Cheesecake Factory Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 18 February 2026: press release. Guidance figures: 2 raised, 2 new. The quarter’s numbers.

Key takeaways

Revenue rose to $961.6 million: Revenue was $961.6 million against $921.0 million a year earlier, an increase of about 4.4%. Source
Adjusted diluted EPS was $1.00: Adjusted net income was $48.3 million and adjusted diluted EPS was $1.00, against $1.04 a year earlier, after excluding the items listed in the non-GAAP reconciliation. Source
Comparable sales fell 2.2%: Comparable restaurant sales at The Cheesecake Factory restaurants declined 2.2% year-over-year in the quarter, against a 1.7% increase a year earlier. Source
Gift card items shifted results: Gift card breakage revenue of $17.3 million reflected a change in historical redemption patterns, partly offset by a $7.9 million write-down of gift card inventory. Source
Pre-tax charges totaled $24.6 million: The pre-tax net expense of $24.6 million combined impairment and lease termination expenses of $22.5 million and acquisition-related expense of $11.5 million, less a $9.4 million gift card benefit. Source
Industry environment described as challenging: Management described a more challenging operating environment across the restaurant industry, including weather-related impacts, and said revenue finished within the expected range. Source
Repurchase authorization raised by 5.0 million: The Board raised the repurchase program by 5.0 million shares to 66 million in total, with about 6.0 million shares available after the increase. Source
Quarterly dividend raised to $0.30: The quarterly dividend was raised by $0.03 to $0.30 per share, from the $0.27 per share declared in the third quarter. Source

“We delivered solid fourth quarter and full-year results in 2025, generating record annual revenue supported by 25 new restaurant openings for the year,”
David Overton, Chairman and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Restaurant openings Source	fiscal 2026	as many as 26 new restaurants	New
Restaurant openings by brand Source	fiscal 2026	Cheesecake Factory as many as 6; North Italia 6 to 7; Flower Child 6 to 7; FRC as many as 8	New
Quarterly dividend Source	payable March 17, 2026	$0.30 per share	Raised from $0.27 per share
Share repurchase authorization Source	not stated	66 million shares total authorization; about 6.0 million shares remaining after a 5.0 million share increase	Raised

What changed from last quarter

New guidance: Fiscal 2026 opening plan of as many as 26 restaurants is stated for the first time in these documents, against the fiscal 2025 plan of 25 in the prior release. Source
Guidance raised: Quarterly dividend raised by $0.03 to $0.30 per share, from $0.27 per share previously declared. Source
Guidance raised: Repurchase authorization increased by 5.0 million shares, bringing the total to 66 million shares. Source
New: Gift card breakage revenue was recognized following a change in historical redemption patterns, with a $7.9 million write-down of gift card inventory. Source

Fourth quarter results

Revenue rose to $961.6 million: Revenue was $961.6 million against $921.0 million a year earlier, an increase of about 4.4%. Source
Reported diluted EPS was $0.60: Net income was $28.8 million, with diluted EPS of $0.60, against $41.2 million and $0.83 in the same quarter of fiscal 2024. Source
Adjusted diluted EPS was $1.00: Adjusted net income was $48.3 million and adjusted diluted EPS was $1.00, against $1.04 a year earlier, after excluding the items listed in the non-GAAP reconciliation. Source
Comparable sales fell 2.2%: Comparable restaurant sales at The Cheesecake Factory restaurants declined 2.2% year-over-year in the quarter, against a 1.7% increase a year earlier. Source

Full-year fiscal 2025 results

Full-year revenue reached $3.75 billion: Full-year revenue was $3,751.8 million against $3,581.7 million, supported by 25 new restaurant openings for the year. Source
Full-year diluted EPS was $3.06: Full-year net income was $148.4 million and diluted EPS $3.06, against $156.8 million and $3.20 in fiscal 2024. Source
Full-year adjusted EPS was $3.77: Full-year adjusted net income was $183.0 million and adjusted diluted EPS $3.77, against $168.7 million and $3.44 in fiscal 2024. Source
Debt extinguishment loss excluded: Fiscal 2025 included a $15.9 million loss on debt extinguishment, which was excluded from adjusted results. Source
Full-year comparable sales rose 0.1%: Comparable restaurant sales at The Cheesecake Factory restaurants rose 0.1% for fiscal 2025, against 1.0% in fiscal 2024. Source

“Despite a more challenging operating environment across the restaurant industry, including weather-related impacts, revenue for the quarter finished within our expected range.”
David Overton, Chairman and Chief Executive Officer

