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 THIRD QUARTER OF FISCAL 2026 CALABASAS HILLS, Calif. – October 27, 2026 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the third quarter of fiscal 2026, which ended on September 29, 2026. Total revenues were $1,033.4 million in the third quarter of fiscal 2026 compared to $907.2 million in the third quarter of fiscal 2025. Net income and diluted net income per share were $61.3 million and $1.19, respectively, in the third quarter of fiscal 2026. The Company recorded a pre -tax net income of $12.9 million related to Fox Restaurant Concepts (“FRC”) acquisition-related items. Excluding the after-tax impact of these items and certain other items, adjusted net income and adjusted diluted net income per share for the third quarter of fiscal 2026 were $52.3 million and $1.02, 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 15.2% year-over-year in the third quarter of fiscal 2026. “We delivered an exceptional third quarter, generating record quarterly revenue, with margins and earnings also exceeding our expectations ,” said David Overton, Chairman and Chief Executive Officer. “The Cheesecake Factory restaurants led our performance, with comparable sales and traffic meaningfully outperforming the broader casual dining industry. Our experienced operators executed at a high level, delivering the outstanding food quality, service and hospitality that keep our guests coming back. Continued menu innovation, our rewards program and significant engagement across social media contributed to the impressive sales growth, while year -over-year improvements in labor productivity and food efficiency supported strong profitability.” Mr. Overton continued, “The Cheesecake Factory has long enjoyed tremendous brand affinity across generations, and its ability to attract younger guests reinforces the enduring appeal and relevance of our namesake concept. We remain focused on delivering the memorable dining experiences that have defined our success, while building on the momentum of the rewards program and further expanding engagement across digital and social platforms. These strengths reinforce our competitive position and give us confidence in our ability to deliver profitable growth and long-term shareholder value.”
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26901 Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000 Development During the third quarter of fiscal 2026, the Company opened six new restaurants, including two Cheesecake Factory restaurants, one North Italia, one Flower Child and two FRC restaurants. Subsequent to quarter-end, the Company opened two Flower Childs and one FRC restaurant. The Company continues to expect to open as many as 26 new restaurants in fiscal 2026, including as many as five The Cheesecake Factory restaurants, eight North Italia locations, seven Flower Child locations and as many as six FRC restaurants. Liquidity and Capital Allocation As of September 29, 2026, the Compan y had total available liquidity of $ 585.3 million, including a cash balance of $249.3 million and $336.0 million of availability on its revolving credit facility with no outstanding balance. Total principal amount of debt outstanding was $575 million, representing the principal amount of 2.00% convertible senior notes due 2030. During the third quarter of fiscal 2026, the Company repurchased approximately 29,800 shares of its stock at a cost of $2.4 million. In addition, the Company’s Board of Directors has declared a quarterly dividend of $0.30 per share to be paid on November 24, 2026, to shareholders of record at the close of business on November 10, 2026. Conference Call and Webcast The Company will hold a conference call to review its results for the third 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 383 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, 35 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 r egistered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliat ed 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 dama ge to the Company or any of its brands; public health crises, including the potential for quarantines or restri ctions affecting 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 restau rants 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; our ability to satisfy our obligations under our convertible senior notes due 2030 ; 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 uncertaintie s 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 Income Revenues 1,033,440$ 100.0% 907,226$ 100.0% 3,041,906$ 100.0% 2,790,248$ 100.0% Costs and expenses: Food and beverage costs 218,919 21.2% 197,654 21.8% 655,016 21.5% 605,758 21.7% Labor expenses 359,758 34.8% 322,774 35.6% 1,059,002 34.8% 987,368 35.4% Other