887596--2/22/2007--CHEESECAKE_FACTORY

related topics

{financial, litigation, operation}

{condition, economic, financial}

{regulation, change, law}

{personnel, key, retain}

{acquisition, growth, future}

{cost, operation, labor}

{cost, contract, operation}

{control, financial, internal}

Changes in consumer eating habits as a result of new information regarding diet, nutrition and health could impact demand for our menu and bakery product offerings. Increasing competition in the restaurant industry in general, and specifically within the upscale, casual dining segment of the restaurant industry, may adversely affect customer traffic at our restaurants. Adverse weather conditions could unfavorably affect our restaurant sales. Seasonality of our business and the timing of new restaurant openings could result in fluctuations in our financial performance from quarter-to-quarter within a fiscal year. Inflation and other market conditions may increase our operating expenses. Our inability to successfully and sufficiently raise menu prices could result in a decline in margins. Changes in, or any failure to comply with, applicable laws or regulations could adversely affect our business, financial position and results. Changes in, or any failure to comply with, applicable labor laws or regulations could adversely affect our business, financial position and results of operations. Adverse publicity about us, our restaurants or bakery products could negatively affect public perception of the brand. Adverse publicity about others in the food service industry or about food products could negatively affect our sales. The need for advertising may arise, which could increase our operating expenses. If we are unable to realize our long-term growth plan and successfully implement our business strategy, our growth rate could slow. Our growth rate depends primarily on new restaurant openings and is subject to various factors that may increase the cost to develop and/or affect the number and timing of the openings of new restaurants. Our ability to successfully operate our bakery business will have an impact on our ability to grow bakery sales and profits. New restaurant openings may negatively impact sales at our existing restaurants. Litigation could have a material adverse impact on our business. We may be unable to scale our infrastructure to support our growing operations. Our business and future development could be hurt if we are unable to retain key personnel. Our failure to establish, maintain and apply adequate internal control over our financial reporting could affect our reported results of operations. Changes in financial accounting standards or interpretations of existing standards could affect our reported results of operations The Staff of the Securities and Exchange Commission has notified us that it is conducting an informal inquiry concerning our stock option practices and this inquiry could require us to expend significant resources and result in an unfavorable outcome. Pending civil litigation relating to our stock option granting practices could have a material adverse effect on the Company.

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887596--2/22/2007--CHEESECAKE_FACTORY_INCORPORATED