THE CHEESECAKE FACTORY REPORTS PRELIMINARY REVENUES

FOR FOURTH QUARTER OF FISCAL 2006

Company Reports Positive Comparable Restaurant Sales

FOR IMMEDIATE RELEASE		CONTACT: JILL PETERS
		(818) 871-3000

Calabasas Hills, CA – January 8, 2007 – The Cheesecake Factory Incorporated (Nasdaq: CAKE) today reported preliminary, unaudited revenues for the fourth quarter of fiscal 2006, which ended on January 2, 2007.

Total revenues for the fourth quarter of fiscal 2006 were $360.4 million, an approximate 18% increase from the fourth quarter of fiscal 2005, on a 13-week basis. Fiscal 2005 was a 53-week year for the Company, with an additional week in the fourth quarter, while fiscal 2006 was a 52-week year. On a reported basis, revenues increased approximately 10% in the fourth quarter of fiscal 2006 from $328.6 million in the prior year period.

Comparable restaurant sales increased 0.8% in the fourth quarter of fiscal 2006. By concept, comparable restaurant sales increased 0.4% at The Cheesecake Factory and increased 7.8% at Grand Lux Cafe in the fourth quarter of fiscal 2006.

“We are very pleased with our improving sales trends at The Cheesecake Factory. The positive comparable sales for the quarter gives us more confidence as we head into fiscal 2007,” commented David Overton, Chairman and CEO. “In addition, Grand Lux Cafe continues to gain strength and solidify itself as a viable second concept. Grand Lux Cafe achieved a healthy sequential increase in comparable sales in the fourth quarter, despite lapping a 3.8% increase in comparable sales in the prior year period.”

About The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated operates 123 upscale, casual dining restaurants under The Cheesecake Factoryâ name that offer an extensive menu of more than 200 items with an average check of approximately $17.00. The Company also operates two bakery production facilities that produce over 50 varieties of quality cheesecakes and other baked products for the Company’s restaurants and for other leading foodservice operators, retailers and distributors. Additionally, the Company operates eight upscale, casual dining restaurants under the Grand Lux Cafeâ name; one self-service, limited menu “express” foodservice operation under The Cheesecake Factory Express® mark inside the DisneyQuest® family entertainment center in Orlando, Florida; and licenses two bakery cafe

The Cheesecake Factory Incorporated
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000 · Fax (818) 871-3100

outlets to another foodservice operator under The Cheesecake Factory Bakery Cafeâ name. For more information about The Cheesecake Factory Incorporated, please visit thecheesecakefactory.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. In particular, forward-looking statements regarding the Company’s restaurant sales trends are subject to risks and uncertainties due to national and regional economic and public safety conditions that impact consumer confidence and spending, as well as weather and other factors outside of the Company’s control. Certain of the Company’s directors and certain of its current and former officers are defendants in eight lawsuits relating to the Company’s stock option grants. These actions are in the preliminary stages, and the Company cannot provide assurance that their ultimate outcome will not have a material, adverse affect on the Company’s business, financial condition or results of operations. The staff of the Securities and Exchange Commission has informed the Company that it is conducting an informal inquiry into the Company’s stock option grants. The outcome of this inquiry could have a material, adverse affect on the Company’s business, financial condition or results of operations. The Company is considering the application of Section 409A of the Internal Revenue Code to those options for which it incorrectly applied the measurement date as defined in Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees.” It is possible that these options will not be treated as having been granted at fair market value for federal income tax purposes and thus subject to Section 409A. Accordingly, the Company may adopt remedial measures to address the application of Section 409A, but it does not currently know what the impact of any remedial measures, if adopted, would have on its results of operations, financial position or cash flows. Forward-looking statements speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the Securities and Exchange Commission.

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