Segments and restaurant base

Cheesecake Factory segment income rose: The Cheesecake Factory segment reported $115.4 million of income from operations, against $104.4 million. North Italia and Other FRC reported losses of $0.9 million and $4.7 million. Source
North Italia comparable sales fell 4%: North Italia comparable restaurant sales declined 4% in the quarter, and the brand had 48 restaurants at period-end, up from 42. Source
Company-owned restaurants total 371: Company-owned restaurants at period-end were 218 Cheesecake Factory, 48 North Italia, 56 Other FRC and 49 Other, totaling 371. The company description states 368 restaurants. Source
Seven restaurants opened in quarter: Seven restaurants opened in the fourth quarter: two Cheesecake Factory, two North Italia and three FRC restaurants. Source
Preopening costs rose: Preopening costs were $9.4 million in the quarter, against $7.6 million in the fourth quarter of fiscal 2024. Source

Costs and margins

Food and beverage ratio fell: Food and beverage costs were 21.6% of revenues in the quarter, against 22.3% a year earlier. Source
Labor ratio improved: Labor expenses were 33.8% of revenues against 34.2% a year earlier, and management cited labor productivity improvements. Source
Other operating costs ratio fell: Other operating costs and expenses were 26.6% of revenues, against 26.8% in the fourth quarter of fiscal 2024. Source
G&A ratio rose to 7.0%: General and administrative expenses were $67.2 million, or 7.0% of revenues, against $57.8 million, or 6.3%, a year earlier. Source
Gift card items shifted results: Gift card breakage revenue of $17.3 million reflected a change in historical redemption patterns, partly offset by a $7.9 million write-down of gift card inventory. Source
Pre-tax charges totaled $24.6 million: The pre-tax net expense of $24.6 million combined impairment and lease termination expenses of $22.5 million and acquisition-related expense of $11.5 million, less a $9.4 million gift card benefit. Source

“While the operating environment remains competitive, our strong operational execution, continued menu innovation, and portfolio of high-quality concepts differentiate our business”
David Overton, Chairman and Chief Executive Officer

Demand and operating environment

Industry environment described as challenging: Management described a more challenging operating environment across the restaurant industry, including weather-related impacts, and said revenue finished within the expected range. Source
Labor productivity and retention improved: Operators delivered year-over-year improvements in labor productivity, wage management, hourly staff and manager retention, and guest satisfaction. Source
Operators focused on controllable factors: Management said operators concentrated on the factors within their control during the quarter's industry conditions. Source

Capital, cash and shareholder returns

Liquidity of $582.2 million: Total available liquidity at December 30, 2025 was $582.2 million, including cash of $215.7 million and $366.5 million of revolver availability with no outstanding balance. Source
Debt principal of $644.0 million: Principal debt was $644.0 million, including $69.0 million of 0.375% convertible notes due 2026 and $575.0 million of 2.00% convertible notes due 2030. Source
Fourth quarter buybacks of $11.2 million: The company repurchased about 228,100 shares for $11.2 million in the fourth quarter, against about 18,900 shares for $1.2 million in the third quarter. Source
Repurchase authorization raised by 5.0 million: The Board raised the repurchase program by 5.0 million shares to 66 million in total, with about 6.0 million shares available after the increase. Source
Quarterly dividend raised to $0.30: The quarterly dividend was raised by $0.03 to $0.30 per share, from the $0.27 per share declared in the third quarter. Source

Strategy and development

Development pipeline described as robust: Management said it is confident in its ability to achieve the fiscal 2026 development goal, citing the pipeline in place. Source
Menu innovation and concepts cited: Management cited continued menu innovation and its portfolio of high-quality concepts as factors for long-term growth and shareholder value. Source
Four restaurants closed after quarter-end: After quarter-end the company opened one Flower Child location and closed four restaurants: two Cheesecake Factory, one Grand Lux Cafe and one FRC. Source

Coming up, as management said on 18 February 2026

Quarterly dividend payment: The $0.30 quarterly dividend is to be paid on March 17, 2026, to holders of record at the close of business on March 4, 2026. Source

Figures management reported

Figure	Reported
Comparable restaurant sales, The Cheesecake Factory Source	-2.2% year-over-year
Comparable restaurant sales, North Italia Source	-4% year-over-year
Restaurants opened in period Source	7
Restaurants closed after period-end Source	4
Company-owned restaurants at period-end Source	371

