Cheesecake Factory Comparable Sales Growth Accelerates

The Tip Desk · November 8, 2026 · 3 min read

Third-quarter revenue reached $1.03 billion as namesake comps rose 15.2% and diluted earnings were $1.19 a share.

The Cheesecake Factory Incorporated (CAKE) posted $1,033.4 million of total revenue in the third quarter of fiscal 2026, ending September 29, 2026, as comparable sales at its namesake restaurants rose 15.2% from a year earlier, after 5.8% growth in the second quarter and 1.6% in the first.

GAAP net income was $61.3 million, or $1.19 a share. The company recorded a pre-tax net income of $12.9 million related to Fox Restaurant Concepts acquisition-related items. Excluding the after-tax impact of those items and certain other items, adjusted net income was $52.3 million, or $1.02 a share.

Chairman and Chief Executive Officer David Overton said the company generated record quarterly revenue, with margins and earnings exceeding expectations, and that The Cheesecake Factory restaurants led performance, with comparable sales and traffic meaningfully outperforming the broader casual dining industry. He attributed the sales growth to menu innovation, the rewards program and social-media engagement, and said year-over-year improvements in labor productivity and food efficiency supported profitability.

Income from operations was $74.9 million, or 7.2% of revenues, compared with $37.3 million, or 4.1% of revenues, a year earlier. Labor expenses were 34.8% of revenues and food and beverage costs 21.2% of revenues, versus 35.6% and 21.8% a year earlier.

The Cheesecake Factory restaurants generated $754.4 million of revenue and $119.6 million of operating income, versus $651.4 million and $87.9 million a year earlier. The company had 218 company-owned locations at period-end.

North Italia revenue was $93.0 million with operating income of $4.1 million, versus $83.5 million and $5.9 million a year earlier; North Italia comparable sales declined 3% year-over-year. Other FRC revenue was $90.3 million with an operating loss of $3.6 million, versus $78.0 million and a $3.2 million loss a year earlier. The Other segment, which includes Flower Child, Grand Lux Cafe, third-party bakery, international and consumer packaged goods, unallocated corporate expenses and gift card costs, posted $95.8 million of revenue and an operating loss of $45.2 million, versus $94.4 million and a $53.3 million loss a year earlier.

During the quarter the company opened six new restaurants, including two Cheesecake Factory, one North Italia, one Flower Child and two FRC locations. Subsequent to quarter-end it opened two Flower Childs and one FRC restaurant. It continues to expect to open as many as 26 new restaurants in fiscal 2026, including as many as five Cheesecake Factory, eight North Italia, seven Flower Child and as many as six FRC restaurants.

As of September 29, 2026, total available liquidity was $585.3 million, including $249.3 million of cash and $336.0 million of availability on a revolving credit facility with no outstanding balance. Total principal amount of debt outstanding was $575 million, representing 2.00% convertible senior notes due 2030.

The company repurchased approximately 29,800 shares at a cost of $2.4 million in the third quarter. Its board declared a quarterly dividend of $0.30 a share, payable November 24, 2026, to shareholders of record on November 10, 2026.