The Cheesecake Factory (CAKE) Q3 2025 earnings summary

Executive summary

• Third quarter 2025 revenue reached $907.2 million, up 4.8% year-over-year, driven by new restaurant openings and higher comparable sales.

• Net income for Q3 2025 was $31.9 million, with diluted EPS of $0.66 and adjusted EPS of $0.68, exceeding expectations.

• Comparable sales at The Cheesecake Factory increased 0.3% year-over-year, with annualized unit volumes over $12 million.

• Menu innovation, operational discipline, and strong off-premise channel presence supported profitability and margin improvement.

• Management highlighted strong execution in labor productivity, wage management, and retention, supporting healthy margins.

Financial highlights

• Q3 2025 revenue: $907.2 million (+4.8% YoY); net income: $31.9 million; adjusted EBITDA: $71.6 million (+12% YoY); adjusted net income margin: 3.7%.

• Cheesecake Factory Q3 sales: $651.4M (+0.6% YoY), North Italia: $83.5M (+16.1%), Flower Child: $48.1M (+31.4%), FRC: $78M (+16.5%).

• Restaurant-level profit margins: Cheesecake Factory 16.3%, North Italia 15.7%, Flower Child 17.4%.

• Operating margin for Q3 2025 was 4.1%; net income margin was 3.5%.

• Cash and cash equivalents at quarter-end: $190M; total available liquidity: $556.5M; total debt: $644M.

Outlook and guidance

• Up to 25 new restaurant openings planned for 2025, including four Cheesecake Factory, six North Italia, six Flower Child, and nine FRC units.

• Q4 2025 revenue expected between $940M–$955M; full-year 2025 net income margin outlook at 4.9%.

• 2026 revenue growth targeted at 4%-5% over 2025, with 26 new restaurant openings planned.

• CapEx for 2025 projected at $190M–$200M; 2026 at $200M–$210M.

• Management anticipates adequate liquidity for the next 12 months and foreseeable future.