"We delivered solid top and bottom-line results in the first quarter with revenues finishing towards the higher end of our guidance and profitability surpassing expectations." - David Overton, CEO
— David Overton
03Detailed Report
CAKE
The Cheesecake Factory Incorporated
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 20, 2026
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Executive Summary
In Q1 2025, The Cheesecake Factory Incorporated reported revenues of $927 million, reflecting a 2.56% year-over-year increase and a solid performance against expectations. Management highlighted a strong operational performance driven by improved labor efficiency and customer satisfaction, leading to a year-over-year increase in adjusted earnings per share of 27%, marking six consecutive quarters of over 20% growth. The restaurant-level profitability ratio advanced to 17.4%, up 140 basis points from Q1 2024. The company is well-positioned for continued growth with plans for 25 new restaurant openings and a strong focus on menu innovation and customer engagement strategies such as the Cheesecake Rewards program.
Key Performance Indicators
Revenue
Increasing
927.20M
QoQ: 0.68% | YoY: 2.56%
Gross Profit
Increasing
724.94M
78.19% margin
QoQ: 81.25% | YoY: 499.08%
Operating Income
Decreasing
51.96M
QoQ: 11.42% | YoY: -22.01%
Net Income
Decreasing
32.94M
QoQ: -19.96% | YoY: -37.19%
EPS
Decreasing
0.69
QoQ: -19.77% | YoY: -37.27%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Growth: $927 million (+2.56% YoY, +0.68% QoQ) Operating Income: $51.9 million (+11.42% QoQ), though down 22.01% YoY. Net Income: $32.9 million (-37.19% YoY), impacted by increased expenses and a higher interest expense due to debt restructuring. Earnings Per Share (EPS): $0.67 (diluted), $0.93 adjusted. Restaurant Level Profit Margin: 17.4% (up 140bps YoY). Comparable Sales Growth: +1% driven by an increase in customer traffic.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
927.20M
2.56%
0.68%
Gross Profit
724.94M
499.08%
81.25%
Operating Income
51.96M
-22.01%
11.42%
Net Income
32.94M
-37.19%
-19.96%
EPS
0.69
-37.27%
-19.77%
Key Financial Ratios
Gross Profit Margin
Excellent
78.20%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Fair
5.60%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
3.55%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Strong
24.30%
Return on assets demonstrates excellent capital efficiency and value creation
P/E Ratio
Fair Value
18.34x
P/E ratio in line with market averages
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