Cheesecake Factory posts record $1B quarter on 15% comparable sales surge

The Cheesecake Factory crossed the billion-dollar mark in a single quarter for the first time, reporting $1.033 billion in total revenue for the three months ended September 29, 2026 — a 14% jump from $907.2 million in the same period a year earlier, and a result the company called a record.

The headline number was driven almost entirely by the chain's namesake restaurants, where comparable sales rose 15.2% year-over-year. Traffic grew meaningfully, outpacing the broader casual dining industry, according to the company's earnings release.

We delivered an exceptional third quarter, generating record quarterly revenue, with margins and earnings also exceeding our expectations. The Cheesecake Factory restaurants led our performance, with comparable sales and traffic meaningfully outperforming the broader casual dining industry.— David Overton, Chairman and Chief Executive Officer

Net income came in at $61.3 million, or $1.19 per diluted share — nearly double the $31.9 million and $0.66 per share the company posted in Q3 2025, according to Quartr. Stripping out acquisition-related items tied to the Fox Restaurant Concepts deal and other specified charges, adjusted net income was $52.3 million, or $1.02 per diluted share, compared with $33.2 million and $0.68 adjusted in the prior-year quarter.

Operating income also roughly doubled, rising to $74.9 million from $37.3 million a year ago, per Quartr's earnings summary.

Management credited four factors for the sales momentum: ongoing menu innovation, a growing rewards program, engagement across digital and social media platforms, and year-over-year improvements in labor productivity and food efficiency. Overton specifically noted the brand's ability to attract younger guests as evidence of its continued relevance.

The Cheesecake Factory has long enjoyed tremendous brand affinity across generations, and its ability to attract younger guests reinforces the enduring appeal and relevance of our namesake concept.— David Overton, Chairman and Chief Executive Officer

The company opened six new restaurants during the quarter — two Cheesecake Factory locations, one North Italia, one Flower Child, and two Fox Restaurant Concepts restaurants — and added two more Flower Child locations and one FRC restaurant after the quarter closed. The full-year development plan calls for as many as 26 openings across all brands in fiscal 2026.

On the balance sheet, the company reported $585.3 million in total available liquidity as of September 29, including $249.3 million in cash and $336 million undrawn on its revolving credit facility. Total debt stood at $575 million, consisting entirely of 2.00% convertible senior notes due 2030. The board declared a quarterly dividend of $0.30 per share, payable November 24 to shareholders of record as of November 10.

The company also repurchased approximately 29,800 shares during the quarter at a cost of $2.4 million. As of the report date, The Cheesecake Factory Incorporated operates 383 restaurants across the United States and Canada, with an additional 35 Cheesecake Factory locations running under international licensing agreements.

Why it matters — At a time when casual dining broadly is under pressure, Cheesecake Factory's near-doubling of profit and record revenue signal that loyalty programs, social media reach, and operational efficiency can meaningfully separate individual chains from a struggling sector.

Reported by yahoo.com, finance.yahoo.com, quartr.com, investors.thecheesecakefactory.com, fool.com