The Cheesecake Factory Reports Results for Fourth Quarter of Fiscal 2025

Key Terms

gift card breakage financial

Gift card breakage is the portion of prepaid gift card value that is never redeemed by customers — like finding pocket change left unused after a party. For investors, it matters because companies can count that unused value as extra revenue or reduced liability over time, which can boost profits, affect cash flow, and change how reliable future sales and liability estimates look.

impairment of assets financial

Impairment of assets is a one-time accounting write-down when a company determines an asset (like a building, patent, or goodwill) is worth less than its recorded value. It matters to investors because it reduces reported profits and the company’s asset base, signaling that expected future cash flows from that asset have fallen—like realizing a machine you bought won’t produce as much as you hoped and must be marked down.

lease termination expenses financial

Costs a company pays to end or exit an existing lease before its scheduled term, such as penalties, settlement payments, repairs to return the space, accelerated rent, and related legal or advisory fees. Like canceling a long-term subscription and paying an early-termination charge, these expenses can be one-time hits to cash flow and profit, and they matter to investors because they affect a company’s near-term finances and can signal operational changes or downsizing.

convertible senior notes financial

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

revolving credit facility financial

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

CALABASAS HILLS, Calif.--(BUSINESS WIRE)-- The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the fourth quarter of fiscal 2025, which ended on December 30, 2025.

Total revenues were $961.6 million in the fourth quarter of fiscal 2025 compared to $921.0 million in the fourth quarter of fiscal 2024. Fourth quarter fiscal 2025 includes $17.3 million of gift card breakage revenue as a result of a change in historical redemption patterns. Net income and diluted net income per share were $28.8 million and $0.60, respectively, in the fourth quarter of fiscal 2025.

The Company recorded a pre-tax net expense of $24.6 million related to impairment of assets and lease termination expenses, Fox Restaurant Concepts (“FRC”) acquisition-related items, gift card breakage and gift card inventory adjustments. Excluding the after-tax impact of these and certain other items, adjusted net income and adjusted diluted net income per share for the fourth quarter of fiscal 2025 were $48.3 million and $1.00, 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 declined 2.2% year-over-year in the fourth quarter of fiscal 2025.

“We delivered solid fourth quarter and full-year results in 2025, generating record annual revenue supported by 25 new restaurant openings for the year,” said David Overton, Chairman and Chief Executive Officer. “Despite a more challenging operating environment across the restaurant industry, including weather-related impacts, revenue for the quarter finished within our expected range. Margins and adjusted diluted net income per share finished toward the higher end of our expectations, reflecting the resilience of our business and strong operational execution. Our operators remained focused on the factors within their control, delivering year-over-year improvements in labor productivity, wage management, hourly staff and manager retention, and guest satisfaction.

“During the fourth quarter, we opened seven new restaurants and delivered approximately 7% unit growth for the year. Looking ahead, we expect to open as many as 26 restaurants this year, and with a strong pipeline in place we remain confident in our ability to achieve our development goal.

“Underscoring our confidence in the strength and consistency of the business, we also announced an increase of 5.0 million shares to our repurchase authorization and raised our quarterly dividend to $0.30 per share. While the operating environment remains competitive, our strong operational execution, continued menu innovation, and portfolio of high-quality concepts differentiate our business and position us well for long-term growth and shareholder value creation.”

Development

During the fourth quarter of fiscal 2025, the Company opened two Cheesecake Factory, two North Italia, and three FRC restaurants. Subsequent to quarter-end, the Company opened one Flower Child location and closed four restaurants, including two Cheesecake Factory restaurants, one Grand Lux Cafe, and one FRC location.

The Company now expects 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 eight FRC restaurants.

Liquidity and Capital Allocation

As of December 30, 2025, the Company had total available liquidity of $582.2 million, including a cash balance of $215.7 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 fourth quarter of fiscal 2025, the Company repurchased approximately 228,100 shares of its stock at a cost of $11.2 million. On February 12, 2026, the Company’s Board of Directors approved an increase of 5.0 million shares to the existing repurchase program raising the total authorization to 66 million shares, of which approximately 6.0 million shares remain available for repurchase following the increase.

