887596--2/26/2010--CHEESECAKE_FACTORY

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The global economic crisis adversely impacted our business and financial results in fiscal 2008 and 2009. Continuing effects from the recession could materially affect us in fiscal 2010 and beyond. The lack of available credit, along with the macroeconomic factors previously discussed, has had an adverse impact on certain of our landlords and other tenants in retail centers in which we are located. If these issues continue or worsen, it could further materially impact these parties, which in turn could negatively affect our financial results. Future growth in our revenues, profitability and earnings per share depends heavily on improving comparable restaurant sales and selecting high quality sites for new restaurant openings. Increases in the costs to operate our business may have a material adverse impact on our business and results of operations. Competition in the restaurant industry in general, and specifically within the upscale, casual segment of the restaurant industry, may adversely affect guest traffic at our restaurants. Negative publicity about us, our restaurants or bakery products, and about others across the food industry supply chain, whether or not accurate, could harm our business. Our success depends substantially on the value of our brands and our reputation for offering guests a unique total experience. Our failure to successfully operate our bakery business would have a material adverse impact on our third party bakery sales and profits. New restaurant openings may negatively impact sales at our existing restaurants. We are investing in marketing, but our marketing programs may not be successful. Our business and future development could be harmed if we are unable to retain key personnel or have difficulties in recruiting qualified personnel. We may be unable to appropriately scale our infrastructure in a timely manner. Changes in, or any failure to comply with, applicable laws or regulations at the federal, state or local level could adversely affect our business, financial position and results. Information technology system failures or breaches of our network security could interrupt our operations and subject us to increased operating costs as well as litigation and other liabilities. Our inability or failure to execute on a comprehensive business continuity plan following a major natural or manmade disaster, including terrorism, at our corporate facility could materially adversely impact our business Litigation could have a material adverse impact on our business. New information or attitudes regarding diet and health could result in changes in regulations and consumer eating habits that could adversely affect our revenues. 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. Adverse weather conditions could unfavorably affect our restaurant sales. Our failure to establish, maintain and apply adequate internal control over our financial reporting could affect our reported results of operations. In addition, changes in financial accounting standards or interpretations of existing standards could affect our reported results of operations Our federal, state and local tax returns may, from time to time, be selected for audit by taxing authorities, which may result in tax assessments or penalties that could have a material adverse impact on our results of operations and financial position. Failure to satisfy financial covenants and/or repayment requirements under our credit facility could have a material adverse effect on our financial condition. Failure to meet market expectations for our financial performance will likely have a negative impact on the market price of our common stock. There may be future sales or other dilution of our equity which may adversely affect the market price of our common stock. We have a shareholder rights plan, or poison pill, which could affect the price of our common stock and make it more difficult for a potential acquirer to purchase a large portion of our securities, to initiate a tender offer or a proxy contest, or to acquire us.

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887596--2/26/2010--CHEESECAKE_FACTORY_INC