Cheesecake Factory (NASDAQ: CAKE) lifts Q2 2026 sales and earnings
The Cheesecake Factory Incorporated delivered higher results for Q2 2026, with revenue of $1,029.6 million and net income of $68.4 million. Net margin was 6.6%, and diluted EPS rose to $1.41. For the first half of 2026, revenue reached $2,008.5 million and net income $117.9 million.
The Cheesecake Factory restaurants posted 5.8% comparable‑sales growth, driven by a 3.1% higher average check (including 3.0% price) and 2.7% more traffic, while off‑premise sales stayed about 21% of sales. North Italia comparable sales declined about 3%, but Flower Child comps grew roughly 13% and other FRC brands also showed double‑digit sales growth.
Operating cash flow for the first half increased to $188.9 million, funding $86.3 million of capital expenditures and quarterly dividends of $0.30 per share. The company ended Q2 with $195.2 million in cash, $575.0 million of 2030 convertible senior notes outstanding, an undrawn $400 million revolver, and $518.9 million of stockholders’ equity. Management discloses various macroeconomic, labor, legal and privacy matters and currently does not expect them to be material to overall financial position.
Positive
- None.
Negative
- None.
Filing Explained
The June 30 filing confirms the 2026 notes were repaid, while $575 million of 2030 convertible notes remain and could be settled partly in shares.
This Form 10-Q is an unaudited quarterly report for the period ended
The company still reports
If shares are used for a conversion, the share count would increase and an existing holder’s percentage ownership would decrease absent offsetting changes. At
The filing also reports 0.5 million shares repurchased for
Key Figures
Key Terms
Net Adjusted Leverage Ratio financial
EBITDAR financial
Make-Whole Fundamental Change financial
non-qualified deferred compensation financial
convertible senior notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
or
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number:
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction | | (I.R.S. Employer |
of incorporation or organization) | | Identification No.) |
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(Address of principal executive offices) | | (Zip Code) |
(
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
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Title of Each Class | | Trading Symbol | | Name of Each Exchange on which Registered |
| | The |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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☒ | | Accelerated filer | ☐ | |
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Non-accelerated filer | ☐ | | Smaller reporting company | |
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| | | Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of July 27, 2026,
Table of Contents
THE CHEESECAKE FACTORY INCORPORATED
INDEX
| | Page | |
| | | |
PART I | FINANCIAL INFORMATION | | |
| Item 1. | Financial Statements: | |
| | Condensed Consolidated Balance Sheets (Unaudited) | 1 |
| | Condensed Consolidated Statements of Income (Unaudited) | 2 |
| | Condensed Consolidated Statements of Comprehensive Income (Unaudited) | 3 |
| | Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) | 4 |
| | Condensed Consolidated Statements of Cash Flows (Unaudited) | 5 |
| | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 20 |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 30 |
| Item 4. | Controls and Procedures | 31 |
| | | |
PART II | OTHER INFORMATION | | |
| Item 1. | Legal Proceedings | 32 |
| Item 1A. | Risk Factors | 32 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 32 |
| Item 5. | Other Information | 32 |
| Item 6. | Exhibits | 33 |
| | | |
Signatures | 34 | ||
Table of Contents
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements.
THE CHEESECAKE FACTORY INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| | | | | | |
| | June 30, | | December 30, | ||
| | 2026 | | 2025 | ||
| | (Unaudited) | | | ||
ASSETS | | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | | | $ | |
Accounts and other receivables | | | | | | |
Income taxes receivable | |
| | |
| |
Inventories | |
| | |
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Prepaid expenses | |
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Total current assets | |
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Property and equipment, net | |
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Other assets: | | | | | | |
Intangible assets, net | |
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Operating lease assets | |
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Other | | | | | | |
Total other assets | | | | | | |
Total assets | | $ | | | $ | |
| | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
Current liabilities: | | | | | | |
Accounts payable | | $ | | | $ | |
Gift card liabilities | |
| | |
| |
Operating lease liabilities | | | | | | |
Other accrued expenses | | | | | | |
Current portion of long-term debt | | | — | | | |
Total current liabilities | | | | | | |
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Long-term debt | |
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Operating lease liabilities | |
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Other noncurrent liabilities | | | | | | |
Total liabilities | | | | | | |
Commitments and contingencies (Note 7) | |
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Stockholders’ equity: | | | | | | |
Preferred stock, $ | | | — | | | — |
Common stock, $ | | | | | | |
Additional paid-in capital | |
| | |
| |
Retained earnings | |
| | |
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Treasury stock inclusive of excise tax, | |
| ( | |
| ( |
Accumulated other comprehensive loss | |
| ( | |
| ( |
Total stockholders’ equity | |
| | |
| |
Total liabilities and stockholders’ equity | | $ | | | $ | |
See the accompanying notes to the condensed consolidated financial statements.
1
Table of Contents
THE CHEESECAKE FACTORY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
| | | | | | | | | | | | |
| | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | ||||
| | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | ||||
| | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | ||||
| | | | | | | | | | | | |
Revenues | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | |
Food and beverage costs | |
| | |
| | | | | | | |
Labor expenses | |
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| | | | | | | |
Other operating costs and expenses | |
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| | | | | | | |
General and administrative expenses | |
| | |
| | | | | | | |
Depreciation and amortization expenses | |
| | |
| | | | | | | |
Impairment of assets and lease termination expenses | | | | | | | | | | | | |
Acquisition-related contingent consideration, compensation and amortization expenses | | | | | | | | | | | | |
Preopening costs | |
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| | | | | | | |
Total costs and expenses | |
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Income from operations | |
| | |
| | | | | | | |
Interest expense, net | |
| ( | |
| ( | | | ( | | | ( |
Loss on extinguishment of debt | | | — | | | — | | | — | | | ( |
Other income, net | | | | | | | | | | | | |
Income before income taxes | |
| | |
| | | | | | | |
Income tax provision | |
| | |
| | | | | | | |
Net income | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | |
Net income per share: | | | | | | | | | | | | |
Basic | | $ | | | $ | | | $ | | | $ | |
Diluted (Note 10) | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | |
Weighted-average shares outstanding: | | | | | | | | | | | | |
Basic | |
| | |
| | | | | | | |
Diluted | |
| | |
| | | | | | | |
See the accompanying notes to the condensed consolidated financial statements.
2
Table of Contents
THE CHEESECAKE FACTORY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
| | | | | | | | | | | | |
| | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | ||||
| | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | ||||
| | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | ||||
| | | | | | | | | | | | |
Net income | | $ | | | $ | | | $ | | | $ | |
Other comprehensive (loss)/gain: | |
| | |
| | | | | | | |
Foreign currency translation adjustment | |
| ( | |
| | | | ( | | | |
Other comprehensive (loss)/gain | |
| ( | |
| | | | ( | | | |
Total comprehensive income | | $ | | | $ | | | $ | | | $ | |
See the accompanying notes to the condensed consolidated financial statements.
3
Table of Contents
THE CHEESECAKE FACTORY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, except per share data)
(Unaudited)
For the twenty-six weeks ended June 30, 2026:
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | Accumulated | | | ||||||||
| | | | Additional | | | | | | Other | | | ||||||||
| | Common Stock | | Paid-in | | Retained | | Treasury | | Comprehensive | | | ||||||||
| | Shares | | Amount | | Capital | | Earnings | | Stock | | Loss | | Total | ||||||
Balance, December 30, 2025 | | | | $ | | | $ | | | $ | | | $ | ( | | $ | ( | | $ | |
Net income | | — | | | — | | | — | | | | | | — | | | — | | | |
Foreign currency translation adjustment | | — | | | — | | | — | | | — | | | — | | | ( | | | ( |
Cash dividends declared common stock, net of forfeitures, $ | | — | | | — | | | — | | | ( | | | — | | | — | | | ( |
Stock-based compensation | | | | | | | | | | | — | | | — | | | — | | | |
Common stock issued under stock-based compensation plans | | | | | — | | | | | | — | | | — | | | — | | | |
Treasury stock purchases, inclusive of excise tax | | — | | | — | | | — | | | — | | | ( | | | — | | | ( |
Balance, March 31, 2026 | | | | $ | | | $ | | | $ | | | $ | ( | | $ | ( | | $ | |
Net income | | — | | | — | | | — | | | | | | — | | | — | | | |
Foreign currency translation adjustment | | — | | | — | | | — | | | — | | | — | | | ( | | | ( |
Cash dividends declared common stock, net of forfeitures, $ | | — | | | — | | | — | | | ( | | | — | | | — | | | ( |
Stock-based compensation, net of forfeitures | | ( | | | — | | | | | | — | | | — | | | — | | | |
Common stock issued under stock-based compensation plans | | | | | | | | | | | — | | | — | | | — | | | |
Treasury stock purchases, inclusive of excise tax | | — | | | — | | | — | | | — | | | ( | | | — | | | ( |
Other | | — | | | — | | | | | | — | | | — | | | — | | | |
Balance, June 30, 2026 | | | | $ | | | $ | | | $ | | | $ | ( | | $ | ( | | $ | |
For the twenty-six weeks ended July 1, 2025:
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Accumulated | | | | |||||
| | | | Additional | | | | | | | | Other | | | | |||||
| | Common Stock | | Paid-in | | Retained | | Treasury | | Comprehensive | | | | |||||||
| | Shares | | Amount | | Capital | | Earnings | | Stock | | (Loss)/Income | | Total | ||||||
Balance, December 31, 2024 | | | | $ | | | $ | | | $ | | | $ | ( | | $ | ( | | $ | |
Net income | | — | | | — | | | — | | | | | | — | | | — | | | |
Foreign currency translation adjustment | | — | | | — | | | — | | | — | | | — | | | | | | |
Cash dividends declared common stock, net of forfeitures, $ | | — | | | — | | | — | | | ( | | | — | | | — | | | ( |
Stock-based compensation | | | | | | | | | | | — | | | — | | | — | | | |
Common stock issued under stock-based compensation plans | | | | | | | | | | | — | | | — | | | — | | | |
Treasury stock purchases, inclusive of excise tax | | — | | | — | | | — | | | — | | | ( | | | — | | | ( |
Balance, April 1, 2025 | | | | $ | | | $ | | | $ | | | $ | ( | | $ | ( | | $ | |
Net income | | — | | | — | | | — | | | | | | — | | | — | | | |
Foreign currency translation adjustment | | — | | | — | | | — | | | — | | | — | | | | | | |
Cash dividends declared common stock, net of forfeitures, $ | | — | | | — | | | — | | | ( | | | — | | | — | | | ( |
Stock-based compensation, net of forfeitures | | ( | | | — | | | | | | — | | | — | | | — | | | |
Common stock issued under stock-based compensation plans | | | | | | | | | | | — | | | — | | | — | | | |
Treasury stock purchases, inclusive of excise tax | | — | | | — | | | — | | | — | | | | | | — | | | |
Balance, July 1, 2025 | | | | $ | | | $ | | | $ | | | $ | ( | | $ | ( | | $ | |
See the accompanying notes to the condensed consolidated financial statements.
