Cheesecake Factory (CAKE) Q1 2026 profit rises with dividend and buybacks
Rhea-AI Filing Summary
The Cheesecake Factory Incorporated reported higher first-quarter fiscal 2026 results, with revenues of $978.8 million versus $927.2 million a year earlier and net income of $49.5 million, or $1.02 diluted EPS. Adjusted diluted EPS, excluding impairment and acquisition-related items, was $1.05.
Comparable restaurant sales at The Cheesecake Factory restaurants rose 1.6% year-over-year. The company opened several new North Italia, Flower Child and Fox Restaurant Concepts locations and one international licensed Cheesecake Factory in Mexico, and still expects to open up to 26 new restaurants in 2026. Liquidity totaled $601.6 million as of March 31, 2026, against $644.0 million of debt. The Board declared a quarterly dividend of $0.30 per share and the company repurchased about 332,000 shares for $19.2 million during the quarter.
Positive
- Profitability strengthened meaningfully, with net income rising to $49.5 million and adjusted diluted EPS reaching $1.05 in Q1 fiscal 2026, alongside 1.6% comparable sales growth at The Cheesecake Factory restaurants and continued dividends and share repurchases.
Negative
- None.
Insights
Q1 2026 showed solid revenue growth, stronger profitability and continued capital returns.
The Cheesecake Factory grew Q1 fiscal 2026 revenue to $978.8 million from $927.2 million, while net income rose to $49.5 million and diluted EPS to $1.02. Adjusted diluted EPS reached $1.05, excluding impairment and acquisition-related costs.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.6% year-over-year, and segment data show positive operating income across major concepts, with corporate-level costs recorded in the “Other” segment. Management highlighted efficiency gains in labor and food costs, supporting margin stability despite a competitive environment.
As of March 31, 2026, liquidity was $601.6 million, including $235.1 million in cash, against total debt of $644.0 million primarily in low-coupon convertible notes maturing in 2026 and 2030. The company returned cash via a $0.30 quarterly dividend and $19.2 million in share repurchases, while planning up to 26 new restaurant openings in fiscal 2026.
8-K Event Classification
Key Figures
Key Terms
comparable restaurant sales financial
adjusted net income financial
convertible senior notes financial
non-GAAP financial measures financial
impairment of assets and lease termination expenses financial
Earnings Snapshot
UNITED STATES
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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. ¨
The following information under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and Item 7.01 of Form 8-K, “Regulation FD Disclosure” is intended to be furnished. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this report, regardless of any general incorporation language in the filing.
| ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
In a press release dated April 29, 2026, a copy of which is furnished as Exhibit 99.1 to this report, The Cheesecake Factory Incorporated (the “Company”) reported financial results for the first quarter of fiscal 2026, which ended on March 31, 2026.
| ITEM 7.01 | REGULATION FD DISCLOSURE |
On April 29, 2026, the Company posted an updated Investor Presentation on the Company’s Investor Relations website at investors.thecheesecakefactory.com. A copy of the presentation is furnished as Exhibit 99.2 hereto and is incorporated by reference herein.
| ITEM 8.01 | OTHER EVENTS |
On April 23, 2026, the Board of Directors of the Company (the “Board”) declared a quarterly cash dividend of $0.30 per share, which will be paid on May 26, 2026 to the stockholders of record of each share of the Company’s common stock at the close of business on May 13, 2026. Future decisions to pay or to increase or decrease dividends are at the discretion of the Board and will depend upon operating performance and other factors.
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
| (d) | Exhibits |
| 99.1 | Press release dated April 29, 2026 entitled “The Cheesecake Factory Reports Results for First Quarter of Fiscal 2026” |
| 99.2 | The Cheesecake Factory Investor Presentation dated April 29, 2026 |
| 104.1 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
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 hereunto duly authorized.
| Date: April 29, 2026 | THE CHEESECAKE FACTORY INCORPORATED | |
| By: | /s/ Matthew E. Clark | |
| Matthew E. Clark | ||
| Executive Vice President and Chief Financial Officer | ||
Exhibit 99.1
 |
| PRESS RELEASE |
| FOR IMMEDIATE RELEASE | Contact: Etienne Marcus |
| (818) 871-3000 | |
| investorrelations@thecheesecakefactory.com |
THE CHEESECAKE FACTORY REPORTS RESULTS FOR
FIRST QUARTER OF FISCAL 2026
CALABASAS HILLS, Calif. – April 29, 2026 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the first quarter of fiscal 2026, which ended on March 31, 2026.
Total revenues were $978.8 million in the first quarter of fiscal 2026 compared to $927.2 million in the first quarter of fiscal 2025. Net income and diluted net income per share were $49.5 million and $1.02, respectively, in the first quarter of fiscal 2026.
The Company recorded a pre-tax net expense of $2.0 million related to impairment of assets and lease termination expenses, and Fox Restaurant Concepts (“FRC”) acquisition-related items. Excluding the after-tax impact of these items, adjusted net income and adjusted diluted net income per share for the first quarter of fiscal 2026 were $51.1 million and $1.05, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.
Comparable restaurant sales at The Cheesecake Factory restaurants increased 1.6% year-over-year in the first quarter of fiscal 2026.
“We delivered strong first quarter results, with revenue, margins and earnings finishing above our expectations,” said David Overton, Chairman and Chief Executive Officer. “Our top-line performance was led by comparable sales growth at The Cheesecake Factory restaurants, which outperformed the broader casual dining industry in the quarter. These results, delivered in a competitive environment and despite significant weather-related impacts, reflect the resilient demand for the distinct, high-quality dining experiences we provide our guests and strong affinity for our namesake concept. At the same time, execution within our restaurants was excellent, with operators driving year-over-year improvements in labor productivity and food efficiency, supporting solid flow-through to profitability.”
