The Cheesecake Factory(US:CAKE)2026-02-23 22:01Revenue Growth - Revenues increased by 4.7% to $3,751.8 million for fiscal 2025 compared to $3,581.7 million for fiscal 2024, primarily due to new restaurant openings [251]. - The Cheesecake Factory sales increased by 1.0% to $2,688.8 million for fiscal 2025, with average sales per restaurant operating week rising by 0.3% to $238,146 [252]. - North Italia sales increased by 15.5% to $345.9 million for fiscal 2025, although average sales per restaurant operating week decreased by 0.9% to $146,877 [253]. - Flower Child sales increased by 27.8% to $185.3 million for fiscal 2025, with comparable sales rising approximately 5% [254]. Cost Management - Food and beverage costs as a percentage of revenues decreased to 21.7% in fiscal 2025 from 22.5% in fiscal 2024, attributed to favorable commodity inflation [257]. - Labor expenses as a percentage of revenues decreased to 35.0% in fiscal 2025 from 35.3% in fiscal 2024, due to menu price increases exceeding wage inflation [259]. - Other operating costs and expenses increased to 27.0% of revenues in fiscal 2025 from 26.7% in fiscal 2024, driven by higher facility-related costs [261]. - G&A expenses were 6.5% of revenues in fiscal 2025, slightly up from 6.4% in fiscal 2024, primarily due to a write-down of gift card inventory [262]. Financial Performance - Adjusted net income for fiscal 2025 was $182.96 million, with adjusted diluted net income per share at $3.77, compared to $168.68 million and $3.44 in fiscal 2024 [271]. - EBITDA for fiscal 2025 was $282.37 million, slightly down from $282.60 million in fiscal 2024, while adjusted EBITDA increased to $353.54 million from $328.64 million [272]. - Cash provided by operating activities increased by $33.0 million to $301.3 million in fiscal 2025, primarily due to higher net income and a decrease in inventory levels [277]. - The income tax provision for fiscal 2025 was $14.5 million, with an effective tax rate of 8.9%, compared to $14.3 million and 8.3% in fiscal 2024 [269]. Capital Expenditures and Growth Plans - Capital expenditures for new restaurants were $70.5 million in fiscal 2025, down from $99.0 million in fiscal 2024, with additional investments in existing restaurants and corporate infrastructure [278]. - The company plans to open up to 26 new restaurants in fiscal 2026, anticipating approximately $210 million in capital expenditures to support this development [279]. - The company plans to achieve a targeted annual unit growth of 7% across concepts and aims for a long-term financial objective of 10% to 15% total return to shareholders [248]. Debt and Liquidity - The company reported a $15.9 million loss on early debt extinguishment in fiscal 2025, following the repurchase of approximately $276.0 million of 2026 Notes for $289.8 million [268]. - As of December 30, 2025, the company had $366.5 million available for borrowings under its revolving credit facility, with no outstanding debt balance [280]. - The company issued $345.0 million in aggregate principal amount of convertible senior notes, with a gross principal balance of $69.0 million remaining as of December 30, 2025 [284]. - The company expects adequate liquidity for the next 12 months from cash and cash equivalents, operational cash flows, and available borrowings [290]. Shareholder Returns - Common stock dividends paid were $52.2 million in fiscal 2025, compared to $53.0 million in fiscal 2024 [285]. - The company repurchased 59.9 million shares at a total cost of $1,983.6 million as of December 30, 2025, with 2.9 million shares repurchased in fiscal 2025 at a cost of $153.9 million [286]. - The company has a share repurchase program with no expiration date, subject to Board discretion and various financial factors [287]. Impairment and Expenses - In fiscal 2025, the company recorded an impairment of assets and lease terminations expense of $13.6 million, primarily related to long-lived assets for The Cheesecake Factory and six other locations [264]. - The company recorded $23.0 million in expenses related to impairment of long-lived assets in fiscal 2025, primarily for specific restaurant locations [298]. - Preopening costs increased to $33.1 million in fiscal 2025 from $27.5 million in fiscal 2024, with 25 new restaurants opened compared to 23 in the previous year [267].