operating costs and expenses 285,791 27.7% 255,724 28.2% 822,832 27.1% 757,871 27.2% General and administrative expenses 66,645 6.4% 58,996 6.5% 196,168 6.4% 177,706 6.4% Depreciation and amortization expenses 29,175 2.8% 27,419 3.0% 86,262 2.8% 80,361 2.9% Impairment of assets and lease termination expenses/(income) 8 0.0% (104) 0.0% 961 0.0% 496 0.0% Acquisition-related contingent consideration, compensation and amortization (income)/expenses (12,889) (1.2)% 910 0.1% (10,452) (0.3)% 2,920 0.1% Preopening costs 11,160 1.1% 6,584 0.7% 23,591 0.8% 23,718 0.8% Total costs and expenses 958,567 92.8% 869,957 95.9% 2,833,380 93.1% 2,636,198 94.5% Income from operations 74,873 7.2% 37,269 4.1% 208,526 6.9% 154,050 5.5% Interest expense, net (1,988) (0.2)% (2,247) (0.3)% (6,040) (0.2)% (7,448) (0.2)% Loss on debt extinguishment – – % – – % – – % (15,891) (0.6)% Other income, net 520 0.1% 459 0.1% 1,173 0.0% 1,482 0.0% Income before income taxes 73,405 7.1% 35,481 3.9% 203,659 6.7% 132,193 4.7% Income tax provision 12,105 1.2% 3,582 0.4% 24,417 0.8% 12,541 0.4% Net income 61,300$ 5.9% 31,899$ 3.5% 179,242$ 5.9% 119,652$ 4.3% Basic net income per share 1.31$ 0.68$ 3.84$ 2.55$ Basic weighted average shares outstanding 46,775 46,608 46,663 46,842 Diluted net income per share 1.19$ 0.66$ 3.62$ 2.46$ Diluted weighted average shares outstanding 51,473 48,616 49,487 48,633 Percent of Revenues 13 Weeks Ended September 29, 2026 13 Weeks Ended September 30, 2025 The Cheesecake Factory Incorporated Condensed Consolidated Statements of Income (unaudited; in thousands, except per share data) 39 Weeks Ended 39 Weeks Ended September 29, 2026 September 30, 2025 Amount Percent of Revenues Amount Percent of Revenues Amount Amount Percent of Revenues
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26901 Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000 The Cheesecake Factory North Other restaurants Italia FRC Other Total Revenues 754,374$ 92,993$ 90,313$ 95,760$ 1,033,440$ Costs and expenses: Food and beverage costs 162,224 20,461 19,932 16,302 218,919 Labor expenses 250,934 35,770 36,366 36,688 359,758 Other operating costs and expenses 200,495 26,825 29,848 28,623 285,791 General and administrative expenses - - - 66,645 66,645 Depreciation and amortization expenses 17,357 3,620 3,697 4,501 29,175 Impairment of assets and lease termination expenses - - - 8 8 Acquisition-related contingent consideration, compensation and amortization (income)/expenses - - 316 (13,205) (12,889) Preopening costs 3,762 2,235 3,749 1,414 11,160 Total costs and expenses 634,772 88,911 93,908 140,976 958,567 Income/(loss) from operations 119,602$ 4,082$ (3,595)$ (45,216)$ 74,873$ The Cheesecake Factory North Other restaurants Italia FRC Other Total Revenues 651,375$ 83,482$ 78,017$ 94,352$ 907,226$ Costs and expenses: Food and beverage costs 140,859 18,091 17,360 21,344 197,654 Labor expenses 225,885 31,312 30,885 34,692 322,774 Other operating costs and expenses 178,249 24,100 25,926 27,449 255,724 General and administrative expenses - - - 58,996 58,996 Depreciation and amortization expenses 16,841 3,060 3,288 4,230 27,419 Impairment of assets and lease termination expenses/(income) 33 - (178) 41 (104) Acquisition-related contingent consideration, compensation and amortization expenses - - 316 594 910 Preopening costs 1,610 1,003 3,623 348 6,584 Total costs and expenses 563,477 77,566 81,220 147,694 869,957 Income/(loss) from operations 87,898$ 5,916$ (3,203)$ (53,342)$ 37,269$ The Cheesecake Factory North Other restaurants Italia FRC Other Total Revenues 2,174,323$ 280,912$ 298,867$ 287,804$ 3,041,906$ Costs and expenses: Food and beverage costs 472,056 63,026 66,151 53,783 655,016 Labor expenses 726,671 106,325 114,854 111,152 1,059,002 Other operating costs and expenses 567,163 77,928 91,754 85,987 822,832 General and administrative expenses - - - 196,168 196,168 Depreciation and amortization expenses 52,053 10,438 10,660 13,111 86,262 Impairment of assets and lease termination expenses 568 - 5 388 961 Acquisition-related contingent consideration, compensation and amortization (income)/expenses - - 947 (11,399) (10,452) Preopening costs 6,686 6,404 7,892 2,609 23,591 Total costs and expenses 1,825,197 264,121 292,263 451,799 2,833,380 Income/(loss) from operations 349,126$ 16,791$ 6,604$ (163,995)$ 208,526$ The Cheesecake Factory North Other restaurants Italia FRC Other Total Revenues 2,007,366$ 257,722$ 255,619$ 269,541$ 2,790,248$ Costs and expenses: Food and beverage costs 435,891 56,341 56,303 57,223 605,758 Labor expenses 690,517 96,748 95,892 104,211 987,368 Other operating costs and expenses 530,995 70,777 78,720 77,379 757,871 General and administrative expenses - - - 177,706 177,706 Depreciation and amortization expenses 49,263 8,932 9,587 12,579 