EX-99.1 2 tm2628239d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE	Contact: Etienne Marcus
	(818) 871-3000
	investorrelations@thecheesecakefactory.com

THE CHEESECAKE FACTORY REPORTS RESULTS FOR

THIRD QUARTER OF FISCAL 2026

CALABASAS HILLS, Calif. – October 27, 2026 – The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the third quarter of fiscal 2026, which ended on September 29, 2026.

Total revenues were $1,033.4 million in the third quarter of fiscal 2026 compared to $907.2 million in the third quarter of fiscal 2025. Net income and diluted net income per share were $61.3 million and $1.19, respectively, in the third quarter of fiscal 2026.

The Company recorded a pre-tax net income of $12.9 million related to Fox Restaurant Concepts (“FRC”) acquisition-related items. Excluding the after-tax impact of these items and certain other items, adjusted net income and adjusted diluted net income per share for the third quarter of fiscal 2026 were $52.3 million and $1.02, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release.

Comparable restaurant sales at The Cheesecake Factory restaurants increased 15.2% year-over-year in the third quarter of fiscal 2026.

“We delivered an exceptional third quarter, generating record quarterly revenue, with margins and earnings also exceeding our expectations,” said David Overton, Chairman and Chief Executive Officer. “The Cheesecake Factory restaurants led our performance, with comparable sales and traffic meaningfully outperforming the broader casual dining industry. Our experienced operators executed at a high level, delivering the outstanding food quality, service and hospitality that keep our guests coming back. Continued menu innovation, our rewards program and significant engagement across social media contributed to the impressive sales growth, while year-over-year improvements in labor productivity and food efficiency supported strong profitability.”

Mr. Overton continued, “The Cheesecake Factory has long enjoyed tremendous brand affinity across generations, and its ability to attract younger guests reinforces the enduring appeal and relevance of our namesake concept. We remain focused on delivering the memorable dining experiences that have defined our success, while building on the momentum of the rewards program and further expanding engagement across digital and social platforms. These strengths reinforce our competitive position and give us confidence in our ability to deliver profitable growth and long-term shareholder value.”

26901 Malibu Hills Road, Calabasas Hills, CA 91301· Telephone (818) 871-3000

Development

During the third quarter of fiscal 2026, the Company opened six new restaurants, including two Cheesecake Factory restaurants, one North Italia, one Flower Child and two FRC restaurants. Subsequent to quarter-end, the Company opened two Flower Childs and one FRC restaurant.

The Company continues to expect to open as many as 26 new restaurants in fiscal 2026, including as many as five The Cheesecake Factory restaurants, eight North Italia locations, seven Flower Child locations and as many as six FRC restaurants.

Liquidity and Capital Allocation

As of September 29, 2026, the Company had total available liquidity of $585.3 million, including a cash balance of $249.3 million and $336.0 million of availability on its revolving credit facility with no outstanding balance. Total principal amount of debt outstanding was $575 million, representing the principal amount of 2.00% convertible senior notes due 2030.

During the third quarter of fiscal 2026, the Company repurchased approximately 29,800 shares of its stock at a cost of $2.4 million. In addition, the Company’s Board of Directors has declared a quarterly dividend of $0.30 per share to be paid on November 24, 2026, to shareholders of record at the close of business on November 10, 2026.

Conference Call and Webcast

The Company will hold a conference call to review its results for the third quarter of fiscal 2026 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com.

About The Cheesecake Factory Incorporated

The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. Delicious, memorable experiences created by passionate people—this defines who we are and where we are going. We currently own and operate 383 restaurants throughout the United States and Canada under brands including The Cheesecake Factory^®, North Italia^®, Flower Child^® and a collection of other FRC brands. Internationally, 35 The Cheesecake Factory^® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. In 2026, we were named to the FORTUNE Magazine “100 Best Companies to Work For^®” list for the thirteenth consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com, www.iamaflowerchild.com and www.foxrc.com.

From Fortune. ©2026 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® and Fortune 100 Best Companies to Work For® are registered trademarks of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, The Cheesecake Factory Incorporated.

26901 Malibu Hills Road, Calabasas Hills, CA 91301· Telephone (818) 871-3000

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, without limitation, statements regarding the Company’s operations, growth, restaurant development and other objectives. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including government shutdowns, trade policy, interest rate fluctuations, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; public health crises, including the potential for quarantines or restrictions affecting in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, Flower Child and Other Fox Restaurant Concepts restaurants; the risks of doing business abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross-border taxation; changes in unemployment rates; increases in minimum wages and benefit costs; the economic health of the Company’s landlords and other tenants in retail centers in which its restaurants are located, and the Company’s ability to successfully manage its lease arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; the timing of new unit development and related permitting; compliance with debt covenants; our ability to satisfy our obligations under our convertible senior notes due 2030; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of changes in tax laws; changes in laws impacting the Company’s business; adverse weather conditions and natural disasters in regions in which the Company’s restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements speak only as of the dates on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov.

