective federal funds rate or the rate that is published by the Federal Reserve Bank of New York as an overnight bank funding rate, in either case plus 0.5%, and (3) the one-month Adjusted LIBO Rate plus 1.0%, plus (b) 1.50%. We also pay a fee of 0.4% on the daily amount of unused commitments under the Amended Facility. ​ Subsequent to the Covenant Relief period, borrowings under the Amended Facility will bear interest, at our option, at a rate equal to either: (i) the adjusted LIBO Rate (as customarily defined) (the “Adjusted LIBO Rate”) plus a margin that is based on our net adjusted leverage ratio, or (ii) the sum of (a) the highest of (1) the rate of interest last quoted by The Wall Street Journal as the prime rate in effect in the United States, (2) the greater of the rate calculated by the Federal Reserve Bank of New York as the effective federal funds rate or the rate that is published by the Federal Reserve Bank of New York as an overnight bank funding rate, in either case plus 0.5%, and (3) the one-month Adjusted LIBO Rate plus 1.0%, plus (b) a margin that is based on our net adjusted leverage ratio. ​ 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 LIBO Rate plus other customary fees charged by the issuing bank. We paid certain customary loan origination fees in conjunction with both the Facility and Amendment. ​ Our obligations under the Amended Facility are unsecured, and certain of our material subsidiaries have guaranteed these obligations. At September 29, 2020, we had net availability for borrowings of $0.6 million, based on a $376.0 million outstanding debt balance and $23.4 million in standby letters of credit. Our Liquidity balance was $242.7 million at September 29, 2020, and we were in compliance with all covenants under the Amended Facility in effect at that date.

Derivative

Derivative	9 Months Ended
	Sep. 29, 2020
Derivative
Derivative	8. Derivative ​ On March 13, 2020, we entered into an interest rate swap agreement to manage our exposure to interest rate movements on our Facility. The agreement became effective on April 1, 2020 and matures on April 1, 2025. The interest rate swap entitles us to receive a variable rate of interest based on the one-month LIBO rate in exchange for the payment of a fixed interest rate of 0.802%. The notional amount of the swap agreement is $280.0 million through March 31, 2023 and $140.0 million from April 1, 2023 through April 1, 2025. The differences between the variable LIBO rate and the interest rate swap rate are settled monthly. We determined that at September 29, 2020, the interest rate swap agreement was an effective hedging agreement. ​ At September 29, 2020, the fair value of our interest rate swap was a liability of $5.4 million and was included in long-term other liabilities in the condensed consolidated balance sheet. Changes in the valuation of the interest rate swap are initially included as a component of accumulated other comprehensive loss (AOCL) and subsequently reclassified to earnings as realized. We reclassified $0.5 million and $0.7 million out of AOCL in the thirteen and thirty-nine weeks ended September 29, 2020, respectively, for the monthly settlement of the interest rate swap. These amounts were recorded in interest and other expense, net on the consolidated statement of income. No gains or losses representing amounts excluded from the assessment of effectiveness were recognized in earnings for the nine months ended September 29, 2020. ​ The following table summarizes the changes in AOCL, net of tax, related to the interest rate swap (in thousands): ​ ​ ​ ​ ​ Balance, December 31, 2019 $ — Other comprehensive loss before reclassifications ​ (4,726) Amounts reclassified from AOCL ​ 667 Other comprehensive loss, net of tax ​ (4,059) Balance, September 29, 2020 ​ $ (4,059) ​ We classified this interest rate swap within Level 2 of the valuation hierarchy described in Note 9. Our counterparty under this arrangement provided monthly statements of the market values of this instrument based on significant inputs that were observable or could be derived principally from, or corroborated by, observable market data for substantially the full term of the asset or liability. The impact on the derivative liability for the Company’s and the counterparty’s non-performance risk to the derivative trade was considered when measuring the fair value of derivative liability.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 29, 2020
Fair Value Measurements
Fair Value Measurements	9. 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 29, 2020 ​ Level 1 Level 2 Level 3 Assets (Liabilities) ​ ​ ​ ​ ​ ​ Non-qualified deferred compensation assets ​ $ 76,940 ​ $ — ​ $ — Non-qualified deferred compensation liabilities ​ (77,183) ​ — ​ — Interest rate swap ​ — ​ (5,381) ​ — Acquisition-related deferred consideration ​ — ​ (55,133) ​ — Acquisition-related contingent consideration and compensation liabilities ​ — ​ — ​ (7,643) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ Level 1 Level 2 Level 3 Assets (Liabilities) ​ ​ ​ ​ ​ ​ Non-qualified deferred compensation assets ​ $ 77,228 ​ $ — ​ $ — Non-qualified deferred compensation liabilities ​ (76,255) ​ — ​ — Acquisition-related deferred consideration ​ — ​ (53,933) ​ — Acquisition-related contingent consideration and compensation liabilities ​ — ​ — ​ (13,218) ​ The fair value of the acquisition-related contingent consideration and compensation liabilities 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 was $ 0 to $ 35.6 million. Results could change materially if different estimates and assumptions were used. The following table presents a reconciliation of the beginning and ending amounts of the fair value of the acquisition-related contingent consideration and compensation liabilities, categorized as Level 3 (in thousands): ​ ​ ​ ​ ​ Balance, December 31, 2019 $ 13,218 Change in fair value ​ (5,575) Balance, September 29, 2020 ​ $ 7,643 ​ The significant change in the fair value of the contingent consideration primarily stemmed from the delay of future new restaurant openings caused by the impact of the COVID-19 pandemic on the estimated cash flows used in the valuation. ​ 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.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 29, 2020
Commitments and Contingencies
Commitments and Contingencies	10. Commitments and Contingencies ​ On June 7, 2018, the California Department of Industrial Relations issued a $4.2 million wage citation jointly against the Company and our vendor that provides janitorial services to eight of our Southern California restaurants, alleging that the janitorial vendor or its subcontractor failed to comply with various provisions of the California Labor Code (Wage Citation Case No. 35-CM-188798-16). The wage citation seeks to recover penalties and other monetary payments on behalf of the employees that worked for this vendor or its subcontractor. On June 28, 2018, we filed an appeal of the wage citation. On June 11, 2020, the DLSE postponed the hearing on the Company’s appeal due to safety concerns related to the COVID-19 pandemic. It is not possible at this time to reasonably estimate the outcome of or any potential liability from this matter and, accordingly, we have not reserved for any potential future payments. ​ On June 22, 2018, the Internal Revenue Service issued a Notice of Deficiency in which they disallowed $8.0 million of our §199 Domestic Production Activities Deduction for tax years 2010, 2011 and 2012. On September 11, 2018 we petitioned the United States Tax Court for a redetermination of the deficiency. The tax court has assigned docket number 18150-18 to our case. We intend to vigorously defend our position in litigation and based on our analysis of the law, regulations and relevant facts, we have not reserved for any potential future payments. ​ 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.

