CHEESECAKE FACTORY INC

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EBITDAR financial performance goal. In the first half of fiscal 2023, we achieved 93.3% of the first-half adjusted EBITDAR financial performance goal, resulting in an 88% payout. In the second half of fiscal 2023, we achieved 96.2% of the second-half adjusted EBITDAR financial performance goal, resulting in a 94% payout for the second half of the fiscal year and an overall adjusted EBITDAR financial performance goal payout of 91%.

(2)

The Company strategic initiatives paid out at 100%.

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(3)

The bakery division adjusted Gross Contribution measures sales less ingredient, packaging, and direct labor costs. This adjusted Gross Contribution financial performance portion of the bonus was broken into two halves of the fiscal year. The percentage payout achieved for each period was weighted as 50% of the bakery division adjusted Gross Contribution financial performance goal. The bakery division achieved 78.2% of the first-half fiscal 2023 adjusted Gross Contribution financial performance goal, resulting in a 37% payout. The bakery division achieved 90% of the second-half fiscal 2023 adjusted Gross Contribution financial performance goal, resulting in a 77% payout for the second half of the fiscal year and an overall bakery division adjusted Gross Contribution financial performance goal payout of 57%.

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(4)

The bakery division strategic initiatives paid out at 66%.

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(5)

The adjusted average annual sales per productive square foot goal and the adjusted annual controllable profit goal measured performance by Company owned and operated The Cheesecake Factory restaurants.

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2023 Compensation Program Changes and Other Pay Actions. Our executive compensation program was designed to drive strong results and was built upon our performance-driven culture and long-standing executive compensation philosophies and objectives.