Mr. Overton continued, “For more than four decades, our approach has been grounded in a commitment to taking care of our guests and each other, delivering exceptional hospitality and memorable dining experiences that set our concepts apart. We are honored to be recognized on the Fortune magazine ‘100 Best Companies to Work For’ list for the 13th consecutive year, a distinction that reflects the strength of our culture, how our teams bring our values to life across our restaurants every day, and reinforces our position as an employer of choice.”
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000
Development
During the first quarter of fiscal 2026, the Company opened one North Italia, one Flower Child, one FRC restaurant, and one The Cheesecake Factory restaurant opened internationally under a licensing agreement in Guadalajara, Mexico. Subsequent to quarter-end, the Company opened one North Italia location.
The Company continues to expect to open as many as 26 new restaurants in fiscal 2026, including as many as six The Cheesecake Factory restaurants, six to seven North Italia locations, six to seven Flower Child locations and as many as seven FRC restaurants.
Liquidity and Capital Allocation
As of March 31, 2026, the Company had total available liquidity of $601.6 million, including a cash balance of $235.1 million and $366.5 million of availability on its revolving credit facility with no outstanding balance. Total principal amount of debt outstanding was $644.0 million, including $69.0 million in principal amount of 0.375% convertible senior notes due 2026 and $575.0 million in principal amount of 2.00% convertible senior notes due 2030.
During the first quarter of fiscal 2026, the Company repurchased approximately 332,000 shares of its stock at a cost of $19.2 million. In addition, the Company’s Board of Directors has declared a quarterly dividend of $0.30 per share to be paid on May 26, 2026, to shareholders of record at the close of business on May 13, 2026.
Conference Call and Webcast
The Company will hold a conference call to review its results for the first quarter of fiscal 2026 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com.
About The Cheesecake Factory Incorporated
The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. Delicious, memorable experiences created by passionate people—this defines who we are and where we are going. We currently own and operate 371 restaurants throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia®, Flower Child® and a collection of other FRC brands. Internationally, 36 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. In 2026, we were named to the FORTUNE Magazine “100 Best Companies to Work For®” list for the thirteenth consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com, www.iamaflowerchild.com and www.foxrc.com.
From Fortune. ©2026 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, without limitation, statements regarding the Company’s operations, growth, restaurant development and other objectives. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including government shutdowns, trade policy, interest rate fluctuations, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, Flower Child and Other Fox Restaurant Concepts restaurants; the risks of doing business abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross border taxation; changes in unemployment rates; increases in minimum wages and benefit costs; the economic health of the Company’s landlords and other tenants in retail centers in which its restaurants are located, and the Company’s ability to successfully manage its lease arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; the timing of new unit development and related permitting; compliance with debt covenants; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of changes in tax laws; changes in laws impacting the Company’s business; adverse weather conditions and natural disasters in regions in which the Company’s restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the dates on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000
The Cheesecake Factory Incorporated
Condensed Consolidated Statements of Income
(unaudited; in thousands, except per share data)
| 13 Weeks Ended | 13 Weeks Ended | |||||||||||||||
| Consolidated Statements of Income | March 31, 2026 | April 1, 2025 | ||||||||||||||
| Amount | Percent of Revenues | Amount | Percent of Revenues | |||||||||||||
| Revenues | $ | 978,833 | 100.0 | % | $ | 927,197 | 100.0 | % | ||||||||
| Costs and expenses: | ||||||||||||||||
| Food and beverage costs | 212,250 | 21.7 | % | 202,261 | 21.8 | % | ||||||||||
| Labor expenses | 347,769 | 35.5 | % | 331,075 | 35.7 | % | ||||||||||
| Other operating costs and expenses | 264,353 | 27.0 | % | 246,425 | 26.6 | % | ||||||||||
| General and administrative expenses | 63,931 | 6.5 | % | 59,932 | 6.5 | % | ||||||||||
| Depreciation and amortization expenses | 27,984 | 2.9 | % | 26,082 | 2.8 | % | ||||||||||
| Impairment of assets and lease termination expenses | 829 | 0.1 | % | 378 | 0.0 | % | ||||||||||
| Acquisition-related contingent consideration, compensation and amortization expenses | 1,202 | 0.1 | % | 998 | 0.1 | % | ||||||||||
| Preopening costs | 5,470 | 0.6 | % | 8,087 | 0.9 | % | ||||||||||
