Cheesecake Factory beats Q4 expectations, shares edge higher

Published 19/02/2025, 22:45
Updated 19/02/2025, 22:48
© Reuters.

CALABASAS HILLS, Calif. - The Cheesecake Factory Incorporated (NASDAQ:CAKE) reported better-than-expected fourth quarter results, with earnings and revenue surpassing analyst estimates. The restaurant chain’s shares edged up 1% following the announcement.

The company posted adjusted earnings per share of $1.04 for the fourth quarter, beating the analyst consensus of $0.91 by $0.13. Revenue came in at $921.0 million, surpassing the estimated $912.04 million and representing a 5% increase from $877.0 million in the same quarter last year.

Comparable restaurant sales at The Cheesecake Factory restaurants rose 1.7% YoY in the fourth quarter, indicating continued consumer demand for the company’s dining experiences.

David Overton, Chairman and CEO, commented, "Our fourth quarter performance capped off an excellent year, with solid revenue and earnings contributing to record annual revenue and substantially improved profitability for 2024."

The company opened nine new restaurants during the quarter, including three North Italia locations, two Flower Child locations, two Fox Restaurant Concepts (FRC) restaurants, and the relocation of two Cheesecake Factory restaurants. For fiscal 2025, the company plans to open up to 25 new restaurants across its various brands.

As of December 31, 2024, The Cheesecake Factory had total available liquidity of $340.7 million, including a cash balance of $84.2 million. The company’s Board of Directors declared a quarterly dividend of $0.27 per share, payable on March 18, 2025.

Looking ahead, management expressed confidence in achieving its financial and operational objectives for 2025 and beyond, focusing on leveraging scale, operational strengths, and the appeal of its differentiated concepts to drive long-term shareholder value.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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