Highlights

  • Third quarter fiscal 2026 total revenues were $1,033.4 million, compared with $907.2 million, and diluted earnings were $1.19 per share.
  • Comparable restaurant sales at The Cheesecake Factory restaurants increased 15.2% year-over-year in the third quarter of fiscal 2026.
  • Total available liquidity was $585.3 million at September 29, 2026, including a cash balance of $249.3 million.
  • Management said it targets fiscal 2027 total revenue of approximately $4.425 billion and net income margin of 6.0% to 6.1%.

The Cheesecake Factory Incorporated (NASDAQ:CAKE) shares were trading at USD 104.84 on October 28, 2026, down 3.35%, with a relative volume at time of 3.48. The restaurant company declared a quarterly dividend on October 21 and reported third quarter fiscal 2026 results on October 27, followed by an earnings call with outlook commentary on October 28.

The Cheesecake Factory is incorporated in Delaware and lists its principal executive offices in Calabasas Hills, California. The company owns and operates 383 restaurants throughout the United States and Canada under brands including The Cheesecake Factory, North Italia, Flower Child and a collection of other Fox Restaurant Concepts (FRC) brands. Internationally, 35 The Cheesecake Factory restaurants operate under licensing agreements. Its bakery division operates two facilities that produce cheesecakes and other baked products for its restaurants, international licensees and third-party customers.

Third Quarter Fiscal 2026 Results

For the third quarter of fiscal 2026, which ended on September 29, 2026, total revenues were $1,033.4 million, compared with $907.2 million in the third quarter of fiscal 2025. Income from operations was $74,873 thousand, compared with $37,269 thousand. Net income was $61.3 million, or $1.19 per diluted share, compared with $31,899 thousand, or $0.66 per diluted share.

The company recorded pre-tax net income of $12.9 million related to FRC acquisition-related items. On a non-GAAP basis, adjusted net income was $52.3 million and adjusted diluted net income per share was $1.02.

Revenues by brand were $754,374 thousand for The Cheesecake Factory restaurants, $92,993 thousand for North Italia, $90,313 thousand for Other FRC and $95,760 thousand for Other. Preopening costs were $11,160 thousand, compared with $6,584 thousand.

For the 39 weeks ended September 29, 2026, revenues were $3,041,906 thousand and net income was $179,242 thousand, or $3.62 per diluted share, compared with $119,652 thousand, or $2.46 per diluted share.

Liquidity, Capital Allocation and Development

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

During the third quarter, the company repurchased approximately 29,800 shares at a cost of $2.4 million. The Board declared a quarterly dividend of $0.30 per share, payable November 24, 2026 to shareholders as of the close of business on November 10, 2026. On the call, management said capital expenditures were approximately $58 million in the quarter.

The company opened six new restaurants during the quarter and three more after quarter-end. It continues to expect to open as many as 26 new restaurants in fiscal 2026, including as many as five The Cheesecake Factory restaurants, eight North Italia locations, seven Flower Child locations and as many as six FRC restaurants.

Outlook

The company said it will not provide specific comparable sales and earnings guidance. On the October 28, 2026 call, management said it anticipates fourth quarter total revenues of $1.04 billion to $1.05 billion. It estimated general and administrative expense of approximately $68 million and approximately $210 million in cash capital expenditures for fiscal 2026.

For fiscal 2027, management said it expects to open as many as 27 new restaurants, with roughly three-quarters planned for the second half of the year. It is targeting total revenue of approximately $4.425 billion and expects a full-year net income margin of 6.0% to 6.1% at that sales estimate. Management said it estimates total inflation across its commodity basket, labor and other operating expenses in the low- to mid-single-digit range.