Who Owns Cheesecake Factory?

The Cheesecake Factory Inc. is an American restaurant chain and cheesecake distributor based in Calabasas, California. The company was founded by David Overton in Beverly Hills, California in 1978. However, David’s parents owned the original recipe and the first Cheesecake Factory Bakery.

The restaurant chain serves US and Canadian consumers through The Cheesecake Factory, North Italia, and Fox Restaurant Concepts (FRC). As of Feb 2024, the company owned and operated 332 US and Canadian restaurants. Its 33 Cheesecake Factory restaurants serve consumers globally under licensing agreements. The chain has two facilities that produce cheesecakes and baked products for its company-owned restaurants, international licensees, and third-party bakeries. [1]

Cheesecake Factory leads the experiential dining market. The company offers culinary-forward hospitality and creates memorable experiences for foodies. In Q4 2023, the chain opened 9 new restaurants – 3 under the Cheesecake Factory brand, 3 for North Italia, and 3 for FRC. Its international division added three Cheesecake Factory restaurants in China, Thailand, and Mexico, one North Italia, one Flower Child, and one Culinary Dropout. In 2023, Cheesecake Factory was named to FORTUNE Magazine’s 100 Best Companies to Work For list for the tenth year. [2]

The Cheesecake Factory is known for its cheesecakes. However, it also offers other dishes, baked goods, and drinks. In Jul 2023, the chain introduced its new flavour, Cookie Dough Lover’s Cheesecake with Pecans, for National Cheesecake Day. The company launched the Cheesecake Rewards loyalty program, offering half-priced cheesecake slices. [3]

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Who is Cheesecake Factory’s Parent Company?

The Cheesecake Factory is a standalone, public company traded on NASDAQ under the CAKE ticker symbol. It doesn’t have a parent organization or sole owner. Since its 1992 IPO, the restaurant chain has been answering to its shareholders.

Anyone can buy Cheesecake Factory shares on the stock exchange to own a piece of the company. As the Chairman and CEO, founder David Overton is the chain’s top decision-maker.

CEO David Overton is committed to Cheesecake Factory’s growth strategy and ambitions.

In Oct 2023, the Chairman and CEO announced plans to open a Cheesecake Factory bakery in Charlestown, Indiana. The facility will manufacture and distribute the restaurant’s iconic cheesecake and desserts to operators and retailers. Founder Overton also used the occasion to celebrate the 51^st anniversary of his parents opening the first Cheesecake Factory Bakery. [4]

The Cheesecake Factory is one of America’s leading restaurants. The chain manages to stay ahead of the competition by refreshing its menu items. In Nov 2023, Cheesecake Factory introduced the Peppermint Stick Chocolate Swirl Cheesecake for the holidays.

This cheesecake combines peppermint with white and dark chocolate cheesecake on a mint chocolate brownie. The restaurant now offers over 250 menu selections and over 30 legendary cheesecakes. [5]

Cheesecake Factory is expanding its retail network to cater to more consumers. The company unveiled a Cheesecake Factory and a Henry in Miami area and a Doughbird in Tucson, Arizona, in Q2 2023. In Q3 2023, the chain announced plans to open up to 20 new restaurants before Jan 2024. The list included six Cheesecake Factory restaurants, five North Italia locations, and nine FRCs. The company attained its target. [6]

Cheesecake Factory’s Ownership History

David Overton is accredited for founding the modern-day Cheesecake Factory in 1972. But the restaurant’s history started in the 1940s, when David’s mother, Evelyn Overton, found a recipe in a Detroit newspaper. The recipe inspired her original cheesecake, which she sold from a small bakery. She closed her bakery to focus on raising her kids, David and Renee and continued baking and selling cakes from her basement kitchen. [7]

Evelyn and her husband, Oscar, moved to Los Angeles, California in 1972. They opened The Cheesecake Factory Bakery and started selling Evelyn’s cheesecakes to restaurants. In 1978, David established a restaurant in Beverly Hills to showcase his mother’s cakes. The business took off from the start thanks to its extensive dessert menu.

David Overton opened his second Cheesecake Factory restaurant in Marina Del Rey in 1983 and the third in Redondo Beach, California. Then, he set a goal to establish at least one restaurant yearly or every two years. In 1992, The Cheesecake Factory went public. David became the CEO and Chairman of the board after the company’s IPO.

The IPO transferred the chain’s ownership from David Overton to the general public and shareholders. [8]

The Cheesecake Factory expanded rapidly in the mid-2000s. In 2011, the Cheesecake Factory went global after opening its first international location in Dubai, UAE. The restaurant ventured into San Juan, Puerto Rico, and Shanghai, China. In 2019, The Cheesecake Factory acquired Fox Restaurant Concepts. This acquisition brought North Italia and Flower Child under Cheesecake Factory’s ownership. Chairman and CEO Overton focused on expanding the menu and capped it at 250 items. [9]

The Cheesecake Factory’s Shareholder Information

The Cheesecake Factory is a public company owned by its shareholders. It is subject to Wall Street rules and regulations. In Dec 2022, Goldman Sachs analysts lowered their price target on Cheesecake Factory’s stock to $29, or about 10% below trading levels. Most companies stabilize their shares through repurchase programs. In Q4 2023, the restaurant repurchased around 318,400 shares of its stock for $9.8 million. [10]

The Cheesecake Factory’s shareholder structure has institutions, insiders, and individual investors. As of 2023, the chain offered 107,579,853 Stock A shares with one vote. This figure includes 56,543,158 company-owned shares and 47,534,135 free-float shares. [11]

CEO and Chairman David Overton is Cheesecake Factory’s largest insider shareholder. The CEO held 3.56 million shares or 6.7% of the company on Feb 4, 2022. Then, he increased his stake in The Cheesecake Factory by 0.50%. As of Feb 2023, CEO Overton owned 3.77 million shares or 7.2% of the company. [12]

Cheesecake Factory’s 10 institutional shareholders have filed 13D/G or 13F forms with the US SEC. They own 32,679,000 shares. The chain’s largest institutional shareholders include Sonora Investment, New York State Common Retirement Fund, Bank of New York Mellon Corp, Oppenheimer Assets, and Sei Investments.

As of Feb 2023, Kayne Anderson Rudnick had 7.81% ownership of the company, IJR at 6.9%, BAMCO at 5.86%, Frontier Capital at 4.61%, and BSCFX at 4.38%. Other top shareholders are BlackRock, Vanguard Fiduciary Trust, Earnest Partners, State Street Corp, Invesco Advisors, Dimensional Fund, and Geode Capital. [13]

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