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THE CHEESECAKE FACTORY INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| | | | | | |
| | Twenty-Six | | Twenty-Six | ||
| | Weeks Ended | | Weeks Ended | ||
| | June 30, 2026 | | July 1, 2025 | ||
Cash flows from operating activities: | | | | | | |
Net income | | $ | | | $ | |
Adjustments to reconcile net income to cash provided by operating activities: | | | | | | |
Depreciation and amortization expenses | | | | | | |
Impairment of assets and lease termination expenses | |
| | |
| |
Loss on debt extinguishment | | | — | | | |
Deferred income taxes | |
| | |
| |
Stock-based compensation | | | | | | |
Payment of deferred consideration and compensation in excess of acquisition-date fair value | | | ( | | | ( |
Changes in assets and liabilities: | | | | | | |
Accounts and other receivables | | | | | | |
Income taxes receivable/payable | |
| ( | |
| |
Inventories | |
| | |
| ( |
Prepaid expenses | |
| ( | |
| ( |
Operating lease assets/liabilities | |
| ( | |
| ( |
Other assets | | | ( | | | ( |
Accounts payable | |
| | |
| ( |
Gift card liabilities | |
| ( | |
| ( |
Other accrued expenses | | | | | | |
Cash provided by operating activities | |
| | |
| |
Cash flows from investing activities: | | | | | | |
Additions to property and equipment | |
| ( | |
| ( |
Additions to intangible assets | |
| ( | |
| ( |
Cash used in investing activities | |
| ( | |
| ( |
Cash flows from financing activities: | | | | | | |
Repayments on credit facility | | | — | | | ( |
Proceeds from long-term convertible debt | | | — | | | |
Repayment on long-term convertible debt, including premium on extinguishment | | | ( | | | ( |
Issuance costs associated with long-term debt | | | ( | | | ( |
Proceeds from exercise of stock options | | | | | | |
Common stock dividends paid | |
| ( | |
| ( |
Treasury stock purchases, inclusive of excise tax | |
| ( | |
| ( |
Cash (used in)/provided by financing activities | |
| ( | |
| |
Foreign currency translation adjustment | |
| ( | |
| |
Net change in cash and cash equivalents | | | ( | | | |
Cash and cash equivalents at beginning of period | |
| | |
| |
Cash and cash equivalents at end of period | | $ | | | $ | |
| | | | | | |
Supplemental disclosures: | | | | | | |
Interest paid | | $ | | | $ | |
Income taxes paid (1) | | $ | | | $ | |
Construction payable | | $ | | | $ | |
(1) |
See the accompanying notes to the condensed consolidated financial statements.
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Table of Contents
THE CHEESECAKE FACTORY INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Significant Accounting Policies
Basis of Presentation
The accompanying condensed consolidated financial statements include the accounts of The Cheesecake Factory Incorporated and its wholly owned subsidiaries (referred to herein collectively as the “Company,” “we,” “us” and “our”) and are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions for the periods presented have been eliminated in consolidation. The unaudited financial statements presented herein include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for the fair statement of the financial condition, results of operations and cash flows for the period. However, these results are not necessarily indicative of results that may be achieved for any other interim period or for the full fiscal year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules of the Securities and Exchange Commission (“SEC”). The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2025 (“Annual Report”) filed with the SEC on February 23, 2026.
We utilize a 52/53-week fiscal year ending on the Tuesday closest to December 31 for financial reporting purposes. Fiscal year 2026 consists of
Use of Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from these estimates.
Geopolitical and Other Macroeconomic Impacts to our Operating Environment
In recent years, our operating results have been impacted by geopolitical and macroeconomic events, causing supply chain challenges and significantly increased commodity and wage inflation. Our commodity and wage inflationary environment began returning to more historical levels in fiscal 2024.
The impact of ongoing geopolitical and macroeconomic events, including evolving government policies and global trade and tariff dynamics, could lead to issues such as further wage inflation, product and services cost inflation, disruptions in the supply chain, staffing challenges, shifts in consumer behavior and delays in new restaurant openings. Adverse weather conditions and natural disasters may further exacerbate a number of these factors. For more information regarding the risks to our business relating to the geopolitical and macroeconomic events, see Part II, Item 1A of this report “Risk Factors,” and “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 30, 2025.
Recent Accounting Pronouncements
Recently Adopted Accounting Standards
In November 2024, the FASB issued ASU 2024-04, Debt - Debt with Conversion and Other Options (Topic 470): Induced Conversions of Convertible Debt Instruments, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The ASU also clarifies that the induced conversion guidance applies to a convertible debt instrument that is not currently convertible as long as it had a substantive conversion feature as of both its issuance date and the date the inducement offer is accepted. The amendment is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The amendment should be applied prospectively. However, retrospective application is permitted. We adopted this ASU in the first quarter of fiscal 2026 using the prospective transition method, and adoption did not have a material impact on our consolidated financial statements.
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In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient permitting an entity to assume that conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets. This ASU is effective for annual reporting periods beginning after December 15, 2025, and for interim periods within those annual reporting periods, with early adoption permitted. The amendments in the ASU should be applied prospectively. We adopted this ASU in the first quarter of fiscal 2026 using the practical expedient, and adoption did not have a material impact on our consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which amends certain aspects of the accounting and disclosure for internal-use software costs. The ASU removes all references to prescriptive and sequential software development stages. The ASU requires entities to begin capitalizing software costs when management authorizes and commits to funding the software project and it is probable that the project will be completed and the software will be used for its intended purpose. The amendments in this ASU are effective for fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments can be applied prospectively, retrospectively, or via a modified prospective transition method. We adopted this ASU in the first quarter of fiscal 2026 using the prospective transition method and adoption did not have a material impact on our consolidated financial statements.
Recently Issued Accounting Standards
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), which requires more detailed disclosures of certain categories of expenses such as inventory purchases, employee compensation and depreciation that are components of existing expense captions presented on the face of the income statement. The amendment is effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The amendment should be applied prospectively. However, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on our disclosures.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies interim disclosure requirements by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The standard is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. Management is currently evaluating this ASU to determine its impact on our disclosures.
In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818), which is intended to improve the accounting for and disclosure of environmental credits and related obligations by establishing consistent guidance for recognition, measurement, presentation, and disclosure. The ASU introduces a comprehensive model and requires enhanced disclosures to improve transparency and comparability. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and for interim periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period and should be applied on a retrospective basis. Management is currently evaluating this ASU to determine its impact on our consolidated financial statements.
2. Fair Value Measurements
Fair value measurements are estimated based on valuation techniques and inputs categorized as follows:
| ● | Level 1: Quoted prices in active markets for identical assets or liabilities |
| ● | Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities |
| ● | Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring us to develop our own assumptions |
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The following tables present the components and classification of our assets and liabilities that are measured at fair value on a recurring basis (in thousands):
| | | | | | | | | |
| | June 30, 2026 | |||||||
| | Level 1 | | Level 2 | | Level 3 | |||
Assets/(Liabilities) | | | | | | | |
| |
Non-qualified deferred compensation assets | | $ | | | $ | — | | $ | — |
Non-qualified deferred compensation liabilities | | | ( | | | — | | | — |
Acquisition-related contingent consideration and compensation liabilities | | | — | | | — | | | ( |
| | | | | | | | | |
| | December 30, 2025 | |||||||
| | Level 1 | | Level 2 | | Level 3 | |||
Assets/(Liabilities) | | | | | | | | | |
Non-qualified deferred compensation assets | | $ | | | $ | — | | $ | — |
Non-qualified deferred compensation liabilities | | | ( | | | — | | | — |
Acquisition-related contingent consideration and compensation liabilities | | | — | | | — | | | ( |
The following table presents a reconciliation of the beginning and ending amounts of the fair value of the acquisition-related contingent consideration and compensation liabilities categorized as Level 3 (in thousands):
| | | | | | |
| | Twenty-Six | | Twenty-Six | ||
| | Weeks Ended | | Weeks Ended | ||
| | June 30, 2026 | | July 1, 2025 | ||
| | | | | | |
Beginning balance | | $ | | | $ | |
Payment | | | ( | | | ( |
Change in fair value | |
| | |
| |
Ending balance | | $ | | | $ | |
The fair value of the acquisition-related contingent consideration and compensation liability was based on estimated future revenues, margins and probability of achievement, recent performance, discount rate and has no minimum or maximum payment. During the first six months of fiscal 2026 and 2025, we made payments of $
The fair values of our cash and cash equivalents, accounts and other receivables, income taxes receivable, prepaid expenses, accounts payable, income taxes payable and other accrued liabilities approximate their carrying amounts due to their short duration. The fair value of our Revolver Facility (as defined below) approximates carrying value due to the variable interest rate.
As of June 30, 2026, we had $
3. Inventories
Inventories consisted of (in thousands):
| | | | | | |
| | June 30, 2026 | | December 30, 2025 | ||
Restaurant food and supplies | | $ | | | $ | |
Bakery finished goods and work in progress | |
| | |
| |
Bakery raw materials and supplies | |
| | |
| |
Total | | $ | | | $ | |
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4. Gift Cards
The following tables present information related to gift cards (in thousands):
| | | | | | | | | | | | |
| | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | ||||
| | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | ||||
| | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | ||||
Gift card liabilities: | | | | | | | | | | | | |
Beginning balance |
| $ | |
| $ | | | $ | |
| $ | |
Activations | | | | | | | | | | | | |
Redemptions and breakage | | | ( | | | ( | | | ( | | | ( |
Ending balance |
| $ | |
| $ | | | $ | |
| $ | |
| | | | | | | | | | | | |
| | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | ||||
| | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | ||||
| | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | ||||
Gift card contract assets: (1) | | | | | | | | | | | | |
Beginning balance |
| $ | |
| $ | | | $ | |
| $ | |
Deferrals | | | | | | | | | | | | |
Amortization | | | ( | | | ( | | | ( | | | ( |
Ending balance |
| $ | |
| $ | | | $ | |
| $ | |
(1) | Included in prepaid expenses on the condensed consolidated balance sheets. |
5. Debt
Revolving Credit Facility
On March 26, 2026, we entered into a Fifth Amended and Restated Loan Agreement (the “Loan Agreement” and the revolving credit facility provided thereunder, the “Revolver Facility”). The Revolver Facility, which matures on March 26, 2031, provides us with revolving loan commitments that total $
Our obligations under the Revolver Facility are unsecured. Certain of our material subsidiaries have guaranteed our obligations under the Revolver Facility on an unsecured basis.
