24 unchanged sentences
Other noncurrent liabilities
+Added: Total liabilities
Commitments and contingencies (Note 7)
1 unchanged sentence
Preferred stock, $ .01 par value, 5,000,000 shares authorized;
−Removed: none issued and outstanding
Common stock, $ .01 par value, 250,000,000 shares authorized;
−Removed: 107,097,507 shares issued and 50,872,707 shares outstanding at October 3, 2023 and 106,323,117 shares issued and 51,173,597 shares outstanding at January 3, 2023
+Added: 107,875,007 shares issued and 50,972,401 shares outstanding at April 2, 2024 and 107,195,287 shares issued and 50,652,129 shares outstanding at January 2, 2024
Additional paid-in capital
Retained earnings
−Removed: Treasury stock inclusive of excise tax, 56,224,800 and 55,149,520 shares at cost at October 3, 2023 and January 3, 2023, respectively
+Added: Treasury stock inclusive of excise tax, 56,902,606 and 56,543,158 shares at cost at April 2, 2024 and January 2, 2024, respectively
( 1,824,493 )
5 unchanged sentences
THE CHEESECAKE FACTORY INCORPORATED
−Removed: CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS)
+Added: CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
−Removed: October 3, 2023
−Removed: September 27, 2022
−Removed: October 3, 2023
−Removed: September 27, 2022
+Added: April 2, 2024
+Added: April 4, 2023
Costs and expenses:
8 unchanged sentences
Total costs and expenses
−Removed: Income/(loss) from operations
+Added: Income from operations
Interest and other expense, net
−Removed: Income/(loss) before income taxes
−Removed: Income tax (benefit)/provision
−Removed: Net income/(loss)
−Removed: Net income/(loss) per share:
+Added: Income before income taxes
+Added: Income tax provision
+Added: Net income per share:
Diluted (Note 10)
2 unchanged sentences
THE CHEESECAKE FACTORY INCORPORATED
−Removed: CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
+Added: CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
−Removed: October 3, 2023
−Removed: September 27, 2022
−Removed: October 3, 2023
−Removed: September 27, 2022
−Removed: Net income/(loss)
−Removed: Other comprehensive loss:
+Added: April 2, 2024
+Added: April 4, 2023
+Added: Other comprehensive (loss)/gain:
Foreign currency translation adjustment
−Removed: Other comprehensive loss
−Removed: Total comprehensive income/(loss)
+Added: Other comprehensive (loss)/gain
+Added: Total comprehensive income
See the accompanying notes to the condensed consolidated financial statements.
2 unchanged sentences
(In thousands)
−Removed: For the thirty-nine weeks ended October 3, 2023:
+Added: For the thirteen weeks ended April 2, 2024:
Comprehensive
5 unchanged sentences
Stock-based compensation
−Removed: Treasury stock purchases
−Removed: Balance, April 4, 2023
−Removed: ( 1,778,017 )
−Removed: Foreign currency translation adjustment
−Removed: Cash dividends declared common stock, net of forfeitures, $ 0.27 per share
−Removed: Stock-based compensation
Treasury stock purchases, inclusive of excise tax
−Removed: Balance, July 4, 2023
−Removed: ( 1,787,419 )
−Removed: Foreign currency translation adjustment
−Removed: Cash dividends declared common stock, net of forfeitures, $ 0.27 per share
−Removed: Stock-based compensation
−Removed: Treasury stock purchases, inclusive of excise tax
−Removed: Balance, October 3, 2023
+Added: Balance, April 2, 2024
( 1,824,493 )
−Removed: For the thirty-nine weeks ended September 27, 2022:
+Added: For the thirteen weeks ended April 4, 2023:
Comprehensive
Loss/ (Income)
−Removed: Balance, December 28, 2021
−Removed: ( 1,702,509 )
−Removed: Foreign currency translation adjustment
−Removed: Cash dividends declared common stock, net of forfeitures
−Removed: Stock-based compensation
−Removed: Common stock issued under stock-based compensation plans
−Removed: Treasury stock purchases
−Removed: Balance, March 29, 2022
−Removed: ( 1,706,447 )
−Removed: Foreign currency translation adjustment
−Removed: Cash dividends declared common stock, net of forfeitures, $ 0.27 per share
−Removed: Stock-based compensation
−Removed: Common stock issued under stock-based compensation plans
−Removed: Treasury stock purchases
−Removed: Balance, June 28, 2022
+Added: Balance, January 3, 2023
( 1,765,641 )
2 unchanged sentences
Stock-based compensation
−Removed: Common stock issued under stock-based compensation plans
−Removed: Treasury stock purchases
−Removed: Balance, September 27, 2022
+Added: Treasury stock purchases, inclusive of excise tax
+Added: Balance, April 4, 2023
( 1,778,017 )
3 unchanged sentences
(In thousands)
−Removed: October 3, 2023
−Removed: September 27, 2022
+Added: April 2, 2024
+Added: April 4, 2023
Cash flows from operating activities:
1 unchanged sentence
Depreciation and amortization expenses
−Removed: Impairment of assets and lease termination (income)/expense
+Added: Impairment of assets and lease termination expenses
Deferred income taxes
14 unchanged sentences
Cash flows from financing activities:
−Removed: Acquisition-related deferred consideration and compensation
−Removed: Proceeds from exercise of stock options
Common stock dividends paid
21 unchanged sentences
We utilize a 52/53-week fiscal year ending on the Tuesday closest to December 31 for financial reporting purposes.
