The Cheesecake Factory Incorporated (NASDAQ: CAKE) has released its financial results for the fourth quarter of fiscal 2024, which concluded on December 31, 2024. The company demonstrated strong financial performance, with increased revenue, improved profitability, and continued expansion across its diverse portfolio of restaurant brands.
Financial Performance Overview
For the fourth quarter of fiscal 2024, The Cheesecake Factory reported total revenues of $921.0 million, reflecting a 5.0% increase from the $877.0 million reported in the fourth quarter of fiscal 2023. This revenue growth was fueled by a combination of higher consumer traffic, menu price adjustments, and the successful opening of new restaurant locations.
Net income for the fourth quarter of 2024 stood at $41.2 million, with a diluted net income per share of $0.83. In comparison to the same period in fiscal 2023, this marks a significant improvement in the company’s bottom-line performance, demonstrating enhanced operational efficiency and effective cost management.
Additionally, the company recorded a pre-tax net expense of $14.4 million, primarily related to asset impairments and lease termination expenses. However, this was partially offset by acquisition-related income associated with Fox Restaurant Concepts (FRC). Excluding the after-tax impact of these one-time expenses, adjusted net income for the quarter was $51.8 million, with an adjusted diluted net income per share of $1.04.
Comparable Restaurant Sales Growth
One of the key performance metrics for the quarter was the 1.7% increase in comparable restaurant sales at The Cheesecake Factory locations, compared to the same period in the previous year. This growth reflects a strong consumer preference for the brand, ongoing efforts to enhance the dining experience, and strategic marketing initiatives that have driven higher guest engagement.
CEO Commentary and Strategic Vision
David Overton, Chairman and Chief Executive Officer of The Cheesecake Factory, expressed enthusiasm about the company’s performance in the fourth quarter and throughout fiscal 2024.
“Our fourth-quarter performance capped off an excellent year, with solid revenue and earnings contributing to record annual revenue and substantially improved profitability for 2024,” said Overton. “While our fourth-quarter results were led by the strength of The Cheesecake Factory restaurants, we delivered impressive performance across our portfolio of concepts. Consumer demand for the distinct, high-quality dining experiences we provide across our experiential concepts reinforces our confidence in the long-term growth potential of our portfolio.”
Overton also highlighted the company’s success in capturing market share in the highly competitive casual dining industry. “We continued to outperform the broader casual dining sector in terms of comparable sales and traffic, demonstrating the strength of our brand and the appeal of our menu offerings. During the fourth quarter, we opened nine new restaurants to strong consumer demand, exceeding our initial development expectations for the year.”
Restaurant Development and Expansion
The Cheesecake Factory has continued its aggressive expansion strategy, reinforcing its position as a leading restaurant operator in the industry. In the fourth quarter alone, the company opened nine new restaurants, including:
- Three North Italia locations
- Two Flower Child locations
- Two Fox Restaurant Concepts (FRC) restaurants
- Relocation of two The Cheesecake Factory restaurants
Following the end of the quarter, the company maintained its expansion momentum by opening five additional restaurants, comprising:
- One North Italia location
- Two Flower Child locations
- Two FRC restaurants
Looking ahead to fiscal 2025, The Cheesecake Factory anticipates opening as many as 25 new restaurants across its various brands. This includes:
- Three to four The Cheesecake Factory restaurants
- Six to seven North Italia locations
- Six to seven Flower Child locations
- Eight to nine FRC restaurants
This ambitious expansion plan aligns with the company’s long-term growth strategy of enhancing its market presence and broadening its customer base. Each new opening is strategically selected based on market demand, customer demographics, and brand positioning.
Liquidity and Capital Allocation
As of December 31, 2024, The Cheesecake Factory maintained total available liquidity of $340.7 million, reflecting the company’s strong financial position. This includes:
- Cash balance of $84.2 million
- Availability of $256.5 million on its revolving credit facility
In terms of debt obligations, the company reported a total principal amount of debt outstanding at $455 million, which consists of:
- $345 million in principal amount of 0.375% convertible senior notes due June 2026
- $110 million drawn from the company’s revolving credit facility
Share Repurchases and Dividend Announcement
During the fourth quarter of fiscal 2024, The Cheesecake Factory repurchased approximately 11,800 shares of its stock at a total cost of $0.5 million. This reflects the company’s commitment to returning value to shareholders through strategic capital allocation initiatives.
Additionally, the company’s Board of Directors declared a quarterly dividend of $0.27 per share, which is set to be paid on March 18, 2025, to shareholders of record as of March 5, 2025. This dividend declaration underscores the company’s confidence in its financial stability and its ability to generate consistent cash flows.
Outlook for Fiscal 2025 and Beyond
Following a strong fiscal 2024 performance, The Cheesecake Factory remains well-positioned for continued growth and expansion in 2025. The company has outlined several strategic priorities for the upcoming year:
- Accelerating New Unit Growth – With plans to open up to 25 new restaurants, the company is committed to expanding its footprint and reinforcing brand strength across its multiple restaurant concepts.
- Enhancing Comparable Sales Growth – By continuing to focus on menu innovation, customer service enhancements, and targeted marketing campaigns, the company aims to drive incremental sales growth at existing locations.
- Margin Expansion and Cost Efficiency – Through disciplined cost management and operational efficiencies, The Cheesecake Factory aims to improve profitability and deliver sustainable earnings growth.
- Maximizing Shareholder Value – The company remains committed to its balanced approach to capital allocation, including share repurchases, dividend payments, and reinvestments in business expansion.
Final Thoughts
The Cheesecake Factory’s strong fourth-quarter results serve as a testament to the company’s robust business model, strategic execution, and ability to adapt to evolving market trends. With increasing revenue, expanding restaurant locations, and a solid financial foundation, the company is well-equipped to achieve its growth objectives in fiscal 2025 and beyond.
As The Cheesecake Factory continues to refine its operations, invest in innovation, and expand its market presence, it remains confident in its ability to drive long-term value for its shareholders, employees, and loyal customers. With a clear vision and disciplined execution, the company is poised for sustained success in the years ahead.
