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 challenging industry conditions 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 and strong operational execution, driving industry-leading retention and high unit volumes.

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

• Announced increased share repurchase authorization and raised quarterly dividend, reflecting confidence in business strength and commitment to shareholder returns.

Financial highlights

• FY2025 total revenues reached $3.8B, up 5% year-over-year; adjusted EBITDA was $354M.

• Q4 total revenues were $961.6M, including $17.3M in gift card breakage; excluding this, revenues were $944.3M.

• Adjusted net income margin was 5.1% and adjusted diluted EPS was $1 for Q4, both at the higher end of expectations.

• Diluted net income per share was $3.06, down 4%, while adjusted diluted EPS increased 10% to $3.77.

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

Outlook and guidance

• FY2026 revenue guidance at approximately $3.9B, with low- to mid-single-digit inflation expected across commodities, labor, and operating expenses.

• Q1 2026 revenue expected between $955M and $970M, factoring in weather impacts and recent closures.

• Full-year net income margin projected at ~5%; G&A estimated at 6.5% of sales; CapEx planned at $210M for development and maintenance.

• 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.

• Management remains confident in achieving development goals and long-term growth despite a competitive environment.