Stockholders' Equity and Conver

Stockholders' Equity and Convertible Preferred Stock	9 Months Ended
	Sep. 29, 2020
Stockholders' Equity and Convertible Preferred Stock
Stockholders' Equity and Convertible Preferred Stock	11. Stockholders’ Equity and Convertible Preferred Stock ​ Dividends and Share Repurchases ​ To preserve liquidity during the COVID-19 pandemic and in conjunction with the terms of our Facility, as amended on May 1,2020 , our Board suspended the quarterly dividend on our common stock, as well as share repurchases. (See Note 7 for further discussion of our long-term debt.) ​ Future decisions to pay or to increase or decrease dividends on our common stock 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 Facility and applicable law, and such other factors that our Board considers relevant. ​ Under authorization by our Board to repurchase up to 56.0 million shares of our common stock, we have cumulatively repurchased 53.0 million shares at a total cost of $1,696.4 million through September 29, 2020 with 12,567 shares repurchased at a cost of $0.4 million during the third quarter of fiscal 2020 to satisfy tax withholding obligations on vested restricted share awards. Our objectives regarding 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. 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. Shares may be repurchased in the open market or through privately negotiated transactions at times and prices considered appropriate by us. We make the determination to repurchase shares 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 Acquisitions, our share price and current market conditions. The timing and number of shares repurchased are also subject to legal constraints and financial covenants under the Facility that limit share repurchases based on a defined ratio. ​ Series A Convertible Preferred Stock ​ On April 20, 2020, to increase our liquidity given the impact of the COVID-19 pandemic on our operations, we issued ​ The Preferred Stock ranks senior to our common stock with respect to dividends and distributions on liquidation, winding-up and dissolution upon which each share of Preferred Stock will be entitled to receive an amount per share equal to the greater of (i) the purchase price (without giving effect to the commitment fee), plus all accrued and unpaid dividends (the “Liquidation Preference”) and (ii) the amount that the holder of Preferred Stock would have been entitled to receive at such time if the Preferred Stock were converted into common stock. At September 29, 2020, the Liquidation Preference was $1,042.22 per share. ​ Dividend Rights ​ The holders are entitled to dividends on the Liquidation Preference at the rate of 9.5% per annum, payable in cash or, at our option, paid in-kind. The holders are also entitled to participate in dividends declared or paid on our common stock on an as-converted basis. We paid in-kind dividends of $4.8 million and $8.5 million for the thirteen and thirty-nine weeks ended September 29, 2020. ​ Conversion Rights ​ Each holder has the right, at its option, to convert its Preferred Stock into common stock at a conversion price equal to $22.23 per share. As of September 29, 2020, the number of common shares that would be required to be issued upon conversion of the outstanding shares of Preferred Stock was 9.4 million. The conversion price is subject to customary anti-dilution adjustments, including in the event of any stock split, stock dividend, recapitalization or similar events. The conversion price is also subject to adjustment for certain anti-dilutive offerings if they occur on or prior to April 19, 2021. Pursuant to the terms of the Certificate of Designations, unless and until approval of our stockholders is obtained as contemplated by Nasdaq listing rules (the “Stockholder Approval”), no holder may convert shares of Preferred Stock through either an optional or a mandatory conversion into shares of common stock if and solely to the extent that such conversion would result in the holder beneficially owning in excess of 19.9% of then outstanding common stock. The Company has the right to settle any conversion in cash. ​ Subject to certain conditions, we may, at our option, require conversion of all of the outstanding shares of Preferred Stock to common stock if, for at least 20 trading days during the 30 consecutive trading days immediately preceding the date we notify the holders of the election to convert, the closing price of the common stock is at least 200% of the conversion price. We will not exercise our right to mandatorily convert all outstanding shares of Preferred Stock unless certain liquidity conditions with regard to the shares of common stock to be issued upon such conversion are satisfied. ​ We determined that the nature of the Preferred Stock was more akin to an equity instrument than a debt instrument and that the economic characteristics and risks of the embedded conversion options were clearly and closely related to the Preferred Stock. As such, the conversion options were not required to be bifurcated from the host under FASB Accounting Standards Codification (“ASC 815”), Derivatives and Hedging. We also determined that the Preferred Stock did not generate a beneficial conversion feature (“BCF”) upon issuance. However, the associated dividends for the second and third quarters of fiscal 2020 generated a BCF of $0.1 million and $1.3 million, respectively, based on the fair value of our stock price on the date the dividends were declared to be paid in-kind. ​ Redemption Rights ​ On and after October 20, 2027, holders of the Preferred Stock have the right to require redemption of all or any part of the Preferred Stock for an amount equal to the Liquidation Preference. Upon certain change of control events, we are required to redeem, subject to conversion rights of the holders, all of the outstanding shares of Preferred Stock for cash consideration equal to the greater of (i) the Liquidation Preference and (ii) the amount that such holder would have been entitled to receive at such time if the Preferred Stock were converted into common stock. ​ We may redeem any or all of the Preferred Stock for an amount equal to (i) 120% of the Liquidation Preference thereof at any time between April 21, 2025 and April 19, 2026 and (ii) 100% of the Liquidation Preference at any time beginning on April 20, 2026, provided that such holder will have the right to convert the Preferred Stock immediately prior to and in lieu of such redemption. To the extent such holder elects to convert the Preferred Stock in lieu of such redemption and the number of shares of common stock issuable upon such conversion would exceed 19.9% of the outstanding shares of common stock, and the Stockholder Approval has not been obtained as of such date, any portion in excess of such limit will remain outstanding as Preferred Stock. ​ Since the redemption of the Preferred Stock is contingently redeemable and therefore not certain to occur, the Preferred Stock is not required to be classified as a liability under ASC 480, Distinguishing Liabilities from Equity. As the Preferred Stock is redeemable in certain circumstances at the option of the holder and is redeemable in certain circumstances upon the occurrence of an event that is not solely within our control, we have classified the Preferred Stock separately from stockholders’ equity in the consolidated balance sheets. ​ As noted above, we determined that the nature of the Preferred Stock was more akin to an equity instrument than a debt instrument. However, we determined that the economic characteristics and risks of the embedded put option, call option and redemption upon change of control provision were not clearly and closely related to the Preferred Stock. Therefore, we assessed these items further and determined they did not meet the definition of a derivative under ASC 815, Derivatives and Hedging . ​ Voting Rights ​ Holders of Preferred Stock are generally entitled to vote with the holders of the common stock on an as-converted basis. Holders of Preferred Stock are entitled to a separate class vote with respect to, among other things, amendments to the Company’s organizational documents that have an adverse effect on the Preferred Stock and issuances of securities that are senior to, or equal in priority with, the Preferred Stock.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 29, 2020
Stock-Based Compensation
Stock-Based Compensation	12. Stock-Based Compensation ​ On April 4, 2019, our Board adopted The Cheesecake Factory Incorporated Stock Incentive Plan (the “Plan”) 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. The Plan replaced the 2010 Stock Incentive Plan. ​ The following table presents the stock-based compensation recorded in the consolidated financial statements: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ September 29, 2020 October 1, 2019 September 29, 2020 October 1, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Labor expenses ​ $ 1,868 ​ $ 1,742 ​ $ 5,761 ​ $ 5,184 Other operating costs and expenses ​ 70 ​ 68 ​ 209 ​ 204 General and administrative expenses ​ 2,979 ​ 2,837 ​ 9,563 ​ 9,747 Total stock-based compensation ​ 4,917 ​ 4,647 ​ 15,533 ​ 15,135 Income tax benefit ​ 1,208 ​ 1,141 ​ 3,815 ​ 3,719 Total stock-based compensation, net of taxes ​ $ 3,709 ​ $ 3,506 ​ $ 11,718 ​ $ 11,416 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized stock-based compensation (1) ​ $ 52 ​ $ 52 ​ $ 143 ​ $ 166 (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 ​ We did not issue any stock options during the third quarter of fiscal 2020 or 2019. Stock option activity during the thirty-nine weeks ended September 29, 2020 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 December 31, 2019 1,829 ​ $ 47.32 4.3 ​ $ 844 Granted 654 ​ 40.16 ​ ​ ​ ​ ​ Exercised (4) ​ 29.79 ​ ​ ​ ​ ​ Forfeited or cancelled (118) ​ 47.15 ​ ​ ​ ​ ​ Outstanding at September 29, 2020 2,361 ​ $ 45.38 5.1 ​ $ 8,701 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at September 29, 2020 1,188 ​ $ 46.74 2.5 ​ $ 4,986 (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. ​ There were no options exercised during the thirteen weeks ended September 29, 2020. The total intrinsic value of options exercised during the thirty-nine weeks ended September 29, 2020 was $35,606. The total intrinsic value of options exercised during the thirteen and thirty-nine weeks ended October 1, 2019 was $0.1 million and $3.7 million, respectively. As of September 29, 2020, total unrecognized stock-based compensation expense related to unvested stock options was $7.5 million, which we expect to recognize over a weighted-average period of approximately 3.6 years. ​ Restricted Shares and Restricted Share Units ​ Restricted share and restricted share unit activity during the thirty-nine weeks ended September 29, 2020 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ Average ​ Shares Fair Value ​ ​ (In thousands) ​ (Per share) Outstanding at December 31, 2019 1,764 ​ $ 47.76 Granted 588 ​ 39.74 Vested (285) ​ 49.94 Forfeited (182) ​ 49.13 Outstanding at September 29, 2020 1,885 ​ $ 44.79 ​ 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 the third quarter of fiscal 2020 and 2019 was $24.00 and $44.24, respectively. The fair value of shares that vested during the thirteen weeks and thirty-nine weeks ended September 29, 2020 was $1.8 million and $14.2 million, respectively. The fair value of shares that vested during the thirteen weeks and thirty-nine weeks ended October 1, 2019 was $1.9 million and $14.3 million, respectively. As of September 29, 2020, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $34.3 million, which we expect to recognize over a weighted-average period of approximately 3.0 years.

