Exhibit 99.1

 

 

 

FOR IMMEDIATE RELEASE Contact: Etienne Marcus
  (818) 871-3000
  investorrelations@thecheesecakefactory.com

 

THE CHEESECAKE FACTORY REPORTS RESULTS FOR

SECOND QUARTER OF FISCAL 2026

 

CALABASAS HILLS, Calif. – July 28, 2026 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the second quarter of fiscal 2026, which ended on June 30, 2026.

 

Total revenues were $1,029.6 million in the second quarter of fiscal 2026 compared to $955.8 million in the second quarter of fiscal 2025. Net income and diluted net income per share were $68.4 million and $1.41, respectively, in the second quarter of fiscal 2026.

 

The Company recorded a pre-tax net expense of $1.4 million related to Fox Restaurant Concepts (“FRC”) acquisition-related items, and impairment of assets and lease termination expenses. Excluding the after-tax impact of these items and certain other items, adjusted net income and adjusted diluted net income per share for the second quarter of fiscal 2026 were $69.7 million and $1.44, 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 5.8% year-over-year in the second quarter of fiscal 2026.

 

“We built on our strong start to the year with another quarter of better-than-expected financial results, as revenue, margins and earnings all exceeded our expectations,” said David Overton, Chairman and Chief Executive Officer. “Our performance was led by The Cheesecake Factory restaurants, with comparable sales and traffic meaningfully outperforming the broader casual dining industry. Continued momentum from our menu innovation, rewards program and marketing efforts strengthened consumer awareness and engagement, contributing to our strong top-line performance. At the same time, our operators remained sharply focused on execution, delivering year-over-year improvements in labor productivity and food efficiency supporting strong profitability.”

 

Mr. Overton continued, "Our success has long been driven by our commitment to delivering the exceptional hospitality, high-quality food and memorable dining experiences our guests have come to expect. We continue to lean into culinary innovation and our digital capabilities to build on those strengths, ensuring our concepts evolve and resonate with guests in an increasingly competitive environment. Together with our experienced operators, differentiated concepts and strong financial foundation, these efforts position us well to continue executing our strategy, delivering profitable growth and creating shareholder value."

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301· Telephone (818) 871-3000

 

 

Development

 

During the second quarter of fiscal 2026, the Company opened four new restaurants, including two North Italia’s, one Flower Child and one FRC restaurant. Subsequent to quarter-end, the Company opened one The Cheesecake Factory location.

 

The Company continues to expect to open as many as 26 new restaurants in fiscal 2026, including as many as five to six The Cheesecake Factory restaurants, six to seven North Italia locations, seven Flower Child locations and as many as seven FRC restaurants.

 

Liquidity and Capital Allocation

 

As of June 30, 2026, the Company had total available liquidity of $561.7 million, including a cash balance of $195.2 million and $366.5 million of availability on its revolving credit facility with no outstanding balance. During the quarter, the Company repaid the remaining $69.0 million principal amount of 0.375% convertible senior notes due 2026. As of June 30, 2026, total principal amount of debt outstanding was $575 million, representing the principal amount of 2.00% convertible senior notes due 2030.

 

During the second quarter of fiscal 2026, the Company repurchased approximately 158,600 shares of its stock at a cost of $9.3 million. In addition, the Company’s Board of Directors has declared a quarterly dividend of $0.30 per share to be paid on August 25, 2026, to shareholders of record at the close of business on August 11, 2026.

 

Conference Call and Webcast

 

