Slides
Page 1
INVESTOR PRESENT ATIONFebruary 18, 2026
Page 2
SAFE HARBOR STA TEMENT / NON-GAAP INFORMA TION 2 Cautionary Statement Regarding Forward-Looking StatementsThis presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Thisincludes,withoutlimitation,financialguidanceandprojections,includingunderlyingassumptions,andstatementswithrespecttoexpectationsoftheCompany’sfuturefinancialcondition,resultsofoperations,cashflows, share repurchases, objectives, growth potential, engines and opportunities, expected growth rates and targets, market potential and total addressable market runway; growth outlook; industry-leadingcomparable sales growth,retention andcompetitiveposition;quality controlandsupply chain efficiencies;operationalexecutionandretention;annualized averageunitvolume;theCompany’s differentiationandstrongfootholdintheoff-premisechannel;theopportunityforadditionaldomesticandforeignlocationsandlicenseesandterritories;targetreturnsfornewrestaurantopenings;internationalexpansion;NorthItaliaandFoxRestaurantConcepts(“FRC”)asgrowthdriversandFRCasanincubationengine;newrestauranttargetedrangesandunitgrowthrates.Suchforward-lookingstatementsincludeallotherstatementsthatarenothistoricalfacts,aswellasstatementsthatareprecededby,followedbyorthatincludewordsorphrasessuchas“believe,”“plan,”“willlikelyresult,”“expect,”“intend,”“will continue,”“isanticipated,”“estimate,”“project,”“may,”“could,”“would,”“should” andsimilar expressions.These statementsare basedon current expectationsand involverisks anduncertainties which may cause results to differ materially from those set forth in such statements. Investors are cautionedthat forward-looking statements are not guarantees of future performance and that unduerelianceshouldnotbeplacedonsuchstatements.Theseforward-lookingstatementsmaybeaffectedbyvariousfactorsincluding:economic,publichealthandpoliticalconditionsthatimpactconsumerconfidenceandspending,includinggovernmentshutdowns,tradepolicy,changesininterestrates,periodsofheightenedinflationandmarketinstability,andarmedconflicts;supplychaindisruptions;demonstrations,politicalunrest, potential damage to or closure of our restaurants and potential reputational damage to us or any of our brands; pandemics and related containment measures, including the potential for quarantines orrestriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, Flower Child and other FRC restaurants; the risks of doingbusiness abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross border taxation; changes in unemployment rates; increases in minimum wages and benefit costs;the economic health of our landlords and other tenants in retail centers in which our restaurants are located, andour ability to successfully manage our lease arrangements with landlords; the economic health ofsuppliers, licensees, vendorsand otherthirdparties providing goodsor services to us; thetimingof ournewunitdevelopment and relatedpermitting; compliance with debt covenants;strategic capital allocationdecisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact ofchanges in tax laws; changes in laws impacting our business; adverse weather conditions and natural disasters in regions in which our restaurants are located; factors that are under the control of governmentagencies, landlords andotherthirdparties;therisks, costsanduncertaintiesassociated withopening newrestaurants; andotherrisks anduncertaintiesdetailed fromtimetotimein theCompany’sfilings withtheSecuritiesand ExchangeCommission(“SEC”).Forward-lookingstatementsspeakonlyasofthedates on whichtheyare made andthe Company undertakesnoobligationto publiclyupdateor revise any forward-lookingstatementsortomakeanyotherforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise,unlessrequiredtodosobylaw.Investorsarereferredtothefulldiscussionofrisks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and