As of December 30, 2025, we had net availability for borrowings of $
Under the Revolver Facility, we are subject to the following financial covenants as of the last day of each fiscal quarter: (i) a maximum ratio of net adjusted debt to earnings before interest, tax, depreciation and amortization and rent (“EBITDAR”) (the “Net Adjusted Leverage Ratio”) of
Borrowings under the Loan Agreement bear interest, at the Company’s option, at a per annum rate equal to either: (i) (A) the forward-looking term rate based on secured overnight financing rate (“SOFR”) that is published by CME Group Benchmark Administration Limited (the “Term SOFR Rate”) plus (B) an applicable margin based on the Net Adjusted Leverage Ratio, ranging from
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from
We are also subject to customary events of default that, if triggered, could result in acceleration of the maturity of the Revolver Facility. Subject to certain exceptions, the Loan Agreement contains a number of covenants and restrictions that, among other things, restrict the Company’s and its subsidiaries’ ability to incur additional debt, pay dividends and make distributions, make certain investments and acquisitions, create liens, enter into agreements with affiliates, sell material assets, and merge or consolidate.
2030 Convertible Senior Notes
On February 28, 2025, we issued $
The 2030 Notes are senior, unsecured obligations and are (i) equal in right of payment with our existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the 2030 Notes; (iii) effectively subordinated to our existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent we are not a holder thereof) preferred equity, if any, of our subsidiaries. The 2030 Notes were issued pursuant to, and are governed by, an indenture (the “2030 Indenture”), dated as of February 28, 2025, between us and U.S. Bank Trust Company, National Association, as trustee (the “2030 Note Trustee”).
The 2030 Notes accrue interest at a rate of
The 2030 Notes are redeemable, in whole or in part (subject to certain limitations described below), at our option at any time, and from time to time, on or after March 20, 2028 and on or before the 35th scheduled trading day immediately before the maturity date, but only if (i) the notes are “Freely Tradable” (as defined in the 2030 Indenture), and all accrued and unpaid additional interest, if any, has been paid in full, as of the date we send the related redemption notice; and (ii) the last reported sale price per share of our common stock exceeds
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redemption as of the time we send the related redemption notice. The redemption price will be a cash amount equal to the principal amount of the 2030 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, calling any 2030 Note for redemption will constitute a Make-Whole Fundamental Change with respect to that 2030 Note, in which case the conversion rate applicable to the conversion of that 2030 Note will be increased in certain circumstances if it is converted after it is called for redemption.
If certain corporate events that constitute a “Fundamental Change” (as defined in the 2030 Indenture) occur, then, subject to a limited exception for certain cash mergers, noteholders may require us to repurchase their 2030 Notes at a cash repurchase price equal to the principal amount of the 2030 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The definition of Fundamental Change includes certain business combination transactions involving us and certain de-listing events with respect to our common stock.
The 2030 Notes have customary provisions relating to the occurrence of “Events of Default” (as defined in the 2030 Indenture), which include the following: (i) certain payment defaults on the 2030 Notes (which, in the case of a default in the payment of interest on the 2030 Notes, will be subject to a
If an Event of Default involving bankruptcy, insolvency or reorganization events with respect to us (and not solely with respect to our significant subsidiary) occurs, then the principal amount of, and all accrued and unpaid interest on, all of the 2030 Notes then outstanding will immediately become due and payable without any further action or notice by any person. If any other Event of Default occurs and is continuing, then, the 2030 Note Trustee, by notice to us, or noteholders of at least
As of June 30, 2026, the 2030 Notes had a gross principal balance of $
2026 Convertible Senior Notes
On June 15, 2021, we issued $
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The 2026 Notes were senior, unsecured obligations and were (i) equal in right of payment with our existing and future senior, unsecured indebtedness; (ii) senior in right of payment to our existing and future indebtedness that is expressly subordinated to the 2026 Notes; (iii) effectively subordinated to our existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent we are not a holder thereof) preferred equity, if any, of our subsidiaries. The 2026 Notes were issued pursuant to, and were governed by, an indenture (the “Base Indenture”) between us and a trustee (“2026 Note Trustee”), dated as of June 15, 2021, as supplemented by a first supplemental indenture (the “Supplemental Indenture,” and the Base Indenture, as supplemented by the Supplemental Indenture, the “2026 Indenture”), dated as of June 15, 2021, between the Company and the 2026 Note Trustee.
The 2026 Notes accrued interest at a rate of
6. Leases
Components of lease expense were as follows (in thousands):
| | | | | | | | | | | | |
| | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | ||||
| | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | ||||
| | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | ||||
Operating | | $ | | | $ | | | $ | | | $ | |
Variable | | | | | | | | | | | | |
Short-term | | | | | | | | | | | | |
Total | | $ | | | $ | | | $ | | | $ | |
Supplemental information related to leases (in thousands):
| | | | | | |
| | Twenty-Six | | Twenty-Six | ||
| | Weeks Ended | | Weeks Ended | ||
| | June 30, 2026 | | July 1, 2025 | ||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
Operating cash flows for operating leases | | $ | | | $ | |
Right-of-use assets obtained in exchange for new operating lease liabilities | | | | | | |
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7. Commitments and Contingencies
On December 11, 2023, a former restaurant hourly employee filed a class action lawsuit in the California Superior Court, County of San Diego, alleging that the Company violated the California Labor Code by failing to properly pay hourly wages and overtime, provide meal and rest periods, and furnish compliant wage statements, among other claims. The plaintiff also asserts claims under the California Private Attorneys General Act. Corona v. The Cheesecake Factory Restaurants, Inc., et al., Case No. 37-2023-00053498-CU-OE-CTL. The parties are scheduled to participate in voluntary mediation in September 2026, and if mediation is unsuccessful, we intend to vigorously defend against this action. Based upon the current status of this matter, we have reserved an immaterial amount.
On February 16, 2024, a former restaurant hourly employee filed a class action lawsuit in the California Superior Court, County of Los Angeles, alleging that the Company violated the California Labor Code by failing to properly pay hourly wages and overtime, furnish compliant wage statements, and provide meal and rest periods. The plaintiff also asserts claims under the California Private Attorneys General Act. Davis v. North Restaurants, LLC, The Cheesecake Factory, Inc., et al., Case No. 24STCV04020. The parties participated in voluntary mediation on March 27, 2026; however, a resolution was not reached. A similar lawsuit covering a different time period was also filed in Los Angeles County on September 4, 2025. Mejia-Sian v. North Restaurants, LLC, et al., Case No. 25STCV32337. We intend to vigorously defend against these actions. Based upon the current status of this matter, we have reserved an immaterial amount.
On June 7, 2024, the Internal Revenue Service issued its examination report for tax years 2015 through 2020 in which it proposed to disallow a portion of our depreciation deductions and domestic production activity deductions and to assess penalties. On August 12, 2024, we submitted protest memoranda indicating our disagreement with a majority of the findings in the examination report, and our case came under the jurisdiction of the Appeals Division (“Appeals”). Appeals conferences were held during fiscal 2025 and the matter was resolved for an immaterial amount in the second quarter of fiscal 2026.
On April 27, 2026, the California Privacy Protection Agency filed a Notice of Privacy Act Inquiry with the Company, requesting information about the Company’s online privacy practices with respect to its recruiting website, mobile application tracking and marketing practices (the “Notice”). The Notice seeks information regarding the Company’s compliance with California Consumer Privacy Act and California Privacy Rights Act rights requests, consumer notices and opt-out practices. The Company has responded to the Notice and we intend to vigorously defend against this inquiry. Based upon the current status of this matter, we have reserved an immaterial amount.
Within the ordinary course of our business, we are subject to private lawsuits, government audits and investigations, administrative proceedings and other claims. These matters typically involve claims from customers, staff members and others related to operational and employment issues common to the foodservice industry. A number of these claims may exist at any given time, and some of the claims may be pled as class actions. From time to time, we are also involved in lawsuits with respect to infringements of, or challenges to, our registered trademarks and other intellectual property, both domestically and abroad. We could be affected by adverse publicity and litigation costs resulting from such allegations, regardless of whether they are valid or whether we are legally determined to be liable.
At this time, we believe that the amount of reasonably possible losses resulting from final disposition of any pending lawsuits, audits, investigations, proceedings and claims will not have a material adverse effect individually or in the aggregate on our financial position, results of operations or liquidity. It is possible, however, that our future results of operations for a particular quarter or fiscal year could be impacted by changes in circumstances relating to lawsuits, audits, proceedings or claims. Legal costs related to such claims are expensed as incurred.
8. Stockholders’ Equity
Common Stock – Dividends and Share Repurchases
On
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Agreement and applicable law, and such other factors that the Board considers relevant. (See Notes 5 and 12 for further discussion of our debt and dividends declared subsequent to June 30, 2026, respectively.)
On February 12, 2026, our Board increased the authorization to repurchase our common stock by
Our share repurchase program does not have an expiration date, does not require us to purchase a specific number of shares and may be modified, suspended or terminated at any time. Share repurchases may be made from time to time in open market purchases, privately-negotiated transactions, accelerated share repurchase programs, issuer self-tender offers or otherwise. Future decisions to repurchase shares are at the discretion of the Board and are based on several factors, including current and forecasted operating cash flows, capital needs associated with new restaurant development and maintenance of existing locations, dividend payments, debt levels and cost of borrowing, obligations associated with the FRC acquisition agreement, our share price and current market conditions. The timing and number of shares repurchased are also subject to legal constraints and covenants under the Loan Agreement that limit share repurchases based on a defined ratio. (See Note 5 for further discussion of our debt.)
9. Stock-Based Compensation
We maintain stock-based incentive plans under which incentive stock options, non-qualified stock options, stock appreciation rights, restricted shares and restricted share units may be granted to staff members, consultants and non-employee directors.
