[Part I - Financial Information](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for The Cheesecake Factory, including balance sheets, income statements, and cash flows, with explanatory notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a summary of the company's assets, liabilities, and equity as of April 1, 2025, compared to December 31, 2024 | Account | April 1, 2025 (in thousands $) | December 31, 2024 (in thousands $) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $135,411 | $84,176 | | Total current assets | $361,053 | $333,313 | | Total assets | $3,110,864 | $3,041,760 | | **Liabilities & Equity** | | | | Total current liabilities | $683,943 | $711,420 | | Long-term debt | $627,306 | $452,062 | | Total liabilities | $2,771,459 | $2,598,305 | | Total stockholders' equity | $339,405 | $443,455 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section details the company's revenues, operating income, and net income for the thirteen weeks ended April 1, 2025, compared to the prior year | Metric | April 1, 2025 (in thousands $) | April 2, 2024 (in thousands $) | | :--- | :--- | :--- | | Revenues | $927,197 | $891,223 | | Income from operations | $51,959 | $39,293 | | Loss on extinguishment of debt | ($15,891) | $0 | | Net income | $32,941 | $33,191 | | Diluted EPS | $0.67 | $0.68 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash flows from operating, investing, and financing activities for the thirteen weeks ended April 1, 2025 | Activity | April 1, 2025 (in thousands $) | April 2, 2024 (in thousands $) | | :--- | :--- | :--- | | Cash provided by operating activities | $78,919 | $66,748 | | Cash used in investing activities | ($43,353) | ($37,356) | | Cash provided by / (used in) financing activities | $15,663 | ($25,319) | | Net change in cash and cash equivalents | $51,235 | $3,930 | - Significant financing activities in Q1 2025 included proceeds from new long-term convertible debt of **$575.0 million**, repayment of existing convertible debt of **$289.8 million**, and treasury stock purchases of **$141.4 million**[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes disclose accounting policies, debt instruments, segment performance, and shareholder equity, including new convertible notes, debt extinguishment, and share repurchases - In February 2025, the company issued **$575.0 million** of 2.00% Convertible Senior Notes due 2030, with net proceeds of approximately **$558.5 million**[39](index=39&type=chunk) - Proceeds from the 2030 Notes were used to repurchase approximately **$276.0 million** of the 2026 Notes for **$289.8 million**, resulting in a **$15.9 million** loss on debt extinguishment in Q1 2025[48](index=48&type=chunk)[106](index=106&type=chunk) - During Q1 2025, the company repurchased **2.6 million shares** of common stock for **$141.4 million**; cumulatively, **59.7 million shares** have been repurchased under the **61.0 million share** authorization[61](index=61&type=chunk) Segment Revenue (Thirteen Weeks Ended April 1, 2025 vs April 2, 2024) | Segment | Q1 2025 Revenue (in thousands $) | Q1 2024 Revenue (in thousands $) | % Change | | :--- | :--- | :--- | :--- | | The Cheesecake Factory Restaurants | $672,734 | $667,794 | +0.7% | | North Italia | $83,410 | $70,874 | +17.7% | | Other FRC | $87,424 | $74,229 | +17.8% | | Other | $83,629 | $78,326 | +6.8% | | **Total** | **$927,197** | **$891,223** | **+4.0%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2025 financial results, focusing on revenue growth, comparable sales, cost fluctuations, and capital allocation, including debt refinancing and share repurchases [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Total revenues rose 4.0% to $927.2 million, driven by comparable sales growth at The Cheesecake Factory, while cost of sales and labor expenses improved as a percentage of revenue - The Cheesecake Factory comparable sales increased **1.0%**, driven by a **2.2%** average check increase (**4.4%** pricing, **-2.2%** mix), offset by a **1.2%** traffic decrease; off-premise sales were stable at **22%** of restaurant sales[94](index=94&type=chunk) - North Italia comparable sales decreased approximately **1%**, while Flower Child comparable sales increased approximately **5%**[95](index=95&type=chunk)[96](index=96&type=chunk) - Food and beverage costs decreased to **21.8%** of revenues from **22.8%** YoY, primarily due to favorable commodity inflation[99](index=99&type=chunk) - Labor expenses as a percentage of revenue decreased to **35.7%** from **36.0%** YoY, as menu price increases outpaced wage inflation[100](index=100&type=chunk) Non-GAAP Adjusted Net Income Reconciliation (Thirteen Weeks Ended) | Metric | April 1, 2025 (in thousands $) | April 2, 2024 (in thousands $) | | :--- | :--- | :--- | | **Net Income (GAAP)** | **$32,941** | **$33,191** | | Loss on extinguishment of debt | $15,891 | — | | Other adjustments | $1,376 | $3,204 | | Tax effect of adjustments | ($4,489) | ($833) | | **Adjusted Net Income (Non-GAAP)** | **$45,719** | **$35,562** | | **Adjusted Diluted EPS (Non-GAAP)** | **$0.93** | **$0.73** | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Cash increased to $135.4 million, driven by operating cash flow and financing activities, including new convertible notes, debt repayment, capital expenditures for new restaurants, and shareholder returns - Cash provided by operating activities increased to **$78.9 million** in Q1 2025 from **$66.7 million** in Q1 2024[115](index=115&type=chunk)[116](index=116&type=chunk) - The company plans for **$190 to $210 million** in capital expenditures for fiscal 2025 to support the opening of as many as **25 new restaurants**[118](index=118&type=chunk) - In Q1 2025, the company repaid the entire **$110.0 million** outstanding balance on its Revolver Facility; as of April 1, 2025, net availability was **$366.5 million**[119](index=119&type=chunk) - In Q1 2025, the company paid **$12.5 million** in dividends and repurchased **2.6 million shares** for **$141.4 million**[115](index=115&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies market risks including commodity price volatility, interest rate changes, and investment value fluctuations, with a hypothetical 1% food cost increase impacting cost of sales by $2.0 million - A hypothetical **1%** increase in food costs would have negatively impacted cost of sales by **$2.0 million** in Q1 2025[134](index=134&type=chunk) - As of April 1, 2025, the company had no outstanding borrowings under its variable-rate Loan Agreement, thus having no immediate exposure to interest rate fluctuations on that facility[135](index=135&type=chunk) - The company is exposed to market risk from investments in variable life insurance contracts supporting its non-qualified plans; a hypothetical **10%** decline in the market value of these assets would reduce net income by **$2.8 million** due to the tax impact[135](index=135&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of April 1, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of **April 1, 2025**[136](index=136&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[137](index=137&type=chunk) [Part II - Other Information](index=45&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information, including updated risk factors related to increased indebtedness and details on share repurchase activities [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section supplements existing risk factors, focusing on new risks from increased indebtedness, including lack of debt covenants, potential inability to fund note repurchases, and stock price depression from hedging or dilution - The indentures for the **2026** and **2030** Notes do not restrict the company from incurring additional debt, which could increase financial vulnerability and limit cash flow for operations[140](index=140&type=chunk)[141](index=141&type=chunk) - The company may not have sufficient funds to repurchase the notes for cash following a 'fundamental change' (e.g., a change of control), which could trigger a default[148](index=148&type=chunk) - Hedging activities by note investors (e.g., short selling the company's stock) and the potential for share issuance upon note conversion could depress the trading price of the common stock[144](index=144&type=chunk)[146](index=146&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased 2.6 million shares for $141.4 million, with 1.3 million shares remaining available under authorization Share Repurchases in Q1 2025 | Metric | Value | | :--- | :--- | | Total Shares Purchased (in shares) | 2,606,000 | | Average Price Paid per Share ($) | ~$54.26 | | Total Cost (in thousands $) | $141,400 (excluding excise tax) | | Shares Remaining in Authorization (in shares) | 1,335,000 |

Core Viewpoint - The Cheesecake Factory Incorporated reported strong first-quarter revenues but revised its outlook due to economic concerns and tariff-related uncertainties [1][2]. Financial Performance - First-quarter revenues reached $927.2 million, an increase from $891.2 million year-over-year [1]. - Adjusted EBITDA forecast for 2025 was lowered from $323.5 million to $317.6 million, and adjusted EPS was revised from $3.72 to $3.68 [4]. - For 2026, EBITDA estimate was reduced from $348.8 million to $343.3 million, and adjusted EPS was trimmed from $4.14 to $4.09 [5]. Market Position and Trends - The company maintains a strong foundation of steady consumer demand, supported by a broad menu appealing to a wide range of guests [4]. - Positive trends include gradually improving same-store sales, year-over-year margin expansion, and increased unit growth, positioning shares for continued momentum through fiscal 2025 [3]. - The company plans a summer menu update to reinforce a value-focused trend as customers favor lower-priced items and non-alcoholic beverages [5]. Stock Performance - CAKE shares are currently trading lower by 3.82% at $48.45 [5].

