Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were $907 million, finishing near the midpoint of the guidance range [14] - Adjusted net income margin was 3.7%, exceeding the high end of the guidance [15] - GAAP diluted net income per share was $0.66, while adjusted diluted net income per share was $0.68 [17] Business Line Data and Key Metrics Changes - Comparable sales at The Cheesecake Factory restaurants increased by 0.3%, with total sales of $651.4 million, up 1% from the prior year [15][6] - North Italia's total sales were $83.5 million, up 16% from the prior year, with comparable sales declining by 3% [15][12] - Flower Child's sales totaled $48.1 million, up 31% from the prior year, with comparable sales increasing by 7% [15][12] Market Data and Key Metrics Changes - Annualized unit volumes for The Cheesecake Factory averaged over $12 million [6] - North Italia's annualized AUVs reached $7.3 million [11] - Flower Child's annualized AUVs were $4.6 million [12] Company Strategy and Development Direction - The company plans to open as many as 25 new restaurants in 2025, including four Cheesecake Factory locations and six each of North Italia and Flower Child [20] - For 2026, the company expects to accelerate development with as many as 26 new restaurant openings [8][20] - The focus remains on delivering exceptional food, service, and hospitality while executing long-term growth strategies [8] Management's Comments on Operating Environment and Future Outlook - Management noted a softer macro and consumer environment but emphasized stable overall performance [6] - The company anticipates total revenues for Q4 2025 to be between $940 million and $955 million, representing a 1% step down from Q3 sales trends [18] - Management expressed confidence in navigating the dynamic macro environment and maintaining profitability [22] Other Important Information - The company recorded a pre-tax net expense of $0.8 million related to FRC acquisition-related expenses [16] - The Cheesecake Rewards program continues to show strong membership growth and positive member satisfaction [10] Q&A Session Summary Question: What is driving the caution in the current consumer environment? - Management indicated that the caution is primarily due to a decline in traffic, with stable day parts and good performance from new menu items [24] Question: Can you provide the breakdown of comps for The Cheesecake Factory and North Italia? - For The Cheesecake Factory, pricing was about 4%, traffic was -2.5%, and mix was the difference. For North Italia, price was 4%, mix was -1%, and traffic was -6% [27] Question: What is the outlook for commodity inflation in Q4? - Commodity inflation was about flat in Q3, but is expected to be around 2% in Q4, primarily driven by beef prices [29] Question: How is the company planning to promote lower price point items? - Management plans to continue promoting bites and bowls through social media and marketing campaigns, leveraging the Cheesecake Rewards program [36] Question: Are there any changes in labor demand or supply? - Management reported steady applicant flow and strong retention, indicating no significant changes in labor demand or supply [89] Question: What are the expectations for the app launch? - The company is working on launching a rewards app in the first half of next year, aimed at enhancing customer engagement and experience [91]

Financial Data and Key Metrics Changes - The Cheesecake Factory reported total revenues of $907 million for Q3 2025, finishing near the midpoint of the guidance range [11] - Adjusted net income margin was 3.7%, exceeding the high end of the guidance [12] - GAAP diluted net income per share was $0.66, while adjusted diluted net income per share was $0.68 [14] Business Line Data and Key Metrics Changes - Comparable sales at The Cheesecake Factory restaurants increased by 0.3%, with total sales reaching $651.4 million, up 1% from the prior year [4][12] - North Italia's total sales were $83.5 million, up 16% from the prior year, with comparable sales declining by 3% [10][12] - Flower Child experienced a 7% increase in comparable sales, translating into annualized AUVs of $4.6 million [10][12] Market Data and Key Metrics Changes - The Cheesecake Factory's annualized unit volumes averaged over $12 million [4] - North Italia's annualized AUVs reached $7.3 million [9] - Flower Child's restaurant-level profit margins improved by 140 basis points year over year to 17.4% [11] Company Strategy and Development Direction - The company plans to open as many as 25 new restaurants in 2025 and 26 new restaurants in 2026, focusing on delivering exceptional food and service [6][17] - The strategic focus on menu innovation is seen as a key differentiator, with new menu offerings resonating well with consumers [5][8] - The company aims to enhance the guest experience through a dedicated rewards app, expected to launch in the first half of 2026 [78] Management's Comments on Operating Environment and Future Outlook - Management noted a softer macro and consumer environment but emphasized stable overall performance and healthy demand for their concepts [4][20] - The company anticipates total revenues for Q4 2025 to be between $940 million and $955 million, reflecting a cautious outlook due to recent industry trends [15] - Management expressed confidence in navigating the dynamic macro environment, citing strong execution and a resilient business model [20] Other Important Information - The Cheesecake Factory's restaurant-level profit