The Cheesecake Factory Incorporated reported a revenue increase of 4.7% for fiscal 2025, reaching $3.75 billion compared to $3.58 billion in fiscal 2024. This growth was primarily driven by new restaurant openings and a change in the recognition of gift card breakage, which added $17.3 million to revenue. The Cheesecake Factory brand itself saw a modest sales increase of 1.0%, with comparable sales rising by 0.1%. The average check increased by 2.4%, although customer traffic decreased by 2.3%. North Italia and Flower Child also experienced significant growth, with sales increasing by 15.5% and 27.8%, respectively.
In terms of profitability, net income for the year was $148.4 million, down from $156.8 million in the previous year, resulting in a net income margin of 4.0%. The decrease in net income was attributed to higher impairment charges and a loss on extinguishment of debt amounting to $15.9 million. The company recorded $23 million in impairment of assets and lease termination expenses, primarily related to several locations within its North Italia and Other FRC brands. Despite these challenges, the company maintained a stable labor cost percentage at 35.0%, slightly down from 35.3% in fiscal 2024.
Operationally, The Cheesecake Factory operated 368 restaurants as of February 23, 2026, including 216 locations of its flagship brand, 48 North Italia, and 43 Flower Child restaurants. The company plans to continue its expansion strategy, targeting approximately 26 new restaurant openings in fiscal 2026. The average sales per location for The Cheesecake Factory were approximately $12.4 million, with an average check of $31.79. The company also reported a total employee headcount of approximately 48,400, with a focus on retaining high-quality staff through comprehensive training and development programs.
Looking ahead, The Cheesecake Factory aims to leverage its competitive strengths by focusing on menu innovation, enhancing customer experience, and expanding its off-premise dining options. The company is also mindful of the ongoing geopolitical and macroeconomic challenges that could impact consumer spending and operational costs. The management has indicated a commitment to maintaining financial flexibility while pursuing growth opportunities, with a long-term goal of achieving a total return to shareholders of 10% to 15% on average. The company will continue to assess its pricing strategies in response to inflationary pressures and market conditions.
About CHEESECAKE FACTORY INC
The Cheesecake Factory Incorporated operates upscale casual dining restaurants primarily in the U.S. and Canada, featuring extensive, freshly prepared menus with innovative dishes and proprietary desserts. Its portfolio includes The Cheesecake Factory, North Italia, Flower Child, and other Fox Restaurant Concepts brands. The company combines high-quality food, distinctive ambiance, and attentive service in high-profile locations, supported by integrated bakery operations and licensing agreements internationally, targeting diverse customer segments.
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