Core Insights - The Cheesecake Factory reported first-quarter earnings of 93 cents per share, exceeding the analyst consensus estimate of 81 cents per share, while quarterly sales of $927.20 million fell short of the estimate of $927.44 million [1][2] Financial Performance - The company demonstrated strong topline revenue, margins, and earnings, indicating positive momentum across its business [2] - Sales were at the higher end of expectations, driven by The Cheesecake Factory restaurants, reflecting consistent consumer demand for its dining experiences [2] Operational Efficiency - The company achieved year-over-year improvements in labor productivity, food efficiency, wage management, and retention among staff and managers, contributing to strong profit flow-through and margin expansion [2] Stock Performance - Following the earnings announcement, Cheesecake Factory shares declined by 4.9%, trading at $47.88 [2] Analyst Ratings and Price Targets - Baird analyst David Tarantino maintained a Neutral rating and raised the price target from $46 to $49 [7] - Wells Fargo analyst Zachary Fadem maintained an Equal-Weight rating and increased the price target from $45 to $50 [7] - Morgan Stanley analyst John Glass maintained an Underweight rating and raised the price target from $39 to $40 [7]

Core Insights - The Cheesecake Factory Incorporated (CAKE) reported strong first-quarter fiscal 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate, showing growth compared to the prior-year quarter [1][4]. Financial Performance - Adjusted earnings per share (EPS) for the quarter were 93 cents, surpassing the Zacks Consensus Estimate of 81 cents by 14.8%, and up from 73 cents in the same quarter last year [4]. - Quarterly revenues reached $927.2 million, beating the consensus estimate of $926 million by 0.2%, and reflecting a 4% increase year-over-year [4]. Operational Highlights - The company's strong performance was attributed to effective operational execution and a focus on staffing and retention, which improved guest satisfaction scores and contributed to sales growth [2]. - Enhanced execution led to margin expansion while maintaining quality and value in a competitive market [3]. Marketing and Brand Engagement - A recent menu update featuring over 20 new items generated significant media attention, resulting in over 700 placements and more than 8 billion potential PR impressions, nearly double the exposure from the same quarter last year [3]. Comparable Sales - Comparable sales at Cheesecake Factory restaurants increased by 1% year-over-year, compared to a 0.6% decline in the prior-year quarter [5]. - North Italia's comparable sales declined by 1% year-over-year, contrasting with a 3% growth reported in the year-ago quarter [5]. Cost Structure - The cost of food and beverage as a percentage of revenues decreased by 100 basis points year-over-year to 21.8% [6]. - Labor expenses as a percentage of total revenues were 35.7%, down 30 basis points year-over-year [6]. - Other operating costs increased to 26.7% of total revenues, up 40 basis points year-over-year [7]. Balance Sheet and Liquidity - As of April 1, 2025, cash and cash equivalents totaled $135.4 million, up from $84.2 million at the end of 2024 [8]. - Long-term debt increased to $627.3 million from $452.1 million as of December 31, 2024 [8]. - Total available liquidity was reported at $501.9 million [8]. Shareholder Returns - The company declared a quarterly cash dividend of 27 cents per share, payable on May 27, 2025 [9]. - Approximately 2.6 million shares were repurchased for $141.4 million during the fiscal first quarter [9]. Expansion Plans - In the first quarter of fiscal 2025, the company opened eight new restaurants and plans to add up to 25 restaurants across its portfolio in 2025 [10].