−Removed: Fiscal year 2023 consists of 52 weeks and will end on January 2, 2024.
−Removed: Fiscal year 2022, which ended on January 3, 2023 was a 53 -week year.
+Added: Fiscal year 2024 consists of 52 weeks and will end on December 31, 2024.
+Added: Fiscal year 2023, which ended on January 2, 2024, was also a 52 -week year.
Use of Estimates
2 unchanged sentences
Actual results could differ from these estimates.
−Removed: COVID-19 Pandemic and Other Impacts to our Operating Environment
−Removed: During fiscal 2022, the COVID-19 pandemic continued to affect our business during periods of accelerated case counts in which we experienced increased restaurant staff absenteeism and temporary shifts in consumer behavior, such as changes in customer traffic or the mix between on-premise and off-premise channels.
−Removed: Along with the COVID-19 pandemic, our operating results were impacted by geopolitical and macroeconomic events, causing supply chain challenges and significantly increased commodity and wage inflation.
−Removed: Some of these factors have continued to impact our operating results in fiscal 2023, contributing to significantly increased commodity and other costs.
+Added: Geopolitical and Other Macroeconomic Impacts to our Operating Environment
+Added: Beginning in 2021, our operating results were impacted by geopolitical and other macroeconomic events, causing supply chain challenges and significantly increased commodity and wage inflation.
+Added: Some of these factors continue to impact our operating results in fiscal 2024, contributing to significantly increased commodity and other costs.
We have also encountered delays in opening new restaurants primarily due to delays in permitting and landlord readiness, as well as supply chain challenges.
−Removed: The ongoing impact of geopolitical and macroeconomic events could lead to further shifts in consumer behavior, wage inflation, staffing challenges, product and services cost inflation, disruptions in the supply chain and delays in new restaurant openings.
−Removed: For more information regarding the risks to our business relating to the COVID-19 pandemic and other geopolitical and macroeconomic events, see “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended January 3, 2023.
+Added: The ongoing impact of geopolitical and macroeconomic events could lead to further shifts in consumer behavior, wage inflation, staffing challenges, product and services cost inflation, disruptions in the supply chain and delay in new restaurant openings.
+Added: Climate change may further exacerbate a number of these factors.
+Added: For more information regarding the risks to our business relating to the geopolitical and macroeconomic events, see “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended January 2, 2024.
Recent Accounting Pronouncements
−Removed: We reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements.
+Added: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280):
+Added: Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses.
+Added: The amendment is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024.
+Added: Early adoption is permitted.
+Added: The amendment should be applied retrospectively to all prior periods presented in the financial statements.
+Added: Management is currently evaluating this ASU to determine its impact on our disclosures.
+Added: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):
+Added: Improvements to Income Tax Disclosures, which updates income tax disclosures related to the rate reconciliation and requires disclosure of income taxes paid by jurisdiction.
+Added: The amendment also provides further disclosure comparability.
+Added: The amendment is effective for fiscal years beginning after December
+Added: Early adoption is permitted.
+Added: The amendment should be applied prospectively.
