The Cheesecake Factory Reports 7.7% Revenue Growth to $1.03 Billion in Q2 Fiscal 2026

The Cheesecake Factory Incorporated reported a notable increase in financial performance for the second quarter of fiscal 2026, with revenues reaching $1.03 billion, a 7.7% rise from $955.8 million in the same period last year. The company's net income also saw a significant increase, climbing to $68.4 million, or $1.47 per diluted share, compared to $54.8 million, or $1.14 per diluted share, in the prior year. For the first half of the fiscal year, total revenues amounted to $2.01 billion, up 6.7% from $1.88 billion in the first half of fiscal 2025, while net income rose to $117.9 million from $87.8 million.

The Cheesecake Factory's operational metrics reflected positive trends, with comparable sales for The Cheesecake Factory restaurants increasing by 5.8% in the second quarter, driven by a 3.1% rise in average check and a 2.7% increase in customer traffic. The company opened four new locations during the quarter, contributing to a total of 375 restaurants across the U.S. and Canada. The North Italia brand experienced an 8.4% increase in sales, although its comparable sales decreased by approximately 3%. Flower Child reported a 17.5% increase in sales, with comparable sales rising by about 13%.

In terms of costs, food and beverage expenses as a percentage of revenues were 21.8%, slightly up from 21.6% in the previous year, primarily due to increased costs for meat, produce, and seafood. Labor expenses decreased to 34.1% of revenues from 34.9%, attributed to improved sales leverage and productivity gains. Other operating costs also saw a reduction, falling to 26.5% from 26.8%. The company recorded impairment and lease termination expenses of $0.1 million in the second quarter, compared to $0.2 million in the prior year.

Strategically, The Cheesecake Factory continues to focus on expanding its restaurant footprint and enhancing customer experience through menu innovation and improved service. The company has plans to open up to 26 new restaurants in fiscal 2026, with an estimated capital expenditure of approximately $210 million to support this growth. The Cheesecake Factory also maintains a robust balance sheet, with cash and cash equivalents totaling $195.2 million as of June 30, 2026, despite a decrease of $20.5 million from the previous period. The company remains committed to returning capital to shareholders through dividends and share repurchases, having declared a quarterly dividend of $0.30 per share in July 2026.