Cover On The Cover Financial Highlights To Our Stockholders Commitment to Excellence Community Involvement Form 10-K Cover Form 10K Corporate and Stockholder Information Restaurant Locations Back Cover

TO OUR STOCKHOLDERS THE CHEESECAKE FACTORY achieved solid growth in revenues, net income and diluted net income per share during fiscal 2003, in spite of inclement weather during the first half of the year that significantly impacted sales comparisons at many of our restaurants, coupled with a more challenging operating environment. Once again, our highly dedicated and capable restaurant, bakery and corporate support teams worked hard to overcome those challenges to enable our Company to enjoy another year of profitable growth. We also benefited from the sustained popularity of our restaurant concepts and brands to maintain the forward momentum that has been the hallmark of our restaurant operations for over 26 years and our bakery operations for over 32 years. As we move forward into fiscal 2004, we remain as enthusiastic as ever about our ability to continue the profitable growth of our concepts and brands throughout America, building upon our reputation for excellence in food, service, ambiance and overall value in upscale casual dining. Our fiscal 2004 business plan begins with the same objective that we start with every year – to protect and enhance the overall value of our restaurant concepts and brands for consumers. The Cheesecake Factory's restaurant business model has always been a pure operating model – focused on great restaurateuring and great operational execution. With demographic and lifestyle trends continuing to create more consumer demand for upscale casual dining occasions, we believe the unique competitive positioning of our concepts and our operational expertise will enable us to capture an increasing share of that growing demand as we continue our expansion across the country. Having said that, we can never be satisfied with the status quo in any aspect of our operations. At The Cheesecake Factory, our culture calls for us to constantly strive to surpass our previous best. During the upcoming year, we will execute three major initiatives to raise the bar of excellence in our restaurant operations. First, we will reinforce our commitment to excellent guest service through improved service methods. Next, we will allocate additional resources to the recruitment and development of talent throughout our entire organization to ensure a strong foundation of human resources to support our growth plan. We will also work hard to further improve the overall quality and execution of our food, beverages and desserts. These initiatives should help us to maintain and improve the popularity of our restaurants with consumers and sustain our positive sales momentum. Simultaneously, we will also strive to protect our operating profit margins by focusing on greater economies of scale and purchasing power, improved productivity and effective fixed cost leverage. Continued