Q4 2025 Cheesecake Factory Inc Earnings Call Transcript
Key Points
- The Cheesecake Factory Inc (CAKE) delivered stable topline performance and profitability despite challenging operating conditions.
- The company achieved record annual revenue and adjusted diluted earnings per share in 2025.
- Adjusted restaurant-level profit margins increased by 60 basis points year over year to 17.6%.
- The company opened 25 new restaurants in 2025, achieving approximately 7% unit growth.
- The Cheesecake Factory Inc (CAKE) announced an increase in share repurchase authorization and raised its quarterly dividend.
- Comparable sales for The Cheesecake Factory declined by 2.2% in the fourth quarter.
- North Italia's comparable sales declined by 4%, impacted by industry trends and sales transfer from new openings.
- The company recorded a pre-tax net expense of $24.6 million related to impairment of assets and lease termination expenses.
- The restaurant industry faced a deceleration in sales during the fourth quarter, as reflected by the Black Box casual dining index.
- Weather-related impacts resulted in a 1% negative net impact on the first quarter of 2026.
Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome you to the Cheesecake Factory Incorporated 4th quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question at that time, simply press star followed by the number one on your telephone keypad, and if you'd like to withdraw that question, simply press one again.
Thank you. I would now like to turn the conference over to Etienne Marcus, Vice President, Investor relations and finance. Etienne, please go ahead.
Good afternoon and welcome to our 4th quarter fiscal 2025 earnings call. On the call with me today are David Overton, our Chairman and Chief Executive Officer, David Gordon, our President, and Matt Clark, our executive Vice President and Chief Financial Officer.
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