Core Insights - Cheesecake Factory reported Q2 FY2025 earnings with GAAP revenue of $955.8 million, exceeding analyst estimates of $947.3 million, and adjusted EPS of $1.16, surpassing the consensus of $1.06, indicating strong performance despite slowing comparable sales growth [1][5][12] Financial Performance - GAAP revenue increased by 5.7% year-over-year from $904.0 million in Q2 FY2024 to $955.8 million in Q2 FY2025 [2][5] - Adjusted EPS grew by 6.4% from $1.09 in Q2 FY2024 to $1.16 in Q2 FY2025 [2][5] - Net income rose by 4.6% from $52.4 million in Q2 FY2024 to $54.8 million in Q2 FY2025 [2][5] - Comparable restaurant sales for The Cheesecake Factory increased by 1.2%, a slowdown from 1.4% in Q2 FY2024 [2][6] Business Overview - Cheesecake Factory operates a diverse portfolio of full-service restaurants, including its flagship brand, North Italia, and Flower Child, with dessert sales accounting for approximately 17% of total sales [3] - The company emphasizes menu innovation, high-traffic locations, international expansion through licensing, employee retention, and a resilient supply chain [4] Operational Highlights - Off-premise sales constituted 22% of total sales in Q1 FY2025, with delivery and digital orders being significant contributors [8] - The company opened four new FRC restaurants and six new Flower Child locations during Q1 and Q2 FY2025 [7] - Employee retention remains a priority, with attrition rates for salaried managers in the mid-teens and hourly staff turnover between 60% and 70% [10] Capital Allocation and Guidance - The company maintained its quarterly dividend at $0.27 per share and executed minimal share repurchases of $0.1 million in Q2 FY2025 [11] - Management provided cautious guidance for Q2 FY2025 revenue, projecting between $935 million and $950 million, and updated annual comparable sales growth expectations to flat to 1% for FY2025 [12][13]

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Cheesecake Factory (CAKE) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.06 per share. This compares to earnings of $1.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.43%. A quarter ago, it was expected that this restaurant chain would post earnings of $0.81 per share when it actually produced earnings of $0.93, delivering a surprise of +14.81%. Over the last four quarter ...

Financial Data and Key Metrics Changes - The company reported total revenues of $956 million for Q2 2025, exceeding guidance expectations [18] - Adjusted net income margin was 5.8%, also above the high end of guidance [18] - Comparable sales at The Cheesecake Factory restaurants increased by 1.2% year-over-year [6][18] - The Cheesecake Factory's four-wall restaurant margin increased to 18.5%, up 80 basis points year-over-year, marking the highest level in eight years [7] Business Line Data and Key Metrics Changes - Total sales for The Cheesecake Factory restaurants were $683.3 million, up 1% from the prior year [18] - North Italia's total sales were $90.8 million, up 20% year-over-year, with comparable sales declining by 1% [18][14] - Flower Child's sales totaled $48.2 million, up 35% from the prior year, with comparable sales increasing by 4% [15][18] Market Data and Key Metrics Changes - Off-premise sales for The Cheesecake Factory accounted for 21% of total sales, consistent with the average of the prior four quarters [11] - North Italia's annualized average unit volumes (AUVs) reached $8 million, while Flower Child's AUVs exceeded $4.8 million [13][16] Company Strategy and Development Direction - The company plans to open as many as 25 new restaurants in 2025, including two Cheesecake Factory locations internationally under licensing agreements [8][26] - The introduction of new menu items, including 14 new dishes and a new cheesecake, is aimed at maintaining culinary innovation without relying on discounting [6][7] - The company is focused on enhancing the Cheesecake Rewards program to drive customer engagement and loyalty [12][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory of the portfolio, citing strong demand for distinct dining experiences [8] - The operating environment has been stable, with management noting that the company is weathering current conditions effectively [51] - Future guidance for Q3 anticipates total revenues between $905 million and $915 million, with adjusted net income margin expected to be about 3.25% [22][24] Other Important Information - The company ended the quarter with total available liquidity of approximately $515.3 million, including a cash balance of $148.8 million [21] - Capital expenditures totaled approximately $42 million during the quarter for new unit development and maintenance [22] Q&A Session Summary Question: Increase in net income margin for 2025 - Management confirmed that the increase is primarily driven by operational excellence and better-than-expected Q2 results [29][30] Question: Third quarter revenue outlook - The revenue outlook assumes stable same-store sales similar to Q2 [31] Question: Labor retention levels - Management reported that staff retention is at historical highs, exceeding pre-pandemic levels [35][36] Question: Cheesecake Factory Q2 sales breakdown - Q2 net effective pricing was about 4%, with traffic down 1.1% [38][39] Question: Customer response to new menu items - Management noted positive customer response to new menu items, with marketing efforts focused on visibility [42][43] Question: Flower Child profitability and unit economics - Flower Child's mature unit margins reached 20.4%, with strong AUVs [52] Question: North Italia performance and comp breakdown - North Italia's comp breakdown showed a 4% price increase, negative 1% mix, and negative 4% traffic [59][61] Question: Menu pricing strategy - The company plans to take less pricing in the second half of the year, introducing lower-priced items [70][72] Question: Development pipeline for 2026 - Management anticipates opening more units than the 25 planned for 2025, with a strong pipeline [85] Question: Dynamics around convertible notes - Management discussed the potential dilution from convertible notes and the conditions under which they would consider conversion [116][117]