26901 Malibu Hills Road, Calabasas Hills, CA 91301· Telephone (818) 871-3000

The Cheesecake Factory Incorporated

Condensed Consolidated Statements of Income

(unaudited; in thousands, except per share data)

	13 Weeks Ended						13 Weeks Ended						39 Weeks Ended						39 Weeks Ended
	September 29, 2026						September 30, 2025						September 29, 2026						September 30, 2025
Consolidated Statements of Income	Amount			Percent of Revenues			Amount			Percent of Revenues			Amount			Percent of Revenues			Amount			Percent of Revenues
Revenues	$	1,033,440			100.0	%	$	907,226			100.0	%	$	3,041,906			100.0	%	$	2,790,248			100.0	%
Costs and expenses:
Food and beverage costs		218,919			21.2	%		197,654			21.8	%		655,016			21.5	%		605,758			21.7	%
Labor expenses		359,758			34.8	%		322,774			35.6	%		1,059,002			34.8	%		987,368			35.4	%
Other operating costs and expenses		285,791			27.7	%		255,724			28.2	%		822,832			27.1	%		757,871			27.2	%
General and administrative expenses		66,645			6.4	%		58,996			6.5	%		196,168			6.4	%		177,706			6.4	%
Depreciation and amortization expenses		29,175			2.8	%		27,419			3.0	%		86,262			2.8	%		80,361			2.9	%
Impairment of assets and lease termination expenses/(income)		8			0.0	%		(104	)		0.0	%		961			0.0	%		496			0.0	%
Acquisition-related contingent consideration, compensation and amortization (income)/expenses		(12,889	)		(1.2	)%		910			0.1	%		(10,452	)		(0.3	)%		2,920			0.1	%
Preopening costs		11,160			1.1	%		6,584			0.7	%		23,591			0.8	%		23,718			0.8	%
Total costs and expenses		958,567			92.8	%		869,957			95.9	%		2,833,380			93.1	%		2,636,198			94.5	%
Income from operations		74,873			7.2	%		37,269			4.1	%		208,526			6.9	%		154,050			5.5	%
Interest expense, net		(1,988	)		(0.2	)%		(2,247	)		(0.3	)%		(6,040	)		(0.2	)%		(7,448	)		(0.2	)%
Loss on debt extinguishment		–			–	%		–			–	%		–			–	%		(15,891	)		(0.6	)%
Other income, net		520			0.1	%		459			0.1	%		1,173			0.0	%		1,482			0.0	%
Income before income taxes		73,405			7.1	%		35,481			3.9	%		203,659			6.7	%		132,193			4.7	%
Income tax provision		12,105			1.2	%		3,582			0.4	%		24,417			0.8	%		12,541			0.4	%
Net income	$	61,300			5.9	%	$	31,899			3.5	%	$	179,242			5.9	%	$	119,652			4.3	%

Basic net income per share	$	1.31					$	0.68					$	3.84					$	2.55
Basic weighted average shares outstanding		46,775						46,608						46,663						46,842

Diluted net income per share	$	1.19					$	0.66					$	3.62					$	2.46
Diluted weighted average shares outstanding		51,473						48,616						49,487						48,633

26901 Malibu Hills Road, Calabasas Hills, CA 91301· Telephone (818) 871-3000

The Cheesecake Factory Incorporated

Selected Segment Information

(unaudited; in thousands)

	For the 13 Weeks Ended September 29, 2026
	The Cheesecake
	Factory		North		Other
	restaurants		Italia		FRC			Other			Total
Revenues	$	754,374	$	92,993	$	90,313		$	95,760		$	1,033,440
Costs and expenses:
Food and beverage costs		162,224		20,461		19,932			16,302			218,919
Labor expenses		250,934		35,770		36,366			36,688			359,758
Other operating costs and expenses		200,495		26,825		29,848			28,623			285,791
General and administrative expenses		-		-		-			66,645			66,645
Depreciation and amortization expenses		17,357		3,620		3,697			4,501			29,175
Impairment of assets and lease termination expenses		-		-		-			8			8
Acquisition-related contingent consideration, compensation and amortization (income)/expenses		-		-		316			(13,205	)		(12,889	)
Preopening costs		3,762		2,235		3,749			1,414			11,160
Total costs and expenses		634,772		88,911		93,908			140,976			958,567
Income/(loss) from operations	$	119,602	$	4,082	$	(3,595	)	$	(45,216	)	$	74,873

