The Cheesecake Factory Incorporated (NASDAQ: CAKE) has announced its financial results for the third quarter of fiscal 2026, reporting record quarterly revenue, higher comparable restaurant sales and stronger-than-expected profitability. The results reflect the continued strength of The Cheesecake Factory brand, improved operational efficiency and growing customer engagement across the company’s restaurant portfolio.
The third quarter of fiscal 2026 ended on September 29, 2026. During the period, the company generated total revenue of $1,033.4 million, compared with $907.2 million in the corresponding quarter of fiscal 2025. The increase highlights the company’s continued business momentum and its ability to deliver growth across its restaurant operations.
Net income for the third quarter of fiscal 2026 reached $61.3 million, while diluted net income per share totaled $1.19. The company also reported a pre-tax net income benefit of $12.9 million associated with acquisition-related items involving Fox Restaurant Concepts (FRC).
After excluding the after-tax impact of the FRC acquisition-related items and certain other items, adjusted net income for the quarter amounted to $52.3 million. Adjusted diluted net income per share was $1.02. The company has provided a reconciliation of its non-GAAP financial measures in the financial details accompanying its earnings announcement.
One of the most notable highlights of the quarter was the strong performance of The Cheesecake Factory restaurants. Comparable restaurant sales at the namesake concept increased 15.2% year-over-year in the third quarter of fiscal 2026, reflecting improved customer traffic and sustained consumer interest in the brand.
Strong Sales Performance Drives Quarterly Results
The Cheesecake Factory’s third-quarter performance was supported by a combination of customer engagement, menu innovation, operational execution and continued brand relevance. The company reported that its namesake restaurants were the leading contributors to its overall performance, with comparable sales and customer traffic significantly outperforming the broader casual dining industry.
David Overton, Chairman and Chief Executive Officer of The Cheesecake Factory Incorporated, described the quarter as an exceptional period for the business.
“We delivered an exceptional third quarter, generating record quarterly revenue, with margins and earnings also exceeding our expectations,” Overton said.
He highlighted the performance of The Cheesecake Factory restaurants, noting that comparable sales and traffic had meaningfully exceeded broader casual dining industry trends.
According to Overton, the company’s experienced restaurant operators played an important role in delivering the strong results. Their focus on food quality, customer service and hospitality helped maintain the brand’s reputation and encourage repeat visits.
The company’s ability to consistently deliver a positive dining experience remains a key component of its business strategy. Management emphasized that operational execution, combined with a strong customer-focused approach, helped support the significant increase in comparable sales during the quarter.
Menu innovation also contributed to the company’s performance. By continuing to introduce new menu offerings and maintain a broad selection of food and beverage options, The Cheesecake Factory aims to attract a diverse customer base while encouraging existing guests to return.
The company’s rewards program and engagement across social media platforms also supported sales growth. These initiatives have helped strengthen relationships with customers, improve brand visibility and encourage more frequent restaurant visits.
In addition to revenue growth, the company reported improvements in labor productivity and food efficiency compared with the prior-year period. These operational gains contributed to stronger profitability and helped the company exceed its expectations for margins and earnings.
Brand Appeal and Customer Engagement Remain Key Priorities
The Cheesecake Factory continues to benefit from its longstanding brand recognition and its ability to appeal to customers across different generations.
Management noted that the brand’s popularity among younger consumers reinforces its continued relevance in the competitive casual dining market. The company believes that its broad appeal, distinctive menu and customer-focused restaurant experience provide important advantages as consumer preferences evolve.
Overton said the company remains committed to building on the brand’s established reputation while strengthening its connection with customers through digital channels and loyalty initiatives.
“The Cheesecake Factory has long enjoyed tremendous brand affinity across generations, and its ability to attract younger guests reinforces the enduring appeal and relevance of our namesake concept,” Overton said.
He added that the company is focused on delivering memorable dining experiences while expanding engagement through its rewards program and digital and social media platforms.
The company’s strategy emphasizes maintaining the qualities that have historically defined The Cheesecake Factory, including its extensive menu, hospitality and restaurant experience, while adopting new ways to engage with consumers.
Management believes these initiatives will help reinforce the company’s competitive position and support profitable growth over the long term.
