The Cheesecake Factory — Apr 23, 2026 release
Fiscal 2026 first-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-26-051574
Showing in the filing
Flower Child locations
“six to seven”
Period
FY2026
Measure
Company-defined measure
Source
Guidance table
All guidance in this release · 8
New restaurant openings for FY2026
“as many as 26”
The Cheesecake Factory restaurant openings for FY2026
“as many as six”
North Italia restaurant openings for FY2026
“six to seven”
Flower Child locations for FY2026
“six to seven”
Flower Child restaurant openings for FY2026
“six to seven”
North Italia locations for FY2026
“six to seven”
FRC restaurant openings for FY2026
“as many as seven”
Quarterly dividend declared for Q2 FY2026
“$0.30 per share to be paid on May 26, 2026”
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
FIRST QUARTER
OF FISCAL 2026
CALABASAS HILLS, Calif. – April 29,
2026 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the first quarter of fiscal
2026, which ended on March 31, 2026.
Total revenues were $978.8 million in the
first quarter of fiscal 2026 compared to $927.2 million in the first quarter of fiscal 2025. Net income and diluted net income per
share were $49.5 million and $1.02, respectively, in the first quarter of fiscal 2026.
The Company recorded a pre-tax net expense of
$2.0 million related to impairment of assets and lease termination expenses, and Fox Restaurant Concepts (“FRC”) acquisition-related
items. Excluding the after-tax impact of these items, adjusted net income and adjusted diluted net income per share for the first quarter
of fiscal 2026 were $51.1 million and $1.05, 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 1.6% year-over-year in the first quarter of fiscal 2026.
“We delivered strong first quarter results,
with revenue, margins and earnings finishing above our expectations,” said David Overton, Chairman and Chief Executive Officer.
“Our top-line performance was led by comparable sales growth at The Cheesecake Factory restaurants, which outperformed the broader
casual dining industry in the quarter. These results, delivered in a competitive environment and despite significant weather-related impacts,
reflect the resilient demand for the distinct, high-quality dining experiences we provide our guests and strong affinity for our namesake
concept. At the same time, execution within our restaurants was excellent, with operators driving year-over-year improvements in labor
productivity and food efficiency, supporting solid flow-through to profitability.”
Mr. Overton continued, “For more than
four decades, our approach has been grounded in a commitment to taking care of our guests and each other, delivering exceptional hospitality
and memorable dining experiences that set our concepts apart. We are honored to be recognized on the Fortune magazine ‘100 Best
Companies to Work For’ list for the 13 th consecutive year, a distinction that reflects the strength of our culture, how
our teams bring our values to life across our restaurants every day, and reinforces our position as an employer of choice.”
26901 Malibu Hills
Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000
Development
During the first quarter of fiscal 2026, the Company
opened one North Italia, one Flower Child, one FRC restaurant, and one The Cheesecake Factory restaurant opened internationally under
a licensing agreement in Guadalajara, Mexico. Subsequent to quarter-end, the Company opened one North Italia location.
The Company continues to expect 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 seven FRC restaurants.
Liquidity and Capital Allocation
As of March 31, 2026, the Company had total
available liquidity of $601.6 million, including a cash balance of $235.1 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 first quarter of fiscal 2026, the Company
repurchased approximately 332,000 shares of its stock at a cost of $19.2 million. In addition, the Company’s Board of Directors
has declared a quarterly dividend of $0.30 per share to be paid on May 26, 2026, to shareholders of record at the close of business
on May 13, 2026.
Conference Call and Webcast
The Company will hold a conference call to review
its results for the first 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 371 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.