CurrentReportsonForm8-KasfiledwiththeSEC,whichareavailableatwww.sec.gov.Non-GAAP Financial MeasuresInadditiontotheresultsprovidedinaccordancewiththeGenerallyAcceptedAccountingPrinciples(“GAAP”)inthispresentation,theCompanyisprovidingnon-GAAPmeasurementswhichpresentfreecashflow,adjusted net income, adjusted diluted net income per common share, adjusted net income margin and adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”). The non-GAAPmeasurementsareintendedtosupplementthepresentationofthe Company’sfinancialresultsinaccordancewithGAAP.TheCompanybelievesthatthepresentationoftheseitemsprovidesadditionalinformationtofacilitatethecomparisonofpastandpresentfinancialresults.Thesenon-GAAPmeasuresmaynot becomparabletosimilarly-titled measuresusedbyothercompaniesandshouldnotbeconsideredinisolationor as a substitute for measures of performance prepared in accordance with GAAP. We calculate these non-GAAP measures by eliminating from cash flow from operations, net income, diluted net income percommonshare,netincomemarginandEBITDAtheimpactofitemswedonotconsiderindicativeofourongoingoperations.Additionally,freecashflow,EBITDAandadjustedEBITDAexcludetheimpactofcertainnon-cashtransactions.Weusethesenon-GAAPfinancialmeasuresforfinancialandoperationaldecision-makingandasameanstoevaluateperiod-to-periodcomparisons.Ourinclusionoftheseadjustedmeasuresshouldnotbeconstruedasan indicationthatourfutureresultswill beunaffectedbyunusualorinfrequentitems.Inthefuture,wemayincurexpensesorgenerateincomesimilartotheadjusteditems. PleaserefertotheAppendixofthispresentationforareconciliationofnon-GAAPmeasurestothemostdirectlycomparablefinancialmeasurespreparedinaccordancewithGAAP.
Page 3
COMP ANY OVERVIEW
Page 4
INVESTMENT HIGHLIGHTS 4 •Experiential dining category leader with diversified growth engines•Best-in-class operational execution and industry-leading retention•Significant growth opportunities driving one of the highest expected growth rates in the casual dining industry•Strong free cash flow generation supporting consistent shareholder returns through dividends and opportunistic share repurchases
Page 5
CAKE A T A GLANCE 5(1) Market data as of December 30, 2025.(2) Represents fiscal year 2025 revenue for the twelve months ended December 30, 2025.(3) Locations as of February 18, 2026. We own and operate 368 restaurants(3) across the US and Canada including:•216 The Cheesecake Factory locations•48 North Italia locations•43 Flower Child locations•55 Fox Restaurant Concepts locations Our more than 48,000 staff members helped us become one of the Fortune “100 Best Companies to Work For®” for the 12thconsecutive year 35International CCF Locations ChinaThailandMexicoBahrainKuwait Saudi ArabiaQatar | UAE FOUNDED1972IPO1992TICKERCAKEREVENUE(2)$3.8BHEADQUARTERSCALABASAS HILLS, CAMARKET CAP(1)$2.5B PORTFOLIO OF EXPERIENTIAL DINING CONCEPTS
Page 6
6Cindy to update
Page 7
GLOBAL FOOTPRINT 7 Company-Owned: 216(Including T oronto, Canada) Latin AmericaMexico City (5)Monterrey (1)Guadalajara (1)Querétaro (1)Puebla (1)Metepec (1) AsiaShanghai (3)Beijing (1)Chengdu (1)Hong Kong (1)Macau (1)Thailand (1) Middle EastUAE (6)Saudi Arabia (4)Kuwait (3)Qatar (3)Bahrain (1) International – Licensed: 35 Opportunity for 300 Domestic Locations Long runway for growth as we continue to open in new and existing markets Continued International Expansion In existing and new markets with current licensees and evaluating new markets High-quality, High-profile Locations WorldwideStrong presence in premier markets with attractive consumer demographics
Page 8
8 High-Energy AtmosphereContemporary DécorDistinct, High-Quality Cheesecakes and DessertsBest-in-Class ExecutionExceptional ServiceMenu Breadth and Innovation Made Fresh From ScratchMENUAMBIANCEBAKERYOPERATIONS A HIGHL Y DIFFERENTIA TED CONCEPT
Page 9
