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CLOSED · 03:15 ET
Market ClerkRecap
Sun Oct 25 · markets closed1 signal on Oct 2494 insider buys this week · $48.3MCIRO short report next: Oct 30The week ahead

CAKE

CHEESECAKE FACTORY INC
NASDAQ · CONSUMER DISCRETIONARY · RETAIL-EATING PLACES
108.37
−4.07 −3.62%
USD · close Oct 23
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Work order
45
WATCH · shorts 45
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $5.4BP/E 29.4DIV YIELD —FCF YIELD 3.83%REV TTM $3.9B +5.7%NET INCOME $178.6M +12.4%NET DEBT $436.6M52W 43.14 – 117.29SEC XBRL · TTM TO Invalid Date

How CAKE rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
41%
of sentences unchanged
Added
309
new sentences
Dropped
254
sentences removed
Length
+4,107
words, now 34,645

New in FY2025

  • Item 1A — Risk Factors — “Our stock price could be adversely affected if we are unable to pay or increase dividends.”) Price Performance Graph The following graph compares the cumulative five-year total return provided to stockholders on the Company’s common stock relative to the S&P 400 Midcap Index, the NASDAQ US Benchmark TR Index and the S&P 600 Restaurants Index.
  • The historical stock performance presented below is not intended to and may not be indicative of future stock performance. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12/31/20 ​ ​ ​ 12/31/21 ​ ​ ​ 12/31/22 ​ ​ ​ 12/31/23 ​ ​ ​ 12/31/24 ​ ​ ​ 12/31/25 The Cheesecake Factory Incorporated ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ S&P 400 Midcap Index ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ NASDAQ US Benchmark TR Index (1) ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ S&P 600 Restaurants Index (2) ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ (1) Underlying data provided by Nasdaq Global Indexes.
  • Shares Authorized for Issuance under Equity Compensation Plans The information required by Item 201(d) of Regulation S-K under Item 5 is incorporated by reference to the section entitled “Equity Compensation Plan Information” in our definitive proxy statement for the annual meeting of stockholders expected to be held on May 28, 2026 (the “Proxy Statement”).
  • Fiscal years 2025, 2024 and 2023 each consisted of 52 weeks.
  • Fiscal year 2026 will consist of 52 weeks.
  • The following MD&A includes a discussion comparing our results in fiscal 2025 to fiscal 2024.
  • For a discussion comparing our results from fiscal 2024 to fiscal 2023, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 24, 2025.
  • The impact of ongoing geopolitical and macroeconomic events, including evolving government policies and global trade and tariff dynamics, could lead to further wage inflation, product and services cost inflation, disruptions in the supply chain, staffing challenges, shifts in consumer behavior, and delays in new restaurant openings.
  • As of February 23, 2026, we owned and operated 368 restaurants throughout the United States and Canada under brands including The Cheesecake Factory ® (216 locations), North Italia ® (48 locations), Flower Child ® (43 locations) and additional brands within our FRC portfolio (55 locations).
  • Internationally, 35 The Cheesecake Factory ® restaurants operate under licensing agreements.
  • Overview Our strategy is driven by our commitment to deliver exceptional food and hospitality, and is centered primarily on menu innovation, service and operational execution to differentiate our concepts and drive competitively strong performance that is sustainable over the long-term.
  • Financially, we are focused on prudently managing expenses at our restaurants, bakery facilities and corporate support center, while leveraging our scale, purchasing power and operational discipline to support financial performance.
  • In addition, our FRC subsidiary serves as an incubator, innovating new food, dining and hospitality experiences to create differentiated, high-quality concepts.
  • For The Cheesecake Factory concept, our strategy is to increase comparable restaurant sales by growing average check while maintaining customer traffic through (1) continuing to offer innovative, high quality menu items that offer customers a wide range of options in terms of flavor, price and value, (2) focusing on service and hospitality with the goal of delivering an exceptional dining experience and (3) continuing to provide our customers with convenient options for off-premise dining.
  • In the last three fiscal years, we implemented price increases above our historical levels, to help offset significant inflationary cost pressures.
  • Our objective is to drive margin expansion over time by leveraging incremental sales to increase restaurant-level margins at The Cheesecake Factory concept, leveraging our bakery operations, international and consumer packaged goods royalty revenue streams and G&A expense, and optimizing our restaurant portfolio.
  • We plan to employ a balanced capital allocation strategy, comprised of investing in new restaurants that are expected to meet our targeted returns, managing our aggregate debt levels and returning capital to shareholders through our dividend and share repurchase programs, the latter of which offsets dilution from our equity compensation program and supports our earnings per share growth.