+Added: However, retrospective application is permitted.
+Added: Management is currently evaluating this ASU to determine its impact on our disclosures.
Fair Value Measurements
2 unchanged sentences
Observable inputs other than quoted prices in active markets for identical assets and liabilities
−Removed: Unobservable inputs in which little or no market activity exists, therefore requiring the Company to develop its own assumptions
+Added: Unobservable inputs in which little or no market activity exists, therefore requiring the us to develop our 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):
−Removed: October 3, 2023
+Added: April 2, 2024
Assets/(Liabilities)
1 unchanged sentence
Non-qualified deferred compensation liabilities
−Removed: Acquisition-related deferred consideration
Acquisition-related contingent consideration and compensation liabilities
3 unchanged sentences
Non-qualified deferred compensation liabilities
−Removed: Acquisition-related deferred consideration
Acquisition-related contingent consideration and compensation liabilities
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):
−Removed: October 3, 2023
−Removed: September 27, 2022
+Added: April 2, 2024
+Added: April 4, 2023
Beginning balance
2 unchanged sentences
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.
−Removed: The undiscounted range of outcomes per the Monte Carlo model utilized to determine the fair value of the acquisition-related contingent consideration and compensation liabilities at October 3, 2023 was $ 0 to $ 276.0 million.
+Added: The undiscounted range of outcomes per the Monte Carlo model utilized to determine the fair value of the acquisition-related contingent consideration and compensation liabilities at April 2, 2024 was $ 2.6 million to $ 235.4 million.
Results could change materially if different estimates and assumptions were used.
−Removed: During the first nine months of fiscal 2023 and fiscal 2022, we made payments of $ 13.0 million and $ 7.2 million, respectively, per the Fox Restaurant Concept LLC (“FRC”) acquisition agreement.
The fair values of our cash and cash equivalents, accounts and other receivables, income taxes receivable, prepaid expenses, accounts payable, income taxes payable and other accrued liabilities approximate their carrying amounts due to their short duration.
−Removed: As of October 3, 2023, we had $ 345.0 million aggregate principal amount of Notes outstanding.
−Removed: The estimated fair value of the Notes based on a market approach as of October 3, 2023 was $ 279.8 million and was determined based on the estimated or actual bids and offers of the Notes in an over-the-counter market on the last business day of the reporting period.
+Added: As of April 2, 2024, we had $ 345.0 million aggregate principal amount of Notes outstanding.
+Added: The estimated fair value of the Notes based on a market approach as of April 2, 2024 was approximately $ 304.6 million and was determined based on the estimated or actual bids and offers of the Notes in an over-the-counter market on the last business day of the reporting period.
The decrease in the fair value of the Notes was primarily due to a decline in our stock price from the date of the issuance of the Notes.
1 unchanged sentence
Inventories consisted of (in thousands):
−Removed: October 3, 2023
+Added: April 2, 2024
January 2, 2024
2 unchanged sentences
Bakery raw materials and supplies
+Added: The increase in bakery finished goods and work in progress inventory is primarily driven by a build-up of weeks on hand to improve our supply resiliency.
The following tables present information related to gift cards (in thousands):
−Removed: October 3, 2023
−Removed: September 27, 2022
−Removed: October 3, 2023
−Removed: September 27, 2022
+Added: April 2, 2024
+Added: April 4, 2023
Gift card liabilities:
2 unchanged sentences
Ending balance
−Removed: October 3, 2023
−Removed: September 27, 2022
−Removed: October 3, 2023
−Removed: September 27, 2022
+Added: April 2, 2024
+Added: April 4, 2023
Gift card contract assets:
9 unchanged sentences
Certain of our material subsidiaries have guaranteed our obligations under the Revolver Facility.
−Removed: On October 6, 2022, we repaid the outstanding balance under the then-existing credit agreement and borrowed the same amount on the Revolver Facility.
−Removed: As of October 3, 2023, we had net availability for borrowings of $ 236.5 million, based on a $ 130.0 million outstanding debt balance and $ 33.5 million in standby letters of credit under the Revolver Facility.
+Added: As of April 2, 2024, we had net availability for borrowings of $ 236.5 million, based on a $ 130.0 million outstanding debt balance and $ 33.5 million in standby letters of credit under the Revolver Facility.