9 INTEGRATED BAKERY – THE “CHEESECAKE” MAGIC Enables creativity, quality control and supply chain efficiencies5858Varieties of cheesecakes & dessertsVarieties of cheesecakes & desserts22Bakery production facilitiesBakery production facilities17%17%FY 2025(1)FY 2025(1)16%16%FY 2019(1)FY 2019(1)(1) Percent of total sales.Impressive Level of Dessert SalesImpressive Level of Dessert Sales
Page 10
BEST -IN-CLASS ST AFFING AND OPERA TIONS 10 Well-positioned to attract and retain high-quality, experienced staff as an employer of choice•T op-tier recruiting and training programs•Fortune ‘100 Best Companies to Work For®’ List for 12 consecutive years •2025 Black Box Intelligence Employer of Choice Award in Upscale Casual•Competitive compensation, benefits and healthcare options•High sales volume restaurants provide predictability and stability for staff Average Tenure by Position37 years29 years25 years23 years17 years16 yearsExecutive VP of OperationsRegional Vice PresidentsArea Directors of OperationsArea Kitchen Operations ManagersGeneral ManagersExecutive Kitchen Managers EXCEPTIONAL SERVICE AND OPERA TIONAL EXECUTION SUPPORTED BY INDUSTRY-LEADING RETENTION 2025 PEOPLE’s Companies that Care Logo®is a registered trademark of TI Gotham, Inc., a Dotdash Meredith company. Used under license.From Fortune. ©2026 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated.
Page 11
DIFFERENTIA TION IN OFF-PREMISE 11 •Extensive menu with over 225 items made from scratch daily •Large portions designed for sharing•Lower incremental delivery pricing versus peers•Fully integrated systems for better execution •Separate bakery counter and register for pick-up of orders Exceptional Value Operational Execution•Omni channel ordering – Online | Delivery | Phone | In-person•Curbside delivery, geo-location and real-time tracking•Redesigned to-go packaging to improve food quality Guest Experience and Convenience 11%16%25%22%21%22%21% 21%22% OFF-PREMISE SALES % OF TOTAL REVENUE OFF-PREMISE AWS FOR FY 2024(2) $50.0$24.9$23.7$20.3$19.9$19.5$18.4$15.5$13.2$13.1Olive GardenCarrabba'sBJ'sTexas RoadhouseOutbackChili'sCracker BarrelLongHornRed Robin(1) $2.7 million in off-premise sales per restaurant based on annualized 4Q25.(2) Company reports and Gordon Haskett Research Advisors. ($ in thousands) $2.7 million per restaurant (1) LEVERAGING OUR TO DRIVE THE
Page 12
12
Page 13
Followers(1)(in thousands)Followers / $M Sales(2)Followers / $M Sales Instagram Followers0 200 400 600 800 1,000 1,200CAKEMaggiano'sOutbackBonefishYardHouseOlive GardenChili'sCracker BarrelBJ's RestaurantsCarrabba'sLongHornTexas Roadhouse - 75 150 225 300 375 450CAKEMaggiano'sOutbackBonefishYardHouseOlive GardenChili'sCracker BarrelBJ's RestaurantsCarrabba'sLongHornTexas Roadhouse13 STRONG CONSUMER ENGAGEMENTCAKE has more Instagram followers and significantly outpaces peers in followers relative to salesLeveraging the across social media channels to and further MILLIONS OF FOLLOWERS (1) Instagram Follower count as of April 17, 2025.(2) Sales represent fiscal year 2024 revenue based on latest SEC 10-K filings and company presentations.
Page 14
BROAD APPEAL AND BRAND AFFINITY 14 Diverse AppealAcross a broad demographic rangeExtensiveMenu Something for every taste, every price pointSpecial OccasionsSeen as a destination for experiential dining Signature DessertsHigh-quality cheesecakes and desserts Consumers (millennials in particular) regularly rank the Cheesecake Factory as one of the best chain restaurants, as well ashaving the best ambianceand thebest quality food. A chain restaurant triple threat if there was ever one.-Vox, December 24, 2022 Sources:(1) The Cheesecake Factory Ranks No. 1 in Casual Dining Online Reputation Study, SOCi Marketing Study, FSR Magazine, December 12, 2023.(2) Most-Beloved Restaurant Brands in America – Savanta’s Marketing Intelligence Platform BrandVue Eating Out, FSR Magazine, October 11, 2023.
