Earnings release
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26901 Malibu Hills Road, Calabasas Hills, CA 91301 Telephone (818) 871-3000 PRESS RELEASE FOR IMMEDIATE RELEASE Contact: Etienne Marcus (818) 871-3000 investorrelations@thecheesecakefactory.com THE CHEESECAKE FACTORY REPORTS RESULTS FOR SECOND QUARTER OF FISCAL 2026 CALABASAS HILLS, Calif. – July 28, 2026 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the second quarter of fiscal 2026, which ended on June 30, 2026. Total revenues were $1,029.6 million in the second quarter of fiscal 2026 compared to $955.8 million in the second quarter of fiscal 2025. Net income and diluted net income per share were $68.4 million and $1.41, respectively, in the second quarter of fiscal 2026. The Company recorded a pre-tax net expense of $1.4 million related to Fox Restaurant Concepts (“FRC”) acquisition-related items, and impairment of assets and lease termination expenses. Excluding the after-tax impact of these items and certain other items, adjusted net income and adjusted diluted net income per share for the second quarter of fiscal 2026 were $69.7 million and $1.44, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release. Comparable restaurant sales at The Cheesecake Factory restaurants increased 5.8% year-over-year in the second quarter of fiscal 2026. “We built on our strong start to the year with another quarter of better-than-expected financial results, as revenue, margins and earnings all exceeded our expectations,” said David Overton, Chairman and Chief Executive Officer. “Our performance was led by The Cheesecake Factory restaurants, with comparable sales and traffic meaningfully outperforming the broader casual dining industry. Continued momentum from our menu innovation, rewards program and marketing efforts strengthened consumer awareness and engagement, contributing to our strong top-line performance. At the same time, our operators remained sharply focused on execution, delivering year-over-year improvements in labor productivity and food efficiency supporting strong profitability.” Mr. Overton continued, "Our success has long been driven by our commitment to delivering the exceptional hospitality, high-quality food and memorable dining experiences our guests have come to expect. We continue to lean into culinary innovation and our digital capabilities to build on those strengths, ensuring our concepts evolve and resonate with guests in an increasingly competitive environment. Together with our experienced operators, differentiated concepts and strong financial foundation, these efforts position us well to continue executing our strategy, delivering profitable growth and creating shareholder value."
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26901 Malibu Hills Road, Calabasas Hills, CA 91301 Telephone (818) 871-3000 Development During the second quarter of fiscal 2026, the Company opened four new restaurants, including two North Italia’s, one Flower Child and one FRC restaurant. Subsequent to quarter-end, the Company opened one The Cheesecake Factory location. The Company continues to expect to open as many as 26 new restaurants in fiscal 2026, including as many as five to six The Cheesecake Factory restaurants, six to seven North Italia locations, seven Flower Child locations and as many as seven FRC restaurants. Liquidity and Capital Allocation As of June 30, 2026, the Company had total available liquidity of $561.7 million, including a cash balance of $195.2 million and $366.5 million of availability on its revolving credit facility with no outstanding balance. During the quarter, the Company repaid the remaining $69.0 million principal amount of 0.375% convertible senior notes due 2026. As of June 30, 2026, total principal amount of debt outstanding was $575 million, representing the principal amount of 2.00% convertible senior notes due 2030. During the second quarter of fiscal 2026, the Company repurchased approximately 158,600 shares of its stock at a cost of $9.3 million. In addition, the Company’s Board of Directors has declared a quarterly dividend of $0.30 per share to be paid on August 25, 2026, to shareholders of record at the close of business on August 11, 2026. Conference Call and Webcast The Company will hold a conference call to review its results for the second quarter of fiscal 2026 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com. About The Cheesecake Factory Incorporated The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. Delicious, memorable experiences created by passionate people—this defines who we are and where we are going. We currently own and operate 375 restaurants throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia®, Flower Child® and a collection of other FRC brands. Internationally, 36 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. In 2026, we were named to the FORTUNE Magazine “100 Best Companies to Work For®” list for the thirteenth consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com, www.iamaflowerchild.com and www.foxrc.com. From Fortune. ©2026 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated.