Financial Data and Key Metrics Changes - The company reported total revenues of $956 million for Q2 2025, exceeding expectations and marking a year-over-year increase [16][17] - Adjusted net income margin improved to 5.8%, reflecting operational excellence and strong sales trends [16][22] - Cheesecake Factory's comparable sales increased by 1.2%, while North Italia's sales rose by 20% and Flower Child's sales surged by 35% year-over-year [17][18][14] Business Line Data and Key Metrics Changes - Cheesecake Factory restaurants achieved total sales of $683.3 million, up 1% from the previous year, with average weekly sales reaching record highs [17][5] - North Italia's annualized average unit volumes (AUVs) increased by 2% to $8 million, despite a 1% decline in comparable sales [12][13] - Flower Child's comparable sales increased by 4%, with average weekly sales of $91,400, leading to an annualized AUV of over $4.8 million [14][18] Market Data and Key Metrics Changes - Off-premise sales for Cheesecake Factory accounted for 21% of total sales, consistent with previous quarters [10] - The company opened eight new restaurants in Q2, including two Cheesecake Factory locations and three Flower Child locations, with plans to open up to 25 new restaurants in 2025 [7][24] Company Strategy and Development Direction - The company emphasizes culinary innovation, introducing 14 new dishes and a new cheesecake to maintain menu relevance without relying on discounting [6][10] - The focus on operational excellence and staff retention is seen as a key driver for improved guest satisfaction and profitability [9][35] - The company aims to continue expanding its restaurant footprint while maintaining high operational standards and guest experiences [24][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory of the business, citing strong demand for unique dining experiences [7][24] - The operating environment is described as stable, with expectations for continued growth despite potential macroeconomic challenges [51][52] - The company anticipates total revenues for fiscal 2025 to be approximately $3.76 billion, with an adjusted net income margin of about 4.9% [22][23] Other Important Information - The Cheesecake Rewards program is performing well, with higher member engagement and satisfaction compared to non-members [11][94] - The company is focused on maintaining a strong balance sheet, with total available liquidity of approximately $515.3 million [20] Q&A Session Summary Question: Increase in net income margin for 2025 - Management confirmed that the increase is primarily driven by operational improvements and better-than-expected Q2 results [27][28] Question: Third quarter revenue outlook - The revenue outlook assumes stable comparable sales similar to Q2, with no significant changes anticipated [29] Question: Labor retention levels - Management reported that staff retention is at historically high levels, exceeding pre-pandemic rates, contributing to improved productivity and guest satisfaction [33][35] Question: Cheesecake Factory Q2 sales breakdown - The net effective pricing was about 4%, with traffic down 1.1% and mix contributing to the balance [37][38] Question: Customer response to new menu items - Management indicated positive customer response to new menu items, with marketing strategies in place to highlight these innovations [41][42] Question: Flower Child profitability and unit economics - Flower Child is experiencing strong performance with mature unit margins over 20%, and the company is optimistic about future growth [50][52] Question: North Italia performance and sales transfer - North Italia's performance is strong, with AUVs of $8 million, but some sales transfer is impacting comparable sales [59][60] Question: Menu pricing strategy - The company plans to take less pricing in the second half of the year, focusing on value-driven menu items [68][70] Question: Development pipeline for 2026 - Management anticipates opening more units than the 25 planned for 2025, with a strong pipeline in place [86][87]

Core Insights - Cheesecake Factory Inc reported better-than-expected financial results for the second fiscal quarter, with record-high revenue and profitability exceeding guidance [1][2] Financial Performance - The company reported second-quarter revenue of $955.8 million, a 5.7% increase from $904 million in the same quarter last year, surpassing the consensus estimate of $946.79 million [1] - Adjusted earnings per share for the quarter were $1.16, exceeding the consensus estimate of $1.05 [2] - Comparable restaurant sales increased by 1.2% year-over-year in the second quarter [2] Growth and Expansion - The company opened eight new restaurants during the quarter and a total of 16 in the first half of 2025 [3] - A new Cheesecake Factory restaurant was opened in Mexico under a license agreement after the end of the quarter [3] - The company plans to open as many as 25 new restaurants in fiscal 2025, including various concepts [3] Stock Performance - Cheesecake Factory Inc shares rose by 5.87% to $66.89 in after-hours trading, within a 52-week trading range of $33.50 to $69.70 [4]

INVESTOR PRESENTATION July 29, 2025 SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This includes, without limitation, financial guidance and projections, including underlying assumptions, and statements with respect to expectations of the Company's future financial condition, results of operations, cash flows, share repurchases, objecti ...

Exhibit 99.1 PRESS RELEASE FOR IMMEDIATE RELEASE Contact: Etienne Marcus (818) 871-3000 investorrelations@thecheesecakefactory.com THE CHEESECAKE FACTORY REPORTS RESULTS FOR SECOND QUARTER OF FISCAL 2025 CALABASAS HILLS, Calif. – July 29, 2025 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the second quarter of fiscal 2025, which ended on July 1, 2025. Development During the second quarter of fiscal 2025, the Company opened eight new restaurants, including two Chee ...

Cheesecake Factory (CAKE) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expec ...