| Total costs and expenses | 923,788 | 94.4 | % | 875,238 | 94.4 | % | ||||||||||
| Income from operations | 55,045 | 5.6 | % | 51,959 | 5.6 | % | ||||||||||
| Interest expense, net | (1,995 | ) | (0.2 | )% | (2,328 | ) | (0.3 | )% | ||||||||
| Loss on debt extinguishment | - | 0.0 | % | (15,891 | ) | (1.7 | )% | |||||||||
| Other income, net | 301 | 0.1 | % | 743 | 0.1 | % | ||||||||||
| Income before income taxes | 53,351 | 5.5 | % | 34,483 | 3.7 | % | ||||||||||
| Income tax provision | 3,803 | 0.4 | % | 1,542 | 0.1 | % | ||||||||||
| Net income | $ | 49,548 | 5.1 | % | $ | 32,941 | 3.6 | % | ||||||||
| Basic net income per share | $ | 1.06 | $ | 0.69 | ||||||||||||
| Basic weighted average shares outstanding | 46,585 | 47,526 | ||||||||||||||
| Diluted net income per share | $ | 1.02 | $ | 0.67 | ||||||||||||
| Diluted weighted average shares outstanding | 48,455 | 49,284 | ||||||||||||||
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000
The Cheesecake Factory Incorporated
Selected Segment Information
(unaudited; in thousands)
| For the 13 Weeks Ended March 31, 2026 | ||||||||||||||||||||
| The Cheesecake | ||||||||||||||||||||
| Factory | North | Other | ||||||||||||||||||
| restaurants | Italia | FRC | Other | Total | ||||||||||||||||
| Revenues | $ | 690,473 | $ | 89,479 | $ | 104,522 | $ | 94,359 | $ | 978,833 | ||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Food and beverage costs | 151,158 | 20,264 | 23,032 | 17,796 | 212,250 | |||||||||||||||
| Labor expenses | 238,354 | 33,421 | 39,169 | 36,825 | 347,769 | |||||||||||||||
| Other operating costs and expenses | 180,297 | 24,717 | 30,664 | 28,675 | 264,353 | |||||||||||||||
| General and administrative expenses | - | - | - | 63,931 | 63,931 | |||||||||||||||
| Depreciation and amortization expenses | 17,170 | 3,194 | 3,365 | 4,255 | 27,984 | |||||||||||||||
| Impairment of assets and lease terminations expense | 557 | - | 2 | 270 | 829 | |||||||||||||||
| Acquisition-related contingent consideration, compensation and amortization expenses | - | - | 316 | 886 | 1,202 | |||||||||||||||
| Preopening costs | 1,415 | 1,914 | 1,731 | 410 | 5,470 | |||||||||||||||
| Total costs and expenses | 588,951 | 83,510 | 98,279 | 153,048 | 923,788 | |||||||||||||||
| Income/(loss) from operations | $ | 101,522 | $ | 5,969 | $ | 6,243 | $ | (58,689 | ) | $ | 55,045 | |||||||||
| For the 13 Weeks Ended April 1, 2025 | ||||||||||||||||||||
| The Cheesecake | ||||||||||||||||||||
| Factory | North | Other | ||||||||||||||||||
| restaurants | Italia | FRC | Other | Total | ||||||||||||||||
| Revenues | $ | 672,734 | $ | 83,410 | $ | 87,424 | $ | 83,629 | $ | 927,197 | ||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Food and beverage costs | 147,655 | 18,415 | 19,149 | 17,042 | 202,261 | |||||||||||||||
| Labor expenses | 233,391 | 31,917 | 31,562 | 34,205 | 331,075 | |||||||||||||||
| Other operating costs and expenses | 174,604 | 22,620 | 25,565 | 23,636 | 246,425 | |||||||||||||||
| General and administrative expenses | - | - | - | 59,932 | 59,932 | |||||||||||||||
| Depreciation and amortization expenses | 16,226 | 2,798 | 3,035 | 4,023 | 26,082 | |||||||||||||||
| Impairment of assets and lease terminations expenses | 75 | - | 300 | 3 | 378 | |||||||||||||||
| Acquisition-related contingent consideration, compensation and amortization expenses | - | - | 316 | 682 | 998 | |||||||||||||||
| Preopening costs | 1,350 | 2,680 | 2,793 | 1,264 | 8,087 | |||||||||||||||
| Total costs and expenses | 573,301 | 78,430 | 82,720 | 140,787 | 875,238 | |||||||||||||||
| Income/(loss) from operations | $ | 99,433 | $ | 4,980 | $ | 4,704 | $ | (57,158 | ) | $ | 51,959 | |||||||||
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000
The Cheesecake Factory Incorporated
Selected Operating, Restaurant and Balance Sheet Information
(unaudited; in thousands, except statistical data)
| 13 Weeks Ended | 13 Weeks Ended | |||||||
| The Cheesecake Factory restaurants operating information: | March 31, 2026 | April 1, 2025 | ||||||
| Comparable restaurant sales vs. prior year | 1.6 | % | 1.0 | % | ||||
| Restaurants opened during period | - | - | ||||||
| Restaurants open at period-end | 216 | 215 | ||||||
| Restaurant operating weeks | 2,816 | 2,795 | ||||||
| North Italia operating information: | ||||||||
| Comparable restaurant sales vs. prior year | (2 | )% | (1 | )% | ||||
| Restaurants opened during period | 1 | 3 | ||||||
| Restaurants open at period-end | 49 | 45 | ||||||
| Restaurant operating weeks | 625 | 560 | ||||||
| Other Fox Restaurant Concepts (FRC) operating information:(1) | ||||||||
| Restaurants opened during period | 1 | 2 | ||||||
| Restaurants open at period-end | 56 | 49 | ||||||
| Restaurant operating weeks | 720 | 626 | ||||||
| Other operating information:(2) | ||||||||
| Restaurants opened during period | 1 | 3 | ||||||
| Restaurants open at period-end | 49 | 46 | ||||||
| Restaurant operating weeks | 639 | 583 | ||||||
| Number of company-owned restaurants: | ||||||||
| The Cheesecake Factory | 216 | |||||||
| North Italia | 49 | |||||||
| Other FRC | 56 | |||||||
| Other | 49 | |||||||
| Total | 370 | |||||||
| Number of international-licensed restaurants: | ||||||||
| The Cheesecake Factory | 36 | |||||||
(1) The Other FRC segment includes all FRC brands except Flower Child.