Also on February 12, 2026, the Board approved a $0.03 increase in the quarterly dividend to $0.30 per share to be paid on March 17, 2026, to shareholders of record at the close of business on March 4, 2026.

Conference Call and Webcast

The Company will hold a conference call to review its results for the fourth 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 368 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 restaurants, international licensees and third-party bakery customers. In 2025, we were named to the FORTUNE Magazine “100 Best Companies to Work For^®” list for the twelfth consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com, www.iamaflowerchild.com and www.foxrc.com.

From Fortune. ©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.

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.

The Cheesecake Factory Incorporated
Condensed Consolidated Statements of Income
(unaudited; in thousands, except per share data)
		13 Weeks Ended							13 Weeks Ended							52 Weeks Ended							52 Weeks Ended
Consolidated Statements of Income		December 30, 2025							December 31, 2024							December 30, 2025							December 31, 2024
		Amount				Percent of Revenues			Amount				Percent of Revenues			Amount				Percent of Revenues			Amount				Percent of Revenues
Revenues		$	961,558			100.0	%		$	920,963			100.0	%		$	3,751,806			100.0	%		$	3,581,699			100.0	%
Costs and expenses:
Food and beverage costs			207,389			21.6	%			205,768			22.3	%			813,147			21.7	%			806,021			22.5	%
Labor expenses			325,526			33.8	%			315,231			34.2	%			1,312,894			35.0	%			1,264,382			35.3	%
Other operating costs and expenses			256,144			26.6	%			247,113			26.8	%			1,014,015			27.0	%			959,221			26.7	%
General and administrative expenses			67,209			7.0	%			57,783			6.3	%			244,915			6.5	%			228,737			6.4	%
Depreciation and amortization expenses			28,670			3.0	%			26,435			2.9	%			109,031			2.9	%			101,450			2.8	%
Impairment of assets and lease termination expenses			22,494			2.3	%			15,224			1.7	%			22,990			0.6	%			13,647			0.4	%
Acquisition-related contingent consideration, compensation and amortization expense/(income)			11,529			1.2	%			(858	)		(0.1	)%			14,449			0.4	%			2,429			0.1	%
Preopening costs			9,362			1.0	%			7,635			0.8	%			33,080			0.9	%			27,495			0.8	%
Total costs and expenses			928,323			96.5	%			874,331			94.9	%			3,564,521			95.0	%			3,403,382			95.0	%
Income from operations			33,235			3.5	%			46,632			5.1	%			187,285			5.0	%			178,317			5.0	%
Interest expense, net			(3,000	)		(0.3	)%			(2,137	)		(0.2	)%			(10,448	)		(0.3	)%			(10,107	)		(0.3	)%
Loss on debt extinguishment			-			0.0	%			-			0.0	%			(15,891	)		(0.4	)%			-			0.0	%
Other income, net			467			0.0	%			841			0.0	%			1,949			0.0	%			2,837			0.1	%
Income before income taxes			30,702			3.2	%			45,336			4.9	%			162,895			4.3	%			171,047			4.8	%
Income tax provision			1,927			0.2	%			4,182			0.4	%			14,468			0.3	%			14,264			0.4	%
Net income		$	28,775			3.0	%		$	41,154			4.5	%		$	148,427			4.0	%		$	156,783			4.4	%
Basic net income per share		$	0.62						$	0.86						$	3.17						$	3.28
Basic weighted average shares outstanding			46,620							47,953							46,786							47,789
Diluted net income per share		$	0.60						$	0.83						$	3.06						$	3.20
Diluted weighted average shares outstanding			48,346							49,645							48,551							48,974