Income and Payroll Taxes

Income and Payroll Taxes	9 Months Ended
	Sep. 29, 2020
Income and Payroll Taxes
Income and Payroll Taxes	13. Income and Payroll Taxes ​ On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. Intended to provide economic relief to those impacted by the COVID-19 pandemic, the CARES Act includes provisions allowing for the carryback of net operating losses generated in fiscal years 2018, 2019 and 2020 and technical amendments regarding the expensing of qualified improvement property (“QIP”). As a result of the CARES Act, we expect to carry back our anticipated fiscal 2020 loss and reduce taxes payable for accelerated depreciation on QIP placed in service during fiscal 2018 and 2019. We expect to file carryback claims during fiscal 2021, and we estimate that these claims will generate cash refunds of approximately $40 million. ​ Also in conjunction with the CARES Act, during the thirty-nine weeks ended September 29, 2020, we reduced payroll tax expense by $8.5 million for employee retention credits primarily related to healthcare benefits for furloughed staff members, and we deferred $20.5 million of payroll taxes which will be due in fiscal years 2021 and 2022. ​ Our effective income tax rate was 30.0% and 6.2% for the first three quarters of fiscal 2020 and 2019, respectively. The increase resulted primarily from a lower proportion of employment credits in relation to pre-tax (loss)/income and a benefit arising from the expected carryback of our anticipated fiscal 2020 loss to prior years when the federal statutory rate was 35%. Without the carryback provisions of the CARES Act, we would expect the fiscal 2020 loss to provide a tax benefit at the statutory rate of 21%. The 14% rate benefit is reflected primarily in the annual effective tax rate, although the portion representing prior year temporary differences that are estimated to reverse in fiscal 2020 and become part of the fiscal 2020 loss carryback was recognized as a discrete item in the first quarter of fiscal 2020. ​ We expect to have federal credit carryforwards of approximately $36 million at the end of fiscal 2020 compared to $14.3 million at December 31, 2019. This increase is driven primarily by our estimated fiscal 2020 loss. We assess the available evidence to estimate if sufficient future taxable income will be generated to use these carryforwards, which have a 20 -year carryforward period and are utilized on a first-in, first-out basis. Based on this evaluation, we concluded that no valuation allowance is required. This assessment could change if estimates of future taxable income during the carryforward period are revised. ​ As a result of the goodwill impairment discussed in Note 4, we recorded a deferred tax asset of $16.4 million.

Net (Loss)_Income Per Share

Net (Loss)/Income Per Share	9 Months Ended
	Sep. 29, 2020
Net (Loss)/Income Per Share
Net (Loss)/Income Per Share	14. Net (Loss)/Income Per Share ​ Basic net income per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards. As of September 29, 2020 and October 1, 2019, 1.9 million shares and 1.8 million shares, respectively, of restricted stock issued to staff members were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal periods ended on those dates. Diluted net income per share is computed by dividing net income available to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. ​ Holders of our Preferred Stock participate in dividends on an as-converted basis when declared on common stock. As a result, our Preferred Stock meets the definition of a participating security which requires us to apply the two-class method to compute both basic and diluted net income per share. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. In addition, as our Preferred Stock is a participating security, we are required to calculate diluted net income per share under the if-converted method in addition to the two- class method and utilize the most dilutive result. In periods where there is a net loss, no allocation of undistributed net loss to preferred shareholders is performed as the holders of our Preferred Stock are not contractually obligated to participate in our losses. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ September 29, 2020 October 1, 2019 September 29, 2020 October 1, 2019 ​ ​ (In thousands, except per share data) Basic net (loss)/income per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss)/income ​ $ (28,346) ​ $ 16,090 ​ $ (221,048) ​ $ 78,584 Dividends on preferred stock ​ (4,838) ​ — ​ (8,532) ​ — Direct and incremental preferred stock issuance costs ​ — ​ — ​ (10,257) ​ — Net (loss)/income available to common stockholders ​ (33,184) ​ 16,090 ​ (239,837) ​ 78,584 Basic weighted-average shares outstanding ​ ​ 43,900 ​ ​ 43,682 ​ ​ 43,849 ​ ​ 44,034 Basic net (loss)/income per common share ​ $ (0.76) ​ $ 0.37 ​ $ (5.47) ​ $ 1.78 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net (loss)/income per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss)/income available to common stockholders ​ ​ (33,184) ​ ​ 16,090 ​ ​ (239,837) ​ ​ 78,584 Basic weighted-average shares outstanding ​ ​ 43,900 ​ ​ 43,682 ​ ​ 43,849 ​ ​ 44,034 Dilutive effect of equity awards (1) ​ ​ — ​ ​ 504 ​ ​ — ​ ​ 609 Diluted weighted-average shares outstanding ​ ​ 43,900 ​ ​ 44,186 ​ ​ 43,849 ​ ​ 44,643 Diluted net (loss)/income per common share ​ $ (0.76) ​ $ 0.36 ​ $ (5.47) ​ $ 1.76 (1) Shares of common stock equivalents of 4.0 million and 2.1 million as of September 29, 2020 and October 1, 2019, respectively, were excluded from the diluted calculation due to their anti-dilutive effect. ​

Segment Information

Segment Information	9 Months Ended
	Sep. 29, 2020
Segment Information
Segment Information	15. Segment Information ​ Our operating segments, the businesses for which our management reviews discrete financial information for decision-making purposes, are comprised of The Cheesecake Factory, North Italia, Flower Child, the Other FRC brands, our bakery division and Grand Lux Cafe. 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, our bakery division and Grand Lux Cafe) along with our businesses that don’t qualify as operating segments, including RockSugar Southeast Asian Kitchen, Social Monk Asian Kitchen and our international business, are combined in Other. Unallocated corporate expenses, capital expenditures and assets, which were previously classified in a separate Corporate line, are also combined in Other. In addition, gift card costs, which were previously classified in The Cheesecake Factory restaurants reportable segment, are combined in Other. Corresponding prior year balances were reclassified to conform to the current year presentation. ​ Segment information is presented below (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ September 29, 2020 October 1, 2019 September 29, 2020 October 1, 2019 Revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 416,984 ​ $ 536,101 ​ $ 1,146,524 ​ $ 1,636,253 North Italia ​ ​ 27,990 ​ ​ — ​ ​ 72,262 ​ ​ — Other FRC ​ ​ 20,273 ​ ​ — ​ ​ 68,063 ​ ​ — Other ​ 52,469 ​ 50,435 ​ 141,824 ​ 152,409 Total ​ $ 517,716 ​ $ 586,536 ​ $ 1,428,673 ​ $ 1,788,662 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss/(income) from operations: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 18,836 ​ $ 64,254 ​ $ 31,208 ​ $ 203,803 North Italia ​ ​ (831) ​ ​ — ​ ​ (77,321) ​ ​ — Other FRC ​ (1,901) ​ — ​ (77,077) ​ — Other ​ (50,962) ​ (37,290) ​ (185,436) ​ (106,592) Total ​ $ (34,858) ​ $ 26,964 ​ $ (308,626) ​ $ 97,211 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 16,713 ​ $ 17,728 ​ $ 50,857 ​ $ 53,340 North Italia ​ ​ 901 ​ ​ — ​ ​ 2,767 ​ ​ — Other FRC ​ ​ 987 ​ ​ — ​ ​ 3,002 ​ ​ — Other ​ ​ 4,050 ​ ​ 3,614 ​ ​ 12,177 ​ ​ 11,023 Total ​ $ 22,651 ​ $ 21,342 ​ $ 68,803 ​ $ 64,363 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 6,575 ​ $ 16,149 ​ $ 27,289 ​ $ 42,880 North Italia ​ ​ (349) ​ ​ — ​ ​ 2,645 ​ ​ — Other FRC ​ 2,123 ​ — ​ 3,914 ​ — Other ​ 497 ​ 1,182 ​ 4,422 ​ 3,822 Total ​ $ 8,846 ​ $ 17,331 ​ $ 38,270 ​ $ 46,702 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preopening costs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 976 ​ $ 2,437 ​ $ 3,157 ​ $ 5,874 North Italia ​ ​ 631 ​ ​ — ​ ​ 1,895 ​ ​ — Other FRC ​ 306 ​ — ​ 527 ​ — Other ​ 481 ​ 109 ​ 2,031 ​ 977 Total ​ $ 2,394 ​ $ 2,546 ​ $ 7,610 ​ $ 6,851 ​ ​ ​ ​ ​ ​ ​ ​ ​ September 29, 2020 December 31, 2019 Total assets: (1) ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 1,639,811 ​ $ 1,701,418 North Italia ​ ​ 265,897 ​ ​ 297,840 Other FRC ​ 300,553 ​ 310,414 Other ​ 621,802 ​ 530,921 Total ​ $ 2,828,063 ​ $ 2,840,593 (1) During the thirteen weeks ended September 29, 2020, we recorded impairment of assets and lease termination expense of $10.4 million in the Other segment. During the thirty-nine weeks ended September 29, 2020, we recorded impairment of assets and lease termination expense of $3.0 million for The Cheesecake Factory restaurants, $71.5 million for North Italia, $72.9 million for Other FRC and $57.3 million for Other .