	For the 13 Weeks Ended September 30, 2025
	The Cheesecake
	Factory		North		Other
	restaurants		Italia		FRC			Other			Total
Revenues	$	651,375	$	83,482	$	78,017		$	94,352		$	907,226
Costs and expenses:
Food and beverage costs		140,859		18,091		17,360			21,344			197,654
Labor expenses		225,885		31,312		30,885			34,692			322,774
Other operating costs and expenses		178,249		24,100		25,926			27,449			255,724
General and administrative expenses		-		-		-			58,996			58,996
Depreciation and amortization expenses		16,841		3,060		3,288			4,230			27,419
Impairment of assets and lease termination expenses/(income)		33		-		(178	)		41			(104	)
Acquisition-related contingent consideration, compensation and amortization expenses		-		-		316			594			910
Preopening costs		1,610		1,003		3,623			348			6,584
Total costs and expenses		563,477		77,566		81,220			147,694			869,957
Income/(loss) from operations	$	87,898	$	5,916	$	(3,203	)	$	(53,342	)	$	37,269

	For the 39 Weeks Ended September 29, 2026
	The Cheesecake
	Factory		North		Other
	restaurants		Italia		FRC		Other			Total
Revenues	$	2,174,323	$	280,912	$	298,867	$	287,804		$	3,041,906
Costs and expenses:
Food and beverage costs		472,056		63,026		66,151		53,783			655,016
Labor expenses		726,671		106,325		114,854		111,152			1,059,002
Other operating costs and expenses		567,163		77,928		91,754		85,987			822,832
General and administrative expenses		-		-		-		196,168			196,168
Depreciation and amortization expenses		52,053		10,438		10,660		13,111			86,262
Impairment of assets and lease termination expenses		568		-		5		388			961
Acquisition-related contingent consideration, compensation and amortization (income)/expenses		-		-		947		(11,399	)		(10,452	)
Preopening costs		6,686		6,404		7,892		2,609			23,591
Total costs and expenses		1,825,197		264,121		292,263		451,799			2,833,380
Income/(loss) from operations	$	349,126	$	16,791	$	6,604	$	(163,995	)	$	208,526

	For the 39 Weeks Ended September 30, 2025
	The Cheesecake
	Factory		North		Other
	restaurants		Italia		FRC		Other			Total
Revenues	$	2,007,366	$	257,722	$	255,619	$	269,541		$	2,790,248
Costs and expenses:
Food and beverage costs		435,891		56,341		56,303		57,223			605,758
Labor expenses		690,517		96,748		95,892		104,211			987,368
Other operating costs and expenses		530,995		70,777		78,720		77,379			757,871
General and administrative expenses		-		-		-		177,706			177,706
Depreciation and amortization expenses		49,263		8,932		9,587		12,579			80,361
Impairment of assets and lease termination expenses		304		-		137		55			496
Acquisition-related contingent consideration, compensation and amortization expenses		-		-		947		1,973			2,920
Preopening costs		6,518		5,629		8,618		2,953			23,718
Total costs and expenses		1,713,488		238,427		250,204		434,079			2,636,198
Income/(loss) from operations	$	293,878	$	19,295	$	5,415	$	(164,538	)	$	154,050

26901 Malibu Hills Road, Calabasas Hills, CA 91301· Telephone (818) 871-3000

The Cheesecake Factory Incorporated

Selected Operating, Restaurant and Balance Sheet Information

(unaudited; in thousands, except statistical data)

	13 Weeks Ended			13 Weeks Ended			39 Weeks Ended			39 Weeks Ended
The Cheesecake Factory restaurants operating information:	September 29, 2026			September 30, 2025			September 29, 2026			September 30, 2025
Comparable restaurant sales vs. prior year		15.2	%		0.3	%		7.5	%		0.9	%
Restaurants opened during period		2			-			2			2
Restaurants open at period-end		218			216			218			216
Restaurant operating weeks		2,818			2,808			8,442			8,397

North Italia operating information:
Comparable restaurant sales vs. prior year		(3	)%		(3	)%		(3	)%		(1	)%
Restaurants opened during period		1			-			4			4
Restaurants open at period-end		52			46			52			46
Restaurant operating weeks		667			598			1,942			1,748

Other Fox Restaurant Concepts (FRC) operating information:⁽¹⁾
Restaurants opened during period		2			2			4			6
Restaurants open at period-end		59			53			59			53
Restaurant operating weeks		752			675			2,204			1,960

