Cheesecake Factory Releases First Quarter 2025 Earnings Report
The Cheesecake Factory Incorporated (NASDAQ: CAKE), a leading experiential dining company known for its extensive menu and hospitality, today announced financial results for the first quarter of fiscal year 2025, which ended on April 1, 2025. The results indicate a strong start to the fiscal year, highlighted by growth in revenues, solid profitability, and continued strategic execution.
First Quarter Financial Performance
In the first quarter of fiscal 2025, the company posted total revenues of $927.2 million, a year-over-year increase from $891.2 million reported during the same period in fiscal 2024. This 4% rise in total revenues reflects sustained customer demand, operational improvements, and the contribution of new restaurant openings across the company’s portfolio of concepts.
Net income for the quarter was reported at $32.9 million, while diluted net income per share came in at $0.67. These results include a pre-tax net expense of $17.3 million, primarily tied to several one-time items. These include the financial impact from the partial redemption of convertible senior notes due in 2026, acquisition-related costs from Fox Restaurant Concepts (FRC), impairment of assets, and lease termination expenses. These costs slightly weighed on the company’s bottom line but were offset by strong core operating performance.
When excluding these non-recurring and non-operational expenses, adjusted net income for the quarter rose to $45.7 million, with adjusted diluted earnings per share reaching $0.93. These adjusted figures provide a more accurate view of the company’s underlying financial health and highlight its operational strength during the quarter. A full reconciliation of GAAP to non-GAAP financial results is available at the conclusion of the company’s official press release.
Comparable Restaurant Sales and Operational Excellence
The Cheesecake Factory’s flagship restaurants delivered a 1.0% year-over-year increase in comparable restaurant sales for the quarter, demonstrating the concept’s enduring popularity among guests and the resilience of the brand in a competitive casual dining environment.
David Overton, Chairman and Chief Executive Officer of The Cheesecake Factory Incorporated, commented on the company’s quarterly performance, stating, “Our first quarter results reflect a strong start to the year as we delivered solid top-line revenue growth, margin expansion, and earnings. This performance underscores the positive momentum across our operations and the strength of our restaurant concepts.”
He added, “Sales landed towards the upper end of our internal expectations, largely driven by strong consumer demand for The Cheesecake Factory dining experience. Our operators continue to execute exceptionally well across the board—whether in labor productivity, food efficiency, wage management, or team retention. These factors collectively supported strong profit flow-through and margin enhancement during the period.”
A Culture Built for Long-Term Success
Overton also emphasized the company’s enduring cultural strengths and commitment to hospitality. “For more than 40 years, our success has been built on delivering high-quality, memorable dining experiences. These core values continue to distinguish our brands and drive long-term performance,” he said.
In recognition of its unique culture and employee engagement, The Cheesecake Factory was named to Fortune magazine’s list of the “100 Best Companies to Work For” for the twelfth consecutive year. This accolade reinforces the company’s reputation as an employer of choice in the hospitality industry and reflects the dedication of its teams across the country.
Restaurant Development and Growth Strategy
As part of its ongoing expansion, The Cheesecake Factory Incorporated opened eight new restaurants in the first quarter of fiscal 2025. These included three North Italia locations, three Flower Child restaurants, and two additional restaurants under the Fox Restaurant Concepts umbrella. These openings contribute to the company’s diversified growth strategy across its various culinary brands.
Following the end of the quarter, the company has already launched three more restaurants—one additional Flower Child and two new FRC locations—further accelerating its presence in key markets.
Looking ahead, the company plans to open up to 25 new restaurants throughout fiscal 2025. This pipeline includes an expected three to four new The Cheesecake Factory locations, six to seven North Italia restaurants, six to seven Flower Child units, and eight to nine new FRC concepts. This broad-based development plan reflects strong consumer interest and strategic opportunities across all of the company’s dining formats.
Capital Allocation and Balance Sheet Management
During the first quarter, the company took decisive steps to strengthen its capital structure and return value to shareholders. On February 28, 2025, The Cheesecake Factory issued $575 million of 2.00% convertible senior notes due in 2030. The net proceeds from this offering were strategically deployed to repurchase $276 million of the company’s existing convertible senior notes due in 2026, buy back 2.4 million shares of common stock, and fully pay down the outstanding balance on its revolving credit facility.
As of April 1, 2025, the company had total available liquidity of $501.9 million. This includes $135.4 million in cash and $366.5 million in unused availability on its revolving credit facility, which had no outstanding balance at quarter-end. The company’s total debt stood at $644.0 million, comprising $69.0 million in 0.375% convertible notes due 2026 and $575.0 million in 2.00% convertible notes due 2030.
In addition to its capital structure initiatives, the company repurchased approximately 2.6 million shares of its common stock during the first quarter, at a total cost of $141.4 million. This buyback included shares repurchased with proceeds from the newly issued convertible notes. These actions reflect management’s confidence in the company’s long-term growth prospects and its commitment to disciplined capital deployment.
Furthermore, the Board of Directors has declared a quarterly dividend of $0.27 per share, payable on May 27, 2025, to shareholders of record as of May 14, 2025. The dividend reinforces the company’s balanced approach to shareholder returns through both stock repurchases and cash distributions.
Earnings Conference Call and Webcast
The Cheesecake Factory Incorporated will host a conference call today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to review its results for the first quarter of fiscal 2025. The call will be webcast live and accessible via the investor relations section of the company’s