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
Consolidated Statements of Income
March 31, 2026
April 1, 2025
Amount
Percent of Revenues
Amount
Percent of Revenues
Revenues
$ 978,833
100.0 %
$ 927,197
100.0 %
Costs and expenses:
Food and beverage costs
212,250
21.7 %
202,261
21.8 %
Labor expenses
347,769
35.5 %
331,075
35.7 %
Other operating costs and expenses
264,353
27.0 %
246,425
26.6 %
General and administrative expenses
63,931
6.5 %
59,932
6.5 %
Depreciation and amortization expenses
27,984
2.9 %
26,082
2.8 %
Impairment of assets and lease termination expenses
829
0.1 %
378
0.0 %
Acquisition-related contingent consideration, compensation and amortization expenses
1,202
0.1 %
998
0.1 %
Preopening costs
5,470
0.6 %
8,087
0.9 %
Total costs and expenses
923,788
94.4 %
875,238
94.4 %
Income from operations
55,045
5.6 %
51,959
5.6 %
Interest expense, net
(1,995 )
(0.2 )%
(2,328 )
(0.3 )%
Loss on debt extinguishment
-
0.0 %
(15,891 )
(1.7 )%
Other income, net
301
0.1 %
743
0.1 %
Income before income taxes
53,351
5.5 %
34,483
3.7 %
Income tax provision
3,803
0.4 %
1,542
0.1 %
Net income
$ 49,548
5.1 %
$ 32,941
3.6 %
Basic net income per share
$ 1.06
$ 0.69
Basic weighted average shares outstanding
46,585
47,526
Diluted net income per share
$ 1.02
$ 0.67
Diluted weighted average shares outstanding
48,455
49,284
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 March 31, 2026
The Cheesecake
Factory
North
Other
restaurants
Italia
FRC
Other
Total
Revenues
$ 690,473
$ 89,479
$ 104,522
$ 94,359
$ 978,833
Costs and expenses:
Food and beverage costs
151,158
20,264
23,032
17,796
212,250
Labor expenses
238,354
33,421
39,169
36,825
347,769
Other operating costs and expenses
180,297
24,717
30,664
28,675
264,353
General and administrative expenses
-
-
-
63,931
63,931
Depreciation and amortization expenses
17,170
3,194
3,365
4,255
27,984
Impairment of assets and lease terminations expense
557
-
2
270
829
Acquisition-related contingent consideration, compensation and amortization expenses
-
-
316
886
1,202
Preopening costs
1,415
1,914
1,731
410
5,470
Total costs and expenses
588,951
83,510
98,279
153,048
923,788
Income/(loss) from operations
$ 101,522
$ 5,969
$ 6,243
$ (58,689 )
$ 55,045
For the 13 Weeks Ended April 1, 2025
The Cheesecake
Factory
North
Other
restaurants
Italia
FRC
Other
Total
Revenues
$ 672,734
$ 83,410
$ 87,424
$ 83,629
$ 927,197
Costs and expenses:
Food and beverage costs
147,655
18,415
19,149
17,042
202,261
Labor expenses
233,391
31,917
31,562
34,205
331,075
Other operating costs and expenses
174,604
22,620
25,565
23,636
246,425
General and administrative expenses
-
-
-
59,932
59,932
Depreciation and amortization expenses
16,226
2,798
3,035
4,023
26,082
Impairment of assets and lease terminations expenses
75
-
300
3
378
Acquisition-related contingent consideration, compensation and amortization expenses
-
-
316
682
998
Preopening costs
1,350
2,680
2,793
1,264
8,087
Total costs and expenses
573,301
78,430
82,720
140,787
875,238
Income/(loss) from operations
$ 99,433
$ 4,980
$ 4,704
$ (57,158 )
$ 51,959
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
The Cheesecake Factory restaurants operating information:
March 31, 2026
April 1, 2025
Comparable restaurant sales vs. prior year
1.6 %
1.0 %
Restaurants opened during period
-
-
Restaurants open at period-end
216
215
Restaurant operating weeks
2,816
2,795
North Italia operating information:
Comparable restaurant sales vs. prior year
(2 )%
(1 )%
Restaurants opened during period
1
3
Restaurants open at period-end
49
45
Restaurant operating weeks
625
560
Other Fox Restaurant Concepts (FRC) operating information: (1)
Restaurants opened during period
1
2
Restaurants open at period-end
56
49
Restaurant operating weeks
720
626
Other operating information: (2)
Restaurants opened during period
1
3
Restaurants open at period-end
49
46
Restaurant operating weeks
639
583
Number of company-owned restaurants:
The Cheesecake Factory
216
North Italia
49
Other FRC
56
Other
49
Total
370
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
March 31, 2026
December 30, 2025
Cash and cash equivalents
$ 235,090
$ 215,729
Current and long-term debt, net of issuance costs (1)
630,993
630,074
(1) Includes $68.9 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $69 million less $0.1 million in unamortized issuance costs) and $562.1 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $12.9 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
March 31, 2026
April 1, 2025
Net income (GAAP)
$ 49,548
$ 32,941
Impairment of assets and lease termination expenses (1)
829
378
Acquisition-related contingent consideration, compensation and amortization expenses (2)
1,202
998
Loss on extinguishment of debt (3)
-
15,891
Tax effect of adjustments (4)
(529 )
(4,489 )
Adjusted net income (non-GAAP)
$ 51,050
$ 45,719
Diluted net income per share (GAAP)
$ 1.02
$ 0.67
Impairment of assets and lease termination expenses (1)
0.02
0.01
Acquisition-related contingent consideration, compensation and amortization expenses (2)
0.02
0.02
Loss on extinguishment of debt (3)
-
0.32
Tax effect of adjustments (4)
(0.01 )
(0.09 )
Adjusted diluted net income per share (non-GAAP) (5)
$ 1.05
$ 0.93
(1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen weeks ended March 31, 2026 and April 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) 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.
(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.