The Company will hold a conference call to review its results for the second 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 375 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
June 30, 2026		   13 Weeks Ended
July 1, 2025		   26 Weeks Ended
June 30, 2026		   26 Weeks Ended
July 1, 2025		 
Consolidated Statements of Income  Amount   Percent of
Revenues		   Amount   Percent of
Revenues		   Amount   Percent of
Revenues		   Amount   Percent of
Revenues		 
Revenues  $1,029,633    100.0%  $955,825    100.0%  $2,008,466    100.0%  $1,883,022    100.0%
Costs and expenses:                                        
Food and beverage costs   223,847    21.8%   205,843    21.6%   436,097    21.7%   408,104    21.7%
Labor expenses   351,475    34.1%   333,519    34.9%   699,244    34.8%   664,594    35.3%
Other operating costs and expenses   272,688    26.5%   255,722    26.8%   537,041    26.8%   502,147    26.7%
General and administrative expenses   65,592    6.4%   58,778    6.1%   129,523    6.5%   118,710    6.3%
Depreciation and amortization expenses   29,103    2.8%   26,860    2.8%   57,087    2.8%   52,942    2.8%
Impairment of assets and lease terminations   124    0.0%   222    0.0%   953    0.0%   600    0.0%
Acquisition-related contingent consideration, compensation and amortization expenses   1,235    0.1%   1,012    0.1%   2,437    0.1%   2,010    0.1%
Preopening costs   6,961    0.7%   9,047    0.9%   12,431    0.6%   17,134    0.9%
Total costs and expenses   951,025    92.4%   891,003    93.2%   1,874,813    93.3%   1,766,241    93.8%
Income from operations   78,608    7.6%   64,822    6.8%   133,653    6.7%   116,781    6.2%
Interest expense, net   (2,057)   (0.1)%   (2,873)   (0.3)%   (4,052)   (0.2)%   (5,201)   (0.3)%
Loss on debt extinguishment   -    0.0%   -    0.0%   -    0.0%   (15,891)   (0.8)%
Other income, net   352    0.0%   280    0.0%   653    0.0%   1,023    0.0%
Income before income taxes   76,903    7.5%   62,229    6.5%   130,254    6.5%   96,712    5.1%
Income tax provision   8,509    0.9%   7,417    0.8%   12,312    0.6%   8,959    0.4%
Net income  $68,394    6.6%  $54,812    5.7%  $117,942    5.9%  $87,753    4.7%
                                         
Basic net income per share  $1.47        $1.18        $2.53        $1.87      
Basic weighted average shares outstanding   46,628         46,391         46,606         46,958      
                                         
Diluted net income per share  $1.41        $1.14        $2.43        $1.80      
Diluted weighted average shares outstanding   48,490         48,102         48,446         48,679      

 

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 June 30, 2026 
   The Cheesecake                 
   Factory   North   Other         
   restaurants   Italia   FRC   Other   Total 
Revenues  $729,476   $98,440   $104,032   $97,685   $1,029,633 
Costs and expenses:                         
Food and beverage costs   158,674    22,301    23,187    19,685    223,847 
Labor expenses   237,383    37,134    39,319    37,639    351,475 
Other operating costs and expenses   186,371    26,386    31,242    28,689    272,688 
General and administrative expenses   -    -    -    65,592    65,592 
Depreciation and amortization expenses   17,526    3,624    3,598    4,355    29,103 
Impairment of assets and lease terminations expenses   11    -    3    110    124 
Acquisition-related contingent consideration, compensation and amortization expenses   -    -    315    920    1,235 
Preopening costs   1,509    2,255    2,412    785    6,961 
Total costs and expenses   601,474    91,700    100,076    157,775    951,025 
Income/(loss) from operations  $128,002   $6,740   $3,956   $(60,090)  $78,608 

 

   For the 13 Weeks Ended July 1, 2025 
   The Cheesecake                 
   Factory   North   Other         
   restaurants   Italia   FRC   Other   Total 
Revenues  $683,257   $90,830   $90,178   $91,560   $955,825 
Costs and expenses:                         
Food and beverage costs   147,377    19,835    19,794    18,837    205,843 
Labor expenses   231,241    33,519    33,445    35,314    333,519 
Other operating costs and expenses   178,142    24,057    27,229    26,294    255,722 
General and administrative expenses   -    -    -    58,778    58,778 
Depreciation and amortization expenses   16,196    3,074    3,264    4,326    26,860 
Impairment of assets and lease terminations expenses   196    -    15    11    222 
Acquisition-related contingent consideration, compensation and amortization expenses   -    -    315    697    1,012 
Preopening costs   3,558    1,946    2,202    1,341    9,047 
Total costs and expenses   576,710    82,431    86,264    145,598    891,003 
Income/(loss) from operations  $106,547   $8,399   $3,914   $(54,038)  $64,822 

  

   For the 26 Weeks Ended June 30, 2026 
   The Cheesecake                 
   Factory   North   Other         
   restaurants   Italia   FRC   Other   Total 
Revenues  $1,419,949   $187,919   $208,554   $192,044   $2,008,466 
Costs and expenses:                         
Food and beverage costs   309,832    42,565    46,219    37,481    436,097 
Labor expenses   475,737    70,555    78,488    74,464    699,244 
Other operating costs and expenses   366,668    51,103    61,906    57,364    537,041 
General and administrative expenses   -    -    -    129,523    129,523 
Depreciation and amortization expenses   34,696    6,818    6,963    8,610    57,087 
Impairment of assets and lease terminations expenses   568    -    5    380    953 
Acquisition-related contingent consideration, compensation and amortization expenses   -    -    631    1,806    2,437 
Preopening costs   2,924    4,169    4,143    1,195    12,431 
Total costs and expenses   1,190,425    175,210    198,355    310,823    1,874,813 
Income/(loss) from operations  $229,524   $12,709   $10,199   $(118,779)  $133,653 