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26901 Malibu Hills Road, Calabasas Hills, CA 91301 Telephone (818) 871-3000 Safe Harbor Statement This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, without limitation, statements regarding the Company’s operations, growth, restaurant development and other objectives. Such forward- looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such 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. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including government shutdowns, trade policy, interest rate fluctuations, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, Flower Child and Other Fox Restaurant Concepts restaurants; the risks of doing business abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross-border taxation; changes in unemployment rates; increases in minimum wages and benefit costs; the economic health of the Company’s landlords and other tenants in retail centers in which its restaurants are located, and the Company’s ability to successfully manage its lease arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; the timing of new unit development and related permitting; compliance with debt covenants; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of changes in tax laws; changes in laws impacting the Company’s business; adverse weather conditions and natural disasters in regions in which the Company’s restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the dates on which they are made, and 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 law. 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 latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.
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26901 Malibu Hills Road, Calabasas Hills, CA 91301 Telephone (818) 871-3000 Consolidated Statements of IncomeRevenues 1,029,633$ 100.0% 955,825$ 100.0% 2,008,466$ 100.0% 1,883,022$ 100.0%Costs and expenses: Food and beverage costs 223,847 21.8% 205,843 21.6% 436,097 21.7% 408,104 21.7% Labor expenses 351,475 34.1% 333,519 34.9% 699,244 34.8% 664,594 35.3% Other operating costs and expenses 272,688 26.5% 255,722 26.8% 537,041 26.8% 502,147 26.7% General and administrative expenses 65,592 6.4% 58,778 6.1% 129,523 6.5% 118,710 6.3% Depreciation and amortization expenses 29,103 2.8% 26,860 2.8% 57,087 2.8% 52,942 2.8% Impairment of assets and lease terminations 124 0.0% 222 0.0% 953 0.0% 600 0.0% Acquisition-related contingent consideration, compensation and amortization expenses 1,235 0.1% 1,012 0.1% 2,437 0.1% 2,010 0.1% Preopening costs6,961 0.7% 9,047 0.9% 12,431 0.6% 17,134 0.9% Total costs and expenses 951,025 92.4% 891,003 93.2% 1,874,813 93.3% 1,766,241 93.8%Income from operations 78,608 7.6% 64,822 6.8% 133,653 6.7% 116,781 6.2%Interest expense, net (2,057) (0.1)% (2,873) (0.3)% (4,052) (0.2)% (5,201) (0.3)%Loss on debt extinguishment - 0.0% - 0.0% - 0.0% (15,891) (0.8)%Other income, net 352 0.0% 280 0.0% 653 0.0% 1,023 0.0%Income before income taxes 76,903 7.5% 62,229 6.5% 130,254 6.5% 96,712 5.1%Income tax provision 8,509 0.9% 7,417 0.8% 12,312 0.6% 8,959 0.4%Net income 68,394$ 6.6% 54,812$ 5.7% 117,942$ 5.9% 87,753$ 4.7%Basic net income per share 1.47$ 1.18$ 2.53$ 1.87$ Basic weighted average shares outstanding 46,628 46,391 46,606 46,958 Diluted net income per share 1.41$ 1.14$ 2.43$ 1.80$ Diluted weighted average shares outstanding 48,490 48,102 48,446 48,679 26 Weeks Ended 26 Weeks EndedJune 30, 2026 July 1, 2025 AmountPercent of Revenues AmountPercent of Revenues Amount AmountPercent of RevenuesPercent of Revenues13 Weeks EndedJune 30, 202613 Weeks EndedJuly 1, 2025Condensed Consolidated Statements of IncomeThe Cheesecake Factory Incorporated(unaudited; in thousands, except per share data)
