Financial Analysis

13. Commitments and Contingencies The FRC acquisition agreement included a contingent consideration provision of which the remainder is payable annually from 2024 through 2027 and is based on achievement of revenue and profitability targets for the FRC brands other than North Italia and Flower Child. The liability for this contingent consideration provision was $24.6 million at December 30, 2025. See Note 2 for discussion of the fair value measurement of this liability. As credit guarantees to insurers, we had $33.5 million at both December 30, 2025 and December 31, 2024, in standby letters of credit related to our self-insurance liabilities. All standby letters of credit are renewable annually. We retain the financial responsibility for a significant portion of our risks and associated liabilities with respect to workers compensation, general liability, staff member health benefits, employment practices and other insurable risks. The accrued liabilities associated with these programs are based on our estimate of the ultimate costs to settle known claims, as well as claims incurred but not yet reported to us (IBNR) as of the balance sheet date. The total accrued liability for our self-insured plans was $77.3 million and $73.6 million at December 30, 2025 and December 31, 2024, respectively. On June 7, 2024, the Internal Revenue Service (IRS) issued its examination report for tax years 2015 through 2020 in which it proposed to disallow a portion of our depreciation deductions …

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15. Stock-Based Compensation We maintain stock-based incentive plans under which incentive stock options, non-qualified stock options, stock appreciation rights, restricted shares and restricted share units may be granted to staff members, consultants and non-employee directors. Our current practice is to issue new shares, rather than treasury shares, upon stock option exercises, for restricted share grants and upon vesting of restricted share units. To date, we have only granted non-qualified stock options, restricted shares and restricted share units of common stock under these plans. On March 26, 2025, our Board approved an amendment to our The Cheesecake Factory Incorporated Stock Incentive Plan (the Plan) to increase the number of shares of common stock authorized for issuance under the Plan by 6.0 million shares to 13.15 million shares from 7.15 million shares (the Plan Amendment). This Plan Amendment was approved by our stockholders at our 2025 annual meeting held on May 22, 2025. Approximately 6.3 million of these shares were available for grant as of December 30, 2025. Stock options generally vest at 20% per year and expire eight to ten years from the date of grant. Restricted shares and restricted share units generally vest between three to five years from the date of grant and require that the staff member remains employed in good standing with the Company as of the vesting date. Certain restricted share units granted to executive officers contain performance-based …

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2. Fair Value Measurements Fair value measurements are estimated based on valuation techniques and inputs categorized as follows: Level 1: Quoted prices in active markets for identical assets or liabilities Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring the Company to develop its 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): December 30, 2025 Level 1 Level 2 Level 3 Assets/(Liabilities) Non-qualified deferred compensation assets $ 126,142 $ $ Non-qualified deferred compensation liabilities (125,208) Acquisition-related contingent consideration and compensation liability (24,628) December 31, 2024 Level 1 Level 2 Level 3 Assets/(Liabilities) Non-qualified deferred compensation assets $ 108,093 $ $ Non-qualified deferred compensation liabilities (108,166) Acquisition-related contingent consideration and compensation liability (20,155) Changes in the fair value of non-qualified deferred compensation assets and liabilities are recognized in other income, net in our consolidated statements of income. Changes in the fair value of the acquisition-related contingent consideration and compensation liability are recognized in acquisition-related contingent consideration, compensation and amortization exp …