Other operating information:⁽²⁾
Restaurants opened during period		1			-			3			6
Restaurants open at period-end		51			49			51			49
Restaurant operating weeks		657			637			1,933			1,838

Number of company-owned restaurants:
The Cheesecake Factory		218
North Italia		52
Other FRC		59
Other		51
Total		380

Number of international-licensed restaurants:
The Cheesecake Factory		35

(1) The Other FRC segment includes all FRC brands except Flower Child.
(2) The Other segment includes the Flower Child and Grand Lux Cafe concepts, as well as the Company's third-party bakery, international and consumer packaged goods businesses, unallocated corporate expenses and gift card costs.

Selected Consolidated Balance Sheet Information	September 29, 2026		December 30, 2025
Cash and cash equivalents	$	249,269	$	215,729
Current and long-term debt, net of issuance costs ⁽¹⁾		563,713		630,074

(1) As of September 29, 2026, includes $563.7 million net balance of 2.00% convertible senior notes due 2030 (principal amount of $575 million less $11.3 million in unamortized issuance costs). The unamortized issuance costs were recorded as a contra-liability and netted with current and long-term debt on the Condensed Consolidated Balance Sheet and are being amortized as interest expense.

26901 Malibu Hills Road, Calabasas Hills, CA 91301· Telephone (818) 871-3000

Reconciliation of Non-GAAP Results to GAAP Results

In addition to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in this press release, the Company is providing non-GAAP measurements which present net income and net income per share excluding the impact of certain items. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. These non-GAAP measures are calculated by eliminating from net income and diluted net income per share the impact of items the Company does not consider indicative of its ongoing operations. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons.

The Cheesecake Factory Incorporated

Reconciliation of Non-GAAP Financial Measures

(unaudited; in thousands, except per share data)

	13 Weeks Ended			13 Weeks Ended			39 Weeks Ended			39 Weeks Ended
	September 29, 2026			September 30, 2025			September 29, 2026			September 30, 2025
Net income (GAAP)	$	61,300		$	31,899		$	179,242		$	119,652
Impairment of assets and lease termination expenses/(income)⁽¹⁾		8			(104	)		961			496
Acquisition-related contingent consideration, compensation and amortization (income)/expenses⁽²⁾		(12,889	)		910			(10,452	)		2,920
Loss on extinguishment of debt⁽³⁾		-			-			-			15,891
Uncertain tax positions⁽⁴⁾		553			717			863			717
Tax effect of adjustments⁽⁵⁾		3,349			(210	)		2,468			(5,020	)
Adjusted net income (non-GAAP)	$	52,321		$	33,212		$	173,082		$	134,656

Diluted net income per share (GAAP)	$	1.19		$	0.66		$	3.62		$	2.46
Impairment of assets and lease termination expenses/(income)⁽¹⁾		0.00			(0.00	)		0.02			0.01
Acquisition-related contingent consideration, compensation and amortization (income)/expenses⁽²⁾		(0.25	)		0.02			(0.21	)		0.06
Loss on extinguishment of debt⁽³⁾		-			-			-			0.33
Uncertain tax positions⁽⁴⁾		0.01			0.01			0.02			0.01
Tax effect of adjustments⁽⁵⁾		0.07			(0.00	)		0.05			(0.10	)
Adjusted diluted net income per share (non-GAAP)⁽⁶⁾	$	1.02		$	0.68		$	3.50		$	2.77

(1) A detailed breakdown of impairment of assets and lease termination expenses/(income) recorded in the thirteen and thirty-nine weeks ended September 29, 2026 and September 30, 2025 can be found in the Selected Segment Information table.

(2) Represents changes in the fair value of the deferred consideration and contingent consideration and compensation liabilities related to the FRC acquisition, as well as amortization of acquired definite-lived licensing agreements.

(3) Represents premium paid and acceleration of previously unamortized deferred financing costs as a result of partial redemption of our convertible senior notes due 2026.

(4) Represents change to a reserve for uncertain tax position taken in prior years related to tenant improvements allowances and Section 199 deductions. Uncertain tax positions taken in a tax return are recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by tax authorities based on technical merits, taking into account available administrative remedies and litigation.

(5) Based on the federal statutory rate and an estimated blended state tax rate, the tax effect on all adjustments assumes a 26% tax rate for the fiscal 2026 and 2025 periods.

(6) Adjusted net income per share may not add due to rounding.

26901 Malibu Hills Road, Calabasas Hills, CA 91301· Telephone (818) 871-3000