Under the Revolver Facility, we are subject to the following financial covenants as of the last day of each fiscal quarter:
1 unchanged sentence
The Amended Net Adjusted Leverage Ratio includes a rental expense multiplier of six .
−Removed: As of October 3, 2023, we were in compliance with all the foregoing covenants in effect at that date.
+Added: As of April 2, 2024, we were in compliance with all the foregoing covenants in effect at that date.
Borrowings under the Loan Agreement bear interest, at the Company’s election, at a rate equal to either:
4 unchanged sentences
We are also subject to customary events of default that, if triggered, could result in acceleration of the maturity of the Revolver Facility.
−Removed: Subject to certain exceptions, the Revolver Facility also limits distributions with respect to our equity interests, such as cash dividends and share repurchases, based on a defined ratio, and also sets forth negative covenants that restrict indebtedness, liens, investments, sales of assets, fundamental changes and other matters.
+Added: Subject to certain exceptions, the Revolver Facility also limits distributions with respect to our equity interests, such as cash dividends and share repurchases, based on a defined ratio, and sets forth negative covenants that restrict indebtedness, liens, investments, sales of assets, fundamental changes and other matters.
Convertible Senior Notes
15 unchanged sentences
In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.
−Removed: As of October 3, 2023, the conversion rate for the Notes was 13.3775 shares of common stock per $ 1,000 principal amount of the Notes, which represents a conversion price of approximately $ 74.75 per share of common stock.
−Removed: In connection with the cash dividend that was declared by our Board on October 26, 2023, on November 14, 2023 we will adjust the conversion rate (which is expected to increase) and the conversion price (which is expected to decrease) of the Notes in accordance with the terms.
+Added: As of April 2, 2024, the conversion rate for the Notes was 13.5979 shares of common stock per $ 1,000 principal amount of the Notes, which represents a conversion price of approximately $ 73.54 per share of common stock.
+Added: In connection with the cash dividend that was declared by our Board on May 7, 2024, on May 21, 2024 we will adjust the conversion rate (which is expected to increase) and the conversion price (which is expected to decrease) of the Notes in accordance with the terms.
The Notes are redeemable, in whole or in part (subject to certain limitations described below), at our option at any time, and from time to time, on or after June 20, 2024 and on or before the 30th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of our common stock exceeds 130 % of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice;
and (ii) the trading day immediately before the date we send such notice.
−Removed: However, we may not redeem less than all of the outstanding Notes unless at least $ 150.0 million aggregate principal amount of Notes are outstanding and not called for redemption as of the time we send the related redemption notice.
+Added: However, we may not redeem less than all of the outstanding Notes unless at least $ 150.0 million
+Added: aggregate principal amount of Notes are outstanding and not called for redemption as of the time we send the related redemption notice.
In addition, calling any Note for redemption will constitute a Make-Whole Fundamental Change with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption.
12 unchanged sentences
However, notwithstanding the foregoing, we may elect, at our option, that the sole remedy for an Event of Default relating to certain failures by us to comply with certain reporting covenants in the Indenture consists exclusively of the right of the noteholders to receive special interest on the Notes for up to 180 days at a specified rate per annum not exceeding 0.50 % on the principal amount of the Notes.
−Removed: As of October 3, 2023, the Notes had a gross principal balance of $ 345.0 million and a balance of $ 339.5 million, net of unamortized issuance costs of $ 5.5 million.
−Removed: Total amortization expense was $ 0.5 million and $ 1.5 million during thirteen and thirty-nine weeks ended October 3, 2023, respectively.
−Removed: Total amortization expense was $ 0.5 million and $ 1.5 million during thirteen and thirty-nine weeks ended September 27, 2022, respectively.
−Removed: The effective interest rate for the Notes was 0.96 % as of October 3, 2023.
+Added: As of April 2, 2024, the Notes had a gross principal balance of $ 345.0 million and a balance of $ 340.6 million, net of unamortized issuance costs of $ 4.4 million.
+Added: Total amortization expense was $ 0.5 million during both the first quarter of fiscal 2024 and fiscal 2023.
+Added: The effective interest rate for the Notes was 0.96 % as of April 2, 2024.
