The Cheesecake Factory Incorporated (CAKE) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

PRESS RELEASE

THE CHEESECAKE FACTORY REPORTS RECORD FINANCIAL RESULTS
FOR THE SECOND QUARTER ENDED JUNE 28, 2005

FOR IMMEDIATE RELEASE	CONTACT: JANE VALLAIRE
	(818) 871-3000

          Calabasas Hills, CA    July 19, 2005 – The Cheesecake Factory Incorporated (Nasdaq: CAKE) today reported record financial results for the second quarter of fiscal 2005 that ended on June 28, 2005.  Highlights for the second quarter, compared to the same quarter last year, are as follows:

• Total revenues up 23% to $288.3 million

• Operating income up 31% to $34.6 million

• Net income up 32% to $23.3 million

• Diluted net income per share up 32% to $0.29

          “We are very pleased with our record financial results for the second quarter,” said David Overton, Chairman and CEO.  “Comparable sales at The Cheesecake Factory restaurants increased 1.7% in spite of the shift of the Easter holiday from the second quarter of fiscal 2004 to the first quarter of fiscal 2005.  We estimate comparable sales would have increased approximately 2.2% without the impact of the Easter holiday shift, or approximately equal to our effective menu price increase.  We also achieved record net income and earnings per share by combining our strong sales with the improved commodity cost environment relative to the prior year.”

          “We continue to be very pleased with sales at our Grand Lux Cafe locations with a comparable sales increase of approximately 3.6%,” added Overton. “In addition, the strong sales at our two newest locations in Dallas and Houston and the improving margins at all Grand Lux Cafe locations gives us considerable confidence as we continue to grow this concept.”

          “We are on track with our stated goal of opening as many as 18 restaurants in the current year, including two Grand Lux Cafes,” stated Overton.  Seven new Cheesecake Factory restaurants have opened so far this fiscal year, including one in the second quarter in Burlington, Massachusetts and the most recent opening in Westlake, Ohio.  Two additional restaurant openings are currently planned for the third quarter and nine openings, including two Grand Lux Cafes, are currently scheduled for the fourth quarter.  “We are very excited about our planned openings for the second half of the year which include several new markets for us, such as Louisville, Kentucky and Portland, Oregon, as well as Grand Lux Cafes in Long Island, New York and Sunrise, Florida,” commented Overton.  “While our scheduled restaurant openings are weighted toward the back-half of the year due to the nature of the locations we choose, we remain confident in our ability to achieve our full-year restaurant growth plan for 2005 and we are operationally ready to successfully execute those openings.”

The Cheesecake Factory Incorporated

26950 Agoura Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000 • Fax (818) 871-3100

          The Cheesecake Factory Incorporated operates 94 upscale, casual dining restaurants under The Cheesecake Factory® name that offer an extensive menu of more than 200 items with an average check of approximately $16.60.  The Company also operates a bakery production facility that produces over 50 varieties of quality cheesecakes and other baked products for the Company’s restaurants and for other leading foodservice operators, retailers and distributors.  Additionally, the Company operates five upscale casual dining restaurants under the Grand Lux Cafe® name; one self-service, limited menu “express” foodservice operation under The Cheesecake Factory Express® mark inside the DisneyQuest® family entertainment center in Orlando, Florida; and licenses two bakery cafe outlets to another foodservice operator under The Cheesecake Factory Bakery Cafe® name.

          This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements.  Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements.  In particular, forward-looking statements regarding the Company’s restaurant sales trends are subject to risks and uncertainties due to national and regional economic and public safety conditions that impact consumer confidence and spending, as well as weather and other factors outside of the Company’s control.  Forward-looking statements regarding bakery sales are subject to a number of risks and uncertainties, including (but not limited to) unforeseen changes in the purchasing plans of the Company’s large-account bakery customers and inherent difficulties in predicting the timing of product orders and shipments.  Forward-looking statements regarding the number and timing of the Company’s planned new restaurant openings, and the amount and timing of their associated preopening costs, are subject to risks and uncertainties due to factors outside of the Company’s control, including factors that are under the control of government agencies, landlords and others.  Forward-looking statements speak only as of the dates on which they were made.  The Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by the securities laws.  Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements contained in the Company’s filings with the Securities and Exchange Commission.

