The Cheesecake Factory (CAKE) Q4 2024 earnings summary

Executive summary

• Q4 and full-year 2024 delivered record high annual revenues and adjusted EPS, with all key metrics exceeding guidance.

• Opened 23 new restaurants in 2024, the highest annual total to date, with strong consumer demand and robust off-premise channel presence.

• Recognized for best-in-class operational execution, industry-leading staff retention, and 11 consecutive years on Fortune's “100 Best Companies to Work For” list.

• Menu innovation, including a new menu with 20+ items, and operational excellence drove industry outperformance in sales and traffic.

• Portfolio includes high-growth concepts with significant domestic and international expansion potential.

Financial highlights

• Q4 2024 total revenues reached $921 million, up 5% year-over-year; adjusted net income margin was 5.6%, both above guidance.

• Fiscal year 2024 revenues were $3.6 billion, adjusted EPS $3.44 (up 28% YoY), and Adjusted EBITDA $329 million.

• Q4 GAAP diluted EPS was $0.83; adjusted diluted EPS was $1.04, up 30% from prior year.

• Cheesecake Factory Q4 sales: $669.4 million (+2% YoY); North Italia: $81.3 million (+21% YoY); Flower Child: $38.2 million (+25% YoY).

• Restaurant-level margins: Cheesecake Factory 18.4% (highest in 7+ years), North Italia mature locations 18.8%, Flower Child mature locations 16.4%.

Outlook and guidance

• 2025 consolidated sales expected to be approximately $3.8 billion, with up to 25 new restaurant openings planned.

• Adjusted net income margin for Q1 2025 projected at 4.3%–4.4%; full-year net income margin expected at ~4.75%.

• Capital expenditures projected at $190–$210 million; Q1 2025 dividend set at $0.27 per share.

• Commodity and labor inflation modeled in low to mid-single digits; G&A and depreciation expected to be stable or slightly lower as a percent of sales.

• Guidance assumes no material operating or consumer disruptions; weather already impacted Q1 sales.