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The Cheesecake Factory — Jul 23, 2026 release

Fiscal 2026 second-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-26-087561
Open on SEC.gov ↗
Showing in the filing
New restaurant openings - The Cheesecake Factory
“five to six”
Period
FY2026
Measure
Company-defined measure
Source
Prose
All guidance in this release · 10
New restaurant openings (total) for FY2026
“as many as 26”
The Cheesecake Factory restaurants for FY2026
“as many as five to six”
New restaurant openings - The Cheesecake Fac… for FY2026
“five to six”
New restaurant openings - North Italia for FY2026
“six to seven”
North Italia locations for FY2026
“six to seven”
Flower Child locations for FY2026
“seven”
New restaurant openings - Flower Child for FY2026
“seven”
FRC restaurants for FY2026
“as many as seven”
New restaurant openings - FRC restaurants for FY2026
“as many as seven”
Quarterly dividend for FY2026
“$0.30 per share”
Exhibit 99.1 · full document
EXHIBIT 99.1   Exhibit 99.1       FOR IMMEDIATE RELEASE Contact: Etienne Marcus   (818) 871-3000   investorrelations@thecheesecakefactory.com   THE CHEESECAKE FACTORY REPORTS RESULTS FOR SECOND QUARTER OF FISCAL 2026   CALABASAS HILLS, Calif. – July 28, 2026 – The Cheesecake Factory Incorporated (NASDAQ: CA KE) 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."   26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000     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.   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 June 30, 2026     13 Weeks Ended July 1, 2025     26 Weeks Ended June 30, 2026     26 Weeks Ended July 1, 2025   Consolidated Statements of Income   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             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 June 30, 2026       The Cheesecake                               Factory     North     Other                   restaurants     Italia     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     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 26 Weeks Ended June 30, 2026       The Cheesecake                               Factory     North     Other                   restaurants     Italia     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     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     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   The Cheesecake Factory restaurants operating information:   June 30, 2026     July 1, 2025     June 30, 2026     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.   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       June 30, 2026     July 1, 2025     June 30, 2026     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.   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.