Loading...
01/11 16:17
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The company exceeded revenue and adjusted EBITDA forecasts, achieved significant backlog growth, and expanded internationally. The Q&A section indicated strong operational performance and positive customer response to new initiatives. Despite slightly negative traffic trends, margins improved due to operational execution. The guidance for FY 2026 is optimistic with revenue and EPS growth, and the rewards program is exceeding expectations. These factors suggest a positive outlook for the stock price over the next two weeks.
Consolidated Revenues $956 million, exceeded expectations, driven by operational excellence and sustained demand across high-quality concepts.
Adjusted Net Income Margin 5.8%, exceeded the high end of guidance ranges, supported by operational improvements and cost management.
Cheesecake Factory Comparable Sales Increased 1.2% year-over-year, driven by record high average weekly sales and strategic menu innovation.
Cheesecake Factory 4-Wall Restaurant Margin 18.5%, up 80 basis points year-over-year, the highest level recorded in 8 years, due to strong operational execution.
North Italia Total Sales $90.8 million, up 20% year-over-year, driven by new restaurant openings and strong consumer demand.
North Italia Comparable Sales Declined 1%, impacted by Los Angeles fires and sales transfer from new restaurants.
North Italia Restaurant-Level Profit Margin 18.2%, improved 290 basis points year-over-year, driven by operational improvements and favorable commodity and labor inflation.
Flower Child Total Sales $48.2 million, up 35% year-over-year, driven by strong sales momentum and new restaurant openings.
Flower Child Comparable Sales Increased 4%, significantly outperforming the Black Box fast casual dining index, driven by operational enhancements.
Flower Child Restaurant-Level Profit Margin 20.4%, supported by operational enhancements and strong performance.
External Bakery Sales $12.9 million, no specific year-over-year change mentioned.
Cost of Sales Decreased 70 basis points year-over-year, primarily due to favorable commodity costs.
Labor as a Percent of Sales Declined 20 basis points year-over-year, driven by improved retention, labor productivity gains, and wage leverage.
Other Operating Expenses Increased 40 basis points year-over-year, primarily due to higher facility-related costs.
Preopening Costs $9 million, up from $7 million in the prior year, due to more restaurant openings.
GAAP Diluted Net Income Per Share $1.14, supported by strong financial performance.
Adjusted Diluted Net Income Per Share $1.16, reflecting operational and financial improvements.
Total Available Liquidity $515.3 million, including $148.8 million in cash and $366.5 million available on revolving credit facility.
Total Principal Amount of Debt Outstanding $644 million, including $69 million in convertible notes due 2026 and $575 million in convertible notes due 2030.
CapEx $42 million, allocated for new unit development and maintenance.
Shareholder Returns $14.3 million returned via dividends and $0.1 million in share repurchases.
New Menu Categories: Introduced 14 new dishes across 2 innovative categories: bowls and bites. Bowls include options like Teriyaki Salmon and Peruvian Chicken, while bites feature smaller plates like New Orleans Cajun Shrimp and Meatball Sliders.
New Cheesecake Launch: Launched 'Peach Perfect' cheesecake with Raspberry drizzle for National Cheesecake Day.
Restaurant Openings: Opened 8 new restaurants in Q2, including 2 Cheesecake Factory locations, 1 North Italia, 3 Flower Child, and 2 FRC restaurants. Additionally, opened 1 international Cheesecake Factory in Mexico under a licensing agreement.
Market Expansion: Entered Boise, Idaho with a new North Italia restaurant, which exceeded expectations with sales 40% above the system average.
Operational Efficiencies: Improved labor productivity, food efficiencies, and wage management due to increased retention rates. Cheesecake Factory's 4-wall restaurant margin reached 18.5%, the highest in 8 years.
Off-Premise Sales: Off-premise sales accounted for 21% of total sales, consistent with prior quarters.
Loyalty Program Enhancements: Refined Cheesecake Rewards program to focus on targeted, data-driven strategies, resulting in higher engagement and loyalty.
Long-Term Growth Strategy: Plans to open 25 new restaurants in 2025, including 4 Cheesecake Factories, 6 North Italias, 6 Flower Childs, and 9 FRC restaurants.
Labor Costs: Labor as a percent of sales declined 20 basis points, but higher group medical costs partially offset these gains. This indicates potential challenges in managing overall labor expenses.
