CHEESECAKE FACTORYDReamCRusade

Fall 2011

Cheesecake Factory2010 Analysis

Members

• Team Leader

o Dionne Kahale Sirp

• Google App Owner

o Remeeliz Agbayani

• Minutes Keeper

o Liane Muraoka

• Google Calendar

o Kaili Taniguchi

• Technology/Ratio Owner

o Travis Nakasone

Cheesecake Factory

• Site: www.cheesecakefactory.com

• Trading Symbol: CAKE

• SIC Code: 5812

• NAISC Code: 722110

• Analyzing Year: 2010

• Total of 154 Restaurants

Deep Explanation on Report

• The weather and holiday shift affects on earnings

• HIRE effect in cost savings

• Paying of Debt

• Opening of New Locations in other countries

• Raising Cost of Butter & Dairy Products

• Cutting G&A Costs

• Minimizing Food Borne Illnesses

Deep Explanations on Liquidity Ratios

• Liquidity Ratios

• Current Ratio

• Acid-Test Ratio **

• Receivables Turnover ***

• Inventory Turnover**

*Year to Year Variation**Company to Company Variation*** Year to Year & Company to Company Variation

Deep Explanations on Profitability Ratios

• Profitability Ratio

• Profit Margin**

• Asset Turnover

• Return on Assets*

• Return on Common Stock Holder Equity**

• Earnings Per Share**

• Price Earning*

*Year to Year Variation**Company to Company Variation*** Year to Year & Company to Company Variation

Deep Explanations on Solvency Ratio

• Solvency Ratio

• Debt to equity Ratio**

• Times Interest Earned*

*Year to Year Variation**Company to Company Variation*** Year to Year & Company to Company Variation

Deep Explanations on Unique Ratios

• Industry Specific Ratios

• Prime Cost Ratio**

• Average Daily Seat Turn Over

• Average Sales per Guest (Check Average)

*Year to Year Variation**Company to Company Variation*** Year to Year & Company to Company Variation

Conclusion

• In 2010 the Cheesecake Factory had one of their best

years. Taking advantage of government breaks played a

key role in cost cuts.

• They hit a milestone by paying off all of their long term

debt creating free cash flow.

• Acquired better financing terms

• Returning more of Stockholders Money

• Opening in new countries in 2011