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 29, 2020
Subsequent Events
Subsequent Events	16. Subsequent Events ​ In October 2020, we repaid $96.0 million of our Facility, bringing our debt balance to $280.0 million. ​

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 29, 2020
Significant Accounting Policies
Basis of Presentation	Basis of Presentation ​ The accompanying condensed 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. The unaudited financial statements presented herein 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 that may be achieved 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 condensed 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, 2019 filed with the SEC on March 12, 2020, as amended on June 22, 2020 (“fiscal 2019 10-K”). ​ On October 2, 2019, we completed the acquisition of North Italia and the remaining business of Fox Restaurant Concepts LLC (“FRC”), including Flower Child and all other FRC brands (the "Acquisitions"). The results of operations, financial position and cash flows of the acquired businesses are included in our consolidated financial statements as of the acquisition date. ​ We utilize a 52/53-week fiscal year ending on the Tuesday closest to December 31 for financial reporting purposes. Fiscal 2020 consists of 52 weeks and will end on December 29, 2020. Fiscal 2019, which ended on December 31, 2019, was also a 52-week year. ​ Beginning with our fiscal 2019 10-K, we separately disclosed our acquisition-related costs on the consolidated statement of income. Corresponding balances for the thirteen and thirty-nine weeks ended October 1, 2019 were reclassified to conform to the current 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. ​
COVID-19 Pandemic	COVID-19 Pandemic ​ The Company is subject to risks and uncertainties as a result of the outbreak of, and local, state and federal governmental responses to, the COVID-19 pandemic which was declared a National Public Health Emergency on March 13, 2020. We have experienced significant disruptions to our business due to suggested and mandated social distancing and shelter-in-place orders, which resulted in the temporary closure of a number of restaurants across our portfolio while the remaining locations shifted to an off-premise only operating model on an interim basis. In late April 2020, certain jurisdictions began allowing the reopening of restaurant dining rooms, and we began to reopen dining rooms across our concepts the second week of May. However, restrictions on the type of operating model and occupancy capacity continue to change. The following table presents the number of restaurants and their operating model as of October 29, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake ​ ​ ​ ​ ​ ​ Factory ​ North Italia ​ Other FRC ​ Other ​ Total Indoor dining with limited capacity ​ 187 (1) 21 ​ 24 ​ 36 ​ 268 Outdoor only with social distancing ​ 17 ​ 2 ​ — ​ 1 ​ 20 Off-premise only ​ 1 ​ — ​ — ​ 1 ​ 2 Currently closed — — 1 4 5 Total 205 23 25 42 295 (1) On average, The Cheesecake Factory restaurants with reopened dining rooms were operating at 50% capacity. ​ In our initial response to the pandemic, the Company and its Board of Directors (the "Board") implemented the following measures to preserve liquidity and enhance financial flexibility: ​ ● Eliminated non-essential capital expenditures and expenses; ● Suspended new unit development; ● Reduced Board, executive and corporate support staff compensation; ● Furloughed approximately 41,000 hourly staff members; ● Engaged in discussions with our landlords regarding ongoing rent obligations, including the potential deferral, abatement and/or restructuring of rent otherwise payable during the period of the COVID-19 pandemic related closure; ● Increased borrowings under our revolving credit facility; ● Raised additional equity capital; and ● Suspended the dividend on our common stock and share repurchases. ​ During the third quarter of fiscal 2020, we called back to work a majority of our staff members who were previously furloughed, and restored Board, executive and corporate support staff compensation. In addition, we resumed new unit development on a limited basis and will continue to evaluate the pace and quantity of new unit development as more clarity on the restaurant industry operating environment emerges. ​ We cannot predict how long the COVID-19 pandemic will last or whether it will reoccur, what additional restrictions may be enacted, to what extent we can maintain off-premise sales volumes or if individuals will be comfortable returning to our dining rooms during or following social distancing protocols and what long-lasting effects the COVID-19 pandemic may have on the full-service segment of the restaurant industry. The extent of the reopening process, along with the potential impact of the COVID-19 pandemic on economic conditions and consumer spending behavior, will determine the significance of the impact to our operating results and financial position. ​ In the first quarter of fiscal 2020, these considerable developments triggered the need to perform impairment assessments of our long-lived assets, goodwill and other intangible assets and a revaluation of contingent consideration associated with the Acquisitions. No additional impairment assessments were required in the second or third quarters of fiscal 2020. Future changes in estimates could further impact the carrying value of these items. (See Notes 3 and 4 for further discussion of impairment of long-lived and intangible assets, respectively. See Note 9 for further discussion of the revaluation of contingent consideration.) ​ See “Risk Factors” included in Part II, Item 1A for further discussion of risks associated with the COVID-19 pandemic.
Derivative Financial Instruments	Derivative Financial Instruments ​ We recognize derivative financial instruments on the balance sheet at fair value under a Level 2 categorization. Our only derivative is an interest rate swap which is designated as a cash flow hedge. Therefore, the effective portion of the changes in fair value are recognized in accumulated other comprehensive income when the hedged item is recognized in earnings, and the ineffective portion of changes in the fair value are immediately recognized in earnings as interest expense. We classify cash inflows and outflows from derivatives within operating activities on the consolidated statements of cash flows. See Note 8 for further discussion of this interest rate swap.
Recent Accounting Pronouncements	Recent Accounting Pronouncements ​ In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update eliminates, adds and modifies certain disclosure requirements for fair value measurements. We adopted this standard as of the beginning of fiscal 2020 and such adoption did not have a significant impact on our consolidated financial statements. ​ In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which is intended to simplify the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity's own equity. This pronouncement is effective for fiscal years beginning after December 15, 2021 and early adoption is permitted. The guidance allows for either full retrospective adoption or modified retrospective adoption. We plan to adopt this pronouncement for our fiscal year beginning December 30, 2020 utilizing the modified retrospective method. Depending on the future value of our stock price, the adoption of this standard could have a material impact on our additional paid-in capital and retained earnings balances due to the elimination of the beneficial conversion feature provision.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 29, 2020
Significant Accounting Policies
Schedule of number of restaurants operating under each construct	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake ​ ​ ​ ​ ​ ​ Factory ​ North Italia ​ Other FRC ​ Other ​ Total Indoor dining with limited capacity ​ 187 (1) 21 ​ 24 ​ 36 ​ 268 Outdoor only with social distancing ​ 17 ​ 2 ​ — ​ 1 ​ 20 Off-premise only ​ 1 ​ — ​ — ​ 1 ​ 2 Currently closed — — 1 4 5 Total 205 23 25 42 295 (1) On average, The Cheesecake Factory restaurants with reopened dining rooms were operating at 50% capacity.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 29, 2020
Inventories
Schedule of inventories	Inventories consisted of (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 29, 2020 December 31, 2019 Restaurant food and supplies ​ $ 23,921 ​ $ 25,057 Bakery finished goods and work in progress ​ 7,183 ​ 16,000 Bakery raw materials and supplies ​ 6,623 ​ 6,168 Total ​ $ 37,727 ​ $ 47,225