  • Future decisions to pay, increase or decrease dividends or to repurchase shares are at the discretion of the Board and will be dependent on a number of factors, including limitations pursuant to the terms and conditions of our Loan Agreement and applicable law.
  • Longer-term, we believe our domestic revenue growth (comprised of our targeted annual unit growth of 7% in aggregate across concepts and comparable sales growth) combined with margin expansion, planned debt repayments and an anticipated capital return program will support our long-term financial objective of 10% to 15% total return to shareholders, on average.
  • (See Item 1A — Risk Factors — “Our stock price could be adversely affected if our performance falls short of our financial guidance and/or market expectations.”) Results of Operations The following table presents, for the periods indicated, information from our consolidated statements of income expressed as percentages of revenues. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ Revenues 100.0 % 100.0 % ​ ​ ​ ​ ​ ​ Costs and expenses: ​ ​ ​ Food and beverage costs ​ 21.7 ​ 22.5 Labor expenses ​ 35.0 ​ 35.3 Other operating costs and expenses ​ 27.0 ​ 26.7 General and administrative expenses ​ 6.5 ​ 6.4 Depreciation and amortization expenses ​ 2.9 ​ 2.8 Impairment of assets and lease termination expenses ​ 0.6 ​ 0.4 Acquisition-related contingent consideration, compensation and amortization expenses ​ 0.4 ​ 0.1 ​ Preopening costs ​ 0.9 ​ 0.8 Total costs and expenses ​ 95.0 ​ 95.0 ​ ​ ​ ​ ​ ​ Income from operations ​ 5.0 ​ 5.0 Interest expense, net ​ (0.3) ​ (0.3) Loss on extinguishment of debt ​ (0.4) ​ — ​ Other income, net ​ 0.0 ​ 0.1 ​ Income before income taxes ​ 4.3 ​ 4.8 Income tax provision ​ 0.3 ​ 0.4 Net income ​ 4.0 % 4.4 % ​ Fiscal 2025 Compared to Fiscal 2024 Revenues Revenues increased 4.7% to $3,751.8 million for fiscal 2025 compared to $3,581.7 million for fiscal 2024, primarily due to additional revenue related to new restaurant openings.
  • As part of our annual assessment of gift card breakage during fiscal 2025, we had a change in historical redemption pattern related to gift cards and aligned the recognition of gift card breakage to the updated estimated redemption pattern.
  • As a result, in fiscal 2025, we recognized $ 17.3 million of additional gift card breakage.
  • The Cheesecake Factory sales increased 1.0% to $2,688.8 million for fiscal 2025 compared to $2,661.6 million for fiscal 2024.
  • Excluding the impact of the additional gift card breakage recognized in fiscal 2025 (as discussed above), The Cheesecake Factory average sales per restaurant operating week increased 0.3% to $238,146 in fiscal 2025 from $237,349 in fiscal 2024.
  • Total operating weeks at The Cheesecake Factory restaurants remained relatively flat with 11,218 in fiscal 2025 and 11,214 in the comparable prior year period.
  • The Cheesecake Factory comparable sales increased by 0.1%, or $2.2 million, from fiscal 2024.
  • The increase from fiscal 2024 was primarily driven by an increase in average check of 2.4% (based on an increase of 4.3% in menu pricing, partially offset by a 1.9% negative change from menu mix), partially offset by decreased customer traffic of 2.3%.
  • We implemented menu price increases of approximately 2.4% and 1.5% in the first and third quarters of fiscal 2025, respectively.
  • We are in the process of implementing an approximate 1.5% menu price increase in the first quarter of fiscal 2026.
  • Sales through the off-premise channel comprised approximately 21% of our restaurant sales during both fiscal 2025 and fiscal 2024.
  • North Italia sales increased 15.5% to $345.9 million for fiscal 2025 compared to $299.6 million for fiscal 2024.
  • North Italia average sales per restaurant operating week decreased 0.9% to $146,877 in fiscal 2025 from $148,231 in fiscal 2024.
  • Average sales per restaurant operating week were impacted by the acceleration of new restaurant openings that have not matured.
  • Total operating weeks at North Italia increased 16.5% to 2,355 in fiscal 2025 compared to 2,021 in the prior year.
  • North Italia comparable sales decreased approximately 2% from fiscal 2024.
  • The decrease from fiscal 2024 was primarily driven by decreased customer traffic of 5%, partially offset by an increase in average check of 3% (based on an increase of 4% in menu pricing, partially offset by a 1% negative impact from mix).
  • We implemented menu price increases of approximately 2.0% and 1.5% in the second and fourth quarters of fiscal 2025, respectively.
  • Flower Child sales increased 27.8% to $185.3 million for fiscal 2025 compared to $145.0 million for fiscal 2024.
  • Flower Child sales per restaurant operating week increased 4.0% to $87,684 in fiscal 2025 from $84,351 in fiscal 2024.
  • Total operating weeks at Flower Child increased 22.9% to 2,113 in fiscal 2025 compared to 1,719 in the prior year.

and 269 more.

