Cheesecake Factory Revenue Reaches $1,033.4 Million, Exceeding Third-Quarter Estimates
Key Facts
The 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 corresponding period of 2025, according to the earnings release published via Business Wire. Net income was $61.3 million, while diluted earnings per share reached $1.19. Revenue exceeded the top end of the company’s previously stated range of $980 to $990 million. It also topped analysts’ estimate of $991.2 million, according to estimates published before the announcement. Expected earnings per share were $0.91, putting the actual results above the published estimate.
The company’s announced third-quarter revenue range included an adjusted net margin of approximately 4.3% at the midpoint, according to Zacks’ preview before the results. The reported figures included net income of $61.3 million and diluted earnings per share of $1.19. Comparing the estimates with the results provides a view of revenue performance alongside the profitability measure cited in the company’s release. Analysts’ estimates published before the results were below the actual revenue and earnings-per-share figures. Before the announcement, coverage focused on whether customer traffic momentum would continue.
The results followed a second quarter in which revenue rose 7.7% to $1,029.6 million, compared with $955.8 million in the second quarter of fiscal 2025, according to the quarterly report filed with the U.S. Securities and Exchange Commission. In the same quarter, comparable sales at The Cheesecake Factory restaurants increased 5.8%. The company attributed this to a 3.1% increase in average check and a 2.7% rise in customer traffic. Chief Executive David Overton said the main brand’s restaurants led second-quarter performance, adding that "comparable sales and customer traffic significantly outperformed the broader casual dining sector." These operating indicators provided important context ahead of the third-quarter results, as investors awaited an update to the company’s outlook.
The group operates a base of 380 restaurants in the United States and Canada, while managing 35 international restaurants under licensing agreements, according to the company’s announcement of the earnings conference date. The company had expected to open up to 26 new restaurants during fiscal 2026, including up to 5–6 restaurants under its main brand. This planned expansion puts sales results in the context of network growth, as international locations are split between licensing agreements and restaurants operated directly by the company in North America. Overton said in the second-quarter release that the main brand’s restaurants led performance at the time, with comparable sales and customer traffic outperforming the broader sector. The available guidance did not include an update to the expected number of openings after the third-quarter results were announced.
CAKE shares moved as follows in the sessions before the announcement: They closed at $116.43 on October 20, then at $114.39 on October 21 and $112.44 on October 22. The close fell to $108.37 on October 23 before rising to $110.13 on October 26, according to EL7 data. That was the close one day before the earnings announcement, as the company had scheduled their release after the market closed on Tuesday, October 27. A Reuters report published via Investing.com said the stock had risen more than 110% since the start of 2026 through October 27, and that investors were watching the sustainability of customer traffic gains, the performance of other brands and an update to guidance. The available figures do not include a share price after the results were published.
The company had announced that third-quarter results would be released after the market closed on Tuesday, October 27, 2026, and that an earnings discussion call would begin the same day at 2:00 p.m. Pacific time. The call provides an opportunity to discuss the reported figures and future guidance, including the restaurant opening plan, which the company had kept at a maximum of 26 restaurants for the fiscal year. Its prior third-quarter outlook also included revenue of between $980 and $990 million and an adjusted net income margin of approximately 4.3% at the midpoint. Points being monitored before the results included the sustainability of customer traffic and the performance of other brands, along with any update to the outlook. The previously announced opening plan remains a reference point for comparison if new guidance is provided during the earnings discussion.