Intangible Assets, net (Tables)

Intangible Assets, net (Tables)	9 Months Ended
	Sep. 29, 2020
Intangible Assets, net
Schedule of components of intangible assets, net	The following table presents the components of our intangible assets, net (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ September 29, 2020 December 31, 2019 Indefinite-lived intangible assets: ​ ​ ​ ​ Goodwill ​ $ 1,451 ​ $ 78,355 Trade names and trademarks ​ 233,628 ​ 337,027 Transferable alcoholic beverage licenses ​ 7,871 ​ 8,575 Total indefinite-lived intangible assets ​ 242,950 ​ 423,957 Definite-lived intangible assets, net: ​ ​ ​ Licensing agreements ​ 7,382 ​ 10,060 Non-transferable alcoholic beverage licenses ​ 3,245 ​ 3,190 Total definite-lived intangible assets ​ 10,627 ​ 13,250 Total intangible assets, net ​ $ 253,577 ​ $ 437,207

Gift Cards (Tables)

Gift Cards (Tables)	9 Months Ended
	Sep. 29, 2020
Gift Cards
Schedule of gift card liabilities	The following tables present information related to gift cards (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ September 29, 2020 October 1, 2019 September 29, 2020 October 1, 2019 Gift card liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 162,241 ​ $ 142,361 ​ $ 187,978 ​ $ 172,336 Activations ​ 23,056 ​ 21,577 ​ 57,162 ​ 70,949 Redemptions and breakage ​ (29,811) ​ (28,372) ​ (89,654) ​ (107,719) Ending balance ​ $ 155,486 ​ $ 135,566 ​ $ 155,486 ​ $ 135,566
Schedule of gift card contract assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ September 29, 2020 October 1, 2019 September 29, 2020 October 1, 2019 Gift card contract assets: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 18,255 ​ $ 20,092 ​ $ 23,172 ​ $ 23,388 Deferrals ​ 1,819 ​ 2,929 ​ 5,944 ​ 8,993 Amortization ​ (4,317) ​ (4,689) ​ (13,359) ​ (14,049) Ending balance ​ $ 15,757 ​ $ 18,332 ​ $ 15,757 ​ $ 18,332 (1) Included in prepaid expenses on the consolidated balance sheets.

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 29, 2020
Leases
Schedule of components for lease expense	Components of lease expense were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ September 29, 2020 ​ October 1, 2019 ​ September 29, 2020 ​ October 1, 2019 Operating ​ $ 31,267 ​ $ 26,270 ​ $ 97,222 ​ $ 77,875 Variable ​ 15,304 ​ 15,768 ​ ​ 42,292 ​ ​ 48,529 Short-term ​ 93 ​ 81 ​ ​ 346 ​ ​ 234 Total ​ $ 46,664 ​ $ 42,119 ​ $ 139,860 ​ $ 126,638
Schedule of supplemental cash flow information related to leases	Supplemental cash flow information related to leases (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Thirty-Nine ​ ​ ​ September 29, 2020 ​ October 1, 2019 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 85,076 ​ $ 73,163 ​ Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ 46,068 ​ ​ 35,271 ​

Derivative (Tables)

Derivative (Tables)	9 Months Ended
	Sep. 29, 2020
Derivative
Schedule of changes in AOCL, net of tax, related to the interest rate swap	The following table summarizes the changes in AOCL, net of tax, related to the interest rate swap (in thousands): ​ ​ ​ ​ ​ Balance, December 31, 2019 $ — Other comprehensive loss before reclassifications ​ (4,726) Amounts reclassified from AOCL ​ 667 Other comprehensive loss, net of tax ​ (4,059) Balance, September 29, 2020 ​ $ (4,059)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 29, 2020
Fair Value Measurements
Schedule of fair value of assets and liabilities measured on 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 29, 2020 ​ Level 1 Level 2 Level 3 Assets (Liabilities) ​ ​ ​ ​ ​ ​ Non-qualified deferred compensation assets ​ $ 76,940 ​ $ — ​ $ — Non-qualified deferred compensation liabilities ​ (77,183) ​ — ​ — Interest rate swap ​ — ​ (5,381) ​ — Acquisition-related deferred consideration ​ — ​ (55,133) ​ — Acquisition-related contingent consideration and compensation liabilities ​ — ​ — ​ (7,643) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2019 ​ Level 1 Level 2 Level 3 Assets (Liabilities) ​ ​ ​ ​ ​ ​ Non-qualified deferred compensation assets ​ $ 77,228 ​ $ — ​ $ — Non-qualified deferred compensation liabilities ​ (76,255) ​ — ​ — Acquisition-related deferred consideration ​ — ​ (53,933) ​ — Acquisition-related contingent consideration and compensation liabilities ​ — ​ — ​ (13,218)
Schedule of fair value of the acquisition-related contingent consideration	​ ​ ​ ​ ​ Balance, December 31, 2019 $ 13,218 Change in fair value ​ (5,575) Balance, September 29, 2020 ​ $ 7,643

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 29, 2020
Stock-Based Compensation
Schedule of information related to stock-based compensation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ September 29, 2020 October 1, 2019 September 29, 2020 October 1, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Labor expenses ​ $ 1,868 ​ $ 1,742 ​ $ 5,761 ​ $ 5,184 Other operating costs and expenses ​ 70 ​ 68 ​ 209 ​ 204 General and administrative expenses ​ 2,979 ​ 2,837 ​ 9,563 ​ 9,747 Total stock-based compensation ​ 4,917 ​ 4,647 ​ 15,533 ​ 15,135 Income tax benefit ​ 1,208 ​ 1,141 ​ 3,815 ​ 3,719 Total stock-based compensation, net of taxes ​ $ 3,709 ​ $ 3,506 ​ $ 11,718 ​ $ 11,416 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized stock-based compensation (1) ​ $ 52 ​ $ 52 ​ $ 143 ​ $ 166 (1) It is our policy to capitalize the portion of stock-based compensation costs for our internal development department that relates to capitalizable activities such as the design and construction of new restaurants, remodeling existing locations and equipment installation. Capitalized stock-based compensation is included in property and equipment, net on the consolidated balance sheets.
Schedule of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ Weighted- ​ Remaining ​ ​ ​ ​ ​ ​ ​ Average ​ Contractual ​ Aggregate ​ ​ Shares ​ Exercise Price ​ Term ​ Intrinsic Value (1) ​ ​ (In thousands) ​ (Per share) ​ (In years) ​ (In thousands) Outstanding at December 31, 2019 1,829 ​ $ 47.32 4.3 ​ $ 844 Granted 654 ​ 40.16 ​ ​ ​ ​ ​ Exercised (4) ​ 29.79 ​ ​ ​ ​ ​ Forfeited or cancelled (118) ​ 47.15 ​ ​ ​ ​ ​ Outstanding at September 29, 2020 2,361 ​ $ 45.38 5.1 ​ $ 8,701 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at September 29, 2020 1,188 ​ $ 46.74 2.5 ​ $ 4,986 (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.
Schedule of restricted share and restricted share unit activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ Average ​ Shares Fair Value ​ ​ (In thousands) ​ (Per share) Outstanding at December 31, 2019 1,764 ​ $ 47.76 Granted 588 ​ 39.74 Vested (285) ​ 49.94 Forfeited (182) ​ 49.13 Outstanding at September 29, 2020 1,885 ​ $ 44.79