Core Insights - Cheesecake Factory reported revenue of $927.2 million for the quarter ended March 2025, reflecting a 4% increase year-over-year [1] - The company's EPS was $0.93, up from $0.73 in the same quarter last year, exceeding the consensus estimate of $0.81 by 14.81% [1] - The revenue surpassed the Zacks Consensus Estimate of $925.55 million by 0.18% [1] Financial Performance Metrics - Comparable restaurant sales for The Cheesecake Factory were reported at 1%, slightly below the nine-analyst average estimate of 1.2% [4] - North Italia's comparable restaurant sales were down 1%, compared to the eight-analyst average estimate of 1.4% [4] - Total number of company-owned restaurants was 355, below the average estimate of 359 by eight analysts [4] Revenue Breakdown - Revenues from The Cheesecake Factory restaurants were $672.73 million, slightly below the estimated $673.38 million, representing a year-over-year increase of 0.7% [4] - Revenues from Other segments were $83.63 million, compared to the average estimate of $84.31 million, showing a year-over-year increase of 6.8% [4] - Revenues from Other FRC were $87.42 million, exceeding the average estimate of $86.99 million, with a year-over-year change of 17.8% [4] - Revenues from North Italia were $83.41 million, surpassing the estimated $81.63 million, reflecting a 17.7% increase year-over-year [4] Stock Performance - Cheesecake Factory shares have returned -2.4% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Company Overview - The company owns and operates 358 restaurants across the US and Canada, including 215 The Cheesecake Factory locations[8] - The company's fiscal year 2024 revenue was $3.6 billion[8] - The company's market capitalization was $2.5 billion as of April 1, 2025[8] Expansion and Growth - There are 33 international The Cheesecake Factory locations[12, 21] - The company is targeting approximately 20% average annual unit growth for North Italia and Flower Child[82, 91] - The company plans to open as many as 25 new units in 2025[105, 118] Financial Performance - Total revenue for Q1 2025 was $927 million, up 4% from the previous year[113] - Adjusted net income margin for Q1 2025 was 4.9%, up 90 bps from the previous year[113] - The company issued $575 million of 2.00% Convertible Senior Notes due 2030[113, 117] Sales and Unit Volume - The Cheesecake Factory's FY 2024 average weekly sales equate to $12.5 million annualized AUV[111] - North Italia's FY 2024 average weekly sales equate to $7.7 million annualized AUV[111] - Flower Child's FY 2024 average weekly sales equate to $7.2 million annualized AUV[111] Off-Premise Performance - Off-premise sales accounted for 17% of total revenue in FY 2024[26] - The Cheesecake Factory's off-premise average weekly sales for FY 2024 were $2.8 million per restaurant[39]

Financial Data and Key Metrics Changes - The company reported total revenues of $927 million for Q1 2025, finishing towards the high end of guidance, with a 27% year-over-year increase in adjusted earnings per share [5][15] - Adjusted net income margin was 4.9%, exceeding the high end of the guidance range [15] - The Cheesecake Factory restaurants' total sales were $673 million, up 1% from the prior year, with comparable sales also increasing by 1% [16][17] - The four-wall restaurant margins increased to 17.4%, up 140 basis points from Q1 2024 [6] Business Line Data and Key Metrics Changes - North Italia's total sales were $83.4 million, up 18% from the prior year, with comparable sales declining by 1% [17][12] - Flower Child's sales totaled $43.5 million, up 26% from the prior year, with comparable sales increasing by 5% [17][13] - The company opened eight restaurants in Q1 2025, including three North Italia and three Flower Child locations [6][24] Market Data and Key Metrics Changes - The off-premise sales mix for The Cheesecake Factory was 22%, consistent with Q1 2024 [16][100] - North Italia's annualized average unit volumes (AUVs) increased to $7.75 million, while Flower Child's AUV was over $4.6 million, reflecting strong consumer demand [12][13] Company Strategy and Development Direction - The company aims to open as many as 25 new restaurants in 2025, with a focus on accelerating new unit growth [7][24] - The company has been recognized as one of Fortune Magazine's 100 Best Companies to Work For for the twelfth consecutive year, highlighting its commitment to employee satisfaction [7] - The company is focused on menu innovation, operational execution, and maintaining contemporary restaurant designs as key components of its strategy [8][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment feels less robust than three