The Cheesecake Factory — Jul 23, 2025 release
Fiscal 2025 second-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-25-071758
Showing in the filing
North Italia locations
“six”
Period
FY2025
Measure
Company-defined measure
Source
Guidance table
All guidance in this release · 8
New restaurant openings for FY2025
“as many as 25”
New The Cheesecake Factory restaurant openings for FY2025
“as many as four”
The Cheesecake Factory restaurants for FY2025
“as many as four”
New North Italia restaurant openings for FY2025
“six”
North Italia locations for FY2025
“six”
Flower Child locations for FY2025
“six”
FRC restaurants for FY2025
“nine”
Quarterly dividend
“$0.27 per share”
Exhibit 99.1 · full document
EXHIBIT 99.1
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE
Contact: Etienne Marcus
(818) 871-3000
investorrelations@thecheesecakefactory.com
THE CHEESECAKE FACTORY REPORTS RESULTS FOR
SECOND QUARTER OF FISCAL 2025
CALABASAS HILLS, Calif. – July 29,
2025 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the second quarter of fiscal
2025, which ended on July 1, 2025.
Total revenues were $955.8 million in the
second quarter of fiscal 2025 compared to $904.0 million in the second quarter of fiscal 2024. Net income and diluted net income per
share were $54.8 million and $1.14, respectively, in the second quarter of fiscal 2025.
The Company recorded a pre-tax net expense of
$1.2 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, adjusted net income and adjusted diluted net income per share for the second
quarter of fiscal 2025 were $55.7 million and $1.16, 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 1.2% year-over-year in the second quarter of fiscal 2025.
“We delivered another quarter of strong
results, with record-high revenue, continued margin expansion, and profitability that exceeded our guidance,” said David Overton,
Chairman and Chief Executive Officer. "The Cheesecake Factory restaurants led our performance, with comparable sales finishing above
our expectations, reflecting healthy consumer demand for the delicious, memorable dining experiences we provide. Our restaurant teams
executed exceptionally well, delivering year-over-year improvements in labor productivity, food efficiency, wage management, hourly staff
and manager retention and guest satisfaction scores, driving solid earnings growth.”
Overton continued, “We opened eight new
restaurants across various concepts and markets during the second quarter to strong consumer reception and encouraging early sales trends,
reinforcing the broad appeal of our high-quality, experiential concepts. Our development pipeline remains on track, and with 16 openings
through the first half of 2025, we’re pleased with the progress we’ve made on new unit growth so far this year. Looking ahead,
we remain focused on carrying the momentum, operational discipline, and strong execution from the first half of the year into the back
half of 2025, to continue driving the consistent performance that has long defined The Cheesecake Factory.”
26901 Malibu Hills Road, Calabasas Hills, CA 91301
• Telephone (818) 871-3000
Development
During the second quarter of fiscal 2025,
the Company opened eight new restaurants, including two Cheesecake Factory’s, one North Italia, three Flower Child’s and
two FRC restaurants. Subsequent to quarter-end, the Company opened one FRC restaurant, and one Cheesecake Factory opened
internationally under a licensing agreement in Puebla City, Mexico.
The Company continues to expect to open as many
as 25 new restaurants in fiscal 2025, including as many as four The Cheesecake Factory restaurants, six North Italia locations, six Flower
Child locations and nine FRC restaurants.
Liquidity and Capital Allocation
As of July 1, 2025, the Company had total
available liquidity of $515.3 million, including a cash balance of $148.8 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.
The Company repurchased approximately 2,500 shares
of its stock at a cost of $0.1 million in the second quarter of fiscal 2025. In addition, the Company’s Board of Directors has declared
a quarterly dividend of $0.27 per share to be paid on August 26, 2025, to shareholders of record at the close of business on August 12,
2025.
Conference Call and Webcast
The Company will hold a conference call to review
its results for the second 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 363 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, 34 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. ©2025 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.
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 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 tax reform legislation, including the provisions of H.R. I enacted on July 4, 2025 ; changes
in laws impacting the Company’s business; adverse weather conditions 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.
