The Cheesecake Factory Reports 5.6% Revenue Growth to $978.8 Million in Q1 Fiscal 2026

The Cheesecake Factory Incorporated reported a revenue increase of 5.6% for the first quarter of fiscal 2026, reaching $978.8 million compared to $927.2 million in the same period last year. This growth was primarily driven by new restaurant openings and a rise in comparable restaurant sales. The Cheesecake Factory Restaurants segment alone saw sales rise by 2.6% to $690.5 million, with average sales per restaurant operating week increasing by 1.9% to $245,196. The company also noted a 1.6% increase in comparable sales, attributed to a 3.0% rise in average check, despite a 1.4% decline in customer traffic.

In terms of profitability, net income for the quarter was $49.5 million, or $1.06 per share, compared to $32.9 million, or $0.69 per share, in the prior year. The increase in net income was supported by a reduction in labor expenses as a percentage of revenue, which fell to 35.5% from 35.7% year-over-year, and a slight decrease in food and beverage costs as a percentage of revenue, which stood at 21.7% compared to 21.8% in the previous year. The company also recorded a $0.8 million impairment of assets and lease termination expenses during the quarter.

Operationally, The Cheesecake Factory continues to expand its footprint, operating 371 restaurants across the U.S. and Canada, including 216 locations of The Cheesecake Factory, 50 North Italia, and 43 Flower Child restaurants. The company opened three new locations in the first quarter of fiscal 2026, with plans to open up to 26 new restaurants throughout the fiscal year. The company’s bakery division also remains a key component of its operations, producing cheesecakes and other baked goods for both its restaurants and third-party customers.

The Cheesecake Factory's balance sheet showed total assets of $3.3 billion as of March 31, 2026, up from $3.26 billion at the end of the previous fiscal year. The company reported cash and cash equivalents of $235.1 million, an increase of $19.4 million from the prior quarter. The company has also entered into a Fifth Amended and Restated Loan Agreement, providing a revolving credit facility of $400 million, which enhances its liquidity position. Looking ahead, the company remains focused on managing expenses, expanding its restaurant concepts, and leveraging its operational efficiencies to drive future growth.