On March 26, 2025, our Board approved an amendment to our The Cheesecake Factory Incorporated Stock Incentive Plan (the “Plan”) to increase the number of shares of common stock authorized for issuance under the Plan by
The following table presents information related to stock-based compensation, net of forfeitures (in thousands):
| | | | | | | | | | | | |
| | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | ||||
| | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | ||||
| | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | ||||
| | | | | | | | | | | | |
Labor expenses | | $ | | | $ | | $ | | | $ | | |
Other operating costs and expenses | | | | | | | | | | | | |
General and administrative expenses | | | | | | | | | | | | |
Total stock-based compensation | | | | | | | | | | | | |
Income tax benefit | | | | | | | | | | | | |
Total stock-based compensation, net of taxes | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | |
Capitalized stock-based compensation (1) | | $ | | | $ | | $ | | | $ | | |
| (1) | It is our policy to capitalize the portion of stock-based compensation costs for our internal development department that relates to capitalizable activities such as the design and construction of new restaurants, remodeling existing locations and equipment installation. Capitalized stock-based compensation is included in property and equipment, net on the consolidated balance sheets. |
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Stock Options
We did not issue any stock options during the second quarter of fiscal 2026 and fiscal 2025. Stock option activity during the twenty-six weeks ended June 30, 2026 was as follows:
| | | | | | | | | | |
| | | | | | Weighted- | | | ||
| | | | | | Average | | | ||
| | | | Weighted- | | Remaining | | | ||
| | | | Average | | Contractual | | Aggregate | ||
| | Shares | | Exercise Price | | Term | | Intrinsic Value (1) | ||
| | (In thousands) | | (Per share) | | (In years) | | (In thousands) | ||
Outstanding at December 30, 2025 | | | | $ | | | | $ | | |
Granted |
| — | | | — | | | | | |
Exercised |
| ( | | | | | | | | |
Forfeited or cancelled |
| — | | | — | | | | | |
Outstanding at June 30, 2026 | | | | $ | | | | $ | | |
| | | | | | | | | | |
Exercisable at June 30, 2026 |
| | | $ | | | | $ | | |
| (1) | Aggregate intrinsic value is calculated as the difference between our closing stock price at fiscal period end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised their options on the fiscal period-end date. |
The total intrinsic value of options exercised during the thirteen and twenty-six weeks ended June 30, 2026 was $
Restricted Shares and Restricted Share Units
Restricted share and restricted share unit activity during the twenty-six weeks ended June 30, 2026 was as follows:
| | | | | |
| | | | Weighted- | |
| | | | Average | |
| | Shares | | Fair Value | |
| | (In thousands) | | (Per share) | |
Outstanding at December 30, 2025 |
| | | $ | |
Granted |
| | | | |
Vested |
| ( | | | |
Forfeited |
| ( | | | |
Outstanding at June 30, 2026 |
| | | $ | |
Fair value of our restricted shares and restricted share units is based on our closing stock price on the date of grant. The weighted average fair value for restricted shares and restricted share units issued during the second quarter of fiscal 2026 and 2025 was $
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10. Net Income Per Share
Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, reduced by unvested restricted stock awards. As of June 30, 2026 and July 1, 2025, an aggregate of
Diluted net income per share is computed by dividing net income by the weighted-average number of common stock equivalents outstanding for the period. Common stock equivalents for the 2026 Notes and 2030 Notes are determined by application of the if-converted method, and common stock equivalents for outstanding stock options, restricted stock and restricted stock units are determined by application of the treasury stock method.
| | | | | | | | | | | | |
| | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | ||||
| | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | ||||
| | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | ||||
| | (In thousands, except per share data) | ||||||||||
Net income | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | |
Basic weighted-average shares outstanding | | | | | | | | | | | | |
Dilutive effect of equity awards (1) | | | | | | | | | | | | |
Diluted weighted-average shares outstanding | | | | | | | | | | | | |
| | | | | | | | | | | | |
Basic net income per share | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | |
Diluted net income per share | | $ | | | $ | | | $ | | | $ | |
| (1) | Shares of common stock equivalents related to outstanding stock options, restricted stock and restricted stock units of |
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11. Segment Information
Our chief operating decision maker (“CODM”) is the Chief Executive Officer, President and Chief Financial Officer. Our CODM allocates resources and evaluates the performance of each operating segment based on the segment’s revenue and income/(loss) from operations, comparing actual results to historical and previously forecasted financial information. Significant expenses are expenses that are regularly provided to the CODM and are included in segment income/(loss). Our operating segments are aligned with our strategic priorities and are the businesses for which our CODM reviews discrete financial information for decision-making purposes. They are comprised of The Cheesecake Factory Restaurants, North Italia, Flower Child, the other FRC brands and our bakery division. Based on quantitative thresholds set forth in ASC 280, “Segment Reporting,” The Cheesecake Factory Restaurants, North Italia and the other FRC brands are the only businesses that meet the criteria of a reportable operating
Segment information is presented below (in thousands):
For the thirteen weeks ended June 30, 2026
| | | | | | | | | | | | | | | |
| | The | | | | | | | | | | | | | |
| | Cheesecake | | | | | | | | | | | | | |
| | Factory | | North | | Other | | | | | | | |||
| | Restaurants | | Italia | | FRC | | Other | | Total | |||||
Revenues | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | |
Food and beverage costs |
| | | | | | | | | | | | | | |
Labor expenses |
| | | | | | | | | | | | | | |
Other operating costs and expenses |
| | | | | | | | | | | | | | |
General and administrative expenses |
| | — | | | — | | | — | | | | | | |
Depreciation and amortization expenses |
| | | | | | | | | | | | | | |
Impairment of assets and lease termination expenses |
| | | | | — | | | | | | | | | |
Acquisition-related contingent consideration, compensation and amortization expenses |
| | — | | | — | | | | | | | | | |
Preopening costs |
| | | | | | | | | | | | | | |
Total costs and expenses |
| | | | | | | | | | | | | | |
Income/(loss) from operations | | $ | | | $ | | | $ | | | $ | ( | | $ | |
| | | | | | | | | | | | | | | |
Capital expenditures | | $ | | | $ | | | $ | | | $ | | | $ | |
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For the thirteen weeks ended July 1, 2025
| | | | | | | | | | | | | | | |
| | The | | | | | | | | | | | | | |
| | Cheesecake | | | | | | | | | | | | | |
| | Factory | | North | | Other | | | | | | | |||
| | Restaurants | | Italia | | FRC | | Other | | Total | |||||
Revenues | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | |
Costs and expenses: | |
| | |
| | |
| | |
| | |
| |
Food and beverage costs | |
| | | | | | | | | | | |
| |
Labor expenses | |
| | | | | | | | | | | |
| |
Other operating costs and expenses | |
| | | | | | | | | | | |
| |
General and administrative expenses | |
| — | |
| — | |
| — | |
| | |
| |
Depreciation and amortization expenses | |
| | |
| | |
| | |
| | |
| |
Impairment of assets and lease termination expenses | |
| | |
| — | |
| | |
| | |
| |
Acquisition-related contingent consideration, compensation and amortization expenses | |
| — | |
| — | |
| | |
| | |
| |
Preopening costs | |
| | |
| | |
| | |
| | |
| |
Total costs and expenses | |
| | |
| | |
| | |
| | |
| |
Income/(loss) from operations | | $ | | | $ | | | $ | | | $ | ( | | $ | |
| | | | | | | | | | | | | | | |
Capital expenditures | | $ | | | $ | | | $ | | | $ | | | $ | |
For the twenty-six weeks ended June 30, 2026
| | | | | | | | | | | | | | | |
| | The | | | | | | | | | | | | | |
| | Cheesecake | | | | | | | | | | | | | |
| | Factory | | North | | Other | | | | | | | |||
| | Restaurants | | Italia | | FRC | | Other | | Total | |||||
Revenues | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | |
Food and beverage costs | |
| | |
| | |
| | |
| | |
| |
Labor expenses | |
| | |
| | |
| | |
| | |
| |
Other operating costs and expenses | |
| | |
| | |
| | |
| | |
| |
General and administrative expenses | |
| — | |
| — | |
| — | |
| | |
| |
Depreciation and amortization expenses | |
| | |
| | |
| | |
| | |
| |
Impairment of assets and lease termination expenses | |
| | |
| — | |
| | |
| | |
| |
Acquisition-related contingent consideration, compensation and amortization expenses | |
| — | |
| — | |
| | |
| | |
| |
Preopening costs | |
| | |
| | |
| | |
| | |
| |
Total costs and expenses | |
| | |
| | |
| | |
| | |
| |
Income/(loss) from operations | | $ | | | $ | | | $ | | | $ | ( | | $ | |
| | | | | | | | | | | | | | | |
Capital expenditures | | $ | | | $ | | | $ | | | $ | | | $ | |
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For the twenty-six weeks ended July 1, 2025
| | | | | | | | | | | | | | | |
| | The | | | | | | | | | | | | | |
| | Cheesecake | | | | | | | | | | | | | |
| | Factory | | North | | Other | | | | | | | |||
| | Restaurants | | Italia | | FRC | | Other | | Total | |||||
Revenues | | $ | | | $ | | | $ | | | $ | | | $ | |
| | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | |
Food and beverage costs | |
| | |
| | |
| | |
| | |
| |
Labor expenses | |
| | |
| | |
| | |
| | |
| |
Other operating costs and expenses | |
| | |
| | |
| | |
| | |
| |
General and administrative expenses | |
| — | |
| — | |
| — | |
| | |
| |
Depreciation and amortization expenses | |
| | |
| | |
| | |
| | |
| |
Impairment of assets and lease termination expenses | |
| | |
| — | |
| | |
| | |
| |
Acquisition-related contingent consideration, compensation and amortization expenses | |
| — | |
| — | |
| | |
| | |
| |
Preopening costs | |
| | |
| | |
| | |
| | |
| |
Total costs and expenses | |
| | |
| | |
| | |
| | |
| |
Income/(loss) from operations | | $ | | | $ | | | $ | | | $ | ( | | $ | |
| | | | | | | | | | | | | | | |
Capital expenditures | | $ | | | $ | | | $ | | | $ | | | $ | |
The following table presents information related to segment assets (in thousands):
| | | | | | |
| | June 30, 2026 | | December 30, 2025 | ||
Total assets: | | | | | | |
The Cheesecake Factory Restaurants | | $ | | | $ | |
North Italia | | | | | | |
Other FRC | |
| | |
| |
Other | |
| | |
| |
Total | | $ | | | $ | |
12. Subsequent Events
On
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Forward-Looking Statements
Certain information included in this Form 10-Q and other materials we have filed or may file with the Securities and Exchange Commission (“SEC”), as well as information included in oral or written statements made by us or on our behalf, may contain forward-looking statements about our current and presently expected performance trends, growth plans, business goals and other matters.
These statements may be contained in our filings with the SEC, in our press releases, in other written communications, and in oral statements made by or with the approval of one of our authorized officers. These statements are 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 (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (together with the Securities Act, the “Acts”). This includes, without limitation, statements regarding corporate social responsibility (“CSR”), including in our CSR report, the effects of geopolitical and macroeconomic factors, including evolving government policies and global trade dynamics, on our financial condition and our results of operations, financial guidance and projections, as well as expectations of our future financial condition, results of operations, sales, target growth rates, cash flows, quarterly dividends, share repurchases, capital structure and leverage, corporate strategy, potential price increases, plans, targets, goals, objectives, performance, growth potential, competitive position and business, and statements regarding our ability to: leverage our competitive strengths, including developing and investing in new restaurant concepts and expanding The Cheesecake Factory® brand to other retail opportunities; maintain our aggregate sales volumes; deliver comparable sales growth; provide a differentiated experience to customers; outperform the casual dining industry and increase our market share; leverage sales increases and manage flow through; manage market risks and cost pressures, including increasing wage rates and insurance costs, and increase margins; grow earnings; remain relevant to consumers; attract and retain qualified management and other staff; increase shareholder value; find suitable sites and manage increasing construction costs; profitably expand our concepts domestically and in Canada, and work with our licensees to expand The Cheesecake Factory internationally; support the growth of North Italia, Flower Child and additional brands within our Fox Restaurant Concepts (“Other FRC”) restaurants; and utilize our capital effectively. 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, changes in interest rates, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of our restaurants and potential reputational damage to us or any of our 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 FRC 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 our landlords and other tenants in retail centers in which our restaurants are located, and our ability to successfully manage our lease arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to us; the timing of our 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 tax reform legislation; changes in laws impacting our business; adverse weather conditions and natural disasters in regions in which our 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 our filings with the SEC. 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 our current expectations and involve risks and uncertainties that may cause results to differ materially from those set forth in such statements.