months ago, citing various external factors impacting performance [29] - The company anticipates total revenues for Q2 2025 to be between $935 million and $950 million, reflecting a cautious outlook due to economic conditions [21] - Management remains confident in the company's ability to absorb potential tariff impacts without changing adjusted net income margin expectations [21][39] Other Important Information - The company returned $153.8 million to shareholders during the quarter through dividends and share repurchases [15] - The company ended the quarter with total available liquidity of approximately $501.9 million [19] Q&A Session Summary Question: Is the uncertain macro environment already impacting the business? - Management indicated that while the business remains stable, the environment feels less robust than previously expected, suggesting a prudent outlook for the remainder of the year [28][29] Question: Can you quantify the expected impact of tariffs on the P&L? - Management noted that the biggest impact would likely be in other operating expenses, with potential pricing adjustments of 50 to 75 basis points if necessary [34][39] Question: What are the same-store sales components for The Cheesecake Factory? - The Cheesecake Factory experienced 4% effective pricing, with traffic down 1.2%, indicating a mix shift due to menu changes [47] Question: How is the loyalty program performing? - The loyalty program is seeing strong member acquisition and positive guest feedback, with plans to implement more personalized offers moving forward [42][44] Question: What is the outlook for commodity inflation? - Management reported that commodity inflation was close to breakeven in Q1, with expectations of low single-digit inflation in Q2 [64] Question: Are there any planned closures affecting guidance? - Management confirmed a closure in Seattle but indicated no other planned closures at this time [66] Question: What differentiates Flower Child's performance in a slowing environment? - Flower Child's strong performance is attributed to food quality, operational stability, and effective staffing, which resonate well with consumers [70]

Financial Data and Key Metrics Changes - The company reported total revenues of $927 million for the first quarter, finishing towards the high end of guidance, with a 27% year-over-year increase in adjusted earnings per share [7][16] - Adjusted net income margin was 4.9%, exceeding the high end of the guidance range [16] - GAAP diluted net income per share was $0.67, while adjusted diluted net income per share was $0.93 [20] Business Line Data and Key Metrics Changes - Comparable sales at The Cheesecake Factory restaurants increased by 1%, with total sales reaching $673 million, up 1% from the prior year [7][17] - North Italia's total sales were $83.4 million, an 18% increase from the prior year, with comparable sales declining by 1% [17][14] - Flower Child sales totaled $43.5 million, up 26% from the prior year, with comparable sales increasing by 5% [17][14] Market Data and Key Metrics Changes - The Cheesecake Factory's off-premise sales mix was 22%, consistent with the previous year [18][102] - North Italia's annualized average unit volumes (AUVs) increased to $7.75 million, while Flower Child's AUV was over $4.6 million, reflecting strong consumer demand [13][14] Company Strategy and Development Direction - The company plans to open as many as 25 new restaurants in 2025, with eight openings expected in the second quarter [9][26] - The company has been recognized on Fortune Magazine's 100 Best Companies to Work For list for the twelfth consecutive year, highlighting its commitment to employee satisfaction [9] - The focus remains on menu innovation, operational execution, and maintaining restaurant design and ambiance [9][27] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment feels less robust than three months ago, citing unprecedented weather and economic factors [30][31] - The company anticipates total revenues for fiscal 2025 to be approximately $3.76 billion at the midpoint of estimates, with adjusted net income margin expectations around 4.75% [24][25] - Management expressed confidence in navigating near-term uncertainties while delivering sustainable long-term value [27] Other Important Information - The company returned $153.8 million to shareholders during the quarter through dividends and share repurchases [17] - The company ended the quarter with total available liquidity of approximately $501.9 million [20] Q&A Session Summary Question: Has the uncertain macro environment already impacted the business? - Management acknowledged that there has been a lot of