HighGravityData

The Cheesecake Factory — Oct 22, 2025 release

Fiscal 2025 third-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-25-103205
Open on SEC.gov ↗
Showing in the filing
North Italia restaurant openings
“six”
Period
FY2025
Measure
Company-defined measure
Source
Prose
All guidance in this release · 8
New restaurant openings for FY2025
“as many as 25”
The Cheesecake Factory restaurant openings for FY2025
“as many as four”
North Italia locations for FY2025
“six”
North Italia restaurant openings for FY2025
“six”
Flower Child locations for FY2025
“six”
Flower Child restaurant openings for FY2025
“six”
FRC restaurant openings 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 THIRD QUARTER OF FISCAL 2025   CALABASAS HILLS, Calif. – October 28, 2025 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the third quarter of fiscal 2025, which ended on September 30, 2025.   Total revenues were $907.2 million in the third quarter of fiscal 2025 compared to $865.5 million in the third quarter of fiscal 2024. Net income and diluted net income per share were $31.9 million and $0.66, respectively, in the third quarter of fiscal 2025.   The Company recorded a pre-tax net expense of $0.8 million primarily related to Fox Restaurant Concepts (“FRC”) acquisition-related expenses. Excluding the after-tax impact of these and certain other items, adjusted net income and adjusted diluted net income per share for the third quarter of fiscal 2025 were $33.2 million and $0.68, 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 0.3% year-over-year in the third quarter of fiscal 2025.   “We delivered another quarter of solid results, with revenue within our guidance range and earnings and profitability finishing above the high end of our expectations,” said David Overton, Chairman and Chief Executive Officer. “Performance was led by The Cheesecake Factory restaurants, delivering positive comparable sales results amid a more challenging and competitive environment, underscoring the strength and resilience of our namesake concept. Our operators once again executed exceptionally well, delivering year-over-year improvements in labor productivity, wage management, and hourly staff and manager retention, supporting healthy margin performance. New restaurant openings continue to perform well, and with two openings in the third quarter we remain on track to achieve our unit growth objective for the year.”   Overton continued, “While the restaurant industry is navigating a softer environment, we remain confident in our ability to manage through it while continuing to execute our long-term strategy. Our focus on delivering delicious, memorable dining experiences and ongoing menu innovation continues to resonate with guests, reflected in steady sales trends and positive early results from our latest menu updates. With our scale, operational discipline, and the enduring appeal of our high-quality, experiential concepts, we believe we are well-positioned to drive performance, long-term growth and shareholder value.”     26901 Malibu Hills Road, Calabasas Hills, CA 91301 • Telephone (818) 871-3000         Development   During the third quarter of fiscal 2025, the Company opened two new FRC restaurants, and two Cheesecake Factory restaurants opened internationally under a licensing agreement in Mexico. Subsequent to quarter-end, the Company opened one new FRC restaurant.   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 September 30, 2025, the Company had total available liquidity of $556.5 million, including a cash balance of $190.0 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 18,900 shares of its stock at a cost of $1.2 million in the third 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 November 25, 2025, to shareholders of record at the close of business on November 11, 2025.   Conference Call and Webcast   The Company will hold a conference call to review its results for the third 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 365 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 restau rants, 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 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.     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     39 Weeks Ended     39 Weeks Ended   Consolidated Statements of Income   September 30, 2025     October 1, 2024     September 30, 2025     October 1, 2024       Amount     Percent of Revenues     Amount     Percent of Revenues     Amount     Percent of Revenues     Amount     Percent of Revenues   Revenues   $ 907,226       100.0 %   $ 865,471       100.0 %   $ 2,790,248       100.0 %   $ 2,660,736       100.0 % Costs and expenses:                                                                 Food and beverage costs     197,654       21.8 %     195,306       22.6 %     605,758       21.7 %     600,253       22.6 % Labor expenses     322,774       35.6 %     310,939       35.9 %     987,368       35.4 %     949,151       