The Cheesecake Factory(US:CAKE)2025-10-28 20:30Financial Performance - Total revenues for Q3 fiscal 2025 were $907.2 million, up from $865.5 million in Q3 fiscal 2024, representing a year-over-year increase of 4.1%[2] - Net income for Q3 fiscal 2025 was $31.9 million, with diluted net income per share at $0.66, compared to $29.99 million and $0.61 per share in Q3 fiscal 2024[2][16] - Total revenues for the 13 weeks ended September 30, 2025, were $907.226 million, an increase from $865.471 million for the same period in 2024, representing a growth of 4.0%[18] - The company reported an income from operations of $37.269 million for the 13 weeks ended September 30, 2025, compared to $33.700 million for the same period in 2024, marking an increase of 10.5%[18] - Net income (GAAP) for the 13 weeks ended September 30, 2025, was $31,899 million, compared to $29,994 million for the same period last year, representing a growth of 6.3%[27] - Adjusted net income (non-GAAP) for the 39 weeks ended September 30, 2025, was $134,656 million, up from $116,894 million in the prior year, reflecting a year-over-year increase of 15.1%[27] - Diluted net income per share (GAAP) increased to $0.66 for the 13 weeks ended September 30, 2025, compared to $0.61 in the same period last year, marking an 8.2% rise[27] - Adjusted diluted net income per share (non-GAAP) for the 39 weeks ended September 30, 2025, was $2.77, up from $2.40 in the previous year, indicating a growth of 15.4%[27] Sales and Restaurant Operations - Comparable restaurant sales increased by 0.3% year-over-year in Q3 fiscal 2025, indicating stable performance amid a competitive environment[4] - Comparable restaurant sales for The Cheesecake Factory increased by 0.3% compared to the prior year for the 13 weeks ended September 30, 2025, while North Italia experienced a decline of 3%[21] - The company opened two new FRC restaurants and two Cheesecake Factory restaurants internationally in Q3 fiscal 2025, remaining on track to open up to 25 new restaurants by the end of the fiscal year[6] - The Cheesecake Factory opened 2 new restaurants during the 39 weeks ended September 30, 2025, compared to 1 new restaurant in the same period of 2024[21] Expenses and Costs - Total costs and expenses for the 13 weeks ended September 30, 2025, were $869.957 million, up from $831.771 million in the same period of 2024, reflecting an increase of 4.6%[18] - Labor expenses accounted for 35.6% of total revenues in Q3 fiscal 2025, slightly down from 35.9% in Q3 fiscal 2024, reflecting improved labor productivity[16] - The Cheesecake Factory's total food and beverage costs for the 39 weeks ended September 30, 2025, were $605.758 million, up from $559.932 million in the same period of 2024, an increase of 8.2%[18] - The company’s general and administrative expenses for the 39 weeks ended September 30, 2025, were $177.706 million, compared to $56.204 million for the same period in 2024, indicating a significant increase[18] Liquidity and Debt - Total available liquidity as of September 30, 2025, was $556.5 million, including a cash balance of $190.0 million and $366.5 million available on the revolving credit facility[7] - Cash and cash equivalents as of September 30, 2025, were $189.978 million, significantly higher than $84.176 million at the end of 2024[23] - Current and long-term debt increased to $629.156 million as of September 30, 2025, from $452.062 million at the end of 2024[23] Other Financial Metrics - The company recorded a pre-tax net expense of $0.8 million related to acquisition expenses for Fox Restaurant Concepts[3] - The company recorded impairment of assets and lease termination expenses of $(104) million for the 13 weeks ended September 30, 2025, compared to $(3,472) million for the same period last year[27] - Acquisition-related contingent consideration and compensation expenses amounted to $910 million for the 13 weeks ended September 30, 2025, down from $1,020 million in the prior year[27] - The tax effect of adjustments for the 39 weeks ended September 30, 2025, was $(5,020) million, compared to $(445) million for the same period last year[27] - The company reported a loss on extinguishment of debt of $15,891 million for the 39 weeks ended September 30, 2025, with no such loss reported in the previous year[27] - The uncertain tax position related to tenant improvement allowances resulted in an expense of $717 million for both the 13 and 39 weeks ended September 30, 2025[27] Strategic Focus - The Cheesecake Factory's focus on menu innovation and customer experience has led to steady sales trends and positive early results from recent menu updates[5] - The company aims to achieve its unit growth objective for the year, with ongoing confidence in navigating the current softer restaurant industry environment[5] - The company anticipates continued growth in adjusted net income and earnings per share as it expands its market presence and enhances operational efficiencies[27]