The Cheesecake Factory Reports Results for Second Quarter of Fiscal 2026

CALABASAS HILLS, Calif.--(BUSINESS WIRE)--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."

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.

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.

The Cheesecake Factory Incorporated
Condensed Consolidated Statements of Income
(unaudited; in thousands, except per share data)
Consolidated Statements of Income	13 Weeks Ended June 30, 2026					13 Weeks Ended July 1, 2025					26 Weeks Ended June 30, 2026					26 Weeks Ended July 1, 2025
	Amount			Percent of Revenues		Amount			Percent of Revenues		Amount			Percent of Revenues		Amount			Percent of Revenues
Revenues	$	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 costs		6,961		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

The Cheesecake Factory Incorporated
Selected Segment Information
(unaudited; in thousands)
	For the 13 Weeks Ended June 30, 2026
	The Cheesecake Factory restaurants		North Italia		Other FRC		Other			Total
Revenues	$	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
	For the 13 Weeks Ended July 1, 2025
	The Cheesecake Factory restaurants		North Italia		Other FRC		Other			Total
Revenues	$	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
	For the 26 Weeks Ended June 30, 2026
	The Cheesecake Factory restaurants		North Italia		Other FRC		Other			Total
Revenues	$	1,419,949	$	187,919	$	208,554	$	192,044		$	2,008,466
Costs and expenses:
Food and beverage costs		309,832		42,565		46,219		37,481			436,097
Labor expenses		475,737		70,555		78,488		74,464			699,244
Other operating costs and expenses		366,668		51,103		61,906		57,364			537,041
General and administrative expenses		-		-		-		129,523			129,523
Depreciation and amortization expenses		34,696		6,818		6,963		8,610			57,087
Impairment of assets and lease terminations expenses		568		-		5		380			953
Acquisition-related contingent consideration, compensation and amortization expenses		-		-		631		1,806			2,437
Preopening costs		2,924		4,169		4,143		1,195			12,431
Total costs and expenses		1,190,425		175,210		198,355		310,823			1,874,813
Income/(loss) from operations	$	229,524	$	12,709	$	10,199	$	(118,779	)	$	133,653
	For the 26 Weeks Ended July 1, 2025
	The Cheesecake Factory restaurants		North Italia		Other FRC		Other			Total
Revenues	$	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

The Cheesecake Factory Incorporated
Selected Operating, Restaurant and Balance Sheet Information
(unaudited; in thousands, except statistical data)
The Cheesecake Factory restaurants operating information:	13 Weeks Ended June 30, 2026				13 Weeks Ended July 1, 2025				26 Weeks Ended June 30, 2026		26 Weeks Ended July 1, 2025
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
(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.
Selected Consolidated Balance Sheet Information	June 30, 2026				December 30, 2025
Cash and cash equivalents			$	195,170			$	215,729
Long-term debt, net of issuance costs ^(1)				562,895				630,074
(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.

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.

The Cheesecake Factory Incorporated
Reconciliation of Non-GAAP Financial Measures
(unaudited; in thousands, except per share data)
	13 Weeks Ended June 30, 2026				13 Weeks Ended July 1, 2025				26 Weeks Ended June 30, 2026				26 Weeks Ended July 1, 2025
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
(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.
(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.