(2) The Other segment includes the Flower Child and Grand Lux Cafe concepts, as well as the Company's third-party bakery, international and consumer packaged goods businesses, unallocated corporate expenses and gift card costs.
| Selected Consolidated Balance Sheet Information | March 31, 2026 | December 30, 2025 | ||||||
| Cash and cash equivalents | $ | 235,090 | $ | 215,729 | ||||
| Current and long-term debt, net of issuance costs (1) | 630,993 | 630,074 | ||||||
(1) Includes $68.9 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $69 million less $0.1 million in unamortized issuance costs) and $562.1 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $12.9 million in unamortized issuance costs). The unamortized issuance costs were recorded as a contra-liability and netted with current and long-term debt on the Condensed Consolidated Balance Sheet and are being amortized as interest expense.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000
Reconciliation of Non-GAAP Results to GAAP Results
In addition to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in this press release, the Company is providing non-GAAP measurements which present net income and net income per share excluding the impact of certain items. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. These non-GAAP measures are calculated by eliminating from net income and diluted net income per share the impact of items the Company does not consider indicative of its ongoing operations. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons.
The Cheesecake Factory Incorporated
Reconciliation of Non-GAAP Financial Measures
(unaudited; in thousands, except per share data)
| 13 Weeks Ended | 13 Weeks Ended | |||||||
| March 31, 2026 | April 1, 2025 | |||||||
| Net income (GAAP) | $ | 49,548 | $ | 32,941 | ||||
| Impairment of assets and lease termination expenses(1) | 829 | 378 | ||||||
| Acquisition-related contingent consideration, compensation and amortization expenses(2) | 1,202 | 998 | ||||||
| Loss on extinguishment of debt(3) | - | 15,891 | ||||||
| Tax effect of adjustments(4) | (529 | ) | (4,489 | ) | ||||
| Adjusted net income (non-GAAP) | $ | 51,050 | $ | 45,719 | ||||
| Diluted net income per share (GAAP) | $ | 1.02 | $ | 0.67 | ||||
| Impairment of assets and lease termination expenses(1) | 0.02 | 0.01 | ||||||
| Acquisition-related contingent consideration, compensation and amortization expenses(2) | 0.02 | 0.02 | ||||||
| Loss on extinguishment of debt(3) | - | 0.32 | ||||||
| Tax effect of adjustments(4) | (0.01 | ) | (0.09 | ) | ||||
| Adjusted diluted net income per share (non-GAAP)(5) | $ | 1.05 | $ | 0.93 | ||||
(1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen weeks ended March 31, 2026 and April 1, 2025 can be found in the Selected Segment Information table.
(2) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.
(3) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.
(4) Based on the federal statutory rate and an estimated blended state tax rate, the tax effect on all adjustments assumes a 26% tax rate for the fiscal 2026 and 2025 periods.
(5) Adjusted net income per share may not add due to rounding.
26901 Malibu Hills Road, Calabasas Hills, CA 91301 · Telephone (818) 871-3000
| INVESTOR PRESENTATION April 29, 2026 |
| SAFE HARBOR STATEMENT / NON-GAAP INFORMATION 2 Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This includes, without limitation, financial guidance and projections, including underlying assumptions, and statements with respect to expectations of the Company’s future financial condition, results of operations, cash flows, share repurchases, objectives, growth potential, engines and opportunities, expected growth rates and targets, market potential and total addressable market runway; growth outlook; industry-leading comparable sales growth, retention and competitive position; quality control and supply chain efficiencies; operational execution and retention; annualized average unit volume; the Company’s differentiation and strong foothold in the off-premise channel; the opportunity for additional domestic and foreign locations and licensees and territories; target returns for new restaurant openings; international expansion; North Italia and Fox Restaurant Concepts (“FRC”) as growth drivers and FRC as an incubation engine; new restaurant targeted ranges and unit growth rates. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including government shutdowns, trade policy, 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 changes in tax laws; 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 the Company’s filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the dates on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov. Non-GAAP Financial Measures In addition to the results provided in accordance with the Generally Accepted Accounting Principles (“GAAP”) in this presentation, the Company is providing non-GAAP measurements which present free cash flow, adjusted net income, adjusted diluted net income per common share, adjusted net income margin and adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”). The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. The Company believes that the presentation of these items provides additional information to facilitate the comparison of past and present financial results. 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 cash flow from operations, net income, diluted net income per common share, net income margin and EBITDA the impact of items we do not consider indicative of our ongoing operations. Additionally, free cash flow, 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. Please refer to the Appendix of this presentation for a reconciliation of non-GAAP measures to the most directly comparable financial measures prepared in accordance with GAAP. |
