Financial Data and Key Metrics Changes - The company reported total revenues of $961.6 million for Q4 2025, including $17.3 million from gift card breakage revenue, with adjusted revenues of $944.3 million, finishing within the expected range [16][17] - Adjusted diluted earnings per share increased 10% year-over-year to $3.77, with adjusted net income margin at 5.1% [17][21] - For the fiscal year, total revenues reached $3.75 billion, up 5% from the prior year, with adjusted EBITDA totaling $354 million [17][27] Business Line Data and Key Metrics Changes - Total sales at The Cheesecake Factory restaurants were $681.4 million, up 2% from the prior year, while comparable sales declined 2.2% [17][18] - North Italia reported total sales of $88.2 million, an 8% increase from the prior year, with annualized average unit volumes (AUVs) of $7.6 million [12][17] - Flower Child sales totaled $45.5 million, up 19% from the prior year, with a restaurant-level profit margin of 17.5% for the fourth quarter [14][15] Market Data and Key Metrics Changes - The Cheesecake Factory's comparable sales were down 2.2% in Q4, reflecting broader industry trends, while North Italia and Flower Child showed resilience with positive sales growth [11][13] - The off-premise sales mix accounted for 22% of total sales, indicating a slight improvement from recent quarters [12][97] Company Strategy and Development Direction - The company plans to open as many as 26 new restaurants in 2026, with a strong development pipeline in place [8][26] - Culinary innovation remains a core strength, with new menu items resonating well with guests, supporting broad appeal without relying on discounting [7][10] - The company announced an increase in share repurchase authorization and raised its quarterly dividend, reflecting a disciplined approach to capital allocation [9] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging operating environment but highlighted strong operational execution and improvements in labor productivity and guest satisfaction [5][6] - The company anticipates total revenues for Q1 2026 to be between $955 million and $970 million, factoring in weather impacts and restaurant closures [23][24] - For fiscal 2026, total revenues are expected to be approximately $3.9 billion, with inflation across commodity and labor costs anticipated to be in the low- to mid-single-digit range [25][26] Other Important Information - The company ended the quarter with total available liquidity of approximately $582.2 million, including a cash balance of $215.7 million [21] - The company recorded a pre-tax net expense of $24.6 million related to impairment of assets and lease termination expenses [20] Q&A Session Summary Question: Update on FRC structure and management changes - Management expressed satisfaction with FRC's performance and noted that a senior operations role from Cheesecake is in place to enhance operations [30][31] Question: Opportunity to invest in value marketing - Management confirmed strong reception of new menu items and plans to market value more prominently [34][35] Question: Weather impact on current quarter - Management estimated a 1% negative net impact from weather on Q1 [41] Question: Insights on menu performance - Management indicated that all new menu items have been popular, with no specific standout [43] Question: Consumer spending outlook - Management noted that the consumer sentiment appears to be stabilizing, with expectations for continued steady performance [48] Question: Mix pressure from new menu items - Management confirmed that mix pressure is primarily from new product pricing, with expectations for continued negative mix but offset by increased ordering rates [51][93] Question: Delivery mix and DoorDash partnership - Management reported that off-premise sales accounted for 22% of total sales, with 10% from delivery [97] Question: Flower Child's growth vision - Management expressed confidence in Flower Child's performance and plans for continued growth, emphasizing the need for the right leadership to support expansion [86][88]