Page 15
CHEESECAKE REWARDS® 15 Published OffersT o support member acquisition and consistent engagementOffered to all rewards members Personalized OffersT ailored offers based on guest behavior and preferences — designed to surprise, engage, and increase frequencyT ailored rewards offered to all members MarketableOffersTied to cultural and brand moments (April Fools’ , National Cheesecake Day) that drive excitement and broad engagementOffered to all rewards members Opportunity to drive incremental traffic T o drive incremental sales and support restaurant-level margins by leveraging data analytics to more effectively engage guests PROGRAMPROGRAMOBJECTIVEOBJECTIVEA and program
Page 16
$12.3 $9.8 $9.7 $8.5 $6.2 $5.6 $4.9 $4.0 $3.6 $3.6 $3.2 Maggiano's YardHouseTexasRoadhouseBJ's OliveGardenLongHorn Outback Chili's Carrabba's Bonefish With a Moderate Average Check(1) Driving the Highest Unit Volumes in the Industry(1)($ in millions) $36 $36$35$31$29$28$26$23 $23 $23$20Maggiano's Bonefish YardHouseOutback LongHorn Carraba's TexasRoadhouseOliveGardenBJ's Chili's 16(1) Latest SEC 10-K filings and company presentations for FY 2024.(2) Average check for The Cheesecake Factory defined as on-premise average check for FY 2024.(2)
Page 17
17
Page 18
18 •Filling White Space for an On- T rend, Contemporary Italian Offering•Menu features classic Italian favorites with a fresh twist from hand-tossed pizzas and homemade pastas to crave-worthy appetizers, salads and seasonal entrees •Unique menu items tailored to local markets•All dishes handmade from scratch daily•Serving lunch, dinner, weekend brunch & weekday happy hour •Robust selection of wine, beer and craft cocktails driving ~25% alcohol mix•Average check of mid $30s for lunch and mid $40s for dinner
Page 19
19 •P otential for 200 domestic locations over time•Currently have 48 locations in 17 states & Washington D.C.•Italian is one of the most popular ethnic cuisines in the United States•T argeting ~20% average annual unit growth•Attractive return profile and sales growth Comp Sales 4Q25 (vs. 4Q24): (4)%FY25 (vs. FY24): (2)%
Page 20
20
Page 21
•P otential for 700 domestic locations over time•A differentiated concept in the growing fast casual dining segment •43 locations in 15 states•T argeting ~20% average annual unit growth•A healthy, balanced dining experience with organic, gluten-free and vegan dishes•All dishes handmade from scratch daily•Menu features customizable bowls, wraps, salads, veggies and healthy proteins •Attractive consumer demographic •Significant off-premise volumes - averaging over 50% of sales•Separate take-out area for third-party delivery and take-out business On a simple, soul-satisfying mission to spread positively delicious vibes and healthy food. 21
Page 22
22
Page 23
FOX RESTAURANT CONCEPTS (FRC) 23FRC HIGHLIGHTS•Locations: 55•Geographies 11 states•FY 2025 Revenue(1)$355M (1) Fiscal year 2025 revenue represents revenue for the twelve months ended December 30, 2025 and excludes revenue for Flower Child. FRC serves as an incubator, innovating new food, dining and hospitality experiences to create fresh, exciting concepts for the futureFRC’s experiential concepts are designed to deliver unique guest experiences across different industry segments, occasions, square footage and geographiesProvides Diversification | Accretive Unit Growth Potential | Value Creation Opportunities “Great hospitality, every time. ”- Sam Fox
Page 24