26901 Malibu Hills Road, Calabasas Hills, CA 91301
• Telephone (818) 871-3000
The Cheesecake Factory Incorporated
Condensed Consolidated Statements of Income
(unaudited; in thousands, except per share data)
13
Weeks Ended
13
Weeks Ended
26
Weeks Ended
26
Weeks Ended
Consolidated
Statements of Income
July
1, 2025
July
2, 2024
July
1, 2025
July
2, 2024
Amount
Percent
of Revenues
Amount
Percent
of Revenues
Amount
Percent
of Revenues
Amount
Percent
of Revenues
Revenues
$ 955,825
100.0 %
$ 904,042
100.0 %
$ 1,883,022
100.0 %
$ 1,795,265
100.0 %
Costs
and expenses:
Food
and beverage costs
205,843
21.6 %
201,694
22.3 %
408,104
21.7 %
404,947
22.6 %
Labor
expenses
333,519
34.9 %
317,282
35.1 %
664,594
35.3 %
638,212
35.5 %
Other
operating costs and expenses
255,722
26.8 %
239,097
26.4 %
502,147
26.7 %
472,638
26.3 %
General
and administrative expenses
58,778
6.1 %
54,384
6.0 %
118,710
6.3 %
114,750
6.4 %
Depreciation
and amortization expenses
26,860
2.8 %
24,960
2.8 %
52,942
2.8 %
49,716
2.8 %
Impairment
of assets and lease termination expenses/(income)
222
0.0 %
(188 )
0.0 %
600
0.0 %
1,895
0.1 %
Acquisition-related
contingent consideration, compensation and amortization expenses
1,012
0.1 %
1,146
0.1 %
2,010
0.1 %
2,267
0.1 %
Preopening
costs
9,047
0.9 %
6,975
0.8 %
17,134
0.9 %
12,855
0.7 %
Total
costs and expenses
891,003
93.2 %
845,350
93.5 %
1,766,241
93.8 %
1,697,280
94.5 %
Income
from operations
64,822
6.8 %
58,692
6.5 %
116,781
6.2 %
97,985
5.5 %
Interest
expense, net
(2,873 )
(0.3 )%
(2,761 )
(0.3 )%
(5,201 )
(0.3 )%
(5,539 )
(0.3 )%
Loss
on debt extinguishment
-
0.0 %
-
0.0 %
(15,891 )
(0.8 )%
-
0.0 %
Other
income, net
280
0.0 %
413
0.0 %
1,023
0.0 %
1,430
0.0 %
Income
before income taxes
62,229
6.5 %
56,344
6.2 %
96,712
5.1 %
93,876
5.2 %
Income
tax provision
7,417
0.8 %
3,900
0.4 %
8,959
0.4 %
8,241
0.4 %
Net
income
$ 54,812
5.7 %
$ 52,444
5.8 %
$ 87,753
4.7 %
$ 85,635
4.8 %
Basic
net income per share
$ 1.18
$ 1.10
$ 1.87
$ 1.79
Basic
weighted average shares outstanding
46,391
47,702
46,958
47,726
Diluted
net income per share
$ 1.14
$ 1.08
$ 1.80
$ 1.76
Diluted
weighted average shares outstanding
48,102
48,775
48,679
48,685
26901 Malibu Hills Road, Calabasas Hills, CA 91301
• Telephone (818) 871-3000
The Cheesecake Factory
Incorporated
Selected Segment Information
(unaudited; in thousands)
For the 13 Weeks Ended July 1, 2025
The Cheesecake
Factory
North
Other
restaurants
Italia
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 13 Weeks Ended July 2, 2024
The Cheesecake
Factory
North
Other
restaurants
Italia
FRC
Other
Total
Revenues
$ 676,697
$ 75,514
$ 73,637
$ 78,194
$ 904,042
Costs and expenses:
Food and beverage costs
151,768
17,412
16,648
15,866
201,694
Labor expenses
230,651
27,787
26,740
32,104
317,282
Other operating costs and expenses
174,345
21,074
21,368
22,310
239,097
General and administrative expenses
-
-
-
54,384
54,384
Depreciation and amortization expenses
16,257
2,322
2,790
3,591
24,960
Impairment of assets and lease terminations (income)/expenses
267
-
-
(455 )
(188 )
Acquisition-related contingent consideration, compensation and amortization expenses
-
-
315
831
1,146
Preopening costs
2,374
1,412
2,186
1,003
6,975
Total costs and expenses
575,662
70,007
70,047
129,634
845,350
Income/(loss) from operations
$ 101,035
$ 5,507
$ 3,590
$ (51,440 )
$ 58,692
For the 26 Weeks Ended July 1, 2025
The Cheesecake
Factory
North
Other
restaurants
Italia
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
For the 26 Weeks Ended July 2, 2024
The Cheesecake
Factory
North
Other
restaurants
Italia
FRC
Other
Total
Revenues
$ 1,344,491
$ 146,388
$ 147,866
$ 156,520
$ 1,795,265
Costs and expenses:
Food and beverage costs
305,338
34,449
33,234
31,926
404,947
Labor expenses
465,863
54,989
52,856
64,504
638,212
Other operating costs and expenses
346,826
40,566
42,138
43,108
472,638
General and administrative expenses
-
-
-
114,750
114,750
Depreciation and amortization expenses
33,100
4,293
5,215
7,108
49,716
Impairment of assets and lease terminations expenses/(income)