Components of lease expense were as follows (in thousands):
−Removed: October 3, 2023
−Removed: September 27, 2022
−Removed: October 3, 2023
−Removed: September 27, 2022
+Added: April 2, 2024
+Added: April 4, 2023
Supplemental information related to leases (in thousands):
−Removed: October 3, 2023
−Removed: September 27, 2022
+Added: April 2, 2024
+Added: April 4, 2023
Cash paid for amounts included in the measurement of lease liabilities:
2 unchanged sentences
Commitments and Contingencies
−Removed: 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.
−Removed: 35-CM-188798-16).
−Removed: The wage citation seeks to recover penalties and other monetary payments on behalf of the employees that worked for this vendor or its subcontractor.
−Removed: On June 28, 2018, we filed an appeal of the wage citation.
−Removed: On November 10, 2022, the parties participated in voluntary mediation and reached a tentative settlement on the wage citation.
−Removed: The settlement is subject to documentation and final agency approval.
−Removed: We have reserved an immaterial amount for settlement purposes.
−Removed: On February 10, 2023, a class action complaint was filed against the Company in the United States District Court for the Southern District of California, (Lightoller vs.
−Removed: LLC., Case No.
−Removed: 3:23-cv-00272-AJB-NLS), alleging violations of state privacy laws.
−Removed: The lawsuit alleges that the Company violated state wiretapping and privacy laws by improperly tracking and/or recording the keystrokes of visitors on the Company’s website without permission.
−Removed: A similar case was filed on the United States District Court for the District of Maryland on February 21, 2023 (Curd v.
−Removed: Civil Action No.
−Removed: 1:23-cv-00472-JMC).
−Removed: On May 10, 2023, the plaintiffs in Case Nos.
−Removed: 3:23-cv-00272 and 1:23-cv-00472 voluntarily dismissed their complaints against the Company without prejudice.
Within the ordinary course of our business, we are subject to private lawsuits, government audits and investigations, administrative proceedings and other claims.
8 unchanged sentences
Common Stock – Dividends and Share Repurchases
−Removed: On July 27, 2023, our Board declared a quarterly cash dividend of $ 0.27 per share that was paid on August 29, 2023 to the stockholders of record of each share of our common stock at the close of business on August 16, 2023.
+Added: On February 15, 2024, our Board declared a quarterly cash dividend of $ 0.27 per share that was paid on March 19, 2024 to the stockholders of record of each share of our common stock at the close of business on March 6, 2024.
Future decisions to pay or to increase or decrease dividends are at the discretion of the Board and will be dependent on our operating performance, financial condition, capital expenditure requirements, limitations on cash distributions pursuant to the terms and conditions of the Loan Agreement and applicable law, and such other factors that the Board considers relevant.
−Removed: (See Notes 5 and 12 for further discussion of our long-term debt and dividends declared subsequent to October 3, 2023, respectively.)
−Removed: Under authorization by our Board to repurchase up to 61.0 million shares of our common stock, we have cumulatively repurchased 56.2 million shares at a total cost of $ 1,801.9 million, excluding excise tax, through October 3, 2023, with 0.5 million shares and 1.1 million shares repurchased at a cost of $ 14.6 million and $ 36.3 million, excluding excise tax during the thirteen and thirty-nine weeks ended October 3, 2023, respectively.
+Added: (See Notes 5 and 12 for further discussion of our long-term debt and dividends declared subsequent to April 2, 2024, respectively.)
+Added: Under authorization by our Board to repurchase up to 61.0 million shares of our common stock, we have cumulatively repurchased 56.9 million shares at a total cost of $ 1,824.2 million, excluding excise tax, through April 2, 2024, with 0.4 million shares repurchased at a cost of $ 12.5 million, excluding excise tax, during the thirteen weeks ended April 2, 2024.
Our objectives with regard to share repurchases have been to offset the dilution to our shares outstanding that results from equity compensation grants and to supplement our earnings per share growth.
1 unchanged sentence
Share repurchases may be made from time to time in open market purchases, privately-negotiated transactions, accelerated share repurchase programs, issuer self-tender offers or otherwise.
−Removed: Future decisions to repurchase shares are at the discretion of the Board and are based on several factors, including current and forecasted operating cash flows, capital needs associated with new restaurant development and maintenance of existing locations, dividend payments, debt levels and cost of borrowing, obligations associated with the FRC acquisition agreement, our share price and current market conditions.