Net (Loss)_Income Per Share (Ta

Net (Loss)/Income Per Share (Tables)	9 Months Ended
	Sep. 29, 2020
Net (Loss)/Income Per Share
Schedule of basic and diluted net income per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ Thirteen ​ Thirty-Nine ​ Thirty-Nine ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ September 29, 2020 October 1, 2019 September 29, 2020 October 1, 2019 ​ ​ (In thousands, except per share data) Basic net (loss)/income per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss)/income ​ $ (28,346) ​ $ 16,090 ​ $ (221,048) ​ $ 78,584 Dividends on preferred stock ​ (4,838) ​ — ​ (8,532) ​ — Direct and incremental preferred stock issuance costs ​ — ​ — ​ (10,257) ​ — Net (loss)/income available to common stockholders ​ (33,184) ​ 16,090 ​ (239,837) ​ 78,584 Basic weighted-average shares outstanding ​ ​ 43,900 ​ ​ 43,682 ​ ​ 43,849 ​ ​ 44,034 Basic net (loss)/income per common share ​ $ (0.76) ​ $ 0.37 ​ $ (5.47) ​ $ 1.78 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net (loss)/income per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss)/income available to common stockholders ​ ​ (33,184) ​ ​ 16,090 ​ ​ (239,837) ​ ​ 78,584 Basic weighted-average shares outstanding ​ ​ 43,900 ​ ​ 43,682 ​ ​ 43,849 ​ ​ 44,034 Dilutive effect of equity awards (1) ​ ​ — ​ ​ 504 ​ ​ — ​ ​ 609 Diluted weighted-average shares outstanding ​ ​ 43,900 ​ ​ 44,186 ​ ​ 43,849 ​ ​ 44,643 Diluted net (loss)/income per common share ​ $ (0.76) ​ $ 0.36 ​ $ (5.47) ​ $ 1.76 (1) Shares of common stock equivalents of 4.0 million and 2.1 million as of September 29, 2020 and October 1, 2019, respectively, were excluded from the diluted calculation due to their anti-dilutive effect.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 29, 2020
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 29, 2020 October 1, 2019 September 29, 2020 October 1, 2019 Revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 416,984 ​ $ 536,101 ​ $ 1,146,524 ​ $ 1,636,253 North Italia ​ ​ 27,990 ​ ​ — ​ ​ 72,262 ​ ​ — Other FRC ​ ​ 20,273 ​ ​ — ​ ​ 68,063 ​ ​ — Other ​ 52,469 ​ 50,435 ​ 141,824 ​ 152,409 Total ​ $ 517,716 ​ $ 586,536 ​ $ 1,428,673 ​ $ 1,788,662 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss/(income) from operations: (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 18,836 ​ $ 64,254 ​ $ 31,208 ​ $ 203,803 North Italia ​ ​ (831) ​ ​ — ​ ​ (77,321) ​ ​ — Other FRC ​ (1,901) ​ — ​ (77,077) ​ — Other ​ (50,962) ​ (37,290) ​ (185,436) ​ (106,592) Total ​ $ (34,858) ​ $ 26,964 ​ $ (308,626) ​ $ 97,211 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 16,713 ​ $ 17,728 ​ $ 50,857 ​ $ 53,340 North Italia ​ ​ 901 ​ ​ — ​ ​ 2,767 ​ ​ — Other FRC ​ ​ 987 ​ ​ — ​ ​ 3,002 ​ ​ — Other ​ ​ 4,050 ​ ​ 3,614 ​ ​ 12,177 ​ ​ 11,023 Total ​ $ 22,651 ​ $ 21,342 ​ $ 68,803 ​ $ 64,363 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 6,575 ​ $ 16,149 ​ $ 27,289 ​ $ 42,880 North Italia ​ ​ (349) ​ ​ — ​ ​ 2,645 ​ ​ — Other FRC ​ 2,123 ​ — ​ 3,914 ​ — Other ​ 497 ​ 1,182 ​ 4,422 ​ 3,822 Total ​ $ 8,846 ​ $ 17,331 ​ $ 38,270 ​ $ 46,702 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preopening costs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 976 ​ $ 2,437 ​ $ 3,157 ​ $ 5,874 North Italia ​ ​ 631 ​ ​ — ​ ​ 1,895 ​ ​ — Other FRC ​ 306 ​ — ​ 527 ​ — Other ​ 481 ​ 109 ​ 2,031 ​ 977 Total ​ $ 2,394 ​ $ 2,546 ​ $ 7,610 ​ $ 6,851 ​ ​ ​ ​ ​ ​ ​ ​ ​ September 29, 2020 December 31, 2019 Total assets: (1) ​ ​ ​ ​ ​ ​ The Cheesecake Factory restaurants ​ $ 1,639,811 ​ $ 1,701,418 North Italia ​ ​ 265,897 ​ ​ 297,840 Other FRC ​ 300,553 ​ 310,414 Other ​ 621,802 ​ 530,921 Total ​ $ 2,828,063 ​ $ 2,840,593 (1) During the thirteen weeks ended September 29, 2020, we recorded impairment of assets and lease termination expense of $10.4 million in the Other segment. During the thirty-nine weeks ended September 29, 2020, we recorded impairment of assets and lease termination expense of $3.0 million for The Cheesecake Factory restaurants, $71.5 million for North Italia, $72.9 million for Other FRC and $57.3 million for Other .

Significant Accounting Polici_4

Significant Accounting Policies - Basis of Presentation (Details)	9 Months Ended	12 Months Ended
	Sep. 29, 2020	Dec. 31, 2019	Oct. 29, 2020
Significant Accounting Policies
Length of fiscal year	364 days	364 days
Operating capacity of reopened dinning rooms (in percentage)			50.00%

Significant Accounting Polici_5

Significant Accounting Policies - Covid-19 Pandemic (Details)	9 Months Ended
	Sep. 29, 2020person	Oct. 29, 2020
Number of hourly staff members furloughed due to COVID 19	41,000
Subsequent Events
Indoor dining with limited capacity		268
Outdoor only with social distancing		20
Off-premise only		2
Currently closed		5
Total		295
Subsequent Events | The Cheesecake Factory restaurants
Indoor dining with limited capacity		187
Outdoor only with social distancing		17
Off-premise only		1
Total		205
Subsequent Events | North Italia
Indoor dining with limited capacity		21
Outdoor only with social distancing		2
Total		23
Subsequent Events | Other FRC
Indoor dining with limited capacity		24
Currently closed		1
Total		25
Subsequent Events | Other
Indoor dining with limited capacity		36
Outdoor only with social distancing		1
Off-premise only		1
Currently closed		4
Total		42

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 29, 2020	Dec. 31, 2019
Inventory [Line Items]
Restaurant food and supplies	$ 23,921	$ 25,057
Bakery finished goods and work in progress	7,183	16,000
Bakery raw materials and supplies	6,623	6,168
Total	$ 37,727	$ 47,225

Impairment of Long-Lived Asse_2

Impairment of Long-Lived Assets (Details) $ in Millions	9 Months Ended
	Sep. 29, 2020USD ($)
Impairment of Long-Lived Assets
Impairment Expense	$ 8.9

Intangible Assets, net (Details

Intangible Assets, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Sep. 29, 2020	Dec. 31, 2019
Other intangible assets
Total indefinite-lived intangible assets		$ 242,950	$ 423,957
Total definite-lived intangible assets		10,627	13,250
Total intangible assets, net		253,577	437,207
Licensing agreements
Other intangible assets
Total definite-lived intangible assets		7,382	10,060
Impairment expense of Intangible assets	$ 2,300
Non-transferable alcoholic beverage licenses
Other intangible assets
Total definite-lived intangible assets		3,245	3,190
Goodwill
Other intangible assets
Total indefinite-lived intangible assets		1,451	78,355
Trade names and trademarks
Other intangible assets
Total indefinite-lived intangible assets		233,628	337,027
Goodwill, Impairment Loss	2,500
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	101,000
Transferable alcoholic beverage licenses
Other intangible assets
Total indefinite-lived intangible assets		$ 7,871	$ 8,575
Other FRC | Goodwill
Other intangible assets
Goodwill, Impairment Loss	33,800
North Italia | Goodwill
Other intangible assets
Goodwill, Impairment Loss	27,700
Flower Child | Goodwill
Other intangible assets
Goodwill, Impairment Loss	$ 17,900

Gift Cards (Details)

Gift Cards (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
Gift card liabilities:
Beginning balance	$ 162,241	$ 142,361	$ 187,978	$ 172,336
Activations	23,056	21,577	57,162	70,949
Redemptions and breakage	(29,811)	(28,372)	(89,654)	(107,719)
Ending balance	155,486	135,566	155,486	135,566
Gift card contract assets:
Beginning balance	18,255	20,092	23,172	23,388
Deferrals	1,819	2,929	5,944	8,993
Amortization	(4,317)	(4,689)	(13,359)	(14,049)
Ending balance	$ 15,757	$ 18,332	$ 15,757	$ 18,332