Risks management discussed

Demand: Management described the operating environment as competitive, and cited differentiation through execution, menu innovation and concepts. Source
External: Weather-related impacts were cited among the factors affecting restaurant industry conditions in the quarter. Source
Financial: Impairment and lease termination charges were part of the pre-tax net expense recorded in the quarter. Source

Earlier plans management reported on

Met: Management said quarterly revenue finished within its expected range, despite the industry environment described. Source
Met: Management said margins and adjusted diluted EPS finished toward the higher end of its expectations. Source
Not stated: Management said it remains confident in achieving the development goal for the year, with a pipeline in place. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

THE CHEESECAKE FACTORY REPORTS RESULTS FOR

FOURTH QUARTER OF FISCAL 2025

CALABASAS HILLS, Calif. - February 18, 2026 - The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the fourth quarter of fiscal 2025, which ended on December 30, 2025.

Total revenues were $961.6 million in the fourth quarter of fiscal 2025 compared to $921.0 million in the fourth quarter of fiscal 2024. Fourth quarter fiscal 2025 includes $17.3 million of gift card breakage revenue as a result of a change in historical redemption patterns. Net income and diluted net income per share were $28.8 million and $0.60, respectively, in the fourth quarter of fiscal 2025.

The Company recorded a pre-tax net expense of $24.6 million related to impairment of assets and lease termination expenses, Fox Restaurant Concepts (“FRC”) acquisition-related items, gift card breakage and gift card inventory adjustments. Excluding the after-tax impact of these and certain other items, adjusted net income and adjusted diluted net income per share for the fourth quarter of fiscal 2025 were $48.3 million and $1.00, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.

Comparable restaurant sales at The Cheesecake Factory restaurants declined 2.2% year-over-year in the fourth quarter of fiscal 2025.

“We delivered solid fourth quarter and full-year results in 2025, generating record annual revenue supported by 25 new restaurant openings for the year,” said David Overton, Chairman and Chief Executive Officer. “Despite a more challenging operating environment across the restaurant industry, including weather-related impacts, revenue for the quarter finished within our expected range. Margins and adjusted diluted net income per share finished toward the higher end of our expectations, reflecting the resilience of our business and strong operational execution. Our operators remained focused on the factors within their control, delivering year-over-year improvements in labor productivity, wage management, hourly staff and manager retention, and guest satisfaction.”

“During the fourth quarter, we opened seven new restaurants and delivered approximately 7% unit growth for the year. Looking ahead, we expect to open as many as 26 restaurants this year, and with a strong pipeline in place we remain confident in our ability to achieve our development goal.”

“Underscoring our confidence in the strength and consistency of the business, we also announced an increase of 5.0 million shares to our repurchase authorization and raised our quarterly dividend to $0.30 per share. While the operating environment remains competitive, our strong operational execution, continued menu innovation, and portfolio of high-quality concepts differentiate our business and position us well for long-term growth and shareholder value creation.”

Development

During the fourth quarter of fiscal 2025, the Company opened two Cheesecake Factory, two North Italia, and three FRC restaurants. Subsequent to quarter-end, the Company opened one Flower Child location and closed four restaurants, including two Cheesecake Factory restaurants, one Grand Lux Cafe, and one FRC location.

The Company now expects to open as many as 26 new restaurants in fiscal 2026, including as many as six The Cheesecake Factory restaurants, six to seven North Italia locations, six to seven Flower Child locations and as many as eight FRC restaurants.

Liquidity and Capital Allocation

As of December 30, 2025, the Company had total available liquidity of $582.2 million, including a cash balance of $215.7 million and $366.5 million of availability on its revolving credit facility with no outstanding balance. Total principal amount of debt outstanding was $644.0 million, including $69.0 million in principal amount of 0.375% convertible senior notes due 2026 and $575.0 million in principal amount of 2.00% convertible senior notes due 2030.

During the fourth quarter of fiscal 2025, the Company repurchased approximately 228,100 shares of its stock at a cost of $11.2 million. On February 12, 2026, the Company’s Board of Directors approved an increase of 5.0 million shares to the existing repurchase program raising the total authorization to 66 million shares, of which approximately 6.0 million shares remain available for repurchase following the increase.

Also on February 12, 2026, the Board approved a $0.03 increase in the quarterly dividend to $0.30 per share to be paid on March 17, 2026, to shareholders of record at the close of business on March 4, 2026.

Conference Call and Webcast

The Company will hold a conference call to review its results for the fourth quarter of fiscal 2025 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com.