+Added: Future decisions to repurchase shares are at the discretion of the Board and are based on several factors, including current and forecasted operating cash flows, capital needs associated with new restaurant development and maintenance of existing locations, dividend payments, debt levels and cost of borrowing, obligations associated with the Fox Restaurant Concept (“FRC”) acquisition agreement, our share price and current market conditions.
The timing and number of shares repurchased are also subject to legal constraints and covenants under the Loan Agreement that limit share repurchases based on a defined ratio.
3 unchanged sentences
The following table presents information related to stock-based compensation, net of forfeitures (in thousands):
−Removed: October 3, 2023
−Removed: September 27, 2022
−Removed: October 3, 2023
−Removed: September 27, 2022
+Added: April 2, 2024
+Added: April 4, 2023
Labor expenses
6 unchanged sentences
(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.
−Removed: Capitalized stock-based compensation is included in property and equipment, net on the condensed consolidated balance sheets.
+Added: Capitalized stock-based compensation is included in property and equipment, net on the consolidated balance sheets.
Stock Options
−Removed: We did not issue any stock options during the third quarter of fiscal 2023 and fiscal 2022.
−Removed: Stock option activity during the thirty-nine weeks ended October 3, 2023 was as follows:
+Added: The weighted - average fair value at the grant date for options issued during the first quarter of fiscal 2024 and 2023 was $ 12.45 and $ 15.76 per share, respectively.
+Added: The fair value of options issued was estimated utilizing the Black-Scholes valuation model with the following weighted-average assumptions for the first quarter of fiscal 2024 and 2023, respectively:
+Added: (a) an expected option term of 6.9 and 6.7 years, (b) expected stock price volatility of 41.9 % and 45.2 %, (c) a risk-free interest rate of 4.3 % and 4.0 %, and (d) a dividend yield on our stock of 3.1 % and 2.7 %.
+Added: Stock option activity during the thirteen weeks ended April 2, 2024 was as follows:
Exercise Price
4 unchanged sentences
Forfeited or cancelled
−Removed: Outstanding at October 3, 2023
−Removed: Exercisable at October 3, 2023
+Added: Outstanding at April 2, 2024
+Added: Exercisable at April 2, 2024
(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.
−Removed: There were no options exercised during the thirteen and thirty-nine weeks ended October 3, 2023.
−Removed: There were no options exercised during the third quarter of fiscal 2022.
−Removed: The total intrinsic value of options exercised during the thirty-nine weeks ended September 27, 2022 was $ 4.9 million.
−Removed: As of October 3, 2023, total unrecognized stock-based compensation expense related to unvested stock options was $ 1.9 million, which we expect to recognize over a weighted-average period of approximately 1.6 years.
+Added: There were no options exercised during both the first quarters of fiscal 2024 and 2023.
+Added: As of April 2, 2024, total unrecognized stock-based compensation expense related to unvested stock options was $ 2.2 million, which we expect to recognize over a weighted-average period of approximately 2.6 years.
Restricted Shares and Restricted Share Units
−Removed: Restricted share and restricted share unit activity during the thirty-nine weeks ended October 3, 2023 was as follows:
+Added: Restricted share and restricted share unit activity during the thirteen weeks ended April 2, 2024 was as follows:
(In thousands)
Outstanding at January 2, 2024
−Removed: Outstanding at October 3, 2023
+Added: Outstanding at April 2, 2024
Fair value of our restricted shares and restricted share units is based on our closing stock price on the date of grant.
−Removed: The weighted average fair value for restricted shares and restricted share units issued during the third quarter of fiscal 2023 and 2022 was $ 36.81 and $ 28.59 , respectively.
−Removed: The fair value of shares that vested during the thirteen and thirty-nine weeks ended October 3, 2023 was $ 3.3 million and $ 19.9 million, respectively.
−Removed: The fair value of shares that vested during the thirteen and thirty-nine weeks ended September 27, 2022 was $ 1.9 million and $ 16.4 million, respectively.
−Removed: As of October 3, 2023, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $ 59.5 million, which we expect to recognize over a weighted-average period of approximately 3.0 years.
−Removed: Net Income/(Loss) Per Share
−Removed: Basic net income/(loss) per share is computed by dividing net income/(loss) by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards.