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
Leases
Operating	$ 31,267	$ 26,270	$ 97,222	$ 77,875
Variable	15,304	15,768	42,292	48,529
Short-term	93	81	346	234
Total	$ 46,664	$ 42,119	139,860	126,638
Lessee Operating Lease Description
Operating cash flows from operating leases			85,076	73,163
Right-of-use assets obtained in exchange for new operating lease liabilities			$ 46,068	$ 35,271

Long-Term Debt (Details)

Long-Term Debt (Details)	Jun. 29, 2021USD ($)	Feb. 28, 2021USD ($)	Sep. 29, 2020USD ($)	Oct. 31, 2020USD ($)	May 01, 2020USD ($)	Apr. 30, 2020USD ($)	Jul. 30, 2019USD ($)
Long-Term Debt
Maximum commitments					$ 125,000,000	$ 200,000,000
Outstanding letters of credit			$ 23,400,000
Net availability for borrowings			$ 0.6
Net Adjusted Leverage Ratio			376
Liquidity Balance			$ 242,700,000
Subsequent Events
Long-Term Debt
Minimum Amount of Liquidity to be Maintained at the End of Each Calendar Month		$ 65,000,000
Maximum Limit of Capital Expenditure	$ 90,000,000
New Facility
Long-Term Debt
Maximum commitments							$ 400,000,000
Maximum commitments, letter of credit sub-facility							$ 40,000,000
New Facility | Subsequent Events
Long-Term Debt
Outstanding debt				$ 280,000,000
New Facility | Maximum
Long-Term Debt
Financial covenant, Net Adjusted Leverage Ratio			4.75
New Facility | Minimum
Long-Term Debt
Financial covenant, EBITDAR Ratio			1.9
New Facility | Adjusted LIBO Rate
Long-Term Debt
Debt Instrument, Basis Spread on Variable Rate			2.50%
Credit facility, basis spread on variable rate, (as a percent)			2.50%
Commitment fee (as a percent)			0.40%
New Facility | Federal Funds Effective Rate
Long-Term Debt
Debt Instrument, Basis Spread on Variable Rate			0.50%
Credit facility, floating interest rate basis			federal funds rate
Credit facility, basis spread on variable rate, (as a percent)			0.50%
New Facility | Base Rate Member
Long-Term Debt
Debt Instrument, Basis Spread on Variable Rate			1.50%
Credit facility, basis spread on variable rate, (as a percent)			1.50%
New Facility | One-month Adjusted LIBO Rate
Long-Term Debt
Debt Instrument, Basis Spread on Variable Rate			1.00%
Credit facility, floating interest rate basis			one-month Adjusted LIBO Rate
Credit facility, basis spread on variable rate, (as a percent)			1.00%

Derivative (Details)

Derivative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 29, 2020	Sep. 29, 2020	Apr. 01, 2025	Mar. 31, 2023	Mar. 13, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amounts reclassified from AOCL	$ 500	$ 700
Interest rate swap agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fixed interest rate					0.802%
Fair value of derivative liability	$ 5,400	5,400
Gain (Loss) on Components Excluded from Assessment of Interest Rate Fair Value Hedge Effectiveness		$ 0
Subsequent Events | Interest rate swap agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount			$ 140,000	$ 280,000

Derivative - Changes in AOCL, n

Derivative - Changes in AOCL, net of tax (Details) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 29, 2020	Sep. 29, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 351,929	$ 571,742
Amounts reclassified from AOCL	500	700
Ending balance	322,276	322,276
Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(4,804)	(435)
Ending balance	(4,841)	(4,841)
Interest rate swap agreement | Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance		0
Other comprehensive loss before reclassifications		(4,726)
Amounts reclassified from AOCL		667
Other comprehensive loss, net of tax		(4,059)
Ending balance	$ (4,059)	$ (4,059)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 29, 2020	Dec. 31, 2019
Level 1
Assets (Liabilities) at fair value
Non-qualified deferred compensation assets	$ 76,940	$ 77,228
Non-qualified deferred compensation liabilities	(77,183)	(76,255)
Level 2
Assets (Liabilities) at fair value
Interest rate swap	(5,381)
Acquisition-related deferred consideration	(55,133)	(53,933)
Level 3
Assets (Liabilities) at fair value
Acquisition-related contingent consideration and compensation liabilities	(7,643)	$ (13,218)
Payment Acquisition-related contingent consideration and compensation liabilities	0
Level 3 | Minimum
Assets (Liabilities) at fair value
Undiscounted range of out comes	0
Level 3 | Maximum
Assets (Liabilities) at fair value
Undiscounted range of out comes	$ 35,600

Fair Value Measurements - Begin

Fair Value Measurements - Beginning and ending amounts of the fair value (Details) - Level 3 $ in Thousands	9 Months Ended
	Sep. 29, 2020USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance, December 31, 2019	$ 13,218
Change in fair value	(5,575)
Balance, September 29, 2020	$ 7,643

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Jun. 22, 2018USD ($)	Jun. 07, 2018USD ($)restaurant
Commitments and Contingencies
Number of restaurants receiving janitorial services | restaurant		8
Wage citation		$ 4.2
Internal Revenue Service
Commitments and Contingencies
Tax disallowance	$ 8

Stockholders' Equity and Conv_2

Stockholders' Equity and Convertible Preferred Stock (Details)	Apr. 20, 2020USD ($)$ / sharesshares	Sep. 29, 2020USD ($)$ / sharesshares	Jun. 30, 2020USD ($)shares	Mar. 31, 2020USD ($)$ / shares	Oct. 01, 2019USD ($)$ / shares	Jul. 02, 2019USD ($)$ / shares	Apr. 02, 2019USD ($)$ / shares	Sep. 29, 2020USD ($)item$ / sharesshares	Dec. 31, 2019USD ($)shares
Stockholders Equity
Cash dividends declared per common share (in dollars per share) | $ / shares				$ 0.36	$ 0.33	$ 0.33	$ 0.33
Repurchased shares since program inception | shares		53,015,995						53,015,995	52,916,434
Value of shares repurchased since program inception		$ 1,696,364,000						$ 1,696,364,000	$ 1,693,122,000
Treasury stock repurchased during period		390,000	$ 266,000	$ 2,586,000	$ 11,397,000	$ 28,093,000	$ 11,071,000
Purchase Price								200,000,000
Number of shares issued (in shares) | shares			200,000
Value of shares issued			$ 189,743,000
Preferred stock direct costs			(10,257,000)					$ 10,257,000
Dividends paid in-kind		$ 5,847,000	4,079,000
Treasury Stock
Stockholders Equity
Number of shares authorized to be repurchased | shares		56,000,000						56,000,000
Repurchased shares since program inception | shares		53,000,000						53,000,000
Value of shares repurchased since program inception		$ 1,696,400,000						$ 1,696,400,000
Shares repurchased during period | shares		12,567,000
Treasury stock repurchased during period		$ 400,000
Series A Convertible Preferred Stock
Stockholders Equity
Number of shares issued (in shares) | shares	200,000,000
Value of shares issued	$ 200
Price per share (in dollars per share) | $ / shares	$ 1,000
Preferred stock direct costs	$ 10,300,000
Liquidation Preference (in dollars per share) | $ / shares		$ 1,042.22						$ 1,042.22
Dividend rate (as a percent)								9.50%
Dividends paid in-kind		$ 4,800,000						$ 8,500,000
Conversion price (in dollars per share) | $ / shares								$ 22.23
Number of common shares that would be required to be issued upon conversion | shares								9.4
Beneficial ownership (as a percent)								19.90%
Threshold trading days for conversion of preferred stock | item								20
Preferred Stock, Convertible, Threshold Consecutive Trading Days | item								30
Preferred Stock, Convertible, Closing Price Of Common Stock, Percent								200.00%
Beneficial conversion feature		$ 1,300,000	$ 100,000
Series A Convertible Preferred Stock | April 21, 2025 and April 19, 2026
Stockholders Equity
Redemption rate (as a percent)								1.20%
Series A Convertible Preferred Stock | At any time beginning on April 20, 2026
Stockholders Equity
Redemption rate (as a percent)								100.00%

