The Cheesecake Factory — Jul 23, 2026 release
Fiscal 2026 second-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-26-087561
Showing in the filing
Flower Child locations
“seven”
Period
FY2026
Measure
Company-defined measure
Source
Guidance table
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.