Culinary forward. First class hospitality. Concepts like no other. DIVERSIFYING OUR PORTFOLIO ACROSS EXPERIENTIAL FOR GROWTH 24 NationalExpansion NationalExpansionBoutique BrandsIncubationStageBoutique BrandsIncubationStage Testing Growth Testing Growth Global FootprintGlobal Footprint
Page 25
Accelerating Unit Growth ACCELERA TING UNIT GROWTH
Page 26
FINANCIAL PERFORMANCE
Page 27
27 DRIVING STRONG SALES GROWTH FY 2025 FY 2025 COMPSALES COMPSALES AVERAGEWEEKLYSALES(2) AVERAGEWEEKLYSALES(2) FY 2025 FY 2025 AVERAGEWEEKLYSALES AVERAGEWEEKLYSALES Q4 2025 Q4 2025 COMPSALES COMPSALES AVERAGEWEEKLYSALES(2) AVERAGEWEEKLYSALES(2) Q4 2025 Q4 2025 vs 2024 vs 2024 0.1% 0.1% (2)% (2)% vs 2024 vs 2024 0% 0% vs 4Q24 vs 4Q24 (2.2)% (2.2)% (4)% (4)% vs 4Q24 vs 4Q24 0% 0% ~$235,400Equates to $12.2MAnnualized AUV(1) ~$235,400Equates to $12.2MAnnualized AUV(1) ~$145,500Equates to$7.6M Annualized AUV(1) ~$145,500Equates to$7.6M Annualized AUV(1) ~$139,100Equates to $7.2MAnnualized AUV(1) ~$139,100Equates to $7.2MAnnualized AUV(1) (1) 4Q25 Average Unit Volumes (AUV) annualized based on average weekly sales.(2) FRC excludes Flower Child.
Page 28
FY 2025 HIGHLIGHTS(1) 28 Total Revenue$3.8BUp 5% from PYCapital Allocation Adjusted Diluted Net Income Per Share(1)$3.77Up 10% from PY$146M CapEx(3)$52MDividendsUnit Growth25 NROsRestaurant Count(2)371Up 7% from 348 in PY Adjusted EBITDA(1)$354MUp 8% from PYNet Income$148MDown 5% from PYDiluted Net Income Per Share$3.06Down 4% from PY$154M Repurchases(1) A reconciliation of Non-GAAP measures to the most directly comparable GAAP measure can be found in the appendix.(2) Represents total company owned and operated restaurants across the US and Canada as of the fiscal year 2025 ended December 30, 2025.(3) CapEx excludes some new restaurant construction expenses, which may be classified as operating lease assets instead of additions to property and equipment in the statement of cash flows.
Page 29
2026 UNDERL YING KEY ASSUMPTIONS(1) 29(1) Assumes no material operating or consumer disruptions as well as assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material.(2) Future decisions to pay or to increase or decrease dividends or to repurchase shares are at the discretion of the Board and will be dependent on several factors. Approximately $3.9 BillionConsolidated SalesApproximately $12.5 MillionCCF AUVsT argeting approximately 5% at the stated sales levelNet Income MarginAs many as 26 New Restaurant Openings•~6 The Cheesecake Factory locations•6-7 North Italia locations•6-7 Flower Child locations•~7 FRC restaurantsNew Unit GrowthApproximately $210 MillionCash Capital ExpendituresQ1 2026 dividend of $0.30 per share(2)Dividend ProgramOffset dilution, over time, from employee stock-based compensation and support EPS(2)Share Repurchase Program
Page 30
QUALITY GROWTH OPPORTUNITY 30 New Unit Growth T argets(1)(2)Annual Unit GrowthSales per Sq Ft(3)Size(3)~2% - 3%~$1,100 - $1,2007,000 - 10,000~20%~$1,100 - $1,2006,000 - 7,000~20%~$1,100 - $1,2003,000 - 4,000~10% - 15%~$1,1006,000 - 8,000 Diversified PortfolioDifferentiated experiential concepts diversified across industry segment, price point, cuisine, occasion and real estate Value Creation OpportunitiesLeveraging brand power, operational excellence, scale, supply chain and real estate development expertise Attractive Growth PotentialSignificant runway for future development across portfolio of concepts to drive accretive growth over time (1) Illustrative example of new restaurant openings targeted size, sales per square foot and annual unit growth; Targets represent steady-state and typically are reached after 3 years of operations.(2) Targets are forward-looking and are based upon assumptions that there are no material operating or consumer disruptions as well as assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. (3) Target size and sales per square foot are an average based on productive square feet defined as all interior square footage plus seasonally adjusted exterior patio square footage.1% - 2%Comparable Sales GrowthGROWTH OUTLOOK(2)AVERAGEANNUAL GROWTH T ARGETS7% - 8%T op-line Revenue Growth
