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AMA about The Cheesecake Factory's 2020 financial statements


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Posted
12 minutes ago, Jason said:

why

 

Group project for my Financial Accounting course. We decided to study asset impairment for The Cheesecake Factory during the pandemic.

 

9 minutes ago, Commissar SFLUFAN said:

What is its gross margin?

 

(17.5%)

Posted
9 hours ago, Rachel said:

Why does their menu have so many items?

 

They see the scope of their menu as a key component of their competitive positioning.

 

9 hours ago, Keyser_Soze said:

How much does it cost to send all the employees to a hotel for weeks?

 

Their preopening costs in 2020 totaled $10,456,000; they only opened 7 restaurants versus a planned 20.

 

9 hours ago, Rachel said:

WHAT PERCENTAGE OF THEIR SALES ARE CHEESECAKE VS NON CHEESECAKE

 

Desert sales represented approximately 21% of their restaurant sales in 2020 (as opposed to 16% in 2019).

 

24 minutes ago, Commissar SFLUFAN said:

 

That right there is the pandemic!

 

They impaired their assets by $219 million by the end of 2020, with nearly half of that being impairment of their trademark...I'm not entirely sure how they got their auditor to go along with that since they argued market capitalization and lower projected cash flow should trigger it (I'm guessing they took the stance that the brand is inseparable from their restaurant operations).

  • Shocked 1
Posted
25 minutes ago, Chris- said:

They see the scope of their menu as a key component of their competitive positioning.

 

I thoroughly understand that, but even a relatively mild rationalization of the menu will still allow them to maintain a diversity of offerings which won't impact their competitive position significantly and could potentially help reduce COGS expenses somewhat.

Posted
10 minutes ago, Commissar SFLUFAN said:

 

I thoroughly understand that, but even a relatively mild rationalization of the menu will still allow them to maintain a diversity of offerings which won't impact their competitive position significantly and could potentially help reduce COGS expenses somewhat.

 

They actually see it as a hedge against commodity prices, since they are not dependent on any one commodity (so cost increases can offset).

Posted
4 minutes ago, Chris- said:

 

They actually see it as a hedge against commodity prices, since they are not dependent on any one commodity (so cost increases can offset).

 

Sure - they're not dependent on one commodity, they're dependent on all of 'em :p

 

I really do see their strategic thinking, yet I cannot help but look at the multitude of offerings on that menu, want to obtain the revenue/cost metrics associated with each and every item associated with that menu, and then take a very considered, rational scalpel to it!

Posted
13 minutes ago, Commissar SFLUFAN said:

 

Sure - they're not dependent on one commodity, they're dependent on all of 'em :p

 

I really do see their strategic thinking, yet I cannot help but look at the multitude of offerings on that menu, want to obtain the revenue/cost metrics associated with each and every item associated with that menu, and then take a very considered, rational scalpel to it!

 

You're thinking like an accountant as opposed to a marketer! 

  • Haha 1
Posted
2 minutes ago, Chris- said:

 

You're thinking like an accountant as opposed to a marketer! 

 

This is absolutely correct.

 

I UTTERLY DESPISED all of the marketing courses I had to endure as I considered them to be little better than pseudoscience.

Posted
Just now, stepee said:

 

well take a guess then


More or less everything about their approach seems to be, ‘Fuck it, we ball’ so I think they are just incapable of doing anything on a reasonable scale. 

Posted
4 minutes ago, skillzdadirecta said:

Who is their prime demographic?

 

The 2020 Annual Report has only this to say about customer demographics:

 

Quote

The Cheesecake Factory restaurants appeal to a diverse customer base across a broad demographic range.

 

Posted
4 hours ago, Commissar SFLUFAN said:

Honestly, if there ever was a restaurant chain that needs to take a serious look at its menu and start trimming it significantly, it's this one.

 

Interestingly they make everything on the menu from scratch, it's actually kind of an impressive operation.

Posted
1 hour ago, Chris- said:


More or less everything about their approach seems to be, ‘Fuck it, we ball’ so I think they are just incapable of doing anything on a reasonable scale. 

 

I think that sounds accurate.

Posted
12 minutes ago, ManUtdRedDevils said:

How big was the CEO’s bonus for a shitty year?


$383,075 (had to dig into their proxy filing to find that one). 

Posted
38 minutes ago, Dodger said:

The once a year I invariably end up at a Cheesecake Factory is a pleasant enough experience. Usually fucking crowded too.

 

I've actually never eaten at The Cheesecake Factory, but because of this project I told my wife we should get dinner there to celebrate the end of the semester.

Posted
6 minutes ago, Chris- said:

I've actually never eaten at The Cheesecake Factory, but because of this project I told my wife we should get dinner there to celebrate the end of the semester.

 

So the class is really one giant branded advertising opportunity? 403369255447298048.webp?size=56&quality=

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