The company also sees its customer relationships as an important foundation for continued shareholder value creation. Strong brand loyalty, consistent restaurant execution and operational improvements are expected to remain central to its business strategy.
Restaurant Development Continues Across Multiple Brands
The Cheesecake Factory Incorporated continued expanding its restaurant portfolio during the third quarter of fiscal 2026, opening six new restaurants across its concepts.
The new restaurant openings included:
- Two The Cheesecake Factory restaurants.
- One North Italia restaurant.
- One Flower Child restaurant.
- Two Fox Restaurant Concepts locations.
The company also continued its expansion following the end of the third quarter. Subsequent to September 29, 2026, the company opened two additional Flower Child restaurants and one Fox Restaurant Concepts restaurant.
The openings reflect the company’s continued investment in its restaurant brands and its efforts to expand its presence in key markets.
For fiscal 2026, The Cheesecake Factory Incorporated continues to expect to open as many as 26 new restaurants across its portfolio.
The company’s development outlook includes:
| Restaurant Brand | Expected New Locations in Fiscal 2026 |
|---|---|
| The Cheesecake Factory | Up to 5 |
| North Italia | 8 |
| Flower Child | 7 |
| Fox Restaurant Concepts | Up to 6 |
| Total | Up to 26 |
The planned development program demonstrates the company’s commitment to expanding its restaurant footprint while maintaining a diversified portfolio of dining concepts.
The Cheesecake Factory remains the company’s flagship brand, while North Italia, Flower Child and Fox Restaurant Concepts provide additional opportunities to reach customers with different dining preferences and experiences.
The company expects its development initiatives to support its long-term growth strategy and strengthen its presence in the restaurant industry.
Liquidity Position Supports Financial Flexibility
The Cheesecake Factory Incorporated reported a solid liquidity position as of September 29, 2026, providing financial flexibility to support ongoing operations, restaurant development and capital allocation priorities.
The company had total available liquidity of $585.3 million at the end of the third quarter of fiscal 2026.
This amount included $249.3 million in cash and cash equivalents, along with $336.0 million available under its revolving credit facility. The company reported no outstanding balance on its revolving credit facility at the end of the quarter.
Total outstanding debt principal amounted to $575 million, representing the principal amount of the company’s 2.00% convertible senior notes due 2030.
The company’s liquidity position provides resources to support its restaurant expansion plans and other strategic initiatives while maintaining financial flexibility.
Management continues to focus on balancing investments in the business with capital returns to shareholders.
Share Repurchases and Quarterly Dividend Announced
The company continued returning capital to shareholders during the third quarter of fiscal 2026 through its share repurchase program.
During the quarter, The Cheesecake Factory Incorporated repurchased approximately 29,800 shares of its common stock at a total cost of $2.4 million.
In addition to share repurchases, the company’s Board of Directors declared a quarterly cash dividend of $0.30 per share.
The dividend is scheduled to be paid on November 24, 2026, to shareholders of record as of the close of business on November 10, 2026.
The dividend declaration reflects the company’s ongoing commitment to returning capital to shareholders while continuing to invest in its restaurant operations and development initiatives.
Outlook: Building on Strong Business Momentum
The Cheesecake Factory Incorporated’s third-quarter fiscal 2026 results highlight the strength of its namesake restaurant brand, supported by strong comparable sales, customer traffic growth and improved operational efficiency.
The company reported record quarterly revenue of $1.03 billion, alongside net income of $61.3 million and diluted earnings per share of $1.19.
Management attributed the strong performance to continued customer engagement, menu innovation, rewards program participation, social media activity and effective restaurant-level execution.
The company also remains focused on expanding its restaurant portfolio, with plans to open as many as 26 new locations during fiscal 2026 across The Cheesecake Factory, North Italia, Flower Child and Fox Restaurant Concepts.
With a strong liquidity position, continued restaurant development and ongoing capital returns to shareholders, the company is working to build on its current momentum.
Management believes the enduring appeal of The Cheesecake Factory brand, together with its operational capabilities and diversified restaurant portfolio, will support profitable growth and long-term shareholder value.
The third-quarter results demonstrate the company’s ability to combine strong consumer demand with disciplined restaurant operations, positioning the business to continue pursuing growth opportunities in the competitive dining industry.
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