Cheesecake Factory Inc 10-Q for FY2025 Q3

Cheesecake Factory Inc (CAKE)

10-Q 2025-11-03 For: 2025-09-30

Added on April 05, 2026

About this 10-Q

Cheesecake Factory Inc filed this 10-Q on November 3, 2025, covering the quarter ended September 30, 2025 (FY2025 Q3).

Headline figures

Quarter ended September 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $907.23M; up 4.8% from $865.47M a year earlier
Net income: $31.9M; up 6.4% from net income of $29.99M a year earlier
Diluted EPS: $0.66; up 8.2% from $0.61 a year earlier

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Delaware		51-0340466
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification No.)



26901 Malibu Hills Road
Calabasas Hills, California		91301
(Address of principal executive offices)		(Zip Code)


Title of Each Class	Trading Symbol	Name of Each Exchange on which Registered
Common Stock, par value $.01 per share	CAKE	The Nasdaq Stock Market LLC


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

			Page Number

PART I	FINANCIAL INFORMATION
	Item 1.	Financial Statements:
		Condensed Consolidated Balance Sheets (Unaudited)	1
		Condensed Consolidated Statements of Income (Unaudited)	2
		Condensed Consolidated Statements of Comprehensive Income (Unaudited)	3
		Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)	4
		Condensed Consolidated Statements of Cash Flows (Unaudited)	6
		Notes to Condensed Consolidated Financial Statements (Unaudited)	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
	Item 4.	Controls and Procedures	33

PART II	OTHER INFORMATION		34
	Item 1.	Legal Proceedings	34
	Item 1A.	Risk Factors	34
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
	Item 5.	Other Information	34
	Item 6.	Exhibits	35

Signatures			36


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	September 30,		December 31,
	2025		2024
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	189,978	$	84,176
Accounts and other receivables		93,167		112,503
Income taxes receivable		18,092		17,417
Inventories		63,413		64,526
Prepaid expenses		59,292		54,691
Total current assets		423,942		333,313
Property and equipment, net		872,060		840,773
Other assets:
Intangible assets, net		252,108		251,789
Operating lease assets		1,467,245		1,400,351
Other		225,999		215,534
Total other assets		1,945,352		1,867,674
Total assets	$	3,241,354	$	3,041,760

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	55,546	$	62,092
Gift card liabilities		189,352		226,810
Operating lease liabilities		165,909		157,138
Other accrued expenses		291,881		265,380
Current portion of long-term debt		68,715		—
Total current liabilities		771,403		711,420

Long-term debt		560,441		452,062
Operating lease liabilities		1,344,035		1,299,020
Other noncurrent liabilities		140,126		135,803
Total liabilities		2,816,005		2,598,305
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued		—		—
Common stock, $.01 par value, 250,000,000 shares authorized; 109,502,394 shares issued and 49,819,581 shares outstanding at September 30, 2025 and 108,387,574 shares issued and 51,332,298 shares outstanding at December 31, 2024		1,095		1,084
Additional paid-in capital		1,001,306		956,107
Retained earnings		1,397,655		1,317,828
Treasury stock inclusive of excise tax, 59,682,813 and 57,055,276 shares at cost at September 30, 2025 and December 31, 2024, respectively		(1,973,471)		(1,829,953)
Accumulated other comprehensive loss		(1,236)		(1,611)
Total stockholders’ equity		425,349		443,455
Total liabilities and stockholders’ equity	$	3,241,354	$	3,041,760


	Thirteen		Thirteen		Thirty-Nine		Thirty-Nine
	Weeks Ended		Weeks Ended		Weeks Ended		Weeks Ended
	September 30, 2025		October 1, 2024		September 30, 2025		October 1, 2024

Revenues	$	907,226	$	865,471	$	2,790,248	$	2,660,736

Costs and expenses:
Food and beverage costs		197,654		195,306		605,758		600,253
Labor expenses		322,774		310,939		987,368		949,151
Other operating costs and expenses		255,724		239,470		757,871		712,108
General and administrative expenses		58,996		56,204		177,706		170,954
Depreciation and amortization expenses		27,419		25,299		80,361		75,015
Impairment of assets and lease termination (income)/expenses		(104)		(3,472)		496		(1,577)
Acquisition-related contingent consideration, compensation and amortization expenses		910		1,020		2,920		3,287
Preopening costs		6,584		7,005		23,718		19,860
Total costs and expenses		869,957		831,771		2,636,198		2,529,051
Income from operations		37,269		33,700		154,050		131,685
Interest expense, net		(2,247)		(2,431)		(7,448)		(7,970)
Loss on extinguishment of debt		—		—		(15,891)		—
Other income, net		459		566		1,482		1,996
Income before income taxes		35,481		31,835		132,193		125,711
Income tax provision		3,582		1,841		12,541		10,082
Net income	$	31,899	$	29,994	$	119,652	$	115,629

