The Cheesecake Factory Incorporated (NASDAQ:CAKE) reported financial results for the fourth quarter of fiscal 2025, delivering a mixed performance against Wall Street expectations. While the company's adjusted earnings per share narrowly surpassed analyst forecasts, its top-line revenue fell short, contributing to a negative after-hours market reaction.
Quarterly Results vs. Estimates
The restaurant chain posted total revenues of $961.6 million for the quarter ended December 30, 2025. This represents a 4.4% increase from the $921.0 million reported in the same period last year. However, this figure came in below the analyst consensus estimate of approximately $968.5 million.
On the profitability front, the company reported adjusted diluted net income per share of $1.00. This result edged past the average analyst estimate of $0.99. The GAAP diluted net income per share was $0.60, impacted by several one-time items.
Key financial comparisons for the quarter are as follows:
- Reported Revenue: $961.6 million
- Estimated Revenue: ~$968.5 million
- Variance: -0.7%
- Adjusted EPS: $1.00
- Estimated EPS: $0.99
- Variance: +1.0%
Market Reaction and Press Release Highlights
Following the earnings release, CAKE shares traded lower in after-hours action, declining approximately 3.3%. This suggests investor focus may be leaning toward the revenue miss and internal metrics, such as a 2.2% year-over-year decline in comparable sales at its flagship Cheesecake Factory restaurants. The company noted the quarter included $17.3 million in gift card breakage revenue due to a change in historical redemption patterns.
Beyond the headline numbers, the press release emphasized operational execution and unit growth. Chairman and CEO David Overton highlighted "strong operational execution" that helped margins and adjusted EPS finish "toward the higher end of our expectations" despite a challenging environment. The company opened 25 new restaurants across its portfolio in fiscal 2025, achieving about 7% unit growth.
Looking ahead, management provided development guidance for fiscal 2026, expecting to open as many as 26 new restaurants. This expansion will be spread across its brands: The Cheesecake Factory, North Italia, Flower Child, and its Fox Restaurant Concepts (FRC) portfolio.
Capital Allocation and Liquidity
The company demonstrated confidence in its financial position by announcing a capital return to shareholders. The Board of Directors approved a $0.03 increase in the quarterly dividend to $0.30 per share and added 5.0 million shares to its existing stock repurchase authorization. As of the quarter's end, The Cheesecake Factory held total available liquidity of $582.2 million.
Forward-Looking Analyst Estimates
While the company did not provide specific financial guidance for the coming year in its release, current Wall Street estimates offer a benchmark for future performance. Analysts are forecasting sales of approximately $986.0 million for the first quarter of fiscal 2026 (Q1 2026). For the full 2026 fiscal year, the consensus sales estimate stands near $3.99 billion.
Conclusion
The Cheesecake Factory's fourth-quarter results present a tale of two metrics: a slight earnings beat contrasted with a revenue miss and softening comparable sales at its core brand. The market's initial reaction appears to weigh the latter factors more heavily. The company's ongoing unit expansion and strengthened capital return program underscore a long-term growth strategy, but near-term investor sentiment seems cautious amid a competitive restaurant landscape.
For a detailed look at The Cheesecake Factory's historical earnings and future analyst estimates, you can review the data here.
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