The Cheesecake Factory (CAKE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 4.3% year-over-year to $865.5 million, driven by new restaurant openings and higher comparable sales, with strong operational execution and guest satisfaction improvements.

• Net income for Q3 2024 was $30.0 million, with diluted EPS of $0.61 and adjusted EPS of $0.58, both up significantly year-over-year.

• Opened four new restaurants in Q3 and 17 year-to-date, on track for up to 22 new openings in 2024 and as many as 24 in 2025.

• Recognized for best-in-class operational execution, high staff retention, and strong consumer engagement, with a robust pipeline for domestic and international expansion.

• Continued focus on value creation, portfolio optimization, and long-term profitable growth.

Financial highlights

• Q3 2024 total revenue was $865.5 million, up 4.3% year-over-year, with net income of $30.0 million and adjusted net income margin of 3.3%.

• Adjusted diluted EPS grew 49% year-over-year to $0.58; GAAP diluted EPS was $0.61.

• Cheesecake Factory Q3 sales were $647.8 million (up 3.1% YoY), North Italia $71.9 million (up 15.2% YoY), Flower Child $36.6 million (up 13.7% YoY), and Other FRC $67.0 million (up 14.3% YoY).

• Operating margin improved to 3.9% in Q3 2024 from 2.3% in Q3 2023; cost of sales and labor as a percent of sales both decreased year-over-year.

• Free cash flow for FY 2023 was $120 million.

Outlook and guidance

• FY 2024 revenue expected to be ~$3.57 billion; net income margin projected at ~4.5%.

• FY 2025 revenue expected to be ~$3.75 billion; net income margin projected at ~4.75%.

• Up to 22 new restaurant openings planned in 2024, including up to three Cheesecake Factory, six North Italia, six to seven Flower Child, and eight FRC restaurants; as many as 24 openings in 2025.

• Capital expenditures for 2024 estimated at $180–$200 million; for 2025, $190–$210 million, including new bakery facility development.

• G&A as a percent of sales to decrease by 10 bps in 2025; depreciation estimated at $106 million.