The Cheesecake Factory Bloomin Brands, Inc.

Brinker International
Christina Lavarn
Garrett McVay

Rocco Ragland
Catherine Cheung

Industry Overview
Full-service verses fast food
Waiter/waitress
Service provided while seated
Pay after eating

Key External Drivers

Consumer spending

Revenue

Healthy eating index

Revenue: 92.0B
Employment: 1.74B

$100,000.00
Revenue in Millions

Over 750 operating businesses

$80,000.00
$60,000.00
$40,000.00
$20,000.00
$2000 2002 2004 2006 2008 2010 2012

The Cheesecake Factory (CAKE)

Founded in 1978

Headquartered in Beverly Hill, California

Brands
The Cheesecake Factory

Grand Lux Cafe

RockSugar Pan Asian Kitchen

177 restaurants in 35 states and the District of Columbia

Market Cap: 2.36B
Inventory method: FIFO

Bloomin Brands, Inc. (BLMN)

Founded in 1987
Headquartered in Tampa, Florida
Became publicly traded company in 2012
Brands
Outback Steakhouse, Carrabbas Italian Grill, Fishbone Grill,

Flemings Prime Steakhouse and Wine Bar, Roys

Market Cap: 2.81 B

Inventory method: FIFO

Company-owned
Franchise
Total

Number of Restaurants
Domestic (45)
Foreign (22)
1175
169
51
113
1226
282

Total
1344
164
1508

Brinker International (EAT)

Founded in 1975
Headquartered in Dallas, Texas
Brands
Chilis Grill & Bar
Maggianos Little Italy

Market Cap: 3.50B

Inventory method: FIFO

Common-Sized Income Statement

Cheesecake
2012
Revenue (in thousands)

2010

2012

2011

Brinker
2010

2012

2011

2010

$1,757,624

$1,659,404

$3,987,795

$3,841,264

$3,628,287

$2,820,722

$2,761,386

$2,858,498

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Cost of sales

24.88%

25.52%

24.88%

32.46%

32.24%

32.05%

27.29%

26.88%

28.55%

Labor expenses

32.07%

32.28%

32.36%

28.32%

28.77%

28.78%

31.62%

32.11%

32.41%

Other operating costs and expenses

24.30%

24.38%

24.61%

23.28%

23.40%

24.04%

23.04%

23.72%

23.12%

General and administrative expenses

5.76%

5.48%

5.77%

8.27%

7.65%

7.03%

5.08%

4.81%

8.84%

Depreciation and amortization expenses

4.11%

4.09%

4.35%

2.93%

4.04%

4.35%

4.43%

4.65%

4.75%

Impairment

0.53%

0.09%

0.00%

0.33%

0.37%

0.14%

0.00%

0.00%

0.00%

Total costs and expenses

92.33%

92.41%

92.27%

96.47%

95.39%

96.24%

91.78%

92.56%

94.60%

Income from operations

7.67%

7.59%

7.73%

4.59%

5.61%

4.70%

8.22%

7.44%

5.40%

Interest and other expenses

0.26%

-0.25%

-1.03%

-2.20%

-2.19%

-2.54%

0.95%

1.03%

1.00%

Income before income taxes

7.41%

7.35%

6.69%

1.86%

3.44%

2.24%

7.40%

6.64%

4.62%

Income tax provision

1.97%

1.90%

1.77%

0.30%

0.57%

0.59%

2.04%

1.53%

0.99%

Net income

5.44%

5.45%

4.92%

1.55%

2.87%

1.65%

5.36%

5.11%

4.82%

Total Revenues

$1,809,017

2011

Bloomin'

Costs and expenses:

Common-Sized Balance Sheet

Cheesecake

Bloomin'

Brinker

2012

2011

2010

2012

2011

2010

2012

2011

2010

Cash and cash equivalents

7.76%

4.81%

8.01%

8.68%

14.37%

11.52%

4.12%

5.52%

18.61%

Accounts receivable

1.35%

1.13%

1.59%

1.32%

0.95%

0.81%

3.02%

2.88%

2.44%

Other receivables

4.47%

3.20%

2.68%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Inventories

2.68%

2.81%

2.26%

2.59%

2.06%

1.82%

1.77%

4.02%

3.18%

Prepaid rent & expenses

8.42%

8.58%

7.73%

3.40%

3.11%

2.21%

0.00%

0.00%

0.00%

Other assets

2.69%

2.34%

2.16%

4.82%

4.06%

5.11%

7.19%

7.03%

3.45%

Total current assets

27.36%

22.88%

24.43%

16.17%

21.12%

16.37%

13.57%

14.91%

27.05%

Property and equipment, net

70.98%

75.66%

74.15%

49.93%

48.78%

51.59%

72.67%

71.15%

60.96%

Goodwill

0.00%

0.00%

0.00%

8.98%

8.01%

8.32%

8.75%

8.36%

14.57%

Intangible assets, net

1.66%

1.46%

1.42%

18.29%

16.88%

17.64%

0.00%

0.00%

0.00%

100.00%

100.00%

ASSETS
Current assets

Total assets

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Common-Sized Balance Sheet

Cheesecake

Bloomin'

