The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2025

CALABASAS HILLS, Calif.--( BUSINESS WIRE)--The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the fourth quarter of fiscal 2025, which ended on December 30, 2025.

Total revenues were $961.6 million in the fourth quarter of fiscal 2025 compared to $921.0 million in the fourth quarter of fiscal 2024. Fourth quarter fiscal 2025 includes $17.3 million of gift card breakage revenue as a result of a change in historical redemption patterns. Net income and diluted net income per share were $28.8 million and $0.60, respectively, in the fourth quarter of fiscal 2025.

The Company recorded a pre-tax net expense of $24.6 million related to impairment of assets and lease termination expenses, Fox Restaurant Concepts (“FRC”) acquisition-related items, gift card breakage and gift card inventory adjustments. Excluding the after-tax impact of these and certain other items, adjusted net income and adjusted diluted net income per share for the fourth quarter of fiscal 2025 were $48.3 million and $1.00, 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 declined 2.2% year-over-year in the fourth quarter of fiscal 2025.

“We delivered solid fourth quarter and full-year results in 2025, generating record annual revenue supported by 25 new restaurant openings for the year,” said David Overton, Chairman and Chief Executive Officer. “Despite a more challenging operating environment across the restaurant industry, including weather-related impacts, revenue for the quarter finished within our expected range. Margins and adjusted diluted net income per share finished toward the higher end of our expectations, reflecting the resilience of our business and strong operational execution. Our operators remained focused on the factors within their control, delivering year-over-year improvements in labor productivity, wage management, hourly staff and manager retention, and guest satisfaction.

“During the fourth quarter, we opened seven new restaurants and delivered approximately 7% unit growth for the year. Looking ahead, we expect to open as many as 26 restaurants this year, and with a strong pipeline in place we remain confident in our ability to achieve our development goal.

“Underscoring our confidence in the strength and consistency of the business, we also announced an increase of 5.0 million shares to our repurchase authorization and raised our quarterly dividend to $0.30 per share. While the operating environment remains competitive, our strong operational execution, continued menu innovation, and portfolio of high-quality concepts differentiate our business and position us well for long-term growth and shareholder value creation.”

Development

During the fourth quarter of fiscal 2025, the Company opened two Cheesecake Factory, two North Italia, and three FRC restaurants. Subsequent to quarter-end, the Company opened one Flower Child location and closed four restaurants, including two Cheesecake Factory restaurants, one Grand Lux Cafe, and one FRC location.

The Company now expects to open as many as 26 new restaurants in fiscal 2026, including as many as six The Cheesecake Factory restaurants, six to seven North Italia locations, six to seven Flower Child locations and as many as eight FRC restaurants.

Liquidity and Capital Allocation

As of December 30, 2025, the Company had total available liquidity of $582.2 million, including a cash balance of $215.7 million and $366.5 million of availability on its revolving credit facility with no outstanding balance. Total principal amount of debt outstanding was $644.0 million, including $69.0 million in principal amount of 0.375% convertible senior notes due 2026 and $575.0 million in principal amount of 2.00% convertible senior notes due 2030.

During the fourth quarter of fiscal 2025, the Company repurchased approximately 228,100 shares of its stock at a cost of $11.2 million. On February 12, 2026, the Company’s Board of Directors approved an increase of 5.0 million shares to the existing repurchase program raising the total authorization to 66 million shares, of which approximately 6.0 million shares remain available for repurchase following the increase.

Also on February 12, 2026, the Board approved a $0.03 increase in the quarterly dividend to $0.30 per share to be paid on March 17, 2026, to shareholders of record at the close of business on March 4, 2026.

Conference Call and Webcast

The Company will hold a conference call to review its results for the fourth quarter of fiscal 2025 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 368 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 2025, we were named to the FORTUNE Magazine “100 Best Companies to Work For ®” list for the twelfth 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.

Amount

Percent of

Revenues

Amount

Percent of

Revenues

Amount

Percent of

Revenues

Amount

Percent of

Revenues

961,558

100.0

920,963

100.0

3,751,806

100.0

3,581,699

100.0

207,389

21.6

205,768

22.3

813,147

21.7

806,021

22.5

325,526

33.8

315,231

34.2

1,312,894

35.0

1,264,382

35.3

256,144

26.6

247,113

26.8

1,014,015

27.0

959,221

26.7

67,209

7.0

57,783

6.3

244,915

6.5

228,737

6.4

28,670

3.0

26,435

2.9

109,031

2.9

101,450

2.8

22,494

2.3

15,224

1.7

22,990

0.6

13,647

0.4

11,529

1.2

(858

)

(0.1

14,449

0.4

2,429

0.1

9,362

1.0

7,635

0.8

33,080

0.9

27,495

0.8

928,323

96.5

874,331

94.9

3,564,521

95.0

3,403,382

95.0

33,235

3.5

46,632

5.1

187,285

5.0

178,317

5.0

(3,000

)