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17. Income Taxes In fiscal 2025, we adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on a prospective basis. Certain disclosures for fiscal 2025 reflect the new requirements. Prior year disclosures are presented under previous guidance. The components of income before income taxes and provision for income taxes pursuant to the disclosure requirements of ASU 2023-09 for year ended December 30, 2025 consisted of the following (in thousands): 2025 United States $ 141,641 Foreign 21,254 Income before income taxes $ 162,895 Income tax provision/(benefit): Current: Federal $ 10,083 State 8,955 Foreign 2,135 Total current 21,173 Deferred: Federal (6,917) State 212 Total deferred (6,705) Total provision: Federal 3,166 State 9,167 Foreign 2,135 Total provision $ 14,468 The provision for income taxes for fiscal 2024 and 2023 consisted of the following (in thousands): 2024 2023 Income before income taxes $ 171,047 $ 100,014 Income tax provision/(benefit): Current: Federal $ 10,638 $ 7,183 State 9,688 7,195 Total current 20,326 14,378 Deferred: Federal (7,542) (15,329) State 1,480 (386) Total deferred (6,062) (15,715) Total provision/(benefit) $ 14,264 $ (1,337) The following reconciles the U.S. federal statutory rate to the effective tax rate for fiscal 2025 pursuant to the disclosure requirement of ASU 2023-09 for year ended December 30, 2025 (in thousands, except percentages): Amount Percent U.S. federal statutory rate $ 34,207 21.0 % Domestic fed …

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11. Leases Components of lease expense were as follows (in thousands): Fiscal Year 2025 2024 2023 Operating $ 168,504 $ 154,233 $ 145,774 Variable 92,798 90,686 87,047 Short-term 157 158 142 Total $ 261,459 $ 245,077 $ 232,963 Supplemental disclosures of cash flow information related to leases were as follows: (in thousands): Fiscal Year 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 165,944 $ 142,259 $ 145,836 Right-of-use assets obtained in exchange for new operating lease liabilities 122,116 169,831 114,373 The weighted-average remaining lease term and discount rate were as follows: Fiscal Year 2025 2024 Weighted-average remaining lease term operating leases (in years) 14.4 14.7 Weighted-average discount rate operating leases 5.8 % 5.6 % As of December 30, 2025, the maturities of our operating lease liabilities were as follows (in thousands): Fiscal year 2026 $ 173,093 Fiscal year 2027 166,279 Fiscal year 2028 175,894 Fiscal year 2029 158,211 Fiscal year 2030 141,426 Thereafter 1,476,059 Total future lease payments 2,290,962 Less: Interest (791,201) Present value of lease liabilities $ 1,499,761 Operating lease liabilities include $817.4 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $291.3 million of legally binding minimum lease payments for leases signed but not yet commenced. …

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10. Debt Revolving Credit Facility On October 6, 2022, we entered into a Fourth Amended and Restated Loan Agreement (the Loan Agreement and the revolving credit facility provided thereunder, the Revolver Facility). The Loan Agreement amends and restates in its entirety our prior credit agreement. The Revolver Facility, which terminates on October 6, 2027, provides us with revolving loan commitments that total $400 million, of which $50 million may be used for issuances of letters of credit. The Revolver Facility contains a commitment increase feature that, subject to certain conditions precedent, could provide for an additional $200 million in revolving loan commitments. Our obligations under the Revolver Facility are unsecured. Certain of our material subsidiaries have guaranteed our obligations under the Revolver Facility. On October 6, 2022, we repaid the outstanding balance under the then-existing credit agreement and borrowed the same amount on the Revolver Facility. In November 2023, we borrowed $15.0 million on the Revolver Facility and repaid it in December 2023. In the fourth quarter of fiscal 2024 we repaid $20.0 million on the Revolver Facility. As of December 31, 2024, we had net availability for borrowings of $256.5 million, based on a $110.0 million outstanding debt balance and $33.5 million in standby letters of credit under the Revolver Facility. In the first quarter of fiscal 2025 we repaid $110.0 million on the Revolver Facility. As of December 30, 2025, we …

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Recent Accounting Pronouncements Recently Adopted Accounting Standards and Tax Legislation In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which updates income tax disclosures related to the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendment also provides further disclosure comparability. The amendment is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendment should be applied prospectively. However, retrospective application is permitted. We adopted this standard as of the end of fiscal 2025 using the prospective transition method and such adoption did not have a significant impact on our disclosures. On July 4, 2025, the U.S. enacted H.R. 1 (a bill To provide for reconciliation pursuant to Title II of H. Con. Res. 14). The legislation includes several provisions that may impact the timing and magnitude of certain tax deductions and provides for the permanent extension of several business tax benefits originally introduced under the 2017 Tax Cuts and Jobs Act. The enactment of H.R. 1 did not have a material impact on the consolidated financial statements. Recently Issued Accounting Standards In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which requires more detailed disclosures of certain categories of expenses su …

