Cheesecake Factory revenue reaches $1,033.4 million in third quarter
Key Facts
Cheesecake Factory reported revenue of $1,033.4 million in the fiscal third quarter ended September 29, 2026, compared with $907.2 million in the same period a year earlier, according to its earnings release. Net income was $61.3 million, or $1.19 per diluted share. Revenue exceeded analysts’ estimate of $991.2 million, while earnings per share also topped the expected $0.91. Chief Executive David Overton said the company delivered "record quarterly revenue" and that margins and earnings exceeded management’s expectations. He said restaurant sales and customer traffic outperformed the casual dining sector.
Adjusted net income was $52.3 million, or $1.02 per diluted share, excluding the tax impact of certain items, according to the company’s release. The quarter included $12.9 million in pretax income related to Fox Restaurant Concepts acquisition items. Reported earnings under accounting standards were therefore $1.19 per share, compared with $1.02 on an adjusted basis. Management said year-over-year improvements in labor productivity and food efficiency supported profitability. These items put net income in the context of acquisition-related costs alongside operating performance during the quarter.
Comparable sales at Cheesecake Factory restaurants rose 15.2% year over year during the quarter. Overton said results were led by the flagship restaurants, with sales and customer traffic outperforming the casual dining sector. The company attributed sales growth to continued menu innovation, its rewards program and strong social media engagement. Management also linked improved profitability to higher labor productivity and food efficiency compared with last year. The sustainability of customer traffic momentum was among the issues investors were watching ahead of the results, according to a Reuters report published before the announcement.
The company opened six restaurants during the quarter, including two under its flagship brand, one North Italia, one Flower Child and two Fox Restaurant Concepts locations. After the quarter ended, it opened two Flower Child restaurants and another location under one of the group’s brands. The company reaffirmed its expectation of opening up to 26 restaurants in fiscal 2026. The plan includes up to five Cheesecake Factory restaurants, eight North Italia restaurants, seven Flower Child restaurants and up to six Fox Restaurant Concepts locations. The company owns and operates 383 restaurants in the United States and Canada, in addition to 35 international restaurants under its flagship brand operated under licensing agreements.
The company had $585.3 million in available liquidity on September 29, comprising $249.3 million in cash and $336 million available under its revolving credit facility, with no outstanding balance. Outstanding principal debt was $575 million on the same date. The company declared a quarterly cash dividend of $0.30 per share, payable November 24 to shareholders of record on November 10. It also repurchased about 29,800 shares during the quarter at a cost of $2.4 million. These figures bring together liquidity resources, financial obligations and a planned cash distribution to shareholders.
The company recorded revenue of $3,041.9 million in the first 39 weeks of fiscal 2026, compared with $2,790.2 million in the same period a year earlier. Revenue in the second quarter of fiscal 2026 was $1,029.6 million, compared with $955.8 million in the second quarter of 2025, while net income then was $68.4 million. Before the third-quarter results were announced, a Reuters report said the company’s shares had risen more than 110% since the start of 2026 through October 27, and that investors were awaiting updates on North Italia and Flower Child as well as forward guidance. The company had announced on October 6 that results would be released after the market close on October 27, with a call to discuss them that day. It scheduled the call for 2:00 p.m. Pacific time.