Facility-Related Costs: Other operating expenses increased 40 basis points, primarily driven by higher facility-related costs, which could impact profitability.
Commodity Costs: While cost of sales decreased due to favorable commodity costs, any reversal in commodity price trends could pose a risk to margins.
Preopening Costs: Preopening costs increased to $9 million in the quarter compared to $7 million in the prior year period, reflecting higher expenses associated with new restaurant openings.
Debt Levels: The company has a total principal amount of debt outstanding at $644 million, which includes convertible notes due in 2026 and 2030. High debt levels could limit financial flexibility.
Inflationary Pressures: The company anticipates low to mid-single-digit inflation across commodities, labor, and other operating expenses, which could pressure margins if inflation accelerates.
Sales Decline in North Italia: Comparable sales for North Italia declined 1%, partly due to the impact of Los Angeles fires and sales transfer from new restaurants, indicating potential vulnerability to external disruptions.
Healthcare Costs: Higher group medical costs are contributing to increased labor expenses, which could continue to impact overall profitability.
Regulatory Risks: The company is modeling wage rate increases and minimum wage hikes, which could increase labor costs further.
Revenue Projections: For Q3 2025, total revenues are anticipated to be between $905 million and $915 million. For the full year 2025, total revenues are expected to be approximately $3.76 billion at the midpoint of estimates.
Margin Projections: For Q3 2025, adjusted net income margin is expected to be about 3.25% at the midpoint of the sales range. For the full year 2025, adjusted net income margin is projected to be approximately 4.9% of sales.
Inflation Expectations: Effective commodity inflation is expected to be in the low single digits for Q3 2025. Total inflation across the commodity basket, labor, and other operating expenses is estimated to be in the low to mid-single-digit range for the full year 2025.
Capital Expenditures: For 2025, cash CapEx is estimated to be approximately $190 million to $200 million to support unit development and maintenance.
Unit Development: The company plans to open as many as 25 new restaurants in 2025, including 4 Cheesecake Factories, 6 North Italias, 6 Flower Childs, and 9 FRC restaurants. Additionally, 2 Cheesecake Factory restaurants are expected to open internationally under a licensing agreement.
Labor and Wage Trends: Net total labor inflation is modeled at low to mid-single digits for Q3 2025, factoring in wage rates, minimum wage increases, and other labor components.
Dividend Payment: Returned $14.3 million to shareholders via dividend during the quarter.
Share Repurchase: Completed approximately $0.1 million in share repurchases during the quarter.
The earnings call highlights strong financial performance, strategic acquisitions, and robust demand in the solar industry. Key positive factors include a $5 billion backlog, strong cash position, and optimistic long-term industry growth. The Q&A section reinforces confidence with raised outlooks and strategic partnerships. Despite tariff headwinds, margins remain strong, and the company is well-positioned for future growth. These factors suggest a strong positive impact on stock price.
The company exceeded revenue and adjusted EBITDA forecasts, achieved significant backlog growth, and expanded internationally. The Q&A section indicated strong operational performance and positive customer response to new initiatives. Despite slightly negative traffic trends, margins improved due to operational execution. The guidance for FY 2026 is optimistic with revenue and EPS growth, and the rewards program is exceeding expectations. These factors suggest a positive outlook for the stock price over the next two weeks.
The earnings call summary and Q&A reveal strong financial performance with revenue and EBITDA exceeding forecasts, growing backlog, and strategic acquisitions. The guidance is optimistic with anticipated revenue growth, high free cash flow, and solid gross margins. Despite some uncertainties in policy impacts, the management expresses confidence in market demand and adaptability. The sentiment is further bolstered by diversification efforts and a shift towards a recurring revenue model. Overall, these factors suggest a positive outlook for the stock price in the near term.
The earnings call reveals strong financial performance with a 26% YoY revenue increase and a robust 52% rise in adjusted EBITDA. Despite a drop in gross margins, the company shows optimistic future guidance and a solid cash position. The strategic acquisitions and debt retirement are positive signals. While competition and regulatory issues pose risks, the overall sentiment is positive, supported by a strong backlog and product innovation. The Q&A section did not reveal significant negative concerns, allowing for a positive outlook on the stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
