The Cheesecake Factory Reports 4.1% Revenue Growth to $3.58 Billion in Fiscal 2024

The Cheesecake Factory Incorporated reported a 4.1% increase in revenues for fiscal 2024, reaching $3.58 billion compared to $3.44 billion in the previous year. This growth was primarily driven by new restaurant openings and a 1.0% increase in comparable restaurant sales. The Cheesecake Factory brand alone generated $2.66 billion in sales, reflecting a 2.6% increase from the prior year. Average sales per restaurant operating week rose to $237,349, while total operating weeks increased by 1.9%. The company implemented menu price increases of approximately 4.7%, which contributed to a 1.7% rise in average check, although customer traffic saw a slight decline of 0.7%.

In terms of profitability, the company reported a net income of $156.8 million, or $3.20 per diluted share, compared to $101.4 million, or $2.07 per diluted share, in fiscal 2023. The increase in net income was attributed to improved operational efficiencies, as total costs and expenses as a percentage of revenues decreased from 96.8% in fiscal 2023 to 95.0% in fiscal 2024. Notably, food and beverage costs fell to 22.5% of revenues, down from 23.4%, while labor expenses also decreased slightly to 35.3%. The company recorded impairment and lease termination expenses of $13.6 million, a reduction from $29.5 million in the previous year.

Strategically, The Cheesecake Factory opened 23 new restaurants in fiscal 2024, including three locations of its flagship brand, six North Italia, eight Other FRC, and six Flower Child locations. The company plans to continue its expansion, targeting approximately 25 new openings in fiscal 2025. The Cheesecake Factory also aims to enhance its market presence through its bakery operations, which supply products to both domestic and international locations. The company operates 352 restaurants across the U.S. and Canada, with an additional 34 locations operating under licensing agreements internationally.

Operationally, the company employed approximately 47,900 people as of December 31, 2024, with around 46,350 working in restaurants. The Cheesecake Factory has been recognized for its workplace culture, being named to Fortune's "100 Best Companies to Work For" list for the eleventh consecutive year. The company continues to focus on employee engagement and retention, with a promotion rate of 45% for management positions. The Cheesecake Factory's commitment to customer satisfaction and operational excellence remains central to its strategy, as it seeks to navigate ongoing economic challenges and competitive pressures in the restaurant industry.

Looking ahead, The Cheesecake Factory anticipates continued revenue growth driven by new restaurant openings and comparable sales increases. The company is also focused on managing costs effectively to enhance margins, with a long-term goal of achieving a total return to shareholders of 13% to 14% on average. However, the company acknowledges potential risks, including economic fluctuations, labor cost pressures, and supply chain disruptions, which could impact its financial performance in the future.