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In connection with the “safe harbor” provisions of the Acts, we have identified and are disclosing important factors, risks and uncertainties that could cause our actual results to differ materially from those projected in forward-looking statements made by us, or on our behalf. (See Part II, Item 1A of this report, “Risk Factors,” and Part I, Item 1A, “Risk Factors,” included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2025.) These cautionary statements are to be used as a reference in connection with any forward-looking statements. The factors, risks and uncertainties identified in these cautionary statements are in addition to those contained in any other cautionary statements, written or oral, which may be made or otherwise addressed in connection with a forward-looking statement or contained in any of our subsequent filings with the SEC. Because of these factors, risks and uncertainties, we caution against placing undue reliance on forward-looking statements. Although we believe that the assumptions underlying forward-looking statements are currently reasonable, any of the assumptions could be incorrect or incomplete, and there can be no assurance that forward-looking statements will prove to be accurate. Forward-looking statements speak only as of the date on which they are made, and we undertake 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.
The below discussion and analysis, which contains forward-looking statements, should be read in conjunction with our interim unaudited condensed consolidated financial statements and related notes in Part I, Item 1 of this report, Part II, Item 1A of this report, “Risk Factors,” and with the following items included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2025: the audited consolidated financial statements and related notes in Part IV, Item 15; “Risk Factors” included in Part I, Item 1A; “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Part II, Item 7; and the cautionary statements included throughout this Form 10-Q. The inclusion of supplementary analytical and related information herein may require us to make estimates and assumptions to enable us to fairly present, in all material respects, our analysis of trends and expectations with respect to our results of operations and financial position.
Geopolitical and Other Macroeconomic Impacts to our Operating Environment
In recent years, our operating results were impacted by geopolitical and macroeconomic events, causing supply chain challenges and significantly increased commodity and wage inflation. Our commodity and wage inflationary environment began returning to more historical levels in fiscal 2024.
The impact of ongoing geopolitical and macroeconomic events, including evolving government policies and global trade and tariff dynamics, could lead to issues such as further wage inflation, product and services cost inflation, disruptions in the supply chain, staffing challenges, shifts in consumer behavior and delays in new restaurant openings. Adverse weather conditions and natural disasters may further exacerbate a number of these factors. For more information regarding the risks to our business relating to the geopolitical and macroeconomic events, see Part II, Item 1A of this report, “Risk Factors,” and “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 30, 2025.
General
The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. We currently own and operate 375 restaurants throughout the United States and Canada under brands including The Cheesecake Factory® (217 locations), North Italia® (51 locations), Flower Child® (44 locations) and additional brands within our FRC portfolio (57 locations). 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.
Overview
Our strategy is driven by our commitment to deliver exceptional food and hospitality, and is centered primarily on menu innovation, service and operational execution to differentiate our concepts and drive competitively strong performance that is sustainable over the long-term. Financially, we are focused on prudently managing expenses at our restaurants, bakery facilities and corporate support center, while leveraging our scale, purchasing power and operational discipline to support financial performance.
Our top long-term capital allocation priority is to develop new Company-owned restaurants, with a focus on opening our concepts in premier locations within new and existing markets. We plan to continue expanding The Cheesecake Factory, North Italia and Flower Child concepts. In addition, our FRC subsidiary serves as an incubator, innovating new food, dining and hospitality experiences to create differentiated, high-quality concepts.
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Our revenue growth is primarily driven by new restaurant openings and increases in comparable restaurant sales.
For The Cheesecake Factory concept, our strategy is to increase comparable restaurant sales by growing average check while maintaining customer traffic. We strive to accomplish this by (1) continuing to offer innovative, high quality menu items that offer customers a wide range of options in terms of flavor, price and value, (2) focusing on service and hospitality with the goal of delivering an exceptional dining experience and (3) continuing to provide our customers with convenient options for off-premise dining. We continue to support these efforts through a number of initiatives, including menu innovation, increasing customer throughput in our restaurants, leveraging our gift card program, partnering with a third party to provide delivery services for our restaurants, increasing customer awareness of our online ordering capabilities and improving the pick-up experience, augmenting our marketing programs, including our Cheesecake Rewards® program, enhancing our training programs and leveraging insights from our customer satisfaction measurement platform.
Average check variations are driven by menu price increases and/or changes in menu mix. We generally update The Cheesecake Factory menus twice a year, and our philosophy is to use price increases to help offset key operating cost increases in a manner that supports both our margin and customer traffic objectives. Prior to fiscal 2022, we targeted menu price increases of approximately 2% to 3% annually, utilizing a market-based strategy to help mitigate cost pressure in higher-wage geographies. In the last three fiscal years, we implemented price increases above our historical levels, to help offset significant inflationary cost pressures. We will continue to take the cost and inflationary environment into consideration when implementing future pricing decisions. In addition, on a regular basis, we carefully consider opportunities to adjust our menu offerings or ingredients to help manage product quality, availability and cost.
Margins are subject to fluctuations in commodity costs, labor, restaurant-level occupancy expenses, general and administrative (“G&A”) expenses and preopening expenses. Our objective is to drive margin expansion over time by leveraging incremental sales to increase restaurant-level margins at The Cheesecake Factory concept, leveraging our bakery operations, international and consumer packaged goods royalty revenue streams and G&A expense, and optimizing our restaurant portfolio.
We plan to employ a balanced capital allocation strategy, comprised of investing in new restaurants that are expected to meet our targeted returns, managing our aggregate debt levels and returning capital to shareholders through our dividend and share repurchase programs. Future decisions to pay, increase or decrease dividends or to repurchase shares are at the discretion of the Board and will be dependent on a number of factors, including limitations pursuant to the terms and conditions of our Loan Agreement and applicable law.
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Results of Operations
The following table presents, for the periods indicated, information from our condensed consolidated statements of income expressed as percentages of revenues. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any other interim period or for the full fiscal year.
| | | | | | | | | |
| | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | |
| | Weeks Ended | | Weeks Ended |
| Weeks Ended | | Weeks Ended | |
| | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | |
Revenues |
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
| | | | | | | | | |
Costs and expenses: | | |
| | | |
| | |
Food and beverage costs | | 21.8 | | 21.6 | | 21.7 |
| 21.7 | |
Labor expenses | | 34.1 |
| 34.9 | | 34.8 |
| 35.3 | |
Other operating costs and expenses | | 26.5 |
| 26.8 | | 26.8 |
| 26.7 | |
General and administrative expenses | | 6.4 |
| 6.1 | | 6.5 |
| 6.3 | |
Depreciation and amortization expenses | | 2.8 |
| 2.8 | | 2.8 |
| 2.8 | |
Impairment of assets and lease termination expenses | | 0.0 | | 0.0 | | 0.0 | | 0.0 | |
Acquisition-related contingent consideration, compensation and amortization expenses | | 0.1 | | 0.1 | | 0.1 | | 0.1 | |
Preopening costs | | 0.7 |
| 0.9 | | 0.6 |
| 0.9 | |
Total costs and expenses | | 92.4 |
| 93.2 | | 93.3 |
| 93.8 | |
Income from operations | | 7.6 |
| 6.8 |
| 6.7 | | 6.2 | |
Interest expense, net | | (0.1) |
| (0.3) | | (0.2) |
| (0.3) | |
Loss on extinguishment of debt, | | — | | — | | — | | (0.8) | |
Other income, net | | 0.0 | | 0.0 | | (0.0) | | (0.0) | |
Income before income taxes | | 7.5 |
| 6.5 | | 6.5 |
| 5.1 | |
Income tax provision | | 0.9 |
| 0.8 | | 0.6 |
| 0.4 | |
Net income | | 6.6 | % | 5.7 | % | 5.9 | % | 4.7 | % |
Thirteen Weeks Ended June 30, 2026 Compared to Thirteen Weeks Ended July 1, 2025
Revenues
Revenues increased 7.7% to $1,029.6 million for the fiscal quarter ended June 30, 2026 compared to $955.8 million for the comparable prior year period, primarily due to an increase in comparable restaurant sales and additional revenue related to new restaurant openings.
The Cheesecake Factory Restaurants sales increased 6.8% to $729.5 million for the second quarter of fiscal 2026, compared to $683.3 million for the second quarter of fiscal 2025. Average sales per restaurant operating week increased 6.2% to $259,785 in the second quarter of fiscal 2026 from $244,544 in the second quarter of fiscal 2025. Total operating weeks at The Cheesecake Factory Restaurants increased 0.5% to 2,808 in the second quarter of fiscal 2026 compared to 2,794 in the prior year. The Cheesecake Factory comparable sales increased by 5.8%, or $38.9 million, from the second quarter of fiscal 2025. The increase from the second quarter of fiscal 2025 was primarily driven by an increase in average check of 3.1% (based on an increase of 3.0% in menu pricing and a 0.1% positive change from menu mix) and higher customer traffic of 2.7%. We implemented effective menu price increases of approximately 1.5% in both the first quarter of fiscal 2026 and the third quarter of fiscal 2025, respectively. We are in the process of implementing approximately a 1.5% menu price increase in the third quarter of fiscal 2026. Sales through the off-premise channel comprised approximately 21% of our restaurant sales during both the second quarter of fiscal 2026 and fiscal 2025.
North Italia sales increased 8.4% to $98.4 million for the second quarter of fiscal 2026, compared to $90.8 million for the second quarter of fiscal 2025. Average sales per restaurant operating week decreased 1.6% to $151,446 in the second quarter of fiscal 2026 from $153,949 in the second quarter of fiscal 2025. Total operating weeks at North Italia increased 10.2% to 650 in the second quarter of fiscal 2026 compared to 590 in the prior year. North Italia comparable sales decreased approximately 3% from the second quarter of fiscal 2025. The decrease from fiscal 2025 was primarily driven by decreased customer traffic of 5%, partially offset by an increase in average check of 2% (based on an increase of 3% in menu pricing and a 1% negative impact from mix). We implemented effective menu price increases of approximately 1.0% and 1.5% in the second quarter of fiscal 2026 and fourth quarter of fiscal 2025, respectively.
