Cheesecake Factory Posts Record $1.03B as Flagship Comps Jump 15.2% and Adjusted EPS Rises 50%
The Cheesecake Factory's third-quarter revenue rose 13.9% to a record $1.03 billion as comparable sales at its flagship restaurants jumped 15.2%. Adjusted EPS climbed to $1.02, margins expanded, and the company is on track for up to 26 openings this year.
The Cheesecake Factory (CAKE) reported record third-quarter revenue of $1.03 billion on Tuesday, up 13.9% from a year ago, as comparable sales at its flagship Cheesecake Factory restaurants jumped 15.2%. Adjusted earnings were $1.02 a share, up from $0.68, and GAAP earnings were $1.19, up from $0.66. Chief executive David Overton said the company delivered an "exceptional third quarter."
The quarter in numbers
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Total revenues | $1,033.4M | $907.2M | +13.9% |
| Income from operations | $74.9M | $37.3M | +101% |
| Operating margin | 7.2% | 4.1% | +3.1 pts |
| GAAP net income | $61.3M | $31.9M | +92% |
| Adjusted net income | $52.3M | $33.2M | +58% |
| GAAP diluted EPS | $1.19 | $0.66 | +80% |
| Adjusted diluted EPS | $1.02 | $0.68 | +50% |
The percentage changes in the table are by our calculation. GAAP earnings ran ahead of adjusted earnings because the quarter included $12.9 million of income from acquisition-related contingent consideration, compared with a $0.9 million expense a year ago.
Comparable sales
Comparable sales at The Cheesecake Factory restaurants rose 15.2%, against +0.3% in the year-ago quarter, which was the main driver of the revenue gain. North Italia comparable sales fell 3%, the same as a year ago. The company did not report a comparable-sales figure for Flower Child or its other Fox Restaurant Concepts brands in the release.
Costs and margins
| % of revenue | Q3 2026 | Q3 2025 |
|---|---|---|
| Food and beverage | 21.2% | 21.8% |
| Labor | 34.8% | 35.6% |
| Other operating | 27.7% | 28.2% |
| General and administrative | 6.4% | 6.5% |
| Preopening | 1.1% | 0.7% |
Each of the three main restaurant cost lines fell as a share of sales. By our calculation, that puts restaurant-level margin, defined as revenue less food, labor and other operating costs, at about 16.3%, up from about 14.4% a year ago. Higher traffic and sales at existing restaurants spread fixed costs, while preopening expense rose as the company opened more locations.
Openings and guidance
Cheesecake Factory opened six restaurants in the quarter, two of The Cheesecake Factory, one North Italia, one Flower Child and two other FRC, versus two a year ago, and 13 year to date. Three more opened after quarter end. The company kept its outlook for up to 26 openings in 2026: up to five Cheesecake Factory, eight North Italia, seven Flower Child and six FRC restaurants. The release did not include revenue, tax rate or capital spending guidance.
Balance sheet and capital return
Cash was $249.3 million at quarter end, with $585.3 million of total liquidity including an undrawn $336 million revolver. Debt consists of $575 million of 2.00% convertible senior notes due 2030. The board declared a $0.30 quarterly dividend payable Nov. 24 to holders of record on Nov. 10, and the company repurchased about $2.4 million of stock in the quarter.
Sources: The Cheesecake Factory, third-quarter fiscal 2026 results (Oct. 27). This is informational, not a recommendation to buy or sell.
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