Net income per share:
Basic	$	0.68	$	0.63	$	2.55	$	2.42
Diluted (Note 10)	$	0.66	$	0.61	$	2.46	$	2.37

Weighted-average shares outstanding:
Basic		46,608		47,750		46,842		47,734
Diluted		48,616		48,946		48,633		48,751


										Accumulated
				Additional						Other
	Common Stock			Paid-in		Retained		Treasury		Comprehensive
	Shares	Amount		Capital		Earnings		Stock		(Loss)/Income		Total
Balance, December 31, 2024	108,388	$	1,084	$	956,107	$	1,317,828	$	(1,829,953)	$	(1,611)	$	443,455
Net income	—		—		—		32,941		—		—		32,941
Foreign currency translation adjustment	—		—		—		—		—		10		10
Cash dividends declared common stock, net of forfeitures, $0.27 per share	—		—		—		(13,081)		—		—		(13,081)
Stock-based compensation	574		6		7,629		—		—		—		7,635
Common stock issued under stock-based compensation plans	230		2		10,801		—		—		—		10,803
Treasury stock purchases, inclusive of excise tax	—		—		—		—		(142,358)		—		(142,358)
Balance, April 1, 2025	109,192	$	1,092	$	974,537	$	1,337,688	$	(1,972,311)	$	(1,601)	$	339,405
Net income	—		—		—		54,812		—		—		54,812
Foreign currency translation adjustment	—		—		—		—		—		616		616
Cash dividends declared common stock, net of forfeitures, $0.27 per share	—		—		—		(13,338)		—		—		(13,338)
Stock-based compensation	(17)		—		7,248		—		—		—		7,248
Common stock issued under stock-based compensation plans	274		2		12,178		—		—		—		12,180
Treasury stock purchases, inclusive of excise tax	—		—		—		—		25		—		25
Balance, July 1, 2025	109,449	$	1,094	$	993,963	$	1,379,162	$	(1,972,286)	$	(985)	$	400,948
Net income	—		—		—		31,899		—		—		31,899
Foreign currency translation adjustment	—		—		—		—		—		(251)		(251)
Cash dividends declared common stock, net of forfeitures, $0.27 per share	—		—		—		(13,406)		—		—		(13,406)
Stock-based compensation	16		—		5,719		—		—		—		5,719
Common stock issued under stock-based compensation plans	37		1		1,624		—		—		—		1,625
Treasury stock purchases, inclusive of excise tax	—		—		—		—		(1,185)		—		(1,185)
Balance, September 30, 2025	109,502	$	1,095	$	1,001,306	$	1,397,655	$	(1,973,471)	$	(1,236)	$	425,349


	September 30, 2025
	Level 1		Level 2		Level 3
Assets/(Liabilities)
Non-qualified deferred compensation assets	$	123,544	$	—	$	—
Non-qualified deferred compensation liabilities		(123,332)		—		—
Acquisition-related contingent consideration and compensation liabilities		—		—		(13,414)


	December 31, 2024
	Level 1		Level 2		Level 3
Assets/(Liabilities)
Non-qualified deferred compensation assets	$	108,093	$	—	$	—
Non-qualified deferred compensation liabilities		(108,166)		—		—
Acquisition-related contingent consideration and compensation liabilities		—		—		(20,155)


	September 30, 2025		December 31, 2024
Restaurant food and supplies	$	34,303	$	35,141
Bakery finished goods and work in progress		19,459		20,210
Bakery raw materials and supplies		9,651		9,175
Total	$	63,413	$	64,526


				Weighted-
				Average
		Weighted-		Remaining
		Average		Contractual	Aggregate
	Shares	Exercise Price		Term	Intrinsic Value ⁽¹⁾
	(In thousands)	(Per share)		(In years)	(In thousands)
Outstanding at December 31, 2024	1,167	$	45.77	3.1	$	4,163.6
Granted	—		—
Exercised	(542)		45.39
Forfeited or cancelled	(154)		61.46
Outstanding at September 30, 2025	471	$	41.08	4.4	$	6,382.4