| COMPANY OVERVIEW |
| INVESTMENT HIGHLIGHTS 4 • Experiential dining category leader with diversified growth engines • Best-in-class operational execution and industry-leading retention • Significant growth opportunities driving one of the highest expected growth rates in the casual dining industry • Strong free cash flow generation supporting consistent shareholder returns through dividends and opportunistic share repurchases |
| CAKE AT A GLANCE 5 (1) Market data as of March 31, 2026. (2) Represents fiscal year 2025 revenue for the twelve months ended December 30, 2025. (3) Locations as of April 29, 2026. From Fortune. ©2026 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated. We own and operate 371 restaurants(3) across the US and Canada including: • 216 The Cheesecake Factory locations • 50 North Italia locations • 43 Flower Child locations • 56 Fox Restaurant Concepts locations Our more than 48,000 staff members helped us become one of the Fortune “100 Best Companies to Work For®” for the 13th consecutive year 36 International CCF Locations China Thailand Mexico Bahrain Kuwait Saudi Arabia Qatar | UAE FOUNDED 1972 IPO 1992 TICKER CAKE REVENUE(2) $3.8B HEADQUARTERS CALABASAS HILLS, CA MARKET CAP(1) $2.7B PORTFOLIO OF EXPERIENTIAL DINING CONCEPTS |
| 6 Cindy to update |
| GLOBAL FOOTPRINT 7 Company-Owned: 216 (Including Toronto, Canada) Latin America Mexico City (5) Monterrey (1) Guadalajara (2) Querétaro (1) Puebla (1) Metepec (1) Asia Shanghai (3) Beijing (1) Chengdu (1) Hong Kong (1) Macau (1) Thailand (1) Middle East UAE (6) Saudi Arabia (4) Kuwait (3) Qatar (3) Bahrain (1) International – Licensed: 36 Opportunity for 300 Domestic Locations Long runway for growth as we continue to open in new and existing markets Continued International Expansion In existing and new markets with current licensees and evaluating new markets High-quality, High-profile Locations Worldwide Strong presence in premier markets with attractive consumer demographics |
| 8 High-Energy Atmosphere Contemporary Décor Distinct, High-Quality Cheesecakes and Desserts Best-in-Class Execution Exceptional Service Menu Breadth and Innovation Made Fresh From Scratch MENU OPERATIONS AMBIANCE BAKERY A HIGHLY DIFFERENTIATED CONCEPT |
| 9 INTEGRATED BAKERY – THE “CHEESECAKE” MAGIC Enables creativity, quality control and supply chain efficiencies 58 Varieties of cheesecakes & 2 desserts Bakery production facilities 17% FY 2025(1) 1 FY 2019 6% (1) (1) Percent of total sales. Impressive Level of Dessert Sales |
| BEST-IN-CLASS STAFFING AND OPERATIONS 10 Well-positioned to attract and retain high-quality, experienced staff as an employer of choice • Top-tier recruiting and training programs • Fortune ‘100 Best Companies to Work For®’ List for 13 consecutive years • 2025 Black Box Intelligence Employer of Choice Award in Upscale Casual • Competitive compensation, benefits and healthcare options • High sales volume restaurants provide predictability and stability for staff Average Tenure by Position 37 years 29 years 25 years 23 years 17 years 16 years Executive VP of Operations Regional Vice Presidents Area Directors of Operations Area Kitchen Operations Managers General Managers Executive Kitchen Managers EXCEPTIONAL SERVICE AND OPERATIONAL EXECUTION SUPPORTED BY INDUSTRY-LEADING RETENTION 2025 PEOPLE’s Companies that Care Logo® is a registered trademark of TI Gotham, Inc., a Dotdash Meredith company. Used under license. From Fortune. ©2026 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated. |
| DIFFERENTIATION IN OFF-PREMISE 11 • Extensive menu with over 225 items made from scratch daily • Large portions designed for sharing • Lower incremental delivery pricing versus peers • Fully integrated systems for better execution • Separate bakery counter and register for pick-up of orders Exceptional Value Operational Execution • Omni channel ordering – Online | Delivery | Phone | In-person • Curbside delivery, geo-location and real-time tracking • Redesigned to-go packaging to improve food quality Guest Experience and Convenience 11% 16% 25% 22% 21% 21% 22% OFF-PREMISE SALES % OF TOTAL REVENUE OFF-PREMISE AWS FOR FY 2025(2) (1) $2.8 million in off-premise sales per restaurant based on annualized 1Q26. (2) Company reports and Gordon Haskett Research Advisors. ($ in thousands) $2.8 million per restaurant (1) LEVERAGING OUR DIFFERENTIATED POSITIONING TO DRIVE THE HIGHEST OFF-PREMISE AVERAGE WEEKLY SALES $10.1 $13.3 $15.5 $19.9 $20.2 $21.6 $22.0 $24.5 $26.3 $50.0 Bonefish LongHorn Cracker Barrel Outback BJ's Restaurants Chili's Texas Roadhouse Carrabba's Olive Garden The Cheesecake Factory |
| 12 ICONIC BRAND AND CULT STATUS |