Page 31
MARKET POTENTIAL LARGE TAM RUNWA Y 31 #OFLOCATIONS(1)FY 2025 AUVS $12.4M 216 $7.6M 48 $4.6M 43MARKETPOTENTIAL 300 200 700 (1) Locations as of February 18, 2026. ~$3.2B~$8.5BFUTUREREVENUEOPPORTUNITY REVENUEGROWTHPOTENTIAL NOT ABLE UPSIDE POTENTIALFROM OTHER GROWTH CONCEPTS FY 2025
Page 32
$146 $49 $67 $108 $155 $67 $112 $152 $160 $146$213 $162 $218 $268 $301'21 '22 '23 '24 '25FINANCIAL STRENGTH TO SUPPORT GROWTH AND RETURNS(1) 32Capital Allocation DetailCapital Allocation DetailCash FlowCash Flow'20(1) A reconciliation of Non-GAAP measures to the most directly comparable GAAP measure can be found in the appendix.(2) Due to impact of COVID-19 pandemic on results 2021, 2022, 2023, 2024 and 2025 compare against 2019.(3) Free cash flow, Cash Flow from Operations, Net Income and Adjusted EBITDA may not add due to rounding.(4) CapEx excludes some new restaurant construction expenses, which may be classified as operating lease assets instead of additions to property and equipment in the statement of cash flows. .Net Income and Adjusted EBITDA(3)Net Income and Adjusted EBITDA(3)'20 ($ in millions)Cash Flow From OpsCapex / Investment(4)Free Cash Flow(3) $72 $43 $101 $157 $148 $166 $159 $169 $172 $205 $238 $202 $270 $329 $354 '21'22'23'24'25Adjusted EBITDA(3)AdjustmentsNet Income(3) 3.3%10.5%13.9%14.9%15.0%'21 '22 '23 '24 '25$67 $112 $152 $160 $146 $6 $63 $46 $18 $154 $0 $42 $53 $53 $52 48,510 50,414 49,050 48,974 48,550 $0$100$200$300$400$500$600'21'22'23'24'25Capex / InvestmentShare RepurchasesDividendsWASO Comparable Sales(2)(4)
Page 33
APPENDIX
Page 34
NON-GAAP RECONCILIA TIONS 34(1) CapEx excludes some new restaurant construction expenses, which may be classified as operating lease assets instead of additions to property and equipment in the statement of cash flows.(2) Free cash flow, EBITDA and Adjusted EBITDA may not add due to rounding.(3) A detailed breakdown of impairment of assets and lease termination expenses recorded can be found in the Selected Segment Information table in the 10-K and 10-Q.(4) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.(5) Represents gift card breakage revenue of $17.3 million as a result of a change in historical redemption patterns, partially offset by a non-recurring $7.9 million write-down of gift card inventory.(6) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.(7) Represents incremental costs associated with COVID-19 such as sick and vaccination pay, healthcare and meal benefits for furloughed staff members, additional sanitation and personal protective equipment.Fiscal QuarterFiscal Y ear($ in thousands)4Q254Q2420252024202320222021$ 28,775 $ 41,154$ 148,427$ 156,783$ 101,351$ 43,123$ 72,373 Net income28,670 26,435109,031101,45093,13692,38089,654 Depreciation and amortization expenses3,000 2,13710,44810,10710,1607,48811,625Interest expense, net1,927 4,18214,46814,264(1,337)(10,231)(753)Income tax (benefit)/provision$ 62,372$ 73,908$ 282,374$ 282,604$ 203,310$ 132,760$ 172,899 EBITDA(1) $ 22,494$ 15,224$ 22,990$ 13,647$ 29,464 $ 31,387 $ 18,139 Impairment of assets and lease termination expenses(3) 