About The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. Delicious, memorable experiences created by passionate people - this defines who we are and where we are going. We currently own and operate 368 restaurants throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia®, Flower Child® and a collection of other FRC brands. Internationally, 35 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. In 2025, we were named to the FORTUNE Magazine “100 Best Companies to Work For®” list for the twelfth consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com, www.iamaflowerchild.com and www.foxrc.com.

From Fortune. ©2026 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated.

Safe Harbor Statement

Forward-looking statements notice

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, without limitation, statements regarding the Company’s operations, growth, restaurant development and other objectives. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including government shutdowns, trade policy, interest rate fluctuations, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, Flower Child and Other Fox Restaurant Concepts restaurants; the risks of doing business abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross border taxation; changes in unemployment rates; increases in minimum wages and benefit costs; the economic health of the Company’s landlords and other tenants in retail centers in which its restaurants are located, and the Company’s ability to successfully manage its lease arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; the timing of new unit development and related permitting; compliance with debt covenants; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of changes in tax laws; changes in laws impacting the Company’s business; adverse weather conditions and natural disasters in regions in which the Company’s restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the dates on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.

The Cheesecake Factory Incorporated

Condensed Consolidated Statements of Income

(unaudited; in thousands, except per share data)

	13 Weeks Ended		13 Weeks Ended		52 Weeks Ended		52 Weeks Ended
Consolidated Statements of Income	December 30, 2025		December 31, 2024		December 30, 2025		December 31, 2024
		Percent of		Percent of		Percent of		Percent of
	Amount	Revenues	Amount	Revenues	Amount	Revenues	Amount	Revenues
Revenues	$961,558	100.0%	$920,963	100.0%	$3,751,806	100.0%	$3,581,699	100.0%
Costs and expenses:
Food and beverage costs	207,389	21.6%	205,768	22.3%	813,147	21.7%	806,021	22.5%
Labor expenses	325,526	33.8%	315,231	34.2%	1,312,894	35.0%	1,264,382	35.3%
Other operating costs and expenses	256,144	26.6%	247,113	26.8%	1,014,015	27.0%	959,221	26.7%
General and administrative expenses	67,209	7.0%	57,783	6.3%	244,915	6.5%	228,737	6.4%
Depreciation and amortization expenses	28,670	3.0%	26,435	2.9%	109,031	2.9%	101,450	2.8%
Impairment of assets and lease termination expenses	22,494	2.3%	15,224	1.7%	22,990	0.6%	13,647	0.4%
Acquisition-related contingent consideration, compensation
and amortization expense/(income)	11,529	1.2%	(858)	(0.1)%	14,449	0.4%	2,429	0.1%
Preopening costs	9,362	1.0%	7,635	0.8%	33,080	0.9%	27,495	0.8%
Total costs and expenses	928,323	96.5%	874,331	94.9%	3,564,521	95.0%	3,403,382	95.0%
Income from operations	33,235	3.5%	46,632	5.1%	187,285	5.0%	178,317	5.0%
Interest expense, net	(3,000)	(0.3)%	(2,137)	(0.2)%	(10,448)	(0.3)%	(10,107)	(0.3)%
Loss on debt extinguishment	-	0.0%	-	0.0%	(15,891)	(0.4)%	-	0.0%
Other income, net	467	0.0%	841	0.0%	1,949	0.0%	2,837	0.1%
Income before income taxes	30,702	3.2%	45,336	4.9%	162,895	4.3%	171,047	4.8%
Income tax provision	1,927	0.2%	4,182	0.4%	14,468	0.3%	14,264	0.4%
Net income	$28,775	3.0%	$41,154	4.5%	$148,427	4.0%	$156,783	4.4%
Basic net income per share	$0.62		$0.86		$3.17		$3.28
Basic weighted average shares outstanding	46,620		47,953		46,786		47,789
Diluted net income per share	$0.60		$0.83		$3.06		$3.20
Diluted weighted average shares outstanding	48,346		49,645		48,551		48,974

The Cheesecake Factory Incorporated

Selected Segment Information

(unaudited; in thousands)