2011

2010

2012

6.18%
0.00%
0.00%
10.30%
16.48%
0.00%
0.00%
0.00%
7.25%
23.73%

5.15%
0.00%
0.00%
9.79%
14.93%
0.00%
0.00%
0.00%
7.84%
22.77%

4.40%
0.00%
0.00%
8.82%
13.21%
0.00%
0.00%
0.00%
7.00%
20.21%

4.37%
6.37%
0.76%
0.00%
22.92%
6.49%
48.78%
8.76%
0.00%
92.70%

Stockholders equity:
Common stock
Additional paid-in capital
Retained earnings
Treasury stock
Total stockholders equity

0.12%
66.85%
118.74%
-109.43%
76.27%

0.12%
64.79%
116.25%
-103.94%
77.23%

0.11%
57.72%
97.15%
-75.20%
79.79%

0.04%
0.03%
0.03%
1.23%
1.19%
0.95%
33.18% 26.08% 26.88% 32.50% 31.23% 25.15%
-25.63% -24.53% -28.45% 147.13% 135.61% 129.96%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
7.30%
1.20% -2.13% 21.58% 29.56% 39.35%

Total liabilities and stockholders equity

100.00%

100.00%

100.00%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

LIABILITIES AND STOCKHOLDERS EQUITY

Current liabilities:
Accounts payable
Other current liabilities
Current Portion of LTD
Other accrued expenses
Total current liabilities
Deferred income tax liabilities
Long term debt
Other long term debt
Deemed landlord financing liability
Total liabilities

2011

Brinker

2012

2010

2012

2.90%
8.41%
7.00%
6.31%
8.73%
9.51%
9.93%
2.94%
1.90%
0.00%
0.00%
0.00%
28.52% 20.07% 27.98%
5.76%
7.57%
0.00%
52.23% 64.01% 40.94%
6.52% 10.07% 9.51%
0.00%
0.00%
0.00%
98.80% 102.13% 78.42%

2011

2010

5.90%
9.26%
1.49%
0.00%
27.32%
0.00%
33.85%
9.26%
0.00%
70.44%

6.09%
8.04%
0.91%
0.00%
24.29%
0.00%
28.32%
8.04%
0.00%
60.65%

Liquidity
Inventory Turnover

Current Ratio

35.00

1.40

30.00

1.20

25.00

1.00

20.00

2012

0.80

2012

15.00

2011

0.60

2011

10.00

2010

0.40

2010

5.00

0.20

0.00

0.00

CAKE

BLMN

EAT

CAKE

BLMN

Cash Ratio
100.00%
80.00%
60.00%

2012

40.00%

2011
2010

20.00%
0.00%
CAKE

BLMN

EAT

EAT

Profitability
Gross Proft Margin
76.00%
74.00%
72.00%
70.00%
68.00%
66.00%
64.00%

Net Profit Margin

6.00%
2012

4.00%

2011

2.00%

2012
2011
2010

2010

0.00%
CAKE

BLMN

Return on Asset

EAT

CAKE

BLMN

EAT

15.00%
10.00%

2012
2011

5.00%

Total Asset Turnover

2010
0.00%

CAKE

2.50

BLMN

Return on Investment

EAT
20.00%

2.00
2012

1.50

15.00%
2012

1.00

2011

10.00%

0.50

2010

5.00%

0.00

2011
2010

0.00%
CAKE

BLMN

EAT

CAKE

BLMN

EAT

Debt Paying Ability

Debt Equity Ratio

Debt Ratio
10000.00%

120.00%

8000.00%

100.00%

6000.00%

80.00%
60.00%
40.00%

2012

4000.00%

2012

2011

2000.00%

2011

2010

0.00%

20.00%

-2000.00%

0.00%

-4000.00%
CAKE

BLMN

EAT

-6000.00%

2010
CAKE

BLMN

EAT

Investor Analysis
Price Earning Ratio
$60.00
$50.00
$40.00
2012
$30.00

2011
2010

$20.00
$10.00
$-

CAKE

BLMN

EAT

Ratio Summary
CAKE
Inventory Turnover
Current Ratio
Cash Ratio
Gross Profit Margin
Net Profit Margin
Total Asset Turnover
Return on Investment
Return on Asset
Debt Ratio
Debt Equity Ratio
Price Earning Ratio

BLMN

EAT

Recommendation

Has a future vision

Uses company assets widely

Understands industrys position and state of economy

Post-Period Performance