The Cheesecake Factory (CAKE) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record $1,033.4M; net income was $61.3M, adjusted EBITDA was $98.7M (+38% YoY), and adjusted diluted EPS was $1.02.

• Cheesecake Factory comparable sales grew 15.2%, with traffic up 9.5% and restaurant-level margin expanding 240 bps to 18.7%.

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

Financial highlights

• Q3 revenue was $1,033.4M versus $907.2M; net income was $61.3M versus $31.9M, up 92% YoY.

• GAAP diluted EPS was $1.19 versus $0.66; adjusted diluted EPS was $1.02 versus $0.68, and adjusted EBITDA rose 38% to $98.7M.

• Adjusted net income was $52.3M versus $33.2M; adjusted net income margin was 5.1% versus 3.7%.

• Cheesecake Factory restaurant sales were $754.4M, North Italia $93.0M, Flower Child $56.5M, and other FRC sales $90.3M.

• Cost of sales improved 60 bps, labor 80 bps, other operating expenses 50 bps, G&A 10 bps and depreciation 20 bps as percentages of sales YoY.

Outlook and guidance

• Q4 revenue is forecast at $1.04B-$1.05B, with adjusted net income margin of ~5.8% at midpoint; assumptions include 3% pricing and flat traffic in the final three holiday weeks.

• Q4 estimates include ~$68M G&A, $30M depreciation, $13M pre-opening expense for 13 openings, a 14%-15% tax rate and ~52.5M diluted shares.

• FY2027 revenue target is ~$4.425B, with net income margin of 6.0%-6.1% and 10-20 bps combined G&A, depreciation and pre-opening leverage versus 2026.

• FY2027 commodity, labor and other operating expense inflation is projected in the low-to-mid single digits; assumed tax rate is ~12% and diluted shares ~52M.

• Cash CapEx is projected at ~$210M in 2026 and ~$220M in 2027; plans include up to 27 openings in 2027, roughly three quarters in H2.