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26901 Malibu Hills Road, Calabasas Hills, CA 91301 Telephone (818) 871-3000 The CheesecakeFactoryNorth Otherrestaurants Italia FRC Other TotalRevenues 729,476$ 98,440$ 104,032$ 97,685$ 1,029,633$ Costs and expenses: Food and beverage costs 158,674 22,301 23,187 19,685 223,847 Labor expenses 237,383 37,134 39,319 37,639 351,475 Other operating costs and expenses 186,371 26,386 31,242 28,689 272,688 General and administrative expenses - - - 65,592 65,592 Depreciation and amortization expenses 17,526 3,624 3,598 4,355 29,103 Impairment of assets and lease terminations expenses 11 - 3 110 124 Acquisition-related contingent consideration, compensation and amortization expenses - - 315 920 1,235 Preopening costs 1,509 2,255 2,412 785 6,961 Total costs and expenses 601,474 91,700 100,076 157,775 951,025 Income/(loss) from operations 128,002$ 6,740$ 3,956$ (60,090)$ 78,608$ The CheesecakeFactoryNorth OtherrestaurantsItaliaFRCOtherTotalRevenues 683,257$ 90,830$ 90,178$ 91,560$ 955,825$ Costs and expenses: Food and beverage costs 147,377 19,835 19,794 18,837 205,843 Labor expenses 231,241 33,519 33,445 35,314 333,519 Other operating costs and expenses 178,142 24,057 27,229 26,294 255,722 General and administrative expenses - - - 58,778 58,778 Depreciation and amortization expenses 16,196 3,074 3,264 4,326 26,860 Impairment of assets and lease terminations expenses 196 - 15 11 222 Acquisition-related contingent consideration, compensation and amortization expenses - - 315 697 1,012 Preopening costs 3,558 1,946 2,202 1,341 9,047 Total costs and expenses 576,710 82,431 86,264 145,598 891,003 Income/(loss) from operations 106,547$ 8,399$ 3,914$ (54,038)$ 64,822$ The CheesecakeFactoryNorth OtherrestaurantsItaliaFRCOtherTotalRevenues1,419,949$ 187,919$ 208,554$ 192,044$ 2,008,466$ Costs and expenses: Food and beverage costs309,832 42,565 46,219 37,481 436,097 Labor expenses475,737 70,555 78,488 74,464 699,244 Other operating costs and expenses366,668 51,103 61,906 57,364 537,041 General and administrative expenses- - - 129,523 129,523 Depreciation and amortization expenses34,696 6,818 6,963 8,610 57,087 Impairment of assets and lease terminations expenses568 - 5 380 953 Acquisition-related contingent consideration, compensation and amortization expenses- - 631 1,806 2,437 Preopening costs2,924 4,169 4,143 1,195 12,431 Total costs and expenses1,190,425 175,210 198,355 310,823 1,874,813 Income/(loss) from operations229,524$ 12,709$ 10,199$ (118,779)$ 133,653$ The CheesecakeFactoryNorth OtherrestaurantsItaliaFRCOtherTotalRevenues 1,355,991$ 174,240$ 177,602$ 175,189$ 1,883,022$ Costs and expenses: Food and beverage costs 295,032 38,250 38,943 35,879 408,104 Labor expenses 464,632 65,436 65,007 69,519 664,594 Other operating costs and expenses 352,746 46,677 52,794 49,930 502,147 General and administrative expenses - - - 118,710 118,710 Depreciation and amortization expenses 32,422 5,872 6,299 8,349 52,942 Impairment of assets and lease terminations expenses 271 - 315 14 600 Acquisition-related contingent consideration, compensation and amortization expenses - - 631 1,379 2,010 Preopening costs 4,908 4,626 4,995 2,605 17,134 Total costs and expenses 1,150,011 160,861 168,984 286,385 1,766,241 Income/(loss) from operations 205,980$ 13,379$ 8,618$ (111,196)$ 116,781$ For the 26 Weeks Ended June 30, 2026For the 26 Weeks Ended July 1, 2025 The Cheesecake Factory IncorporatedSelected Segment Information(unaudited; in thousands)For the 13 Weeks Ended June 30, 2026For the 13 Weeks Ended July 1, 2025
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26901 Malibu Hills Road, Calabasas Hills, CA 91301 Telephone (818) 871-3000 The Cheesecake Factory restaurants operating information:Comparable restaurant sales vs. prior year 5.8% 1.2% 3.7% 1.1%Restaurants opened during period - 2 - 2 Restaurants open at period-end 216 216 216 216 Restaurant operating weeks 2,808 2,794 5,624 5,589 North Italia operating information:Comparable restaurant sales vs. prior year (3)% (1)% (3)% (1)%Restaurants opened during period 2 1 3 4 Restaurants open at period-end 51 46 51 46 Restaurant operating weeks 650 590 1,275 1,150 Other Fox Restaurant Concepts (FRC) operating information:(1)Restaurants opened during period 1 2 2 4 Restaurants open at period-end 57 51 57 51 Restaurant operating weeks 732 659 1,452 1,285 Other operating information:(2)Restaurants