35.7 % Other operating costs and expenses     255,724       28.2 %     239,470       27.7 %     757,871       27.2 %     712,108       26.9 % General and administrative expenses     58,996       6.5 %     56,204       6.5 %     177,706       6.4 %     170,954       6.4 % Depreciation and amortization expenses     27,419       3.0 %     25,299       2.9 %     80,361       2.9 %     75,015       2.8 % Impairment of assets and lease termination (income)/expenses     (104 )     0.0 %     (3,472 )     (0.4 )%     496       0.0 %     (1,577 )     (0.1 )% Acquisition-related contingent consideration, compensation and amortization expenses     910       0.1 %     1,020       0.1 %     2,920       0.1 %     3,287       0.1 % Preopening costs     6,584       0.7 %     7,005       0.8 %     23,718       0.8 %     19,860       0.7 % Total costs and expenses     869,957       95.9 %     831,771       96.1 %     2,636,198       94.5 %     2,529,051       95.1 % Income from operations     37,269       4.1 %     33,700       3.9 %     154,050       5.5 %     131,685       4.9 % Interest expense, net     (2,247 )     (0.3 )%     (2,431 )     (0.3 )%     (7,448 )     (0.2 )%     (7,970 )     (0.2 )% Loss on debt extinguishment     –       – %     –       – %     (15,891 )     (0.6 )%     –       – % Other income, net     459       0.1 %     566       0.1 %     1,482       0.0 %     1,996       0.0 % Income before income taxes     35,481       3.9 %     31,835       3.7 %     132,193       4.7 %     125,711       4.7 % Income tax provision     3,582       0.4 %     1,841       0.2 %     12,541       0.4 %     10,082       0.4 % Net income   $ 31,899       3.5 %   $ 29,994       3.5 %   $ 119,652       4.3 %   $ 115,629       4.3 %                                                                   Basic net income per share   $ 0.68             $ 0.63             $ 2.55             $ 2.42           Basic weighted average shares outstanding     46,608               47,750               46,842               47,734                                                                             Diluted net income per share   $ 0.66             $ 0.61             $ 2.46             $ 2.37           Diluted weighted average shares outstanding     48,616               48,946               48,633               48,751               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 September 30, 2025       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 terminations (income)/expenses     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         For the 13 Weeks Ended October 1, 2024       The Cheesecake                               Factory     North     Other                   restaurants     Italia     FRC     Other     Total   Revenues   $ 647,754     $ 71,878     $ 66,984     $ 78,855     $ 865,471   Costs and expenses:                                         Food and beverage costs     145,431       16,685       15,085       18,105       195,306   Labor expenses     226,203       26,534       25,580       32,622       310,939   Other operating costs and expenses     174,531       20,126       21,444       23,369       239,470   General and administrative expenses     -       -       -       56,204       56,204   Depreciation and amortization expenses     16,142       2,360       3,031       3,766       25,299   Impairment of assets and lease terminations (income)/expenses     (3,858 )     -       -       386       (3,472 ) Acquisition-related contingent consideration, compensation and amortization expenses     -       -       316       704       1,020   Preopening costs     1,483       1,765       2,900       857       7,005   Total costs and expenses     559,932       67,470       68,356       136,013       831,771   Income/(loss) from operations   $ 87,822     $ 4,408     $ (1,372 )   $ (57,158 )   $ 33,700         For the 39 Weeks Ended September 30, 2025       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 terminations (income)/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 October 1, 2024       The Cheesecake                               Factory     North     Other                   restaurants     Italia     FRC     Other     Total   Revenues   $ 1,992,245     $ 218,266     $ 214,850     $ 235,375     $ 2,660,736   Costs and expenses:                                         Food and beverage costs     450,769       51,134       48,319       50,031       600,253   Labor expenses     692,066       81,523       78,436       97,126       949,151   Other operating costs and expenses     521,357       60,692       63,582       66,477       712,108   General and administrative expenses     -       -       -       170,954       170,954   Depreciation and amortization expenses     49,242       6,653       8,246       10,874       75,015   Impairment of assets and lease terminations (income)/expenses     (1,732 )     -       -       155       (1,577 ) Acquisition-related contingent consideration, compensation