Cheesecake Factory posted record revenue on a 15% comparable-sales surge

Free daily briefing on global business news.

Global business news for a smarter world

Net income rose to $61.3 million from $31.9 million, while comparable sales at North Italia fell 3% in the quarter

Kevin Carter / Getty Images

The Cheesecake Factory reported record quarterly revenue of $1.03 billion for the third quarter on Tuesday, as comparable sales at its namesake restaurants rose 15.2%. The company's fiscal third quarter ended Sept. 29.

Revenue was up from $907.2 million a year earlier. Net income was $61.3 million, or $1.19 a diluted share, compared with $31.9 million, or 66 cents a share, in the same quarter of 2025. Adjusted net income was $52.3 million, or $1.02 a share. The company recorded $12.9 million of pre-tax income tied to acquisition-related items from its Fox Restaurant Concepts unit.

Analysts polled by FactSet had expected adjusted earnings of 96 cents a share, according to The Wall Street Journal. The same poll put the revenue forecast at $1 billion, according to The Wall Street Journal.

The 15.2% rise compared with 0.3% growth in the third quarter of 2025 at The Cheesecake Factory restaurants. Revenue at those restaurants was $754.4 million, up from $651.4 million. Comparable sales at North Italia fell 3%, the same decline as a year earlier.

Chairman and Chief Executive David Overton said The Cheesecake Factory restaurants beat the wider casual dining sector in both comparable sales and customer traffic. In a statement, he pointed to newer menu offerings, the rewards program and customer engagement on social media as the drivers behind the higher sales. He said profitability was helped by a more productive workforce and more efficient use of food.

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

The company opened six restaurants in the quarter: two Cheesecake Factory locations, one North Italia, one Flower Child and two Fox Restaurant Concepts locations. It opened three more after the quarter ended. The company still plans up to 26 restaurant openings in fiscal 2026.

The board declared a quarterly dividend of $0.30 a share, payable Nov. 24 to shareholders of record on Nov. 10. The company repurchased about 29,800 shares of its stock in the quarter at a cost of $2.4 million. It ended the quarter with $585.3 million in available liquidity, including $249.3 million in cash.

Join 500,000+ readers who start their day with Quartz.

By subscribing, you agree to our Terms of Service and Privacy Policy.