opened during period 1 3 2 6 Restaurants open at period-end 50 49 50 49 Restaurant operating weeks 637 618 1,276 1,201 Number of company-owned restaurants:The Cheesecake Factory 216 North Italia 51 Other FRC 57 Other 50 Total 374 Number of international-licensed restaurants:The Cheesecake Factory 36 Selected Consolidated Balance Sheet InformationCash and cash equivalents 195,170$ 215,729$ Long-term debt, net of issuance costs (1)562,895 630,074 13 Weeks EndedThe Cheesecake Factory IncorporatedSelected Operating, Restaurant and Balance Sheet Information(unaudited; in thousands, except statistical data)26 Weeks Ended 26 Weeks EndedJune 30, 2026 July 1, 2025June 30, 2026 July 1, 2025 June 30, 2026 December 30, 2025(1) The Other FRC segment includes all FRC brands except Flower Child.(2) The Other segment includes the Flower Child and Grand Lux Cafe concepts, as well as the Company's third-party bakery, international and consumer packaged goods businesses, unallocated corporate expenses and gift card costs.(1) As of June 30, 2026, includes $562.9 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $12.1 million in unamortized issuance costs). The unamortized issuance costs were recorded as a contra-liability and netted with long-term debt on the Condensed Consolidated Balance Sheet and are being amortized as interest expense. 13 Weeks Ended
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26901 Malibu Hills Road, Calabasas Hills, CA 91301 Telephone (818) 871-3000 Reconciliation of Non-GAAP Results to GAAP Results In addition to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in this press release, the Company is providing non-GAAP measurements which present net income and net income per share excluding the impact of certain items. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. These non-GAAP measures are calculated by eliminating from net income and diluted net income per share the impact of items the Company does not consider indicative of its ongoing operations. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Net income (GAAP) 68,394$ 54,812$ 117,942$ 87,753$ Impairment of assets and lease termination expenses(1)124 222 953 600 Acquisition-related contingent consideration, compensation and amortization expenses(2)1,235 1,012 2,437 2,010 Loss on extinguishment of debt(3)- - - 15,891 Uncertain tax positions(4)310 - 310 - Tax effect of adjustments(5)(353) (321) (882) (4,811) Adjusted net income (non-GAAP) 69,710$ 55,725$ 120,760$ 101,443$ Diluted net income per share (GAAP) 1.41$ 1.14$ 2.43$ 1.80$ Impairment of assets and lease termination expenses(1)0.00 0.00 0.02 0.01 Acquisition-related contingent consideration, compensation and amortization expenses(2)0.03 0.02 0.05 0.04 Loss on extinguishment of debt(3)- - - 0.33 Uncertain tax positions(4)0.01 - 0.01 - Tax effect of adjustments(5)(0.01) (0.01) (0.02) (0.10) Adjusted diluted net income per share (non-GAAP)(6)1.44$ 1.16$ 2.49$ 2.08$ 26 Weeks Ended 26 Weeks EndedJune 30, 2026 July 1, 2025(1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen and twenty-six weeks ended June 30, 2026 and July 1, 2025 can be found in the Selected Segment Information table.(2) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.(3) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.(4) Represents change to a reserve for uncertain tax positions taken in prior years related to tenant improvements allowances and Section 199 deductions. Uncertain tax positions taken in a tax return are recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by tax authorities based on technical merits, taking into account available administrative remedies and litigation. 13 Weeks EndedJune 30, 202613 Weeks EndedJuly 1, 2025The Cheesecake Factory Incorporated Reconciliation of Non-GA AP Financial Measures(unaudited; in thousands, except per share data) (5) Based on the federal statutory rate and an estimated blended state tax rate, the tax effect on all adjustments assumes a 26% tax rate for the fiscal 2026 and 2025 periods. (6) Adjusted net income per share may not add due to rounding.