	For the 13 Weeks Ended December 30, 2025
	The Cheesecake
	Factory	North	Other
	restaurants	Italia	FRC	Other	Total
Revenues	$681,431	$88,174	$99,441	$92,512	$961,558
Costs and expenses:
Food and beverage costs	145,373	20,266	21,682	20,068	207,389
Labor expenses	222,484	31,431	36,885	34,726	325,526
Other operating costs and expenses	176,743	23,923	29,216	26,262	256,144
General and administrative expenses	-	-	-	67,209	67,209
Depreciation and amortization expenses	17,470	3,325	3,628	4,247	28,670
Impairment of assets and lease terminations expenses	201	7,869	9,466	4,958	22,494
Acquisition-related contingent consideration, compensation and amortization expenses	-	-	315	11,214	11,529
Preopening costs	3,735	2,288	2,926	413	9,362
Total costs and expenses	566,006	89,102	104,118	169,097	928,323
Income/(loss) from operations	$115,425	$(928)	$(4,677)	$(76,585)	$33,235

	For the 13 Weeks Ended December 31, 2024
	The Cheesecake
	Factory	North	Other
	restaurants	Italia	FRC	Other	Total
Revenues	$669,382	$81,309	$85,119	$85,153	$920,963
Costs and expenses:
Food and beverage costs	149,130	18,371	18,346	19,921	205,768
Labor expenses	221,494	29,559	29,941	34,237	315,231
Other operating costs and expenses	175,382	21,598	25,090	25,043	247,113
General and administrative expenses	-	-	-	57,783	57,783
Depreciation and amortization expenses	16,768	2,591	3,143	3,933	26,435
Impairment of assets and lease terminations expenses	330	-	14,893	1	15,224
Acquisition-related contingent consideration, compensation and amortization (income)/expenses	-	-	315	(1,173)	(858)
Preopening costs	1,884	2,230	2,396	1,125	7,635
Total costs and expenses	564,988	74,349	94,124	140,870	874,331
Income/(loss) from operations	$104,394	$6,960	$(9,005)	$(55,717)	$46,632

	For the 52 Weeks Ended December 30, 2025
	The Cheesecake
	Factory	North	Other
	restaurants	Italia	FRC	Other	Total
Revenues	$2,688,797	$345,896	$355,060	$362,053	$3,751,806
Costs and expenses:
Food and beverage costs	581,264	76,607	77,985	77,291	813,147
Labor expenses	913,001	128,179	132,777	138,937	1,312,894
Other operating costs and expenses	707,738	94,700	107,936	103,641	1,014,015
General and administrative expenses	-	-	-	244,915	244,915
Depreciation and amortization expenses	66,733	12,257	13,215	16,826	109,031
Impairment of assets and lease terminations expenses	505	7,869	9,603	5,013	22,990
Acquisition-related contingent consideration, compensation and amortization expenses	-	-	1,262	13,187	14,449
Preopening costs	10,253	7,917	11,544	3,366	33,080
Total costs and expenses	2,279,494	327,529	354,322	603,176	3,564,521
Income/(loss) from operations	$409,303	$18,367	$738	$(241,123)	$187,285

	For the 52 Weeks Ended December 31, 2024
	The Cheesecake
	Factory	North	Other
	restaurants	Italia	FRC	Other	Total
Revenues	$2,661,627	$299,575	$299,969	$320,528	$3,581,699
Costs and expenses:
Food and beverage costs	599,899	69,505	66,665	69,952	806,021
Labor expenses	913,560	111,082	108,377	131,363	1,264,382
Other operating costs and expenses	696,739	82,290	88,672	91,520	959,221
General and administrative expenses	-	-	-	228,737	228,737
Depreciation and amortization expenses	66,010	9,244	11,389	14,807	101,450
Impairment of assets and lease terminations (income)/expenses	(1,402)	-	14,893	156	13,647
Acquisition-related contingent consideration, compensation and amortization expenses	-	-	1,262	1,167	2,429
Preopening costs	7,499	7,409	9,206	3,381	27,495
Total costs and expenses	2,282,305	279,530	300,464	541,083	3,403,382
Income/(loss) from operations	$379,322	$20,045	$(495)	$(220,555)	$178,317

The Cheesecake Factory Incorporated

Selected Operating, Restaurant and Balance Sheet Information

(unaudited; in thousands, except statistical data)