The Cheesecake Factory Incorporated
Selected Segment Information
(unaudited; in thousands)
		For the 13 Weeks Ended December 30, 2025
		The Cheesecake Factory restaurants				North Italia				Other FRC				Other				Total
Revenues		$	681,431			$	88,174			$	99,441			$	92,512			$	961,558
Costs and expenses:
Food and beverage costs			145,373				20,266				21,682				20,068				207,389
Labor expenses			222,484				31,431				36,885				34,726				325,526
Other operating costs and expenses			176,743				23,923				29,216				26,262				256,144
General and administrative expenses			-				-				-				67,209				67,209
Depreciation and amortization expenses			17,470				3,325				3,628				4,247				28,670
Impairment of assets and lease terminations expenses			201				7,869				9,466				4,958				22,494
Acquisition-related contingent consideration, compensation and amortization expenses			-				-				315				11,214				11,529
Preopening costs			3,735				2,288				2,926				413				9,362
Total costs and expenses			566,006				89,102				104,118				169,097				928,323
Income/(loss) from operations		$	115,425			$	(928	)		$	(4,677	)		$	(76,585	)		$	33,235
		For the 13 Weeks Ended December 31, 2024
		The Cheesecake Factory restaurants				North Italia				Other FRC				Other				Total
Revenues		$	669,382			$	81,309			$	85,119			$	85,153			$	920,963
Costs and expenses:
Food and beverage costs			149,130				18,371				18,346				19,921				205,768
Labor expenses			221,494				29,559				29,941				34,237				315,231
Other operating costs and expenses			175,382				21,598				25,090				25,043				247,113
General and administrative expenses			-				-				-				57,783				57,783
Depreciation and amortization expenses			16,768				2,591				3,143				3,933				26,435
Impairment of assets and lease terminations expenses			330				-				14,893				1				15,224
Acquisition-related contingent consideration, compensation and amortization (income)/expenses			-				-				315				(1,173	)			(858	)
Preopening costs			1,884				2,230				2,396				1,125				7,635
Total costs and expenses			564,988				74,349				94,124				140,870				874,331
Income/(loss) from operations		$	104,394			$	6,960			$	(9,005	)		$	(55,717	)		$	46,632
		For the 52 Weeks Ended December 30, 2025
		The Cheesecake Factory restaurants				North Italia				Other FRC				Other				Total
Revenues		$	2,688,797			$	345,896			$	355,060			$	362,053			$	3,751,806
Costs and expenses:
Food and beverage costs			581,264				76,607				77,985				77,291				813,147
Labor expenses			913,001				128,179				132,777				138,937				1,312,894
Other operating costs and expenses			707,738				94,700				107,936				103,641				1,014,015
General and administrative expenses			-				-				-				244,915				244,915
Depreciation and amortization expenses			66,733				12,257				13,215				16,826				109,031
Impairment of assets and lease terminations expenses			505				7,869				9,603				5,013				22,990
Acquisition-related contingent consideration, compensation and amortization expenses			-				-				1,262				13,187				14,449
Preopening costs			10,253				7,917				11,544				3,366				33,080
Total costs and expenses			2,279,494				327,529				354,322				603,176				3,564,521
Income/(loss) from operations		$	409,303			$	18,367			$	738			$	(241,123	)		$	187,285
		For the 52 Weeks Ended December 31, 2024
		The Cheesecake Factory restaurants				North Italia				Other FRC				Other				Total
Revenues		$	2,661,627			$	299,575			$	299,969			$	320,528			$	3,581,699
Costs and expenses:
Food and beverage costs			599,899				69,505				66,665				69,952				806,021
Labor expenses			913,560				111,082				108,377				131,363				1,264,382
Other operating costs and expenses			696,739				82,290				88,672				91,520				959,221
General and administrative expenses			-				-				-				228,737				228,737
Depreciation and amortization expenses			66,010				9,244				11,389				14,807				101,450
Impairment of assets and lease terminations (income)/expenses			(1,402	)			-				14,893				156				13,647
Acquisition-related contingent consideration, compensation and amortization expenses			-				-				1,262				1,167				2,429
Preopening costs			7,499				7,409				9,206				3,381				27,495
Total costs and expenses			2,282,305				279,530				300,464				541,083				3,403,382
Income/(loss) from operations		$	379,322			$	20,045			$	(495	)		$	(220,555	)		$	178,317