2,126
-
-
(231 )
1,895
Acquisition-related contingent consideration, compensation and amortization expenses
-
-
631
1,636
2,267
Preopening costs
4,132
3,414
3,910
1,399
12,855
Total costs and expenses
1,157,385
137,711
137,984
264,200
1,697,280
Income/(loss) from operations
$ 187,106
$ 8,677
$ 9,882
$ (107,680 )
$ 97,985
26901 Malibu Hills Road, Calabasas Hills, CA 91301
• Telephone (818) 871-3000
The Cheesecake Factory Incorporated
Selected Operating, Restaurant and Balance Sheet Information
(unaudited; in thousands, except statistical data)
13 Weeks Ended
13 Weeks Ended
26 Weeks Ended
26 Weeks Ended
July 1, 2025
July 2, 2024
July 1, 2025
July 2, 2024
The Cheesecake Factory restaurants operating information:
Comparable restaurant sales vs. prior year
1.2 %
1.4 %
1.1 %
0.4 %
Restaurants opened during period
2
1
2
1
Restaurants open at period-end
216
217
216
217
Restaurant operating weeks
2,785
2,808
5,580
5,615
North Italia operating information:
Comparable restaurant sales vs. prior year
(1 )%
2 %
(1 )%
3 %
Restaurants opened during period
1
1
4
3
Restaurants open at period-end
46
39
46
39
Restaurant operating weeks
591
499
1,151
979
Other Fox Restaurant
Concepts (FRC) operating information: (1)
Restaurants opened during period
2
1
4
3
Restaurants open at period-end
51
43
51
43
Restaurant operating weeks
659
549
1,285
1,079
Other operating information: (2)
Restaurants opened during period
3
2
6
3
Restaurants open at period-end
49
41
49
41
Restaurant operating weeks
618
520
1,201
1,036
Number of company-owned restaurants:
The Cheesecake Factory
216
North Italia
46
Other FRC
51
Other
49
Total
362
Number of international-licensed restaurants:
The Cheesecake Factory
33
(1) The Other FRC segment includes all FRC brands except Flower Child.
(2) The Other segment includes the Flower Child, Grand Lux Cafe and Social Monk Asian Kitchen 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
July 1, 2025
December 31, 2024
Cash and cash equivalents
$ 148,763
$ 84,176
Current and long-term debt, net of issuance costs (1)
628,237
452,062
(1) Includes $68.6 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $69 million less $0.4 million in unamortized issuance costs) and $559.6 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $15.4 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.
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.
The Cheesecake Factory Incorporated
Reconciliation
of Non-GAAP Financial Measures
(unaudited; in thousands, except per share data)
13 Weeks Ended
13 Weeks Ended
26 Weeks Ended
26 Weeks Ended
July 1, 2025
July 2, 2024
July 1, 2025
July 2, 2024
Net income (GAAP)
$ 54,812
$ 52,444
$ 87,753
$ 85,635
Impairment of assets and lease termination expenses/(income) (1)
222
(188 )
600
1,895
Acquisition-related contingent consideration, compensation and amortization expenses (2)
1,012
1,146
2,010
2,267
Loss on extinguishment of debt (3)
-
-
15,891
-
Tax effect of adjustments (4)
(321 )
(249 )
(4,811 )
(1,082 )
Adjusted net income (non-GAAP)
$ 55,725
$ 53,153
$ 101,443
$ 88,715
Diluted net income per share (GAAP)
$ 1.14
$ 1.08
$ 1.80
$ 1.76
Impairment of assets and lease termination expenses/(income) (1)
0.00
(0.00 )
0.01
0.04
Acquisition-related contingent consideration, compensation and amortization expenses (2)
0.02
0.02
0.04
0.05
Loss on extinguishment of debt (3)
-
-
0.33
-
Tax effect of adjustments (4)
(0.01 )
(0.01 )
(0.10 )
(0.02 )
Adjusted diluted net income per share (non-GAAP) (5)
$ 1.16
$ 1.09
$ 2.08
$ 1.82
(1) A detailed breakdown of impairment of assets and lease termination expenses/(income) recorded in the thirteen and twenty-six weeks ended July 1, 2025 and July 2, 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 premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.
(4) 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.
(5) Adjusted net income per share may not add due to rounding.
26901 Malibu Hills Road, Calabasas Hills, CA 91301
• Telephone (818) 871-3000
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.