−Removed: As of October 3, 2023 and September 27, 2022, 2.8 million and 2.4 million shares, respectively, of restricted stock and restricted stock units issued were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal periods ended on those dates.
−Removed: Diluted net income/(loss) per share is computed by dividing net income/(loss) by the weighted-average number of common stock equivalents outstanding for the period.
+Added: The weighted average fair value for restricted shares and restricted share units issued during the first quarter of fiscal 2024 and 2023 was $ 34.77 and $ 39.94 , respectively.
+Added: The fair value of shares that vested during the thirteen weeks ended April 2, 2024 and April 4, 2023 was $ 17.8 million and $ 15.2 million, respectively.
+Added: As of April 2, 2024, total unrecognized stock-based compensation expense related to unvested restricted shares and restricted share units was $ 67.6 million, which we expect to recognize over a weighted-average period of approximately 3.3 years.
+Added: Net Income Per Share
+Added: Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards.
+Added: As of April 2, 2024 and April 4, 2023, 3.2 million and 2.8 million shares, respectively, of restricted stock and restricted stock units issued were unvested and, therefore, excluded from the calculation of basic earnings per share for the fiscal periods ended on those dates.
+Added: Diluted net income per share is computed by dividing net income by the weighted-average number of common stock equivalents outstanding for the period.
Common stock equivalents for the Notes are determined by application of the if-converted method, and common stock equivalents for outstanding stock options, restricted stock and restricted stock units are determined by the application of the treasury stock method.
−Removed: October 3, 2023
−Removed: September 27, 2022
−Removed: October 3, 2023
−Removed: September 27, 2022
+Added: April 2, 2024
+Added: April 4, 2023
(In thousands, except per share data)
−Removed: Net income/(loss)
Basic weighted-average shares outstanding
1 unchanged sentence
Diluted weighted-average shares outstanding
−Removed: Basic net income/(loss) per share
−Removed: Diluted net income/(loss) per share
−Removed: (1) Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 2.8 million and 3.3 million for October 3, 2023 and September 27, 2022, respectively, were excluded from the diluted calculation due to their anti-dilutive effect.
+Added: Basic net income per share
+Added: Diluted net income per share
+Added: (1) Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of 2.4 million and 1.9 million for April 2, 2024 and April 4, 2023, respectively, were excluded from the diluted calculation due to their anti-dilutive effect.
No shares of common stock equivalents related to the Notes were included in the diluted calculation due to their anti-dilutive effect.
5 unchanged sentences
Segment information is presented below (in thousands):
−Removed: October 3, 2023
−Removed: September 27, 2022
−Removed: October 3, 2023
−Removed: September 27, 2022
+Added: April 2, 2024
+Added: April 4, 2023
The Cheesecake Factory restaurants
−Removed: Income/(loss) from operations:
+Added: Income from operations:
The Cheesecake Factory restaurants
−Removed: Depreciation and amortization:
+Added: Depreciation and amortization expenses:
The Cheesecake Factory restaurants
−Removed: Impairment of assets and lease termination expenses/(income):
+Added: Impairment of assets and lease termination expenses:
The Cheesecake Factory restaurants
3 unchanged sentences
The Cheesecake Factory restaurants
−Removed: October 3, 2023
+Added: April 2, 2024
January 2, 2024
1 unchanged sentence
The Cheesecake Factory restaurants
+Added: Thirteen weeks ended April 2, 2024 and April 4, 2023 include $ 1.1 million and $ 1.2 million, respectively, of acquisition-related expenses.
+Added: These amounts were recorded in acquisition-related costs and acquisition-related contingent consideration, compensation and amortization expenses in the consolidated statements of income.
Subsequent Events
−Removed: On October 26, 2023, our Board declared a quarterly cash dividend of $ 0.27 per share to be paid on November 28, 2023 to the stockholders of record of each share of our common stock at the close of business on November 15, 2023.
−Removed: On October 26, 2023, our Board approved the adoption of a stock repurchase plan intended to qualify for safe harbor protection in accordance with Rule 10b5-1 Plan of the Securities Act of 1934, as amended.
−Removed: This plan will be effective from December 4, 2023 through May 24, 2024.
+Added: On May 7, 2024, our Board declared a quarterly cash dividend of $ 0.27 per share to be paid on June 4, 2024 to the stockholders of record of each share of our common stock at the close of business on May 22, 2024.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.