(0.3

(2,137

)

(0.2

(10,448

)

(0.3

(10,107

)

(0.3

0.0

(15,891

)

(0.4

0.0

467

0.0

841

0.0

1,949

0.0

2,837

0.1

30,702

3.2

45,336

4.9

162,895

4.3

171,047

4.8

1,927

0.2

4,182

0.4

14,468

0.3

14,264

0.4

28,775

3.0

41,154

4.5

148,427

4.0

156,783

4.4

0.62

0.86

3.17

3.28

46,620

47,953

46,786

47,789

0.60

0.83

3.06

3.20

48,346

49,645

48,551

48,974

681,431

88,174

99,441

92,512

961,558

145,373

20,266

21,682

20,068

207,389

222,484

31,431

36,885

34,726

325,526

176,743

23,923

29,216

26,262

256,144

67,209

17,470

3,325

3,628

4,247

28,670

201

7,869

9,466

4,958

22,494

315

11,214

11,529

3,735

2,288

2,926

413

9,362

566,006

89,102

104,118

169,097

928,323

115,425

(928

)

(4,677

)

(76,585

)

33,235

669,382

81,309

85,119

85,153

920,963

149,130

18,371

18,346

19,921

205,768

221,494

29,559

29,941

34,237

315,231

175,382

21,598

25,090

25,043

247,113

57,783

16,768

2,591

3,143

3,933

26,435

330

14,893

15,224

315

(1,173

)

(858

)

1,884

2,230

2,396

1,125

7,635

564,988

74,349

94,124

140,870

874,331

104,394

6,960

(9,005

)

(55,717

)

46,632

2,688,797

345,896

355,060

362,053

3,751,806

581,264

76,607

77,985

77,291

813,147

913,001

128,179

132,777

138,937

1,312,894

707,738

94,700

107,936

103,641

1,014,015

244,915

66,733

12,257

13,215

16,826

109,031

505

7,869

9,603

5,013

22,990

1,262

13,187

14,449

10,253

7,917

11,544

3,366

33,080

2,279,494

327,529

354,322

603,176

3,564,521

409,303

18,367

738

(241,123

)

187,285

2,661,627

299,575

299,969

320,528

3,581,699

599,899

69,505

66,665

69,952

806,021

913,560

111,082

108,377

131,363

1,264,382

696,739

82,290

88,672

91,520

959,221

228,737

66,010

9,244

11,389

14,807

101,450

(1,402

)

14,893

156

13,647

1,262

1,167

2,429

7,499

7,409

9,206

3,381

27,495

2,282,305

279,530

300,464

541,083

3,403,382

379,322

20,045

(495

)

(220,555

)

178,317

(2.2

1.7

0.1

1.0

218

215

218

215

2,821

2,795

11,218

11,214

606

535

2,355

2,021

715

611

2,675

2,264

637

551

2,477

2,114

218

371

215,729

84,176

630,074

452,062

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

December 30, 2025

13 Weeks Ended

December 31, 2024

52 Weeks Ended

December 30, 2025

52 Weeks Ended

December 31, 2024

Net income (GAAP)

28,775

41,154

148,427

156,783

Impairment of assets and lease termination expenses (1)

22,494

15,224

22,990

13,647

Acquisition-related contingent consideration, compensation and amortization expense/(income) (2)

11,529

(858

)

14,449

2,429

Gift card adjustment, net (3)

(9,396

)

(9,396

)

Loss on extinguishment of debt (4)

15,891

Uncertain tax positions (5)

1,306

2,023

Tax effect of adjustments (6)

(6,403

)

(3,735

)

(11,423

)

(4,180

)

Adjusted net income (non-GAAP)

48,305

51,785

182,961

168,679

Diluted net income per share (GAAP)

0.60

0.83

3.06

3.20

Impairment of assets and lease termination expenses (1)

0.47

0.31

0.47

0.28

Acquisition-related contingent consideration, compensation and amortization expense/(income) (2)

0.24

(0.02

)

0.30

0.05

Gift card adjustment, net (3)

(0.19

)

(0.19

)

Loss on extinguishment of debt (4)

0.33

Uncertain tax positions (5)

0.03

0.04

Tax effect of adjustments (6)

(0.13

)

(0.08

)

(0.24

)

(0.09

)

Adjusted diluted net income per share (non-GAAP) (7)

1.00

1.04

3.77

3.44

(1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen and fifty-two weeks ended December 30, 2025 and December 31, 2024 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 gift card breakage revenue of $17.3 million as a result of a change in historical redemption patterns, partially offset by a non-recurring $7.9 million write-down of gift card inventory.

(4) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.

(5) Represents a reserve for uncertain tax position 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.

(6) 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 2025 and 2024 periods.

(7) Adjusted net income per share may not add due to rounding.