and amortization expenses     -       -       947       2,340       3,287   Preopening costs     5,615       5,179       6,810       2,256       19,860   Total costs and expenses     1,717,317       205,181       206,340       400,213       2,529,051   Income/(loss) from operations   $ 274,928     $ 13,085     $ 8,510     $ (164,838 )   $ 131,685       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     39 Weeks Ended     39 Weeks Ended   The Cheesecake Factory restaurants operating information:   September 30, 2025     October 1, 2024     September 30, 2025     October 1, 2024   Comparable restaurant sales vs. prior year     0.3 %     1.6 %     0.9 %     0.8 % Restaurants opened during period     -       -       2       1   Restaurants open at period-end     216       215       216       215   Restaurant operating weeks     2,808       2,804       8,388       8,419                                     North Italia operating information:                                 Comparable restaurant sales vs. prior year     (3 )%     2 %     (1 )%     2 % Restaurants opened during period     -       -       4       3   Restaurants open at period-end     46       39       46       39   Restaurant operating weeks     598       507       1,749       1,486                                     Other Fox Restaurant Concepts (FRC) operating information: (1)                                 Restaurants opened during period     2       3       6       6   Restaurants open at period-end     53       46       53       46   Restaurant operating weeks     675       575       1,960       1,654                                     Other operating information: (2)                                 Restaurants opened during period     -       1       6       4   Restaurants open at period-end     49       41       49       41   Restaurant operating weeks     637       526       1,840       1,562                                                                       Number of company-owned restaurants:                                 The Cheesecake Factory     216                           North Italia     46                           Other FRC     53                           Other     49                           Total     364                                                                                               Number of international-licensed restaurants:                                 The Cheesecake Factory     35                                                               (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   September 30, 2025     December 31, 2024   Cash and cash equivalents   $ 189,978     $ 84,176   Current and long-term debt, net of issuance costs (1)     629,156       452,062     (1) Includes $68.7 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $69 million less $0.3 million in unamortized issuance costs) and $560.4 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $14.6 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     39 Weeks Ended     39 Weeks Ended       September 30, 2025     October 1, 2024     September 30, 2025     October 1, 2024                 Net income (GAAP)   $ 31,899     $ 29,994     $ 119,652     $ 115,629   Impairment of assets and lease termination (income)/expenses (1)     (104 )     (3,472 )     496       (1,577 ) Acquisition-related contingent consideration, compensation and amortization expenses (2)     910       1,020       2,920       3,287   Loss on extinguishment of debt (3)     -       -       15,891       -   Uncertain tax position related to tenant improvement allowance (4)     717       -       717       -   Tax effect of adjustments (5)     (210 )     638       (5,020 )     (445 ) Adjusted net income (non-GAAP)   $ 33,212     $ 28,180     $ 134,656     $ 116,894                                     Diluted net income per share (GAAP)   $ 0.66     $ 0.61     $ 2.46     $ 2.37   Impairment of assets and lease termination (income)/expenses (1)     (0.00 )     (0.07 )     0.01       (0.03 ) Acquisition-related contingent consideration, compensation and amortization expenses (2)     0.02       0.02       0.06       0.07   Loss on extinguishment of debt (3)     -       -       0.33       -   Uncertain tax position related to tenant improvement allowance (4)     0.01       -       0.01       -   Tax effect of adjustments (5)     (0.00 )     0.01       (0.10 )     (0.01 ) Adjusted diluted net income per share (non-GAAP) (6)   $ 0.68     $ 0.58     $ 2.77     $ 2.40     (1) A detailed breakdown of impairment of assets and lease termination (income)/expenses recorded in the thirteen and thirty-nine weeks ended September 30, 2025 and October 1, 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) Represents an update to the reserve for an uncertain tax position related to tenant improvement allowances. 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 2025 and 2024 periods. (6) 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.