| 13 STRONG CONSUMER ENGAGEMENT CAKE has more Instagram followers and significantly outpaces peers in followers relative to sales Leveraging the STRENGTH OF OUR BRAND across social media channels to ENGAGE WITH OUR CONSUMERS and further ENHANCE BRAND AWARENESS MILLIONS OF FOLLOWERS (1) Instagram Follower count as of March 11, 2026. (2) Sales represent fiscal year 2025 revenue based on latest SEC 10-K filings and company presentations. - 200 400 600 800 1,000 1,200 $0 $75 $150 $225 $300 $375 $450 Texas Roadhouse LongHorn Carrabba's BJ's Restaurants Cracker Barrel Chili's Olive Garden Yard House Outback Bonefish Maggiano's CAKE Followers(1) (in thousands) Followers / $M Sales(2) Followers / $M Sales Instagram Followers |
| BROAD APPEAL AND BRAND AFFINITY 14 Diverse Appeal Across a broad demographic range Extensive Menu Something for every taste, every price point Special Occasions Seen as a destination for experiential dining Signature Desserts High-quality cheesecakes and desserts Consumers (millennials in particular) regularly rank the Cheesecake Factory as one of the best chain restaurants, as well as having the best ambiance and the best quality food. A chain restaurant triple threat if there was ever one. -Vox, December 24, 2022 Sources: (1) The Cheesecake Factory Ranks No. 1 in Casual Dining Online Reputation Study, SOCi Marketing Study, FSR Magazine, December 12, 2023. (2) Most-Beloved Restaurant Brands in America – Savanta’s Marketing Intelligence Platform BrandVue Eating Out, FSR Magazine, October 11, 2023. |
| CHEESECAKE REWARDS® 15 Published Offers To support member acquisition and consistent engagement Offered to all rewards members Personalized Offers Tailored offers based on guest behavior and preferences — designed to surprise, engage, and increase frequency Tailored rewards offered to all members Marketable Offers Tied to cultural and brand moments (April Fools’, National Cheesecake Day) that drive excitement and broad engagement Offered to all rewards members Opportunity to drive incremental traffic To drive incremental sales and support restaurant-level margins by leveraging data analytics to more effectively engage guests PROGRAM OBJECTIVE A SURPRISE and DELIGHT program |
| $39 $37 $36 $32 $29 $28 $27 $24 $24 $23 $22 $15 Maggiano's Bonefish Yard House The Cheesecake Factory Outback LongHorn Carrabba's Texas Roadhouse Olive Garden BJ's Restaurants Chili's Cracker Barrel With a Moderate Average Check(1) Driving the Highest Unit Volumes in the Industry(1) ($ in millions) 16 (1) Latest SEC 10-K filings and company presentations for FY 2025. (2) Average check for The Cheesecake Factory defined as on-premise average check for FY 2025. $12.4 $10.0 $9.9 $8.7 $6.4 $5.6 $5.2 $4.5 $4.2 $4.0 $3.7 $3.1 The Cheesecake Factory Yard House Maggiano's Texas Roadhouse BJ's Restaurants Olive Garden LongHorn Chili's Cracker Barrel Outback Carrabba's Bonefish (2) |
| 17 |
| 18 • Filling White Space for an On-Trend, Contemporary Italian Offering • Menu features classic Italian favorites with a fresh twist from hand-tossed pizzas and homemade pastas to crave-worthy appetizers, salads and seasonal entrees • Unique menu items tailored to local markets • All dishes handmade from scratch daily • Serving lunch, dinner, weekend brunch & weekday happy hour • Robust selection of wine, beer and craft cocktails driving ~25% alcohol mix • Average check of mid $30s for lunch and mid $40s for dinner |
| 19 • Potential for 200 domestic locations over time • Currently have 50 locations in 16 states & Washington D.C. • Italian is one of the most popular ethnic cuisines in the United States • Targeting ~20% average annual unit growth • Attractive return profile and sales growth Comp Sales 1Q26 (vs. 1Q25): (2)% FY25 (vs. FY24): (2)% |
| 20 |
| • Potential for 700 domestic locations over time • A differentiated concept in the growing fast casual dining segment • 43 locations in 15 states • Targeting ~20% average annual unit growth • A healthy, balanced dining experience with organic, gluten-free and vegan dishes • All dishes handmade from scratch daily • Menu features customizable bowls, wraps, salads, veggies and healthy proteins • Attractive consumer demographic • Significant off-premise volumes - averaging over 50% of sales • Separate take-out area for third-party delivery and take-out business On a simple, soul-satisfying mission to spread positively delicious vibes and healthy food. 21 |
| 22 |
| FOX RESTAURANT CONCEPTS (FRC) 23 FRC HIGHLIGHTS • Locations: 56 • Geographies 11 states • FY 2025 Revenue(1) $355M (1) Fiscal year 2025 revenue represents revenue for the twelve months ended December 30, 2025 and excludes revenue for Flower Child. FRC serves as an incubator, innovating new food, dining and hospitality experiences to create fresh, exciting concepts for the future FRC’s experiential concepts are designed to deliver unique guest experiences across different industry segments, occasions, square footage and geographies Provides Diversification | Accretive Unit Growth Potential | Value Creation Opportunities “Great hospitality, every time.” - Sam Fox |
| Culinary forward. First class hospitality. Concepts like no other. DIVERSIFYING OUR PORTFOLIO ACROSS EXPERIENTIAL FOR GROWTH 24 National Expansion Boutique Brands Incubation Stage Testing Growth Global Footprint |
