The Cheesecake Factory (CAKE) Q4 2025 earnings summary

Executive summary

• Delivered stable top-line performance and profitability in Q4 2025, with revenue within expected range despite industry headwinds and weather impacts.

• Achieved record annual revenue and adjusted diluted EPS for 2025, supported by strong sales growth and the highest number of new restaurant openings in company history.

• Experiential dining leader with diversified growth engines, strong operational execution, and industry-leading retention and unit volumes.

• Portfolio includes 368 restaurants across the US and Canada, with international expansion and a strong brand presence.

• Consistent recognition as a top employer and high consumer engagement through social media and rewards programs.

Financial highlights

• FY2025 total revenues reached $3.8B, up 5% year-over-year; Q4 revenues were $961.6M, including $17.3M in gift card breakage.

• Adjusted diluted EPS for FY2025 was $3.77 (up 10% YoY); Q4 adjusted diluted EPS was $1.00.

• Net income for Q4 2025 was $28.8M, with a net income margin of 3.0%; adjusted net income margin was 5.1%.

• Returned over $206M to shareholders in 2025 via dividends and stock repurchases.

• Free cash flow and adjusted EBITDA have shown consistent growth, with adjusted EBITDA at $354M for FY2025.

Outlook and guidance

• FY2026 revenue projected at ~$3.9B, with Q1 2026 revenue expected between $955M and $970M.

• Plan to open up to 26 new restaurants in 2026, including 6 Cheesecake Factory, 6–7 North Italia, 6–7 Flower Child, and up to 8 FRC locations.

• Full-year net income margin expected at ~5%; G&A to be ~6.5% of sales; depreciation ~$115M; pre-opening expenses $35M–$36M.

• Capital expenditures projected at $210M, with ongoing dividend and share repurchase programs.