11,529(858)14,4492,42911,686 13,368 19,510 Acquisition-related contingent consideration, compensation and amortization expenses/(benefit)(4) (9,396)-(9,396)----Gift card adjustment, net(5) --15,891----Loss on debt extinguishment(6) 6,7928,46627,23429,96225,781 24,426 22,988 Stock-based compensation ------4,917 COVID-19 related costs(7) $ 93,791 $ 96,740$ 353,542$ 328,642$ 270,241 $ 201,941 $ 238,453 Adjusted EBITDA(2) Fiscal Y ear($ in thousands)20252024202320222021$ 301,281$ 268,325$ 218,401$ 161,926 $ 213,006 Cash flow from operations146,204160,364151,565112,464 66,943 Capital expenditures / investments(1)$ 155,077$ 107,961$ 66,836$ 49,462 $ 146,063 Free cash flow(2)
Page 35
NON-GAAP RECONCILIA TIONS 35(1) Net income presented for 2021 includes adjustments related to Series A Preferred Stock.(2) A detailed breakdown of impairment of assets and lease termination expenses recorded can be found in the Selected Segment Information table in the 10-K and 10-Q.(3) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.(4) Represents gift card breakage revenue of $17.3 million as a result of a change in historical redemption patterns, partially offset by a non-recurring $7.9 million write-down of gift card inventory.(5) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.(6) Represents incremental costs associated with COVID-19 such as sick and vaccination pay, healthcare and meal benefits for furloughed staff members, additional sanitation and personal protective equipment.(7) The tax effect assumes a tax rate based on the federal statutory rate and an estimated blended state tax rate.(8) Adjusted diluted net income/(loss) per share may not add due to rounding. Fiscal QuarterFiscal Y ear($ in thousands, except per share data)4Q254Q2420252024202320222021$ 28,775$ 41,154 $ 148,427$ 156,783$ 101,351$ 43,123 $ 49,131 Net income(1) 22,49415,22422,99013,64729,46431,387 18,139 Impairment of assets and lease termination expenses(2) ------2,354 Termination of interest rate swap11,529(858) 14,4492,42911,686 13,368 19,510 Acquisition-related contingent consideration, compensation and amortization expenses/(benefit)(3) (9,396)-(9,396)----Gift card adjustment, net(4) --15,891----Loss on extinguishment of debt(5) ------18,661 Dividends on Series A preferred stock------4,581 Net income attributable to Series A preferred stock to apply if-converted method------4,917 COVID-19 related costs (6) 1,306 -2,023---7,139 Uncertain tax positions(6.403)(3,735)(11,423)(4,180)(10,699)(11,637)(11,679)Tax effect of adjustments (7) $ 48,305$ 51,785$ 182,961$ 168,679$ 131,802$ 76,241 $ 112,753 Adjusted net income$ 961,558 $ 920,963 Revenues5.0%5.6%Adjusted net income margin $ 0.60$ 0.83$ 3.06$ 3.20$ 2.07 $ 0.86 $ 1.01 Diluted net income per share0.470.310.470.280.61 0.62 0.34 Impairment of assets and lease termination expenses(2) ------0.04 Termination of interest rate swap0.24(0.02)0.300.050.240.27 0.37 Acquisition-related contingent consideration, compensation and amortization expenses/(benefit)(3) (0.19)-(0.19)----Gift card adjustment, net(4) --0.33----Loss on extinguishment of debt(5) ------0.35 Dividends on Series A preferred stock------0.09 Net income attributable to Series A preferred stock to apply if-converted method------(0.08)Assumed impact of potential conversion of Series A preferred stock into common stock------0.09 COVID-19 related costs(6) 0.03 -0.04---0.13 Uncertain tax positions(0.13)(0.08)(0.24)(0.09)(0.22)(0.23)(0.22)Tax effect of adjustments(7) $ 1.00$ 1.04$ 3.77$ 3.44$ 2.69$ 1.51 $ 2.13 Adjusted diluted net income per share(8)