| ACCELERATING UNIT GROWTH Accelerating Unit Growth AS MANY AS 26 NEW UNITS IN 2026 4 NROs YTD As of April 29, 2026 North Italia Flower Child Riverton, UT The Henry Scottsdale, AZ Walnut Creek, CA Brea, CA |
| FINANCIAL PERFORMANCE |
| 27 DRIVING STRONG SALES GROWTH (1) 1Q26 Average Unit Volumes (AUV) annualized based on average weekly sales. (2) FRC excludes Flower Child. FY 2025 COMP SALES AVERAGE WEEKLY SALES (2) FY 2025 AVERAGE WEEKLY SALES Q1 2026 COMP SALES AVERAGE WEEKLY SALES (2) Q1 2026 vs 2024 0.1% (2)% vs 2024 0% vs 1Q25 1.6% (2)% vs 1Q25 2% ~$245,200 Equates to $12.8M Annualized AUV(1) ~$143,200 Equates to $7.4M Annualized AUV(1) ~$145,200 Equates to $7.5M Annualized AUV(1) REVENUES $2,689M Up 1% from PY $346M Up 15% from PY REVENUES $355M Up 18% from PY |
| Q1 2026 HIGHLIGHTS(1) 28 Total Revenue $979M Up 6% from PY Capital Allocation Adjusted Diluted Net Income Per Share(1) $1.05 Up 13% from PY $43M CapEx(3) $14M Dividends Unit Growth 3 NROs Restaurant Count(2) 370 Up 4% from 355 in PY Adjusted EBITDA(1) $92M Up 5% from PY Net Income $50M Up 50% from PY Diluted Net Income Per Share $1.02 Up 53% from PY $19M Repurchases (1) A reconciliation of Non-GAAP measures to the most directly comparable GAAP measure can be found in the appendix. (2) Represents total company owned and operated restaurants across the US and Canada as of March 31, 2026. (3) CapEx excludes some new restaurant construction expenses, which may be classified as operating lease assets instead of additions to property and equipment in the statement of cash flows. |
| 2026 UNDERLYING KEY ASSUMPTIONS(1) 29 (1) Assumes no material operating or consumer disruptions as well as assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. (2) Future decisions to pay or to increase or decrease dividends or to repurchase shares are at the discretion of the Board and will be dependent on several factors. Consolidated Sales Approximately $3.91 Billion CCF AUVs Approximately $12.5 Million Net Income Margin Targeting approximately 5% at the stated sales level New Unit Growth As many as 26 New Restaurant Openings • ~6 The Cheesecake Factory locations • 6-7 North Italia locations • 6-7 Flower Child locations • ~7 FRC restaurants Cash Capital Expenditures Approximately $210 Million Dividend Program Q2 2026 dividend of $0.30 per share(2) Share Repurchase Program Offset dilution, over time, from employee stock-based compensation and support EPS(2) |
| QUALITY GROWTH OPPORTUNITY 30 New Unit Growth Targets(1)(2) Size(3) Sales per Sq Ft(3) Annual Unit Growth 7,000 -10,000 ~$1,100 - $1,200 ~2% - 3% 6,000 -7,000 ~$1,100 - $1,200 ~20% 3,000 -4,000 ~$1,100 - $1,200 ~20% 6,000 -8,000 ~$1,100 ~10% - 15% Diversified Portfolio Differentiated experiential concepts diversified across industry segment, price point, cuisine, occasion and real estate Value Creation Opportunities Leveraging brand power, operational excellence, scale, supply chain and real estate development expertise Attractive Growth Potential Significant runway for future development across portfolio of concepts to drive accretive growth over time (1) Illustrative example of new restaurant openings targeted size, sales per square foot and annual unit growth; Targets represent steady-state and typically are reached after 3 years of operations. (2) Targets are forward-looking and are based upon assumptions that there are no material operating or consumer disruptions as well as assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. (3) Target size and sales per square foot are an average based on productive square feet defined as all interior square footage plus seasonally adjusted exterior patio square footage. 1% - 2% Comparable Sales Growth GROWTH OUTLOOK(2) AVERAGE ANNUAL GROWTH TARGETS 7% - 8% Top-line Revenue Growth |
| MARKET POTENTIAL LARGE TAM RUNWAY 31 # OF LOCATIONS(1) FY 2025 AUVS $12.4M 216 $7.6M 50 $4.6M 43 MARKET POTENTIAL 300 200 700 (1) Locations as of April 29, 2026. ~$3.2B ~$8.5B FUTURE REVENUE OPPORTUNITY REVENUE GROWTH $5BPOTENTIAL NOTABLE UPSIDE POTENTIAL FROM OTHER GROWTH CONCEPTS FY 2025 |
| $146 $49 $67 $108 $155 $67 $112 $152 $160 $146 $213 $162 $218 $268 $301 '21 '22 '23 '24 '25 FINANCIAL STRENGTH TO SUPPORT GROWTH AND RETURNS(1) 32 Capital Allocation Detail Cash Flow '20 (1) A reconciliation of Non-GAAP measures to the most directly comparable GAAP measure can be found in the appendix. (2) Due to impact of COVID-19 pandemic on results 2021, 2022, 2023, 2024 and 2025 compare against 2019. (3) Free cash flow, Cash Flow from Operations, Net Income and Adjusted EBITDA may not add due to rounding. (4) CapEx excludes some new restaurant construction expenses, which may be classified as operating lease assets instead of additions to property and equipment in the statement of cash flows. . Net Income and Adjusted EBITDA(3) '20 ($ in millions) Cash Flow From Ops Capex / Investment(4) Free Cash Flow(3) $72 $43 $101 $157 $148 $166 $159 $169 $172 $205 $238 $202 $270 $329 $354 '21 '22 '23 '24 '25 Adjusted EBITDA(3) Adjustments Net Income (3) 3.3% 10.5% 13.9% 14.9% 15.0% '21 '22 '23 '24 '25 $67 $112 $152 $160 $146 $6 $63 $46 $18 $154 $0 $42 $53 $53 $52 48,510 50,414 49,050 48,974 48,550 $0 $100 $200 $300 $400 $500 $600 '21 '22 '23 '24 '25 Capex / Investment Share Repurchases Dividends WASO Comparable Sales(2) (4) |
| APPENDIX |