	13 Weeks Ended	13 Weeks Ended	52 Weeks Ended	52 Weeks Ended
The Cheesecake Factory restaurants operating information:	December 30, 2025	December 31, 2024	December 30, 2025	December 31, 2024
Comparable restaurant sales vs. prior year	(2.2)%	1.7%	0.1%	1.0%
Restaurants opened during period	2	2	4	3
Restaurants open at period-end	218	215	218	215
Restaurant operating weeks	2,821	2,795	11,218	11,214
North Italia operating information:
Comparable restaurant sales vs. prior year	(4)%	1%	(2)%	2%
Restaurants opened during period	2	3	6	6
Restaurants open at period-end	48	42	48	42
Restaurant operating weeks	606	535	2,355	2,021
Other Fox Restaurant Concepts (FRC) operating information:
Restaurants opened during period	3	2	9	8
Restaurants open at period-end	56	48	56	48
Restaurant operating weeks	715	611	2,675	2,264
Other operating information:
Restaurants opened during period	-	2	6	6
Restaurants open at period-end	49	43	49	43
Restaurant operating weeks	637	551	2,477	2,114
Number of company-owned restaurants:
The Cheesecake Factory	218
North Italia	48
Other FRC	56
Other	49
Total	371
Number of international-licensed restaurants:
The Cheesecake Factory	35

The Other FRC segment includes all FRC brands except Flower Child.
The Other segment includes the Flower Child, Grand Lux Cafe and Social Monk Asian Kitchen concepts, as well as the Company's third-party bakery, international and consumer packaged goods businesses, unallocated corporate expenses and gift card costs.

Selected Consolidated Balance Sheet Information	December 30, 2025	December 31, 2024
Cash and cash equivalents	$215,729	$84,176
Current and long-term debt, net of issuance costs	630,074	452,062

Includes $68.8 million net balance of 0.375% convertible senior notes due 2026 (principal amount of $69 million less $0.2 million in unamortized issuance costs) and $561.3 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $13.7 million in unamortized issuance costs). The unamortized issuance costs were recorded as a contra-liability and netted with current and long-term debt on the Condensed Consolidated Balance Sheet and are being amortized as interest expense.

Reconciliation of Non-GAAP Results to GAAP Results

In addition to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in this press release, the Company is providing non-GAAP measurements which present net income and net income per share excluding the impact of certain items. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. These non-GAAP measures are calculated by eliminating from net income and diluted net income per share the impact of items the Company does not consider indicative of its ongoing operations. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons.

The Cheesecake Factory Incorporated

Reconciliation of Non-GAAP Financial Measures

(unaudited; in thousands, except per share data)

	13 Weeks Ended	13 Weeks Ended	52 Weeks Ended	52 Weeks Ended
	December 30, 2025	December 31, 2024	December 30, 2025	December 31, 2024
Net income (GAAP)	$28,775	$41,154	$148,427	$156,783
Impairment of assets and lease termination expenses	22,494	15,224	22,990	13,647
Acquisition-related contingent consideration,
compensation and amortization expense/(income)	11,529	(858)	14,449	2,429
Gift card adjustment, net	(9,396)	-	(9,396)	-
Loss on extinguishment of debt	-	-	15,891	-
Uncertain tax positions	1,306	-	2,023	-
Tax effect of adjustments	(6,403)	(3,735)	(11,423)	(4,180)
Adjusted net income (non-GAAP)	$48,305	$51,785	$182,961	$168,679
Diluted net income per share (GAAP)	$0.60	$0.83	$3.06	$3.20
Impairment of assets and lease termination expenses	0.47	0.31	0.47	0.28
Acquisition-related contingent consideration,
compensation and amortization expense/(income)	0.24	(0.02)	0.30	0.05
Gift card adjustment, net	(0.19)	-	(0.19)	-
Loss on extinguishment of debt	-	-	0.33	-
Uncertain tax positions	0.03	-	0.04	-
Tax effect of adjustments	(0.13)	(0.08)	(0.24)	(0.09)
Adjusted diluted net income per share (non-GAAP)	$1.00	$1.04	$3.77	$3.44

A detailed breakdown of impairment of assets and lease termination expenses recorded in the thirteen and fifty-two weeks ended December 30, 2025 and December 31, 2024 can be found in the Selected Segment Information table.
Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the North Italia and FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.
Represents gift card breakage revenue of $17.3 million as a result of a change in historical redemption patterns, partially offset by a non-recurring $7.9 million write-down of gift card inventory.
Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.
Represents a reserve for uncertain tax position related to tenant improvements allowances and Section 199 deductions. Uncertain tax positions taken in a tax return are recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by tax authorities based on technical merits, taking into account available administrative remedies and litigation.
Based on the federal statutory rate and an estimated blended state tax rate, the tax effect on all adjustments assumes a 26% tax rate for the fiscal 2025 and 2024 periods.
Adjusted net income per share may not add due to rounding.

Contacts
Etienne Marcus · (818) 871-3000 · investorrelations@thecheesecakefactory.com