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16. Employee Benefit Plans We have defined contribution benefit plans in accordance with section 401(k) of the Internal Revenue Code (401(k) Plans) that are open to our staff members who meet certain compensation and eligibility requirements. Participation in the 401(k) Plans is currently open to staff members from our restaurant concepts, bakery facilities, corporate office and FRC headquarters. The 401(k) Plans allow participating staff members to defer the receipt of a portion of their compensation and contribute such amount to one or more investment options. Our executive officers and a select group of management and/or highly compensated staff members are not eligible to participate in the 401(k) Plans. We currently match in cash a certain percentage of the staff member contributions to the 401(k) Plans and also pay a portion of the administrative costs. Expense recognized in fiscal 2025, 2024 and 2023 was $2.7 million, $2.2 million and $2.3 million, respectively. We have also established non-qualified deferred compensation plans (Non-Qualified Plans) for our executive officers and a select group of management and/or highly compensated staff members. The Non-Qualified Plans allow participating staff members to defer the receipt of a portion of their base compensation and bonuses. Non-employee directors may also participate in the Non-Qualified Plans and defer the receipt of their earned director fees. We currently match in cash a certain percentage of the staff member co …

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18. Segment Information Our chief operating decision maker (CODM) is the Chief Executive Officer, President and Chief Financial Officer. Our CODM allocates resources and evaluates the performance of each operating segment based on the segments revenue and income/(loss) from operations, comparing actual results to historical and previously forecasted financial information. Significant expenses are expenses that are regularly provided to the CODM and are included in segment income/(loss). Our operating segments, are aligned with our strategic priorities and are the businesses for which our CODM reviews discrete financial information for decision-making purposes, are comprised of The Cheesecake Factory, North Italia, Flower Child, the other FRC brands and our bakery division. Based on quantitative thresholds set forth in ASC 280, Segment Reporting, The Cheesecake Factory, North Italia and the other FRC brands are the only businesses that meet the criteria of a reportable operating segment. The remaining operating segments (Flower Child and our bakery division) along with our businesses that do not qualify as operating segments are combined in Other. Unallocated corporate expenses, capital expenditures and assets are also combined in Other. Segment information is presented below (in thousands): For the fifty-two weeks ended December 30, 2025 The Cheesecake Factory North Restaurants Italia Other FRC Other Total Revenues $ 2,688,797 $ 345,896 $ 355,060 $ 362,053 $ 3,751,806 Costs a …

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14. Stockholders Equity Common Stock - Dividends and Share Repurchases Our Board reinstated and declared a quarterly dividend in the second quarter of fiscal 2022 and has continued to pay quarterly dividends through fiscal 2025. Our Board declared dividends of $1.08 per common share in the aggregate during each fiscal 2025, fiscal 2024 and fiscal 2023. 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. (See Note 10 for further discussion of our debt.) Under authorization by our Board to repurchase up to 61.0 million shares of our common stock, we have cumulatively repurchased 59.9 million shares at a total cost of $1,983.6 million, excluding excise tax, through December 30, 2025. During fiscal 2025, we repurchased 2.9 million shares of our common stock at a cost of $153.9 million, excluding excise tax, inclusive of the 2.4 million shares of our common stock repurchased concurrently with the 2030 Notes issuance in privately negotiated transactions on February 28, 2025. During fiscal 2024 and 2023, we repurchased 0.5 million and 1.4 million shares of our common stock at a cost of $18.0 million and $46.1 million, excluding excise tax, respectively. Our objective …

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19. Subsequent Events On February 12, 2026, our Board declared a quarterly cash dividend of $0.30 per share to be paid on March 17, 2026 to the stockholders of record of each share of our common stock at the close of business on March 4, 2026. On February 12, 2026, our Board increased the authorization to repurchase our common stock by 5.0 million shares to 66.0 million shares. See Note 14 for further discussion on our repurchase authorization and methods.

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