| NON-GAAP RECONCILIATIONS 34 (1) CapEx excludes some new restaurant construction expenses, which may be classified as operating lease assets instead of additions to property and equipment in the statement of cash flows. (2) Free cash flow, EBITDA and Adjusted EBITDA may not add due to rounding. (3) A detailed breakdown of impairment of assets and lease termination expenses recorded can be found in the Selected Segment Information table in the 10-K and 10-Q. (4) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements. (5) Represents gift card breakage revenue of $17.3 million as a result of a change in historical redemption patterns, partially offset by a non-recurring $7.9 million write-down of gift card inventory. (6) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026. (7) Represents incremental costs associated with COVID-19 such as sick and vaccination pay, healthcare and meal benefits for furloughed staff members, additional sanitation and personal protective equipment. ($ in thousands) Fiscal Year Fiscal Quarter 2021 2022 2023 2024 2025 1Q25 1Q26 Net income $ 72,373 $ 43,123 $ 101,351 $ 156,783 $ 148,427 $ 32,941 $ 49,548 Depreciation and amortization expenses 89,654 92,380 93,136 101,450 109,031 26,082 27,984 Interest expense, net 11,625 7,488 10,160 10,107 10,448 2,328 1,995 Income tax (benefit)/provision (753) (10,231) (1,337) 14,264 14,468 1,542 3,803 EBITDA(2) $ 172,899 $ 132,760 $ 203,310 $ 282,604 $ 282,374 $ 62,893 $ 83,330 Impairment of assets and lease termination expenses(3) $ 18,139 $ 31,387 $ 29,464 $ 13,647 $ 22,990 $ 378 $ 829 Acquisition-related contingent consideration, compensation and amortization expenses(4) 19,510 13,368 11,686 2,429 14,449 998 1,202 Gift card adjustment, net(5) - - - - (9,396) - - Loss on debt extinguishment(6) - - - - 15,891 15,891 - Stock-based compensation 22,988 24,426 25,781 29,962 27,234 7,581 7,014 COVID-19 related costs(7) 4,917 - - - - - - Adjusted EBITDA(2) $ 238,453 $ 201,941 $ 270,241 $ 328,642 $ 353,542 $ 87,741 $ 92,375 ($ in thousands) Fiscal Year 2021 2022 2023 2024 2025 Cash flow from operations $ 213,006 $ 161,926 $ 218,401 $ 268,325 $ 301,281 Capital expenditures / investments(1) 66,943 112,464 151,565 160,364 146,204 Free cash flow(2) $ 146,063 $ 49,462 $ 66,836 $ 107,961 $ 155,077 |
| NON-GAAP RECONCILIATIONS 35 (1) Net income presented for 2021 includes adjustments related to Series A Preferred Stock. (2) A detailed breakdown of impairment of assets and lease termination expenses recorded can be found in the Selected Segment Information table in the 10-K and 10-Q. (3) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements. (4) Represents gift card breakage revenue of $17.3 million as a result of a change in historical redemption patterns, partially offset by a non-recurring $7.9 million write-down of gift card inventory. (5) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026. (6) Represents incremental costs associated with COVID-19 such as sick and vaccination pay, healthcare and meal benefits for furloughed staff members, additional sanitation and personal protective equipment. (7) The tax effect assumes a tax rate based on the federal statutory rate and an estimated blended state tax rate. (8) Adjusted diluted net income/(loss) per share may not add due to rounding. ($ in thousands, except per share data) Fiscal Year Fiscal Quarter 2021 2022 2023 2024 2025 1Q25 1Q26 Net income (1) $ 49,131 $ 43,123 $ 101,351 $ 156,783 $ 148,427 $ 32,941 $ 49,548 Impairment of assets and lease termination expenses(2) 18,139 31,387 29,464 13,647 22,990 378 829 Termination of interest rate swap 2,354 - - - - - - Acquisition-related contingent consideration, compensation and amortization expenses(3) 19,510 13,368 11,686 2,429 14,449 998 1,202 Gift card adjustment, net (4) - - - - (9,396) - - Loss on extinguishment of debt (5) - - - - 15,891 15,891 - Dividends on Series A preferred stock 18,661 - - - - - - Net income attributable to Series A preferred stock to apply if-converted method 4,581 - - - - - - COVID-19 related costs (6) 4,917 - - - - - - Uncertain tax positions 7,139 - - - 2,023 - - Tax effect of adjustments (7) (11,679) (11,637) (10,699) (4,180) (11,423) (4,489) (529) Adjusted net income $ 112,753 $ 76,241 $ 131,802 $ 168,679 $ 182,961 $ 45,719 $ 51,050 Revenues $ 927,197 $ 978,833 Adjusted net income margin 5% 5% Diluted net income per share $ 1.01 $ 0.86 $ 2.07 $ 3.20 $ 3.06 $ 0.67 $ 1.02 Impairment of assets and lease termination expenses(2) 0.34 0.62 0.61 0.28 0.47 0.01 0.02 Termination of interest rate swap 0.04 - - - - - - Acquisition-related contingent consideration, compensation and amortization expenses(3) 0.37 0.27 0.24 0.05 0.30 0.02 0.02 Gift card adjustment, net (4) - - - - (0.19) - - Loss on extinguishment of debt (5) - - - - 0.33 0.32 - Dividends on Series A preferred stock 0.35 - - - - - - Net income attributable to Series A preferred stock to apply if-converted method 0.09 - - - - - - Assumed impact of potential conversion of Series A preferred stock into common stock (0.08) - - - - - - COVID-19 related costs(6) 0.09 - - - - - - Uncertain tax positions 0.13 - - - 0.04 - - Tax effect of adjustments(7) (0.22) (0.23) (0.22) (0.09) (0.24) (0.09) (0.01) Adjusted diluted net income per share(8) $ 2.13 $ 1.51 $ 2.69 $ 3.44 $ 3.77 $ 0.93 $ 1.05 |