 

   For the 26 Weeks Ended July 1, 2025 
   The Cheesecake                 
   Factory   North   Other         
   restaurants   Italia   FRC   Other   Total 
Revenues  $1,355,991   $174,240   $177,602   $175,189   $1,883,022 
Costs and expenses:                         
Food and beverage costs   295,032    38,250    38,943    35,879    408,104 
Labor expenses   464,632    65,436    65,007    69,519    664,594 
Other operating costs and expenses   352,746    46,677    52,794    49,930    502,147 
General and administrative expenses   -    -    -    118,710    118,710 
Depreciation and amortization expenses   32,422    5,872    6,299    8,349    52,942 
Impairment of assets and lease terminations expenses   271    -    315    14    600 
Acquisition-related contingent consideration, compensation and amortization expenses   -    -    631    1,379    2,010 
Preopening costs   4,908    4,626    4,995    2,605    17,134 
Total costs and expenses   1,150,011    160,861    168,984    286,385    1,766,241 
Income/(loss) from operations  $205,980   $13,379   $8,618   $(111,196)  $116,781 

 

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   26 Weeks Ended   26 Weeks Ended 
The Cheesecake Factory restaurants operating information:  June 30, 2026   July 1, 2025   June 30, 2026   July 1, 2025 
Comparable restaurant sales vs. prior year   5.8%   1.2%   3.7%   1.1%
Restaurants opened during period   -    2    -    2 
Restaurants open at period-end   216    216    216    216 
Restaurant operating weeks   2,808    2,794    5,624    5,589 
                     
North Italia operating information:                    
Comparable restaurant sales vs. prior year   (3)%   (1)%   (3)%   (1)%
Restaurants opened during period   2    1    3    4 
Restaurants open at period-end   51    46    51    46 
Restaurant operating weeks   650    590    1,275    1,150 
                     
Other Fox Restaurant Concepts (FRC) operating information:(1)                    
Restaurants opened during period   1    2    2    4 
Restaurants open at period-end   57    51    57    51 
Restaurant operating weeks   732    659    1,452    1,285 
                     
Other operating information:(2)                    
Restaurants opened during period   1    3    2    6 
Restaurants open at period-end   50    49    50    49 
Restaurant operating weeks   637    618    1,276    1,201 
                     
                     
Number of company-owned restaurants:                    
The Cheesecake Factory   216                
North Italia   51                
Other FRC   57                
Other   50                
Total   374                
                     
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  June 30, 2026   December 30, 2025 
Cash and cash equivalents  $195,170   $215,729 
Long-term debt, net of issuance costs (1)   562,895    630,074 

 

(1) As of June 30, 2026, includes $562.9 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $12.1 million in unamortized issuance costs). The unamortized issuance costs were recorded as a contra-liability and netted with 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   26 Weeks Ended   26 Weeks Ended 
   June 30, 2026   July 1, 2025   June 30, 2026   July 1, 2025 
Net income (GAAP)  $68,394   $54,812   $117,942   $87,753 
Impairment of assets and lease termination expenses(1)   124    222    953    600 
Acquisition-related contingent consideration, compensation and amortization expenses(2)   1,235    1,012    2,437    2,010 
Loss on extinguishment of debt(3)   -    -    -    15,891 
Uncertain tax positions(4)   310    -    310    - 
Tax effect of adjustments(5)   (353)   (321)   (882)   (4,811)
Adjusted net income (non-GAAP)  $69,710   $55,725   $120,760   $101,443 
                     
Diluted net income per share (GAAP)  $1.41   $1.14   $2.43   $1.80 
Impairment of assets and lease termination expenses(1)   0.00    0.00    0.02    0.01 
Acquisition-related contingent consideration, compensation and amortization expenses(2)   0.03    0.02    0.05    0.04 
Loss on extinguishment of debt(3)   -    -    -    0.33 
Uncertain tax positions(4)   0.01    -    0.01    - 
Tax effect of adjustments(5)   (0.01)   (0.01)   (0.02)   (0.10)
Adjusted diluted net income per share (non-GAAP)(6)  $1.44   $1.16   $2.49   $2.08 

 

(1) A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen and twenty-six weeks ended June 30, 2026 and July 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) Represents change to a reserve for uncertain tax positions taken in prior years related to tenant improvements allowances and Section 199 deductions. Uncertain tax positions taken in a tax return are recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by tax authorities based on technical merits, taking into account available administrative remedies and litigation.
(5) 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.
(6) Adjusted net income per share may not add due to rounding.

 

26901 Malibu Hills Road, Calabasas Hills, CA 91301· Telephone (818) 871-3000