The Cheesecake Factory (CAKE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 4% year-over-year to $927.2 million, with adjusted EPS up 27% to $0.93 and adjusted net income at $45.7 million, driven by new restaurant openings and higher comparable sales.

• Opened eight new restaurants in Q1, with plans for up to 25 new openings in 2025, including international expansion and a focus on North Italia, Flower Child, and FRC brands.

• Recognized for the 12th consecutive year on Fortune's 100 Best Companies to Work For list, highlighting strong staff retention and culture.

• Share repurchases totaled 2.6 million shares for $141.4 million, including 2.4 million shares repurchased with proceeds from new convertible notes.

• Issued $575 million of 2% convertible notes due 2030, using proceeds to repurchase $276 million of 2026 notes, fund share repurchases, and pay down revolving credit facility.

Financial highlights

• Q1 2025 total revenues reached $927.2 million, with adjusted net income margin at 4.9% and adjusted EBITDA at $87.7 million, up 16% year-over-year.

• Operating income increased to $52.0 million (5.6% of revenues), and cash flow from operations rose to $78.9 million.

• Cheesecake Factory restaurant sales were $672.7 million (+1% YoY), North Italia $83.4 million (+18% YoY), Flower Child $43.5 million (+26% YoY), and Other FRC $87.4 million.

• Four-wall restaurant margins at Cheesecake Factory increased to 17.4%, up 140 bps YoY.

• Free cash flow for FY 2024 was $123 million.

Outlook and guidance

• 2025 consolidated sales expected at ~$3.76 billion, with up to 25 new restaurant openings planned and capex guidance of $190–$210 million.

• Adjusted net income margin for Q2 projected at 5.3–5.4%; full-year at approximately 4.75%.

• Comparable sales growth targeted at 1–2% and top-line revenue growth at 7–8% annually.

• Pricing for 2025 expected to remain at 4%, with menu price increases moderating compared to prior years.

• Cash and available credit expected to provide adequate liquidity for the next 12 months.