Highlights

  • Second quarter fiscal 2026 revenues were $1,029.6 million, compared with $955.8 million, and net income was $68,394 thousand.
  • Diluted net income per share was $1.41 for the quarter ended June 30, 2026, compared with $1.14.
  • The Cheesecake Factory comparable sales increased 5.8%, while North Italia comparable sales decreased approximately 3% in the quarter.
  • The company expects to open as many as 26 restaurants in fiscal 2026, with approximately $210 million of capital expenditures.

The Cheesecake Factory Incorporated (NASDAQ: CAKE) shares were trading at USD 110.77 on October 27, 2026, up 0.58%, with a relative volume at time of 2.15. The restaurant company entered into a new revolving credit agreement on March 26, 2026, repaid its 2026 convertible notes at maturity on June 15, 2026, declared a quarterly dividend on July 23, 2026, and filed its second quarter fiscal 2026 report on August 3, 2026.

The Cheesecake Factory Incorporated is a Delaware corporation with principal executive offices at 26901 Malibu Hills Road in Calabasas Hills, California. The company owns and operates 375 restaurants in the United States and Canada under The Cheesecake Factory (217 locations), North Italia (51), Flower Child (44) and other brands within its FRC portfolio (57). Internationally, 36 Cheesecake Factory restaurants operate under licensing agreements. A bakery division operates two facilities. It uses a 52/53-week fiscal year ending on the Tuesday closest to December 31.

Second Quarter Fiscal 2026 Results

The Form 10-Q covers the thirteen weeks ended June 30, 2026 and reports unaudited results. Revenues increased 7.7% to $1,029.6 million from $955.8 million, which the company attributed primarily to higher comparable restaurant sales and new restaurant openings. Net income was $68,394 thousand, compared with $54,812 thousand, and diluted net income per share was $1.41, compared with $1.14.

The Cheesecake Factory Restaurants sales were $729.5 million, with comparable sales up 5.8%, reflecting a 3.1% increase in average check and a 2.7% increase in customer traffic. North Italia sales were $98.4 million, and comparable sales decreased approximately 3%, with customer traffic down 5%. Flower Child sales were $56.6 million, with comparable sales up approximately 13%. Other FRC sales were $104.0 million.

Food and beverage costs were 21.8% of revenues, compared with 21.6%, which the company attributed to higher meat, produce and seafood costs partly offset by lower dairy pricing. Labor expenses were 34.1% of revenues, compared with 34.9%. General and administrative expenses were 6.4% of revenues, compared with 6.1%, and preopening costs were $7.0 million, compared with $9.0 million. The effective income tax rate was 11.1%, compared with 11.9%.

For the twenty-six weeks ended June 30, 2026, revenues were $2,008.5 million, compared with $1,883.0 million, and net income was $117,942 thousand, or $2.43 per diluted share.

Balance Sheet, Debt and Capital Returns

Cash and cash equivalents decreased by $20.5 million to $195.2 million during the first six months of fiscal 2026. Cash provided by operating activities was $188.9 million, compared with $135.8 million, and additions to property and equipment were $86.3 million.

On March 26, 2026, the company entered into a Fifth Amended and Restated Loan Agreement for a revolving credit facility with total commitments of $400 million, maturing March 26, 2031. As of June 30, 2026, net availability for borrowings was $366.5 million. The company also has $575.0 million of 2030 convertible senior notes, with a balance of $562.9 million net of unamortized issuance costs. The 2026 convertible notes matured on June 15, 2026, and the company repaid the remaining $69.0 million in cash.

Common stock dividends paid were $29.9 million in the first six months of fiscal 2026. Treasury stock purchases were $29.4 million. On July 23, 2026, the Board declared a quarterly cash dividend of $0.30 per share, payable August 25, 2026. On February 12, 2026, the Board increased the repurchase authorization by 5.0 million shares to 66.0 million shares.

Development Plans and Outlook

The company opened seven restaurants in the first six months of fiscal 2026, consisting of three North Italia, two Flower Child and two Other FRC locations, compared with 16 a year earlier. It expects to open as many as 26 new restaurants in fiscal 2026 and anticipates approximately $210 million in capital expenditures. The filing does not provide numerical revenue or earnings guidance.