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Flower Child sales increased 17.5% to $56.6 million for the second quarter of fiscal 2026, compared to $48.2 million for the second quarter of fiscal 2025. Flower Child sales per restaurant operating week increased 10.8% to $101,252 in the second quarter of fiscal 2026 from $91,400 in the second quarter of fiscal 2025. Total operating weeks at Flower Child increased 6.1% to 559 in the second quarter of fiscal 2026 compared to 527 in the prior year. Flower Child comparable sales increased approximately 13% from the second quarter of fiscal 2025. The increase from the second quarter of fiscal 2025 includes an increase of 3% in menu pricing.
Other FRC sales increased 15.4% to $104.0 million for the second quarter of fiscal 2026, compared to $90.2 million for the second quarter of fiscal 2025. Other FRC average sales per restaurant operating week increased 3.9% to $142,120 in the second quarter of fiscal 2026 from $136,841 in the second quarter of fiscal 2025. Total operating weeks at Other FRC increased 11.1% to 732 in the second quarter of fiscal 2026 compared to 659 in the prior year.
Restaurants become eligible to enter the comparable sales base in their 19th month of operation. As of June 30, 2026, there were six The Cheesecake Factory Restaurants, nine North Italia restaurants and eight Flower Child locations not yet in their respective comparable sales bases. International licensed locations and restaurants that are no longer in operation, including those which we have relocated, are excluded from comparable sales calculations.
Food and Beverage Costs
Food and beverage costs consist of raw materials and ingredients used in the food and beverage products sold in our restaurants and to our third-party bakery customers. As a percentage of revenues cost of sales were 21.8% and 21.6% in the second quarters of fiscal 2026 and 2025, respectively, primarily due to higher meat, produce and seafood costs (0.7%), partially offset by lower dairy pricing (0.4%)
Labor Expenses
As a percentage of revenues, labor expenses, which include restaurant-level labor costs and bakery production labor, including associated fringe benefits, were 34.1% and 34.9% in the second quarters of fiscal 2026 and 2025, respectively. This decrease was primarily due to sales leverage and associated productivity gains (0.6%).
Other Operating Costs and Expenses
Other operating costs and expenses consist of all other restaurant-level operating costs, the major components of which are occupancy expenses (rent, common area expenses, insurance, licenses, taxes and utilities), dining room and to-go supplies, repairs and maintenance, janitorial expenses, credit card processing fees, marketing including delivery commissions, and incentive compensation, as well as bakery production overhead. As a percentage of revenues, other operating costs and expenses were 26.5% and 26.8% in the second quarter of fiscal 2026 and 2025, respectively. This variance was primarily driven by sales leverage (0.3%) and lower insurance costs (0.3%), partially offset by higher marketing costs (0.3%)
G&A Expenses
G&A expenses consist of the restaurant management recruiting and training program, restaurant field supervision, corporate support and bakery administrative organizations, as well as gift card commissions to third-party distributors. As a percentage of revenues, G&A expenses were 6.4% and 6.1% in the second quarter of fiscal 2026 and 2025, respectively. This variance was primarily driven by higher legal fees (0.1%) and higher stock-based compensation expense (0.1%).
Impairment of Assets and Lease Termination Expenses
During the second quarter of fiscal 2026, we recorded impairment of assets and lease termination expenses of $0.1 million primarily related to lease termination costs for one Grand Lux Cafe location. During the second quarter of fiscal 2025, we recorded impairment of assets and lease termination expenses of $0.2 million primarily related to lease termination costs for one The Cheesecake Factory location.
Preopening Costs
Preopening costs were $7.0 million and $9.0 million in the second quarter of fiscal 2026 and 2025, respectively. We opened two North Italia, one Flower Child and one Other FRC locations in the second quarter of fiscal 2026 compared to two The Cheesecake Factory, one North Italia, three Flower Child and two Other FRC locations in the second quarter of fiscal 2025. Restaurant-level
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preopening costs include all costs to relocate and compensate restaurant management staff members during the preopening period, costs to recruit and train hourly restaurant staff members, and wages, travel and lodging costs for our opening training team and other support staff members. Preopening costs also include expenses for maintaining a roster of trained managers for pending opening and the associated temporary housing and other costs necessary to relocate managers in alignment with future restaurant opening and operating needs. Preopening costs can fluctuate significantly from period to period based on the number, mix and timing of restaurant openings and the specific preopening costs incurred for each restaurant.
Income Tax Provision
Our effective income tax rate was 11.1% and 11.9% for the second quarter of fiscal 2026 and 2025, respectively. The decrease was primarily due to non-deductible costs in fiscal 2025 associated with the repurchase of our 2026 Notes (1.2%), higher non-taxable gains in the current fiscal quarter as compared to the comparable prior period on our investments in variable life insurance contracts used to support our non-qualified deferred compensation plan (0.6%), a greater tax benefit in the current fiscal quarter from foreign intangibles income (0.4%) and a greater tax windfall in the current fiscal quarter related to equity compensation (0.3%). The decrease was also impacted by the effect of applying a lower estimated annual effective tax rate in the second quarter of fiscal 2026 compared to the first quarter of fiscal 2026, whereas the estimated annual effective tax rate increased from the first quarter to the second quarter of fiscal 2025, resulting in an unfavorable impact in the comparable prior year period (0.9%). These factors were partially offset by leverage on higher annual forecasted income before taxes, predominantly related to employment credits (1.8%) and a change to our reserve for uncertain tax positions (0.8%).
Twenty-Six Weeks Ended June 30, 2026 Compared to Twenty-Six Weeks Ended July 1, 2025
Revenues increased 6.7% to $2,008.5 million for the first six months ended June 30, 2026 compared to $1,883.0 million for the comparable prior year period, primarily due to additional revenue related to new restaurant openings and an increase in comparable restaurant sales.
The Cheesecake Factory Restaurants sales increased 4.7% to $1,419.9 million for the first six months of fiscal 2026, compared to $1,356.0 million for the first six months of fiscal 2025. Average sales per restaurant operating week increased 4.1% to $252,480 in the first six months of fiscal 2026 from $242,618 in the first six months of fiscal 2025. Total operating weeks at The Cheesecake Factory Restaurants increased 0.6% to 5,624 in the first six months of fiscal 2026 compared to 5,589 in the prior year. The Cheesecake Factory comparable sales increased by 3.7%, or $49.2 million, from the first six months of fiscal 2025. The increase from the first six months of fiscal 2025 was primarily driven by an increase in average check of 3.1% (based on an increase of 3.2% in menu pricing, partially offset by a 0.1% negative change from menu mix) and higher customer traffic of 0.6%. Sales through the off-premise channel comprised approximately 22% and 21% of our restaurant sales during the first six months of fiscal 2026 and fiscal 2025, respectively.
North Italia sales increased 7.9% to $187.9 million for the first six months of fiscal 2026, compared to $174.2 million for the first six months of fiscal 2025. Average sales per restaurant operating week decreased 2.7% to $147,388 in the first six months of fiscal 2026 from $151,513 in the first six months of fiscal 2025. Total operating weeks at North Italia increased 10.9% to 1,275 in the first six months of fiscal 2026 compared to 1,150 in the prior year. North Italia comparable sales decreased approximately 3% from the first six months of fiscal 2025. The decrease from fiscal 2025 was primarily driven by decreased customer traffic of 5%, partially offset by an increase in average check of 2% (based on an increase of 3% in menu pricing, partially offset by a 1% negative impact from mix).
Flower Child sales increased 19.2% to $109.2 million for the first six months of fiscal 2026, compared to $91.6 million for the first six months of fiscal 2025. Flower Child sales per restaurant operating week increased 8.9% to $97,894 in the first six months of fiscal 2026 from $89,920 in the first six months of fiscal 2025. Total operating weeks at Flower Child increased 9.5% to 1,116 in the first six months of fiscal 2026 compared to 1,019 in the prior year. Flower Child comparable sales increased approximately 11% from fiscal 2025. The increase from fiscal 2025 includes an increase of 3% in menu pricing.
Other FRC sales increased 17.4% to $208.6 million for the first six months of fiscal 2026, compared to $177.6 million for the first six months of fiscal 2025. Other FRC average sales per restaurant operating week increased 3.9% to $143,632 in the first six months of fiscal 2026 from $138,212 in the first six months of fiscal 2025. Total operating weeks at Other FRC increased 13.0% to 1,452 in the first six months of fiscal 2026 compared to 1,285 in the prior year.
Food and Beverage Costs
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As a percentage of revenues cost of sales were 21.7% in the first six months of both fiscal 2026 and 2025, primarily due to higher meat, produce and seafood costs (0.7%), partially offset by lower dairy pricing (0.6%)
Labor Expenses
As a percentage of revenues, labor expenses were 34.8% and 35.3% in the first six months of fiscal 2026 and 2025, respectively. This decrease was primarily due to sales leverage and associated productivity gains (0.5%).
G&A Expenses
As a percentage of revenues, G&A expenses were 6.4% and 6.3% in the first six months of fiscal 2026 and 2025, respectively. This variance was primarily driven by higher legal fees (0.1%).
Impairment of Assets and Lease Termination Expenses
During the first six months of fiscal 2026, we recorded impairment of assets and lease termination expenses of $1.0 million primarily related to lease termination costs for two The Cheesecake Factory, two Grand Lux Cafe and one Other FRC location. During the first six months of fiscal 2025, we recorded impairment of assets and lease termination expenses of $0.6 million primarily related to lease termination costs for one The Cheesecake Factory and one Other FRC location.
Preopening Costs
Preopening costs were $12.4 million and $17.1 million in the first six months of fiscal 2026 and 2025, respectively. We opened three North Italia, two Flower Child and two Other FRC locations in the first six months of fiscal 2026 compared to two The Cheesecake Factory, four North Italia, six Flower Child and four Other FRC locations in the first half of fiscal 2025.
Loss on Extinguishment of Debt
We recorded a $15.9 million loss on early debt extinguishment in the first quarter of fiscal 2025. On February 28, 2025, we repurchased approximately $276.0 million aggregate principal amount of the 2026 Notes for aggregate consideration of $289.8 million, which included a premium of $13.8 million. The repurchase was accounted for as a debt extinguishment. In addition, we recorded $2.1 million of unamortized issuance costs. (See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion on our long-term debt.)
Income Tax Provision
Our effective income tax rate was 9.5% and 9.3% for the first six months of fiscal 2026 and 2025, respectively. The increase was primarily due to leverage on higher annual forecasted income before taxes, primarily due to employment credits (2.4%), a change to our reserve for uncertain tax positions (0.6%) and an increase in non-deductible executive compensation (0.5%). These factors were partially offset by non-deductible costs in fiscal 2025 associated with the repurchase of our 2026 Notes (1.2%), a greater tax windfall in the first six months of fiscal 2026 as compared to the comparable prior period related to equity compensation (1.2%) and higher non-taxable gains in the first six months of 2026 as compared to the comparable prior period on our investments in variable life insurance contracts used to support our non-qualified deferred compensation plan (0.6%).