The Cheesecake Factory Incorporated

26950 Agoura Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000 • Fax (818) 871-3100

The Cheesecake Factory Incorporated and Subsidiaries
Consolidated Financial Statements
(unaudited; in thousands, except per share and statistical data)

Consolidated Statements of Operations	13 Weeks Ended June 28, 2005						13 Weeks Ended June 29, 2004						26 Weeks Ended June 28, 2005						26 Weeks Ended June 29, 2004
	Amounts			Percents			Amounts			Percents			Amounts			Percents			Amounts			Percents
							(restated)												(restated)
Revenues:	$	288,336			100.0	%	$	234,920			100.0	%	$	556,560			100.0	%	$	455,454			100.0	%
Costs and expenses:
Cost of sales		74,357			25.8	%		63,682			27.1	%		143,275			25.7	%		120,748			26.5	%
Labor expenses		89,775			31.1	%		71,659			30.5	%		172,794			31.1	%		140,697			30.9	%
Other operating expenses		64,459			22.4	%		52,771			22.4	%		126,406			22.7	%		102,576			22.5	%
General and administrative expenses		12,350			4.3	%		9,874			4.2	%		23,959			4.3	%		19,644			4.3	%
Depreciation and amortization expenses		10,643			3.7	%		8,398			3.6	%		20,836			3.7	%		16,724			3.7	%
Preopening costs		2,127			0.7	%		2,081			0.9	%		6,520			1.2	%		4,142			0.9	%
Total costs and expenses		253,711			88.0	%		208,465			88.7	%		493,790			88.7	%		404,531			88.8	%
Income from operations		34,625			12.0	%		26,455			11.3	%		62,770			11.3	%		50,923			11.2	%
Interest income, net		928			0.3	%		571			0.2	%		1,724			0.3	%		1,089			0.2	%
Other income, net		149			0.1	%		124			0.1	%		286			0.1	%		705			0.2	%
Income before income taxes		35,702			12.4	%		27,150			11.6	%		64,780			11.7	%		52,717			11.6	%
Income tax provision		12,424			4.3	%		9,530			4.1	%		22,543			4.1	%		18,504			4.1	%
Net income	$	23,278			8.1	%	$	17,620			7.5	%	$	42,237			7.6	%	$	34,213			7.5	%
Basic net income per share	$	0.30					$	0.23					$	0.54					$	0.44
Basic weighted average shares outstanding		78,211						77,728						78,108						77,410
Diluted net income per share	$	0.29					$	0.22					$	0.53					$	0.43
Diluted weighted average shares outstanding		80,067						79,412						79,998						79,342
Selected Segment Information
Revenues:
Restaurants	$	276,017					$	223,062					$	530,807					$	434,278
Bakery		21,265						19,626						43,589						36,111
Intercompany bakery sales		(8,946	)					(7,768	)					(17,836	)					(14,935	)
	$	288,336					$	234,920					$	556,560					$	455,454
Income from operations:
Restaurants	$	44,097					$	33,764					$	79,958					$	65,616
Bakery		2,783						2,168						6,665						4,247
Corporate		(12,255	)					(9,477	)					(23,853	)					(18,940	)
	$	34,625					$	26,455					$	62,770					$	50,923

Selected Consolidated Balance Sheet Information	June 28, 2005		December 28, 2004
Cash and cash equivalents	$	24,368	$	14,041
Investments and marketable securities		150,079		137,471
Total assets		817,818		758,717
Total liabilities		225,026		215,865
Stockholders’ equity		592,792		542,852

Supplemental Information	13 Weeks Ended June 28, 2005			13 Weeks Ended June 29, 2004			26 Weeks Ended June 28, 2005			26 Weeks Ended June 29, 2004
Comparable restaurant sales% change (1)		1.8	%		4.5	%		2.6	%		5.2	%
Restaurants opened during period		1			2			6			4
Restaurants open at period-end		99			81			99			81
Restaurant operating weeks		1,279			1,029			2,497			2,045

(1) Includes Cheesecake Factory restaurants and Grand Lux Cafes

The Cheesecake Factory Incorporated

26950 Agoura Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000 • Fax (818) 871-3100