Stock-Based Compensation - Net

Stock-Based Compensation - Net of Tax (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019
Stock-Based Compensation
Total stock-based compensation	$ 4,917	$ 4,647	$ 15,533	$ 15,135
Income tax benefit	1,208	1,141	3,815	3,719
Total stock-based compensation, net of taxes	3,709	3,506	11,718	11,416
Capitalized stock-based compensation	52	52	143	166
Labor expenses
Stock-Based Compensation
Total stock-based compensation	1,868	1,742	5,761	5,184
Other operating costs and expenses
Stock-Based Compensation
Total stock-based compensation	70	68	209	204
General and administrative expenses
Stock-Based Compensation
Total stock-based compensation	$ 2,979	$ 2,837	$ 9,563	$ 9,747

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Fair Value (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019	Dec. 31, 2019
Stock Options
Stock option activity, Shares
Outstanding at beginning of year (in shares)			1,829
Granted (in shares)			654
Exercised (in shares)	0		(4)
Forfeited or cancelled (in shares)			(118)
Outstanding at end of the period (in shares)	2,361		2,361		1,829
Exercisable at end of the period (in shares)	1,188		1,188
Weighted Average Exercise Price
Outstanding at beginning of year (in dollars per share)			$ 47.32
Granted (in dollars per share)			40.16
Exercised (in dollars per share)			29.79
Forfeited or cancelled (in dollars per share)			47.15
Outstanding at end of the period (in dollars per share)	$ 45.38		45.38		$ 47.32
Exercisable at end of the period (in dollars per share)	$ 46.74		$ 46.74
Weighted Average Remaining Contractual Term (In years)
Weighted Average Remaining Contractual Term (In years)			5 years 1 month 6 days		4 years 3 months 18 days
Exercisable at end of the period (In years)			2 years 6 months
Aggregate Intrinsic Value
Outstanding at beginning of year			$ 844
Outstanding at end of the period	$ 8,701		8,701		$ 844
Exercisable at end of the period	$ 4,986		4,986
Shares issued during the period	0	0
Total intrinsic value of options exercised		$ 100	35,606	$ 3,700
Unrecognized Stock-based Compensation Expense
Total unrecognized stock-based compensation expenses related to unvested stock options, restricted shares and restricted share units	$ 7,500		$ 7,500
Expected weighted average period for recognition of compensation expense related to unvested stock option			3 years 7 months 6 days
Restricted Shares and Restricted Share Units
Restricted Shares and Restricted Share Units, Shares
Outstanding at beginning of year (in shares)			1,764
Granted (in shares)			588
Vested (in shares)			(285)
Forfeited (in shares)			(182)
Outstanding at end of the period (in shares)	1,885		1,885		1,764
Fair value of shares vested	$ 1,800	$ 1,900	$ 14,200	$ 14,300
Weighted Average Fair Value
Outstanding at beginning of year (in dollars per share)			$ 47.76
Granted (in dollars per share)	$ 24	$ 44.24	39.74
Vested (in dollars per share)			49.94
Forfeited (in dollars per share)			49.13
Outstanding at end of the period (in dollars per share)	$ 44.79		$ 44.79		$ 47.76
Unrecognized Stock-based Compensation Expense
Total unrecognized stock-based compensation expenses related to unvested stock options, restricted shares and restricted share units	$ 34,300		$ 34,300
Expected weighted average period for recognition of compensation expense related to unvested stock option			3 years

Income and Payroll Taxes (Detai

Income and Payroll Taxes (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Dec. 29, 2020	Dec. 31, 2019
Income Taxes
Cash refunds of carryback claims	$ 40
Payroll tax expense	8.5
Deferred payroll taxes	$ 20.5
U.S. federal statutory rate (as a percent)			21.00%	35.00%
Benefits reflected in annual effective tax rate (as percent)			14.00%
Tax credit carryforwards Period	20 years
Tax credit carryforwards			$ 36	$ 14.3
Deferred tax asset, impairment of goodwill	$ 16.4
Effective tax rate (as a percent)	30.00%	6.20%

Net (Loss)_Income Per Share (De

Net (Loss)/Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 29, 2020	Jun. 30, 2020	Mar. 31, 2020	Oct. 01, 2019	Jul. 02, 2019	Apr. 02, 2019	Sep. 29, 2020	Oct. 01, 2019
Basic net (loss)/income per common share:
Net (loss)/income	$ (28,346)	$ (56,539)	$ (136,163)	$ 16,090	$ 35,510	$ 26,984	$ (221,048)	$ 78,584
Dividends on preferred stock	(4,838)						(8,532)
Direct and incremental preferred stock issuance costs		$ 10,257					(10,257)
Net (loss)/income available to common stockholders	$ (33,184)			$ 16,090			$ (239,837)	$ 78,584
Basic weighted-average shares outstanding	43,900			43,682			43,849	44,034
Basic net (loss)/income per common share	$ (0.76)			$ 0.37			$ (5.47)	$ 1.78
Diluted net (loss)/income per common share:
Net (loss)/income available to common stockholders	$ (33,184)			$ 16,090			$ (239,837)	$ 78,584
Basic weighted-average shares outstanding	43,900			43,682			43,849	44,034
Dilutive effect of equity awards (1)				504				609
Diluted weighted-average shares outstanding	43,900			44,186			43,849	44,643
Diluted net (loss)/income per common share	$ (0.76)			$ 0.36			$ (5.47)	$ 1.76

Net (Loss)_Income Per Share - A

Net (Loss)/Income Per Share - Additional Information (Details) - shares shares in Thousands	Sep. 29, 2020	Oct. 01, 2019	Oct. 01, 2019	Oct. 01, 2019
Net income per share, basic and diluted
Dilutive effect of equity awards (in shares)			504	609
Restricted Shares and Restricted Share Units
Net Income Per Share
Antidilutive securities excluded from calculation of basic earnings per share (in shares)	1,900	1,800
Common Stock
Net income per share, basic and diluted
Dilutive effect of equity awards (in shares)	4,000	2,100

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2020	Oct. 01, 2019	Sep. 29, 2020	Oct. 01, 2019	Dec. 31, 2019
Segment Information
Revenues	$ 517,716	$ 586,536	$ 1,428,673	$ 1,788,662
Loss/(income) from operations	(34,858)	26,964	(308,626)	97,211
Depreciation and amortization	22,651	21,342	68,803	64,363
Preopening costs	2,394	2,546	7,610	6,851
Capital expenditures	8,846	17,331	38,270	46,702
Total assets	2,828,063		2,828,063		$ 2,840,593
The Cheesecake Factory restaurants
Segment Information
Revenues	416,984	536,101	1,146,524	1,636,253
Loss/(income) from operations	18,836	64,254	31,208	203,803
Depreciation and amortization	16,713	17,728	50,857	53,340
Preopening costs	976	2,437	3,157	5,874
Capital expenditures	6,575	16,149	27,289	42,880
Total assets	1,639,811		1,639,811		1,701,418
Pre-tax impairment expense			3,000
North Italia
Segment Information
Revenues	27,990		72,262
Loss/(income) from operations	(831)		(77,321)
Depreciation and amortization	901		2,767
Preopening costs	631		1,895
Capital expenditures	(349)		2,645
Total assets	265,897		265,897		297,840
Pre-tax impairment expense			71,500
Other FRC
Segment Information
Revenues	20,273		68,063
Loss/(income) from operations	(1,901)		(77,077)
Depreciation and amortization	987		3,002
Preopening costs	306		527
Capital expenditures	2,123		3,914
Total assets	300,553		300,553		310,414
Pre-tax impairment expense			72,900
Other
Segment Information
Revenues	52,469	50,435	141,824	152,409
Loss/(income) from operations	(50,962)	(37,290)	(185,436)	(106,592)
Depreciation and amortization	4,050	3,614	12,177	11,023
Preopening costs	481	109	2,031	977
Capital expenditures	497	$ 1,182	4,422	$ 3,822
Total assets	621,802		621,802		$ 530,921
Pre-tax impairment expense	$ 10,400		$ 57,300

Subsequent Events (Details)

Subsequent Events (Details) - New Facility - Subsequent Events $ in Millions	1 Months Ended
	Oct. 31, 2020USD ($)
Subsequent Events
Repayment of debt	$ 96
Outstanding debt	$ 280