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 (Continued) We achieved our stated goal to open 14 new restaurants during fiscal 2003 and set a new unit growth record for our Company. We successfully opened ten of those restaurants during a 17-week period of time, which is a strong testament to the strength and depth of our design, construction and operations teams, and we increased our total restaurant operating weeks by approximately 21%. During fiscal 2004, we currently plan to open as many as 16 new restaurants, including approximately 14 Cheesecake Factory locations and as many as two Grand Lux Cafes, and thereby increase our total restaurant operating weeks by approximately 22%. So far this fiscal year, we have opened two Cheesecake Factory restaurants – one in Birmingham, Alabama and another in Cincinnati, Ohio. We have signed leases or letters of intent in hand for the remainder of our targeted new locations for fiscal 2004, and we are well underway with identifying our targeted 2005 locations. During fiscal 2003, comparable sales continued to build at all three of our Grand Lux Cafes. Sales for our first Grand Lux Cafe in Las Vegas, opened in May 1999 at The Venetian, increased a solid 15% during the year. Our second location in the Beverly Center in Los Angeles, opened in November 2001, achieved an impressive 8% sales increase during fiscal 2003, and our third location in downtown Chicago, opened in July 2002, achieved a strong 37% comparable sales increase during the year. During the upcoming year, we will continue to fine tune the concept's menu, operating systems and investment cost to prepare Grand Lux Cafe for additional growth. Our objective with Grand Lux Cafe is to have a second upscale casual dining growth vehicle ready when needed to maintain our growth rate over the longer term, with an excellent return-on-investment profile. With respect to our outside bakery sales, fiscal 2003 was a year of investing in the longer-term future of that business. We created several new products for the SYSCO distribution channel and for other new customers, and we assembled the necessary production, distribution and selling infrastructure to set ourselves up for successful execution over the longer term with these new customers. We also needed time during 2003 to gain valuable experience with our new Dream FactoryŽ premium dessert line in the marketplace. Going forward into 2004, our investments are generating positive bakery sales momentum. We are highly confident in our ability to generate higher outside bakery sales during the upcoming year. While outside bakery sales provide an opportunity to effectively leverage the fixed costs in our bakery production facility, our bakery operation's most important contribution remains its service as a dependable, high quality producer of desserts for sale in our own restaurants. From a corporate finance perspective, our strategy is to maintain a strong, conservative balance sheet in order to support our growth plan with financial flexibility and to provide the capital resources necessary to protect and enhance the competitiveness of our restaurant and bakery operations. At the end of fiscal 2003, we had approximately $137 million of cash and investments on hand, and we had no funded debt outstanding. We believe that our cash and short-term investments on hand, combined with expected cash flow provided by operations and other sources, will be sufficient in the aggregate to finance our planned capital expenditures and other operating activities for the upcoming year. In this challenging and often volatile operating environment, we have a competitive advantage in having our capital resources already in place to support the execution of our growth plan. Our restaurants continue to enjoy one of the most consistently strong sales trends in the restaurant industry, with positive comparable sales comparisons in 45 out of the 46 quarters that we have been a public company. With room for approximately 200 Cheesecake Factory restaurants domestically, and potential room for many Grand Lux Cafes, we believe that we have a sustainable period of profitable growth ahead of us for many years to come. When you consider the popularity of our concepts and brands, the passion and dedication of our 18,000 staff members, and our solid foundation of operational systems, processes and support infrastructure, we truly have a special opportunity to join the ranks of America's most highly respected consumer growth companies. On behalf of our Board of Directors, we would like to thank all of our restaurant guests, bakery customers, staff members, stockholders and suppliers for your steadfast support as partners in our growth. We look forward to reporting our progress to you during the upcoming year. DAVID OVERTON Chairman and CEO April 1, 2004