Gone since FY2024

  • Item 1A — Risk Factors — “Our stock price could be adversely affected if we are unable to pay or increase dividends.”) During the fiscal quarter ended December 31, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408 of Regulation S-K).
  • Price Performance Graph The following graph compares the cumulative five-year total return provided to stockholders on the Company’s common stock relative to the S&P 400 Midcap Index, the NASDAQ US Benchmark TR Index and the S&P 600 Restaurants Index.
  • The historical stock performance presented below is not intended to and may not be indicative of future stock performance. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 The Cheesecake Factory Incorporated ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ S&P 400 Midcap Index ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ NASDAQ US Benchmark TR Index (1) ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ S&P 600 Restaurants Index (2) ​ $ ​ $ ​ $ ​ $ ​ $ ​ $ (1) Underlying data provided by Nasdaq Global Indexes.
  • Shares Authorized for Issuance under Equity Compensation Plans The information required by Item 201(d) of Regulation S-K under Item 5 is incorporated by reference to the section entitled “Equity Compensation Plan Information” in our definitive proxy statement for the annual meeting of stockholders expected to be held on May 22, 2025 (the “Proxy Statement”).
  • Fiscal years 2024 and 2023 each consisted of 52 weeks, while fiscal year 2022 consisted of 53 weeks.
  • Fiscal year 2025 will consist of 52 weeks.
  • The following MD&A includes a discussion comparing our results in fiscal 2024 to fiscal 2023.
  • For a discussion comparing our results from fiscal 2023 to fiscal 2022, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended January 2, 2024, filed with the SEC on February 26, 2024.
  • The impact of ongoing geopolitical and macroeconomic events could lead to further wage inflation, product and services cost inflation, disruptions in the supply chain, staffing challenges, shifts in consumer behavior, and delays in new restaurant openings.
  • We currently own and operate 352 restaurants throughout the United States and Canada under brands including The Cheesecake Factory ® (215 locations), North Italia ® (43 locations), Flower Child ® (38 locations) and additional brands within our FRC portfolio (49 locations).
  • Internationally, 34 The Cheesecake Factory ® restaurants operate under licensing agreements.
  • Overview Our strategy is driven by our commitment to customer satisfaction and is focused primarily on menu innovation, service and operational execution to differentiate ourselves from other restaurant concepts, and drive competitively strong performance that is sustainable.
  • Financially, we are focused on prudently managing expenses at our restaurants, bakery facilities and corporate support center, and leveraging our size to make the best use of our purchasing power.
  • In addition, our FRC subsidiary serves as an incubator, innovating new food, dining and hospitality experiences to create fresh, exciting concepts.
  • For The Cheesecake Factory concept, our strategy is to increase comparable restaurant sales by growing average check and maintaining customer traffic through (1) continuing to offer innovative, high quality menu items that offer customers a wide range of options in terms of flavor, price and value, (2) focusing on service and hospitality with the goal of delivering an exceptional dining experience and (3) continuing to provide our customers with convenient options for off-premise dining.
  • In fiscal years 2023 and 2024, we implemented price increases above our historical levels, to help offset significant inflationary cost pressures.
  • Our objective is to drive margin expansion, by leveraging incremental sales to increase restaurant-level margins at The Cheesecake Factory concept, leveraging our bakery operations, international and consumer packaged goods royalty revenue streams and G&A expense over time, and optimizing our restaurant portfolio.
  • We plan to employ a balanced capital allocation strategy, comprised of investing in new restaurants that are expected to meet our targeted returns, repaying borrowings under our Revolver Facility and returning capital to shareholders through our dividend and share repurchase programs, the latter of which offsets dilution from our equity compensation program and supports our earnings per share growth.