Non-GAAP Measures
Adjusted net income, adjusted diluted net income per share and adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) are supplemental measures of our performance that are not required by or presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly-titled measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We calculate these non-GAAP measures by eliminating from net income, diluted net income per common share and EBITDA, the impact of items we do not consider indicative of our ongoing operations. Additionally, EBITDA and adjusted EBITDA exclude the impact of certain non-cash transactions. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items. In the future, we may incur expenses or generate income similar to the adjusted items.
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Following is a reconciliation from net income and diluted net income per share to the corresponding adjusted measures (in thousands, except per share data):
| | | | | | | | | | | | |
| | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | ||||
| | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | ||||
| | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | ||||
| | | | | | | | | | | | |
Net income | | $ | 68,394 | | $ | 54,812 | | $ | 117,942 | | $ | 87,753 |
Impairment of assets and lease termination expenses | | | 124 | | | 222 | | | 953 | | | 600 |
Acquisition-related contingent consideration, compensation and amortization expenses | | | 1,235 | | | 1,012 | | | 2,437 | | | 2,010 |
Loss on extinguishment of debt (1) | | | — | | | — | | | — | | | 15,891 |
Uncertain tax positions (2) | | | 310 | | | — | | | 310 | | | — |
Tax effect of adjustments (3) | | | (353) | | | (321) | |
| (882) | |
| (4,811) |
Adjusted net income | | $ | 69,710 | | $ | 55,725 | | $ | 120,760 | | $ | 101,443 |
Diluted net income per share | | $ | 1.41 | | $ | 1.14 | | $ | 2.43 | | $ | 1.80 |
Impairment of assets and lease termination expenses | | | 0.00 | | | 0.00 | | | 0.02 | | | 0.01 |
Acquisition-related contingent consideration, compensation and amortization expenses | | | 0.03 | | | 0.02 | | | 0.05 | | | 0.04 |
Loss on extinguishment of debt (1) | |
| — | | | — | | | — | | | 0.33 |
Uncertain tax positions (2) | | | 0.01 | | | — | | | 0.01 | | | — |
Tax effect of adjustments (3) | | | (0.01) | |
| (0.01) | |
| (0.02) | |
| (0.10) |
Adjusted diluted net income per share (4) | | $ | 1.44 | | $ | 1.16 | | $ | 2.49 | | $ | 2.08 |
| (1) | See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion on our debt. |
(2) | Represents a change to a reserve for uncertain tax positions taken in prior years related to tenant improvement 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. |
(3) | Based on the federal statutory rate and an estimated blended state tax rate, the tax effect on all adjustments assumes a 26% tax rate. |
(4) | Adjusted net income per share may not add due to rounding. |
Following is a reconciliation from net income to EBITDA and adjusted EBITDA measures (in thousands):
| | | | | | | | | | | | |
| | Thirteen | | Thirteen | | Twenty-Six | | Twenty-Six | ||||
| | Weeks Ended | | Weeks Ended | | Weeks Ended | | Weeks Ended | ||||
| | June 30, 2026 | | July 1, 2025 | | June 30, 2026 | | July 1, 2025 | ||||
| | | | | | | | | | | | |
Net income | | $ | 68,394 | | $ | 54,812 | | $ | 117,942 | | $ | 87,753 |
Depreciation and amortization expenses | |
| 29,103 | | | 26,860 | | | 57,087 | |
| 52,942 |
Interest expense, net | |
| 2,057 | | | 2,873 | | | 4,052 | |
| 5,201 |
Income tax provision | |
| 8,509 | | | 7,417 | | | 12,312 | |
| 8,959 |
EBITDA | | $ | 108,063 | | $ | 91,962 | | $ | 191,393 | | $ | 154,855 |
Impairment of assets and lease termination expenses | |
| 124 | | | 222 | | | 953 | |
| 600 |
Acquisition-related contingent consideration, compensation and amortization expenses | |
| 1,235 | | | 1,012 | | | 2,437 | |
| 2,010 |
Loss on extinguishment of debt | |
| — | | | — | | | — | |
| 15,891 |
Stock-based compensation (1) | |
| 8,761 | | | 7,189 | | | 15,775 | |
| 14,770 |
Adjusted EBITDA | | $ | 118,183 | | $ | 100,385 | | $ | 210,558 | | $ | 188,126 |
(1) | See Note 9 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion of stock-based compensation. |
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Liquidity and Capital Resources
Our corporate financial objectives are to maintain a sufficiently strong and conservative balance sheet to support our operating initiatives and unit growth while maintaining financial flexibility to provide the financial resources necessary to protect and enhance the competitiveness of our restaurant and bakery brands and to provide a prudent level of financial capacity to manage the risks and uncertainties of conducting our business operations under various economic and industry cycles. Typically, cash flows generated from operating activities are our principal source of liquidity, which we use to finance our restaurant expansion plans, ongoing maintenance of our restaurants and bakery facilities and investment in our corporate and information technology infrastructures.
Similar to many restaurant and retail chain store operations, we utilize operating lease arrangements for all of our restaurant locations. Accordingly, our lease arrangements reduce, to some extent, our capacity to utilize funded indebtedness in our capital structure. We are not limited to the use of lease arrangements as our only method of opening new restaurants. However, we believe our operating lease arrangements continue to provide appropriate leverage for our capital structure in a financially efficient manner.
During the first six months of fiscal 2026, our cash and cash equivalents decreased by $20.5 million to $195.2 million. The following table presents, for the periods indicated, a summary of our key cash flows from operating, investing and financing activities (in millions):
| | | | | | |
| | Twenty-Six | | Twenty-Six | ||
| | Weeks Ended | | Weeks Ended | ||
| | June 30, 2026 | | July 1, 2025 | ||
Cash provided by operating activities | | $ | 188.9 | | $ | 135.8 |
Additions to property and equipment | | | (86.3) | | | (84.4) |
Repayment on credit facility | | | — | | | (110.0) |
Proceeds from long-term convertible debt | | | — | | | 575.0 |
Repayment on long-term convertible debt, including premium on extinguishment | | | (69.0) | | | (289.8) |
Issuance cost associated with long-term debt | | | (1.4) | | | (16.5) |
Proceeds from exercise of options | | | 7.3 | | | 23.0 |
Common stock dividends paid | | | (29.9) | | | (26.8) |
Treasury stock purchases, inclusive of excise tax | | | (29.4) | | | (141.5) |
Cash Provided by Operating Activities
Cash flows from operations increased by $53.1 million from the first six months of fiscal 2025 primarily due to net income after excluding the non-cash activity, lower accounts and other receivable balances, timing of operating lease commencements, higher payables and inventory movement, partially offset by increased payment of deferred consideration and compensation related to the FRC acquisition in excess of acquisition-date fair value and higher income taxes paid. Typically, our requirement for working capital has not been significant since our restaurant customers pay for their food and beverage purchases in cash or cash equivalents at the time of sale, and we are able to sell many of our restaurant inventory items before payment is due to the suppliers of such items.
Property and Equipment
Capital expenditures for new restaurants, including locations under development, were $46.7 million and $44.0 million for the first six months of fiscal 2026 and 2025, respectively. Capital expenditures also included $35.1 million and $33.6 million for our existing restaurants and $4.5 million and $6.8 million for bakery and corporate capacity and infrastructure investments, in the first six months of fiscal 2026 and 2025, respectively.
We opened seven restaurants in the first six months of fiscal 2026 comprised of three North Italia, two Flower Child and two Other FRC locations compared to 16 restaurants in the first six months of fiscal 2025 comprised of two The Cheesecake Factory, four North Italia, six Flower Child and four Other FRC locations. We expect to open as many as 26 new restaurants in fiscal 2026 across our portfolio of concepts. We anticipate approximately $210 million in capital expenditures to support this level of unit development, as well as required maintenance on our restaurants. This estimate includes new restaurant construction expenses, some of which may be classified as operating lease assets instead of additions to property and equipment in the statement of cash flows.
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Revolving Credit Facility
On March 26, 2026, we entered into a Fifth Amended and Restated Loan Agreement (the “Loan Agreement” and the revolving credit facility provided thereunder, the “Revolver Facility”). The Revolver Facility, which matures on March 26, 2031, provides us with revolving loan commitments that total $400 million, of which $85 million may be used for issuances of letters of credit and $10 million for swingline loans. The Revolver Facility contains (i) a commitment increase feature that, subject to certain conditions precedent, could provide for an additional $200 million in revolving loan commitments and (ii) a feature that permits the letter of credit issuers thereunder to increase their letter of credit sublimits by $25 million in the aggregate. Our obligations under the Revolver Facility are unsecured. Certain of our material subsidiaries have guaranteed our obligations under the Revolver Facility. As of June 30, 2026, we had net availability for borrowings of $366.5 million, based on no outstanding debt balance and $33.5 million in standby letters of credit under the Revolver Facility.
Under the Revolver Facility, we are subject to financial covenants, as well as to customary events of default that, if triggered, could result in acceleration of the maturity of the Revolver Facility. Subject to certain exceptions, the Loan Agreement contains a number of covenants and restrictions that, among other things, restrict the Company’s and its subsidiaries’ ability to incur additional debt, pay dividends and make distributions, make certain investments and acquisitions, create liens, enter into agreements with affiliates, sell material assets, and merge or consolidate. (See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion of our debt.)
2030 Convertible Senior Notes
On February 28, 2025, we issued $575.0 million in aggregate principal amount of convertible senior notes (“2030 Notes”), which will mature on March 15, 2030, unless earlier repurchased, redeemed or converted. The net proceeds from the sale of the 2030 Notes were approximately $558.5 million after deducting issuance costs of $16.5 million. As of June 30, 2026, the 2030 Notes had a balance of $562.9 million, net of unamortized issuance costs of $12.1 million. As of June 30, 2026, the conversion rate for the 2030 Notes was 14.1514 shares of common stock per $1,000 principal amount of the 2030 Notes, which represents a conversion price of approximately $70.66 per share of common stock. In connection with the cash dividend that was declared by our Board on July 23, 2026, we will, on August 11, 2026, adjust the conversion rate (which is expected to increase) and the conversion price (which is expected to decrease) of the 2030 Notes in accordance with the terms. (See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion on our debt.)