The Cheesecake Factory Incorporated
Selected Operating, Restaurant and Balance Sheet Information
(unaudited; in thousands, except statistical data)
The Cheesecake Factory restaurants operating information:		13 Weeks Ended December 30, 2025			13 Weeks Ended December 31, 2024			52 Weeks Ended December 30, 2025			52 Weeks Ended December 31, 2024
Comparable restaurant sales vs. prior year		(2.2	)%		1.7	%		0.1	%		1.0	%
Restaurants opened during period		2			2			4			3
Restaurants open at period-end		218			215			218			215
Restaurant operating weeks		2,821			2,795			11,218			11,214
North Italia operating information:
Comparable restaurant sales vs. prior year		(4	)%		1	%		(2	)%		2	%
Restaurants opened during period		2			3			6			6
Restaurants open at period-end		48			42			48			42
Restaurant operating weeks		606			535			2,355			2,021
Other Fox Restaurant Concepts (FRC) operating information:(1)
Restaurants opened during period		3			2			9			8
Restaurants open at period-end		56			48			56			48
Restaurant operating weeks		715			611			2,675			2,264
Other operating information:(2)
Restaurants opened during period		-			2			6			6
Restaurants open at period-end		49			43			49			43
Restaurant operating weeks		637			551			2,477			2,114
Number of company-owned restaurants:
The Cheesecake Factory		218
North Italia		48
Other FRC		56
Other		49
Total		371
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		December 30, 2025				December 31, 2024
Cash and cash equivalents		$		215,729		$		84,176
Current and long-term debt, net of issuance costs (1)				630,074				452,062
(1) Includes $68.8 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $69 million less $0.2 million in unamortized issuance costs) and $561.3 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $13.7 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.

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 December 30, 2025				13 Weeks Ended December 31, 2024				52 Weeks Ended December 30, 2025				52 Weeks Ended December 31, 2024
Net income (GAAP)		$	28,775			$	41,154			$	148,427			$	156,783
Impairment of assets and lease termination expenses(1)			22,494				15,224				22,990				13,647
Acquisition-related contingent consideration, compensation and amortization expense/(income)(2)			11,529				(858	)			14,449				2,429
Gift card adjustment, net(3)			(9,396	)			-				(9,396	)			-
Loss on extinguishment of debt(4)			-				-				15,891				-
Uncertain tax positions(5)			1,306				-				2,023				-
Tax effect of adjustments(6)			(6,403	)			(3,735	)			(11,423	)			(4,180	)
Adjusted net income (non-GAAP)		$	48,305			$	51,785			$	182,961			$	168,679
Diluted net income per share (GAAP)		$	0.60			$	0.83			$	3.06			$	3.20
Impairment of assets and lease termination expenses(1)			0.47				0.31				0.47				0.28
Acquisition-related contingent consideration, compensation and amortization expense/(income)(2)			0.24				(0.02	)			0.30				0.05
Gift card adjustment, net(3)			(0.19	)			-				(0.19	)			-
Loss on extinguishment of debt(4)			-				-				0.33				-
Uncertain tax positions(5)			0.03				-				0.04				-
Tax effect of adjustments(6)			(0.13	)			(0.08	)			(0.24	)			(0.09	)
Adjusted diluted net income per share (non-GAAP)(7)		$	1.00			$	1.04			$	3.77			$	3.44
(1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen and fifty-two weeks ended December 30, 2025 and December 31, 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 gift card breakage revenue of $17.3 million as a result of a change in historical redemption patterns, partially offset by a non-recurring $7.9 million write-down of gift card inventory.
(4) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.
(5) Represents a reserve for uncertain tax position 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.
(6) 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.
(7) Adjusted net income per share may not add due to rounding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260218792701/en/

Etienne Marcus

(818) 871-3000

investorrelations@thecheesecakefactory.com

Source: The Cheesecake Factory Incorporated