noise in the first four months of the year, but the business remains stable and predictable [30][31] Question: Can you quantify the expected impact of tariffs on the P&L? - Management indicated that the biggest impact would be in other operating expenses, with potential pricing adjustments of 50 to 75 basis points if necessary [35][40] Question: What are the same-store sales components for The Cheesecake Factory? - The Cheesecake Factory experienced 4% effective pricing, with traffic down 1.2% [50] Question: How is the performance of Flower Child differentiating in a slowing environment? - Management highlighted the strong food quality and operational stability as key factors driving Flower Child's performance [70] Question: What is the expected pricing for the year? - Management confirmed that the pricing expectation remains at 4% for the year [75]

Financial Performance - Total revenues for Q1 fiscal 2025 were $927.2 million, up 4.0% from $891.2 million in Q1 fiscal 2024[2] - Net income for Q1 fiscal 2025 was $32.9 million, with diluted net income per share at $0.67[2] - Adjusted net income for Q1 fiscal 2025 was $45.7 million, with adjusted diluted net income per share at $0.93[3] - Total revenues for the 13 weeks ended April 1, 2025, were $927.2 million, a 4.0% increase from $891.2 million for the same period in 2024[20] - The company reported a net income (GAAP) of $32.9 million for the 13 weeks ended April 1, 2025, compared to $33.2 million in the prior year[28] - Adjusted net income (non-GAAP) for the 13 weeks ended April 1, 2025, was $45.7 million, up from $35.6 million in the same period last year[28] - The adjusted diluted net income per share (non-GAAP) was $0.93 for the 13 weeks ended April 1, 2025, compared to $0.73 in the prior year[28] Comparable Restaurant Sales - Comparable restaurant sales increased by 1.0% year-over-year in Q1 fiscal 2025[4] - Comparable restaurant sales for The Cheesecake Factory increased by 1.0% compared to a decline of 0.6% in the prior year[22] - North Italia's comparable restaurant sales decreased by 1% compared to an increase of 3% in the prior year[22] Restaurant Openings - The company opened eight new restaurants in Q1 fiscal 2025 and plans to open up to 25 new restaurants throughout the fiscal year[6][7] - The company opened 3 new North Italia restaurants during the period, increasing the total to 45[22] - The Cheesecake Factory operated 215 restaurants at the end of the period, down from 216 a year earlier[22] Liquidity and Debt - Total available liquidity as of April 1, 2025, was $501.9 million, including a cash balance of $135.4 million[9] - Cash and cash equivalents increased to $135.4 million as of April 1, 2025, from $84.2 million a year earlier[24] - Long-term debt rose to $627.3 million as of April 1, 2025, compared to $452.1 million at the end of 2024[24] Shareholder Returns - The Board of Directors declared a quarterly dividend of $0.27 per share to be paid on May 27, 2025[10] - The company repurchased approximately 2.6 million shares of common stock at a cost of $141.4 million in Q1 fiscal 2025[10] Other Financial Items - The company reported a pre-tax net expense of $17.3 million related to debt extinguishment and acquisition-related items[3] - The company issued $575 million of 2.00% convertible senior notes due 2030 on February 28, 2025[8]

Core Insights - The Cheesecake Factory has introduced 22 new menu items while discontinuing 13, aiming to enhance customer demand and sales performance [1][5] - The company's shares increased by 5.1% following the menu update, reflecting positive investor sentiment [1] - The focus on menu innovation and strategic adjustments is expected to support the company's competitive position in the casual dining sector [4][5] Menu Changes - New menu items include Chicken Shawarma, Mortadella Panino, grilled seafood, steak dishes, and lighter options, while some pizzas, burgers, pasta, and seafood dishes have been removed [2][3] - The "SkinnyLicious" menu has been updated with a new seafood dish, and a new dessert for kids has been added [3] Business Strategy - The Cheesecake Factory operates 352 restaurants in the U.S. and Canada, with 34 international locations through licensing agreements [4] - The company updates its menu biannually and adjusts prices to manage rising operating costs, which helps maintain margins and customer traffic [4] Financial Performance - Shares of The Cheesecake Factory have increased by 24.5% over the past six months, contrasting with a 0.8% decline in the Zacks Retail – Restaurants industry [8] - Earnings estimates for 2025 have risen to $3.72 per share, indicating an 8.1% growth from 2024 [9]