Financial Data and Key Metrics Changes - Total revenues for Q4 2025 were $961.6 million, including $17.3 million from gift card breakage revenue, with adjusted revenues of $944.3 million, finishing within the expected range [15][16] - Adjusted diluted earnings per share increased 10% year-over-year to $3.77, with adjusted net income margin at 5.1% [16][19] - For the fiscal year, total revenues reached $3.75 billion, up 5% from the prior year, with adjusted EBITDA totaling $354 million [15][16] Business Line Data and Key Metrics Changes - The Cheesecake Factory restaurants generated $681.4 million in sales, up 2% year-over-year, with comparable sales declining 2.2% [16][19] - North Italia reported sales of $88.2 million, an 8% increase from the prior year, with comparable sales down 4% [16][19] - Flower Child sales increased 19% year-over-year to $45.5 million, with a restaurant-level profit margin of 17.5% for Q4 [12][16] Market Data and Key Metrics Changes - Comparable sales for The Cheesecake Factory were -2.2% in Q4, reflecting a decline from 0.3% in Q3, while industry sales decelerated by 410 basis points [10][11] - North Italia's annualized average unit volumes (AUVs) were $7.6 million, while Flower Child's AUVs were $4.3 million for Q4 [11][12] Company Strategy and Development Direction - The company plans to open as many as 26 new restaurants in 2026, with a strong development pipeline and confidence in achieving growth goals [7][25] - The focus remains on culinary innovation and enhancing guest experiences, with new menu items resonating well with customers [5][9] - The company announced an increase in share repurchase authorization and raised its quarterly dividend, reflecting a disciplined approach to capital allocation [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment but highlighted the resilience of the business and strong operational execution [4][5] - The outlook for Q1 2026 anticipates total revenues between $955 million and $970 million, factoring in weather impacts and restaurant closures [21][22] - Management expressed confidence in the business's ability to navigate the competitive landscape and maintain profitability [9][10] Other Important Information - The company ended Q4 with total available liquidity of approximately $582.2 million, including a cash balance of $215.7 million [19][20] - The company recorded a pre-tax net expense of $24.6 million related to impairment of assets and lease termination expenses [19] Q&A Session Summary Question: Update on FRC structure and management changes - Management expressed satisfaction with FRC's performance and noted that operations are steady, with a focus on creating value through innovation and scale [29][30] Question: Opportunity to invest in value and market positioning - Management confirmed strong reception of new menu items and plans to enhance value communication to consumers [33][34] Question: Weather impact on Q1 guidance - Management estimated a 1% negative impact from weather on Q1 guidance, with significant restaurant closures due to inclement weather [40][41] Question: Consumer spending outlook and industry trends - Management indicated that consumer sentiment remains soft but noted improvements in performance, expecting stability through the year [44][46] Question: Flower Child's vision and development pace - Management highlighted Flower Child's strong performance and the importance of having the right leadership in place to support growth [82][84]