  • Future decisions to pay or to increase or decrease dividends or to repurchase shares are at the discretion of the Board and will be dependent on a number of factors, including limitations pursuant to the terms and conditions of the Loan Agreement and applicable law.
  • Longer-term, we believe our domestic revenue growth (comprised of our targeted annual unit growth of 7%, in aggregate across concepts, and comparable sales growth), combined with margin expansion, planned debt repayments and an anticipated capital return program will support our long-term financial objective of 13% to 14% total return to shareholders, on average.
  • (See Item 1A — Risk Factors — “Our stock price could be adversely affected if our performance falls short of our financial guidance and/or market expectations.”) Results of Operations The following table presents, for the periods indicated, information from our consolidated statements of income expressed as percentages of revenues. ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 ​ Revenues 100.0 % 100.0 % ​ ​ ​ ​ ​ ​ Costs and expenses: ​ ​ Food and beverage costs ​ 22.5 ​ 23.4 Labor expenses ​ 35.3 ​ 35.7 Other operating costs and expenses ​ 26.7 ​ 26.8 General and administrative expenses ​ 6.4 ​ 6.3 Depreciation and amortization expenses ​ 2.8 ​ 2.7 Impairment of assets and lease termination expenses ​ 0.4 ​ 0.9 Acquisition-related contingent consideration, compensation and amortization expenses ​ 0.1 ​ 0.3 ​ Preopening costs ​ 0.8 ​ 0.7 Total costs and expenses ​ 95.0 ​ 96.8 ​ ​ ​ ​ ​ ​ Income from operations ​ 5.0 ​ 3.2 Interest expense, net ​ (0.3) ​ (0.3) Other income, net ​ 0.1 ​ 0.0 ​ Income before income taxes ​ 4.8 ​ 2.9 Income tax provision/(benefit) ​ 0.4 ​ (0.0) Net income ​ 4.4 % 2.9 % ​ Fiscal 2024 Compared to Fiscal 2023 Revenues Revenues increased 4.1% to $3,581.7 million for fiscal 2024 compared to $3,439.5 million for fiscal 2023, primarily due to additional revenue related to new restaurant openings and an increase in comparable restaurant sales.
  • The Cheesecake Factory sales increased 2.6% to $2,661.6 million for fiscal 2024 compared to $2,595.1 million for fiscal 2023.
  • The Cheesecake Factory average sales per restaurant operating week increased 0.7% to $237,349 in fiscal 2024 from $235,701 in fiscal 2023.
  • Total operating weeks at The Cheesecake Factory restaurants increased 1.9% to 11,214 in fiscal 2024 compared to 11,010 in the comparable prior year period.
  • The Cheesecake Factory comparable sales increased by 1.0%, or $25.9 million, from fiscal 2023.
  • The increase from fiscal 2023 was primarily driven by an increase in average check of 1.7% (based on an increase of 4.7% in menu pricing, partially offset by a 3.0% negative change from menu mix), partially offset by decreased customer traffic of 0.7%.
  • We implemented effective menu price increases of approximately 2.5% and 2.0% in the first and third quarters of fiscal 2024, respectively.
  • We are in the process of implementing an approximate 2.4% price increase in the first quarter of fiscal 2025.
  • Sales through the off-premise channel comprised approximately 21% of our restaurant sales during fiscal 2024 as compared to 22% in fiscal 2023.
  • North Italia sales increased 15.7% to $299.6 million for fiscal 2024 compared to $258.9 million for fiscal 2023.
  • North Italia average sales per restaurant operating week decreased 1.0% to $148,231 in fiscal 2024 from $149,727 in fiscal 2023.
  • Average sales per restaurant operating week are impacted by the acceleration of new restaurant openings that have not matured.
  • Total operating weeks at North Italia increased 16.9% to 2,021 in fiscal 2024 compared to 1,729 in the prior year.
  • North Italia comparable sales increased approximately 2% from fiscal 2023.
  • The increase from fiscal 2023 was primarily driven by an increase in average check of approximately 3% (based on an increase of 6% in menu pricing, partially offset by a 3% negative impact from mix), partially offset by decreased customer traffic of 1%.
  • We implemented effective menu price increases of approximately 2.2% and 2.3% in the second and fourth quarters of fiscal 2024, respectively.
  • Flower Child sales increased 13.7% to $145.0 million for fiscal 2024 compared to $127.5 million for fiscal 2023.
  • Flower Child sales per restaurant operating week increased 5.8% to $84,351 in fiscal 2024 from $79,714 in fiscal 2023.
  • Total operating weeks at Flower Child increased 7.5% to 1,719 in fiscal 2024 compared to 1,599 in the prior year.
  • Flower Child comparable sales increased approximately 6% from fiscal 2023.

and 214 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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