2026 Convertible Senior Notes
On June 15, 2021, we issued $345.0 million in aggregate principal amount of convertible senior notes (“2026 Notes”). The net proceeds from the sale of the 2026 Notes were approximately $334.9 million after deducting issuance costs of $10.1 million. On February 28, 2025, we used part of the net proceeds from the issuance of the 2030 Notes to repurchase approximately $276.0 million aggregate principal amount of the 2026 Notes in a privately-negotiated transaction for aggregate consideration of $289.8 million, which included a premium of $13.8 million. During the second quarter of fiscal 2026, noteholders converted $0.1 million aggregate principal amount of the 2026 Notes which we settled in cash, including payment of accrued interest. The 2026 Notes matured on June 15, 2026 and we repaid in cash the remaining outstanding principal balance of $69.0 million, together with all accrued interest. (See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion on our debt.)
Common Stock Dividends
Common stock dividends of $29.9 million and $26.8 million were paid in the six months of fiscal 2026 and 2025, respectively. As further discussed in Note 12 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report, in July 2026, our Board declared a quarterly dividend to be paid in August 2026. Future decisions to pay or to increase or decrease dividends are at the discretion of the Board and will be dependent on our operating performance, financial condition, capital expenditure requirements, limitations on cash distributions pursuant to the terms and conditions of the Loan Agreement and applicable law, and other such factors that the Board considers relevant.
Share Repurchases
On February 12, 2026, our Board increased the authorization to repurchase our common stock by 5.0 million shares to 66.0 million shares. Under this authorization, we have cumulatively repurchased 60.4 million shares at a total cost of $2,012.1 million,
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excluding excise tax, through June 30, 2026. We repurchased 0.5 million shares at a cost of $28.5 million, excluding excise tax, during the first six months of fiscal 2026. We repurchased 2.6 million shares at a cost of $141.5 million, excluding excise tax, during the first six months of fiscal 2025.
Our objectives with regard to share repurchases have been to offset the dilution to our shares outstanding that results from equity compensation grants and to supplement our earnings per share growth. Our share repurchase program does not have an expiration date, does not require us to purchase a specific number of shares and may be modified, suspended or terminated at any time. Future decisions to repurchase shares are at the discretion of the Board and are based on several factors, including current and forecasted operating cash flows, capital needs associated with new restaurant development and maintenance of existing locations, dividend payments, debt levels and cost of borrowing, obligations associated with the FRC acquisition, our share price and current market conditions. The timing and number of shares repurchased are also subject to legal constraints and financial covenants under our Loan Agreement that limit share repurchases based on a defined ratio. (See Note 8 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion of our repurchase authorization.)
Cash Flow Outlook
We believe that our cash and cash equivalents, combined with expected cash flows provided by operations and available borrowings under the Revolver Facility, will provide us with adequate liquidity for the next 12 months and the foreseeable future.
As of June 30, 2026, we had no financing transactions, arrangements or other relationships with any unconsolidated entities or related parties. Additionally, we had no financing arrangements involving synthetic leases or trading activities involving commodity contracts.
Critical Accounting Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from these estimates. Our critical accounting estimates have not changed materially from those previously reported in our Annual Report on Form 10-K for the fiscal year ended December 30, 2025.
Recent Accounting Pronouncements
See Note 1 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for a summary of new accounting standards.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
The following discussion of market risks contains forward-looking statements and should be read in conjunction with our interim unaudited condensed consolidated financial statements and related notes in Part I, Item 1 of this report, Part II, Item 1A of this report, “Risk Factors,” and with the following items in our Annual Report on Form 10-K for the fiscal year ended December 30, 2025: the audited consolidated financial statements and related notes in Part IV, Item 15; the “Risk Factors” in Part I, Item 1A; the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7; and the cautionary statements included throughout the report. Actual results may differ materially from the following discussion based on general conditions in the commodity and financial markets.
The cost of products and services used in our operations is subject to volatility due to the relative availability of labor and distribution, weather, natural disasters, inventory levels and other supply and/or demand impacting events such as geopolitical events, economic conditions or other unforeseen circumstances. Adverse weather and natural disasters may further exacerbate a number of these factors. In recent years, our operating results were impacted by geopolitical and macroeconomic events, causing supply chain challenges and significantly increased commodity and wage inflation. Our commodity and wage inflationary environment began returning to more historical levels in fiscal 2024.
We attempt to negotiate short-term and long-term agreements for some of our principal commodity, supply and equipment requirements, such as certain dairy products and poultry, depending on market conditions and expected demand. While we are in the
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process of contracting for certain key food and non-food supplies for fiscal 2026 and 2027, these efforts may not be successful or yield our intended benefits. We continue to evaluate the possibility of entering into similar arrangements for other commodities and periodically evaluate hedging vehicles, such as direct financial instruments, to assist us in managing risk and variability associated with such commodities. As of June 30, 2026, we had no hedging contracts in place.
Commodities for which we have not entered into contracts can be subject to unforeseen supply and cost fluctuations, which at times may be significant. Additionally, the cost of commodities subject to governmental regulation, such as dairy and corn, can be especially susceptible to price fluctuation. Goods we purchase on the international market may be subject to even greater fluctuations in cost and availability, which could result from a variety of factors, including the value of the U.S. dollar relative to other currencies, international trade disputes, tariffs, geopolitical unrest and varying global demand. We may not have the ability to increase menu prices or vary menu items in response to food commodity price increases. For the second quarter of fiscal 2026 and 2025, a hypothetical increase of 1% in food costs would have negatively impacted cost of sales by $2.2 million and $2.0 million, respectively.
We are exposed to market risk from interest rate changes on our funded debt. This exposure relates to the component of the interest rate on our Loan Agreement that is indexed to market rates. As of June 30, 2026 and December 30, 2025, we had no outstanding borrowings under the Loan Agreement. (See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion of our debt.)
We are also subject to market risk related to our investments in variable life insurance contracts used to support our non-qualified deferred compensation plans to the extent these investments are not equivalent to the related liability. In addition, because changes in these investments are not taxable, gains and losses result in tax benefit and tax expense, respectively, and directly affect net income through the income tax provision. Based on balances at June 30, 2026 and December 30, 2025, a hypothetical 10% decline in the market value of our deferred compensation asset and related liability would not have impacted income before income taxes. However, under such a scenario, net income would have declined by $3.6 million and $3.2 million at June 30, 2026 and December 30, 2025, respectively.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We have established and maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only a reasonable assurance of achieving the desired control objectives, and management was necessarily required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. We carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2026.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) during the fiscal quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II — OTHER INFORMATION
Item 1. Legal Proceedings.
See Note 7 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report.
Item 1A. Risk Factors.
A description of the risk factors associated with our business is contained in Part I, Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the fiscal year ended December 30, 2025 (“Annual Report”). These cautionary statements are to be used as a reference in connection with any forward-looking statements. The factors, risks and uncertainties identified in these cautionary statements are in addition to those contained in any other cautionary statements, written or oral, which may be made or otherwise addressed in connection with a forward-looking statement or contained in any of our subsequent filings with the SEC.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
The following table presents our purchases of our common stock during the fiscal quarter ended June 30, 2026 (in thousands, except per share data):
| | | | | | | | | |
| | | | | | Total Number of | | Maximum Number | |
| | | | | | Shares Purchased | | of Shares that May | |
| | Total Number | | | | as Part of Publicly | | Yet be Purchased | |
| | of Shares | | Average Price | | Announced Plans | | Under the Plans or | |
Period | | Purchased (1) | | Paid per Share (2) | | or Programs | | Programs | |
April 1 — May 5, 2026 |
| 107 | | $ | 58.18 |
| 89 |
| 5,647 |
May 6 — June 2, 2026 |
| 50 | |
| 59.91 |
| 50 |
| 5,597 |
June 3 — June 30, 2026 |
| 2 | |
| 63.80 |
| 2 |
| 5,595 |
Total |
| 159 | |
| |
| 141 |
| |
| (1) | The total number of shares purchased include 17,973 shares withheld upon vesting of restricted share awards to satisfy tax withholding obligations. |
(2) | The dollar value of shares repurchased excludes excise tax due under the Inflation Reduction Act of 2022. |
On February 12, 2026, our Board increased the authorization to repurchase our common stock by 5.0 million shares to 66.0 million shares. Under this authorization, we have cumulatively repurchased 60.4 million shares at a total cost of $2,012.1 million, excluding excise tax, through June 30, 2026 with 0.2 million shares repurchased at a cost of $9.3 million, excluding excise tax, during the second quarter of fiscal 2026. Our share repurchase program does not have an expiration date, does not require us to purchase a specific number of shares and may be modified, suspended or terminated at any time. The timing and number of shares repurchased are subject to legal constraints and financial covenants under our Loan Agreement that limit share repurchases based on a defined ratio. (See Note 8 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion of our repurchase authorization.)
Item 5. Other Information.
During the fiscal quarter ended June 30, 2026, no director or officer of the Company
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Item 6. Exhibits
Exhibit | | Item | | Form | | File Number | | Incorporated by | | Filed/ |
|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | | | | | |
3.1 | | Restated Certificate of Incorporation of The Cheesecake Factory Incorporated | | 8-K | | 000-20574 | | 3.1 | | 6/4/24 |
3.2 | | Certificate of Designations of The Cheesecake Factory Incorporated, dated April 20, 2020 | | 8-K | | 000-20574 | | 3.1 | | 4/20/20 |
3.3 | | Bylaws of The Cheesecake Factory Incorporated, amended and restated on October 26,2022 | | 8-K | | 000-20574 | | 3.1 | | 11/1/22 |
31.1 | | Rule 13a-14(a)/15d-14(a) Certification of the Principal Executive Officer | | — | | — | | — | | Filed herewith |
31.2 | | Rule 13a-14(a)/15d-14(a) Certification of the Principal Financial Officer | | — | | — | | — | | Filed herewith |
32.1 | | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer | | — | | — | | — | | Furnished herewith |
32.2 | | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Principal Financial Officer | | — | | — | | — | | Furnished herewith |
101.SCH | | Inline XBRL Taxonomy Extension Schema Document | | — | | — | | — | | Filed herewith |
101.CAL | | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | — | | — | | — | | Filed herewith |
101.DEF | | Inline XBRL Taxonomy Extension Definition Linkbase Document | | — | | — | | — | | Filed herewith |
101.LAB | | Inline XBRL Taxonomy Extension Label Linkbase Document | | — | | — | | — | | Filed herewith |
101.PRE | | Inline XBRL Taxonomy Extension Label Linkbase Document | | — | | — | | — | | Filed herewith |
104 | | The cover page of The Cheesecake Factory Incorporated’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 formatted in iXBRL (included with Exhibit 101) | | — | | — | | — | | Filed herewith |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: August 3, 2026 | THE CHEESECAKE FACTORY INCORPORATED | |
| | |
| By: | /s/ DAVID OVERTON |
| | David Overton |
| | Chairman of the Board and Chief Executive Officer |
| | (Principal Executive Officer) |
| | |
| By: | /s/ MATTHEW E. CLARK |
| | Matthew E. Clark |
| | Executive Vice President and Chief Financial Officer |
| | (Principal Financial Officer) |
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