margin increased by 60 basis points year over year to 16.3% [5] - The company returned $13.8 million to shareholders through dividends and stock repurchases [12] - Total available liquidity at the end of the quarter was approximately $556.5 million [14] Q&A Session Summary Question: What is driving the caution in consumer behavior? - Management indicated that the caution is primarily related to traffic trends, with stable day parts but a slight decline in overall traffic [22] Question: Can you provide the breakdown of comps for The Cheesecake Factory and North Italia? - For The Cheesecake Factory, pricing was about 4%, traffic was negative 2.5%, and mix was positive [24] - For North Italia, pricing was 4%, mix was negative 1%, and traffic was negative 6% [25] Question: What is the outlook for commodity inflation in Q4? - Commodity inflation was flat in Q3, but is expected to rise to about 2% in Q4, primarily driven by beef prices [27] Question: How is the company addressing the lower price points in the menu? - Management plans to continue promoting lower price point items and menu innovation to attract customers [32] Question: Are there any changes in labor demand and retention? - The company has not seen changes in labor demand and continues to experience strong applicant flow and low turnover [75] Question: What are the expectations for the loyalty program and app? - The loyalty program is expected to contribute positively in 2026, with the app aimed at enhancing guest experience and engagement [82]

Financial Data and Key Metrics Changes - The company reported total revenues of $927 million for Q1 2025, finishing towards the high end of guidance, with a 27% year-over-year increase in adjusted earnings per share [5][15] - Adjusted net income margin was 4.9%, exceeding the high end of the guidance range [15] - The Cheesecake Factory restaurants' total sales were $673 million, up 1% from the prior year, with comparable sales also increasing by 1% [16][17] - The four-wall restaurant margins increased to 17.4%, up 140 basis points from Q1 2024 [6] Business Line Data and Key Metrics Changes - North Italia's total sales were $83.4 million, up 18% from the prior year, with comparable sales declining by 1% [17][12] - Flower Child's sales totaled $43.5 million, up 26% from the prior year, with comparable sales increasing by 5% [17][13] - The company opened eight restaurants in Q1 2025, including three North Italia and three Flower Child locations [6][24] Market Data and Key Metrics Changes - The off-premise sales mix for The Cheesecake Factory was 22%, consistent with Q1 2024 [16][100] - North Italia's annualized average unit volumes (AUVs) increased to $7.75 million, while Flower Child's AUV was over $4.6 million, reflecting strong consumer demand [12][13] Company Strategy and Development Direction - The company aims to open as many as 25 new restaurants in 2025, with a focus on accelerating new unit growth [7][24] - The company has been recognized as one of Fortune Magazine's 100 Best Companies to Work For for the twelfth consecutive year, highlighting its commitment to employee satisfaction [7] - The company is focused on menu innovation, operational execution, and maintaining contemporary restaurant designs as key components of its strategy [8][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment feels less robust than three months ago, citing various external factors impacting performance [29] - The company anticipates total revenues for Q2 2025 to be between $935 million and $950 million, reflecting a cautious outlook due to economic conditions [21] - Management remains confident in the company's ability to absorb potential tariff impacts without changing adjusted net income margin expectations [21][39] Other Important Information - The company returned $153.8 million to shareholders during the quarter through dividends and share repurchases [15] - The company ended the quarter with total available liquidity of approximately $501.9 million [19] Q&A Session Summary Question: Is the uncertain macro environment already impacting the business? - Management indicated that while the business remains stable, the environment feels less robust than previously expected, suggesting a prudent outlook for the remainder of the year [28][29] Question: Can you quantify the expected impact of tariffs on the P&L? - Management noted that the biggest impact would likely be in other operating expenses, with potential pricing adjustments of 50 to 75 basis points if necessary [34][39] Question: What are the same-store sales components for The Cheesecake Factory? - The Cheesecake Factory experienced 4% effective pricing, with traffic down 1.2%, indicating a mix shift due to menu changes [47] Question: How is the loyalty program performing? - The loyalty program is seeing strong member acquisition and positive guest feedback, with plans to implement more personalized offers moving forward [42][44] Question: What is the outlook for commodity inflation? - Management reported that commodity inflation was close to breakeven in Q1, with expectations of low single-digit inflation in Q2 [64] Question: Are there any planned closures affecting guidance? - Management confirmed a closure in Seattle but indicated no other planned closures at this time [66] Question: What differentiates Flower Child's performance in a slowing environment? - Flower Child's strong performance is attributed to food quality, operational stability, and effective staffing, which resonate well with consumers [70]