Exercisable at September 30, 2025	382	$	42.17	3.5	$	4,759.3


	The
	Cheesecake
	Factory		North		Other
	Restaurants		Italia		FRC		Other		Total
Revenues	$	651,375	$	83,482	$	78,017	$	94,352	$	907,226

Costs and expenses:
Food and beverage costs		140,859		18,091		17,360		21,344		197,654
Labor expenses		225,885		31,312		30,885		34,692		322,774
Other operating costs and expenses		178,249		24,100		25,926		27,449		255,724
General and administrative expenses		—		—		—		58,996		58,996
Depreciation and amortization expenses		16,841		3,060		3,288		4,230		27,419
Impairment of assets and lease termination (income)/expenses		33		—		(178)		41		(104)
Acquisition-related contingent consideration, compensation and amortization (income)/expenses		—		—		316		594		910
Preopening costs		1,610		1,003		3,623		348		6,584
Total costs and expenses		563,477		77,566		81,220		147,694		869,957
Income/(loss) from operations	$	87,898	$	5,916	$	(3,203)	$	(53,342)	$	37,269

Capital expenditures	$	16,348	$	7,709	$	5,776	$	6,850	$	36,683


	Thirty-Nine		Thirty-Nine
	Weeks Ended		Weeks Ended
	September 30, 2025		October 1, 2024

Beginning balance	$	20,155	$	25,495
Payment		(8,714)		(6,506)
Change in fair value		1,973		2,340
Ending balance	$	13,414	$	21,329


	September 30, 2025		December 31, 2024
Total assets:
The Cheesecake Factory Restaurants	$	1,593,858	$	1,545,227
North Italia		443,421		419,812
Other FRC		461,416		420,957
Other		742,659		655,764
Total	$	3,241,354	$	3,041,760


				Total Number of	Maximum Number
				Shares Purchased	of Shares that May
	Total Number			as Part of Publicly	Yet be Purchased
	of Shares	Average Price		Announced Plans	Under the Plans or
Period	Purchased ⁽¹⁾	Paid per Share ⁽²⁾		or Programs	Programs
July 2 — August 5, 2025	18,897	$	65.24	0	1,313
August 6 — September 2, 2025	—		—	—	1,313
September 3 — September 30, 2025	—		—	—	1,313
Total	18,897			0

Exhibit No.	Item	Form	File Number	Incorporated by Reference from Exhibit Number	Filed/ Furnished with SEC

3.1	Restated Certificate of Incorporation of The Cheesecake Factory Incorporated	8-K	000-20574	3.1	6/4/24
3.2	Certificate of Designations of The Cheesecake Factory Incorporated, dated April 20, 2020	8-K	000-20574	3.1	4/20/20
3.3	Bylaws of The Cheesecake Factory Incorporated, amended and restated on October 26, 2022	8-K	000-20574	3.1	11/1/22
31.1	Rule 13a-14(a)/15d-14(a) Certification of the Principal Executive Officer	—	—	—	Filed herewith
31.2	Rule 13a-14(a)/15d-14(a) Certification of the Principal Financial Officer	—	—	—	Filed herewith
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer	—	—	—	Furnished herewith
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Principal Financial Officer	—	—	—	Furnished herewith
101.1	The following materials from The Cheesecake Factory Incorporated’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) condensed consolidated balance sheets, (ii) condensed consolidated statements of income, (iii) condensed consolidated statements of comprehensive income, (iv) condensed consolidated statement of stockholders’ equity, (v) condensed consolidated statements of cash flows, and (vi) the notes to the condensed consolidated financial statements	—	—	—	Filed herewith
104.1	The cover page of The Cheesecake Factory Incorporated’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, formatted in iXBRL (included with Exhibit 101.1)	—	—	—	Filed herewith

Date: November 3, 2025	THE CHEESECAKE FACTORY INCORPORATED

	By:	/s/ DAVID OVERTON
		David Overton
		Chairman of the Board and Chief Executive Officer
		(Principal Executive Officer)

	By:	/s/ MATTHEW E. CLARK
		Matthew E. Clark
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

November 3, 2025		/s/ DAVID OVERTON
		David Overton
		Chairman of the Board and Chief Executive Officer