80,361 Impairment of assets and lease termination expenses 304 - 137 55 496 Acquisition-related contingent consideration, compensation and amortization expenses - - 947 1,973 2,920 Preopening costs 6,518 5,629 8,618 2,953 23,718 Total costs and expenses 1,713,488 238,427 250,204 434,079 2,636,198 Income/(loss) from operations 293,878$ 19,295$ 5,415$ (164,538)$ 154,050$ For the 39 Weeks Ended September 29, 2026 For the 39 Weeks Ended September 30, 2025 The Cheesecake Factory Incorporated Selected Segment Information (unaudited; in thousands) For the 13 Weeks Ended September 29, 2026 For the 13 Weeks Ended September 30, 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 15.2% 0.3% 7.5% 0.9% Restaurants opened during period 2 - 2 2 Restaurants open at period-end 218 216 218 216 Restaurant operating weeks 2,818 2,808 8,442 8,397 North Italia operating information: Comparable restaurant sales vs. prior year (3)% (3)% (3)% (1)% Restaurants opened during period 1 - 4 4 Restaurants open at period-end 52 46 52 46 Restaurant operating weeks 667 598 1,942 1,748 Other Fox Restaurant Concepts (FRC) operating information:(1) Restaurants opened during period 2 2 4 6 Restaurants open at period-end 59 53 59 53 Restaurant operating weeks 752 675 2,204 1,960 Other operating information:(2) Restaurants opened during period 1 - 3 6 Restaurants open at period-end 51 49 51 49 Restaurant operating weeks 657 637 1,933 1,838 Number of company-owned restaurants: The Cheesecake Factory 218 North Italia 52 Other FRC 59 Other 51 Total 380 Number of international-licensed restaurants: The Cheesecake Factory 35 Selected Consolidated Balance Sheet Information Cash and cash equivalents 249,269$ 215,729$ Current and long-term debt, net of issuance costs (1) 563,713 630,074 The Cheesecake Factory Incorporated Selected Operating, Restaurant and Balance Sheet Information (unaudited; in thousands, except statistical data) September 29, 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 September 29, 2026, includes $563.7 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $11.3 million in unamortized issuance costs). The unamortized issuance costs were recorded as a contra-liability and netted with current and long-term debt on the Condensed Consolidated Balance Sheet and are being amortized as interest expense. 39 Weeks Ended 39 Weeks Ended September 29, 2026 September 30, 2025September 29, 2026 September 30, 2025 13 Weeks Ended 13 Weeks Ended
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26901 Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000 Reconciliation of Non-GAAP Results to GAAP Results In addition to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in this press release, the Company is providing non-GAAP measurements which present net income and net income per share excluding the impact of certain items. The non -GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. These non-GAAP measures are calculated by eliminating from net income and diluted net income per share the impact of items the Company does not consider indicative of its ongoing operations. The Company uses these non-GAAP financial measures for financial and operational decision -making and as a means to evaluate period-to-period comparisons. Net income (GAAP) 61,300$ 31,899$ 179,242$ 119,652$ Impairment of assets and lease termination expenses/(income) (1) 8 (104) 961 496 Acquisition-related contingent consideration, compensation and amortization (income)/expenses(2) (12,889) 910 (10,452) 2,920 Loss on extinguishment of debt(3) - - - 15,891 Uncertain tax positions (4) 553 717 863 717 Tax effect of adjustments(5) 3,349 (210) 2,468 (5,020) Adjusted net income (non-GAAP) 52,321$ 33,212$ 173,082$ 134,656$ Diluted net income per share (GAAP) 1.19$ 0.66$ 3.62$ 2.46$ Impairment of assets and lease termination expenses/(income) (1) 0.00 (0.00) 0.02 0.01 Acquisition-related contingent consideration, compensation and amortization (income)/expenses(2) (0.25) 0.02 (0.21) 0.06 Loss on extinguishment of debt(3) - - - 0.33 Uncertain tax positions (4) 0.01 0.01 0.02 0.01 Tax effect of adjustments(5) 0.07 (0.00) 0.05 (0.10) Adjusted diluted net income per share (non-GAAP)(6) 1.02$ 0.68$ 3.50$ 2.77$ 39 Weeks Ended 39 Weeks Ended September 29, 2026 September 30, 2025 (1) A detailed breakdown of impairment of assets and lease termination expenses/(income) recorded in the thirteen and thirty-nine weeks ended September 29, 2026 and September 30, 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 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 position 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 Ended September 29, 2026 13 Weeks Ended September 30, 2025 The Cheesecake Factory Incorporated Reconciliation of Non-GAAP 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.