The Cheesecake Factory (CAKE) investor relations material

Executive summary

• Record Q3 revenue was $1,033.4 million, up 13.9% YoY; net income rose to $61.3 million, and adjusted diluted EPS was $1.02.

• The Cheesecake Factory comparable sales rose 15.2%, led by 9.5% traffic growth, and outpaced the broader casual dining industry.

• Menu innovation, rewards and digital engagement, marketing, and improved labor productivity and food efficiency supported sales and profitability.

Financial highlights

• Net income was $61.3 million versus $31.9 million; GAAP diluted EPS was $1.19 versus $0.66, while adjusted diluted EPS was $1.02 versus $0.68.

• Adjusted net income was $52.3 million versus $33.2 million; adjusted EBITDA was $98.7 million versus $71.6 million, up 38% YoY.

• Income from operations was $74.9 million versus $37.3 million; income before taxes was $73.4 million versus $35.5 million.

• A $12.9 million pre-tax acquisition-related gain primarily reflected the final FRC contingent-consideration fair-value adjustment.

• Nine-month operating cash flow was $313.7 million, up from $226.4 million; cash ended the period at $249.3 million.

Outlook and guidance

• FY2026 plans call for up to 26 openings: five Cheesecake Factory, eight North Italia, seven Flower Child and six FRC restaurants; FY2026 cash CapEx is projected at ~$210 million.

• Q4 revenue is expected at $1.04–$1.05 billion, with adjusted net income margin of ~5.8% at the midpoint of the sales range.

• FY2027 revenue is targeted at ~$4.425 billion, with net income margin of 6.0%–6.1%; plans allow for as many as 27 openings and ~$220 million in cash CapEx.

• Q4 assumptions include low-single-digit commodity inflation, low- to mid-single-digit labor inflation, ~$68 million G&A, $30 million depreciation and $13 million pre-opening costs.

• FY2027 assumptions include a ~12% tax rate and ~52 million diluted weighted-average shares; recent sales momentum is early, and management expects results closer to its historical algorithm.