The Cheesecake Factory (CAKE) Reports Strong Q4 Earnings, Forecasts Growth in 2025
- Hardik Shah
- Feb 19
- 2 min read
TLDR
Record Annual Revenue: Q4 revenue reached $921 million, up 5% YoY, contributing to record-high annual sales.
Margin Expansion: Restaurant-level margins hit a seven-year high, driven by menu pricing and operational improvements.
Aggressive Expansion Plans: 25 new restaurants planned in 2025, surpassing prior expectations.
Financial Results
The Cheesecake Factory Incorporated (NASDAQ: CAKE) is a leading operator of experiential dining brands, including The Cheesecake Factory®, North Italia®, Flower Child®, and other Fox Restaurant Concepts (FRC). With over 352 company-owned restaurants across North America and 34 international licensed locations, CAKE continues to differentiate itself through high-quality food, diverse menus, and strong hospitality.
For Q4 2024, The Cheesecake Factory delivered impressive financial results:
Revenue: $921 million (+5% YoY) vs. $877 million in Q4 2023.
Net Income: $41.2 million, translating to diluted EPS of $0.83.
Adjusted Net Income: $51.8 million, with adjusted diluted EPS of $1.04.
Comparable Sales Growth: +1.7% YoY for The Cheesecake Factory restaurants.
EBITDA: $329 million for the fiscal year, marking a 28% YoY increase.
CEO David Overton: “We ended the year on a high note, delivering record-high annual revenues and adjusted earnings per share while opening more new restaurants in a single year than ever before in our history.”
Forward Guidance
Q1 Revenue: $920–$930 million, factoring in a $7 million impact from inclement weather.
Full-Year Revenue: Estimated at $3.8 billion, up 6% YoY.
Net Income Margin: Expected at 4.75%, with potential for further margin expansion.
Operational Performance
Profitability: Cheesecake Factory’s restaurant-level margins improved to 18.4%, the highest in over seven years.
Traffic Trends: The company outperformed the Black Box Casual Dining Index by 110 basis points.
Growth Across Brands:
North Italia: +1% comp sales, with new locations exceeding expectations.
Flower Child: +11% comp sales, driven by strong brand awareness and improved execution.
Fox Restaurant Concepts (FRC): $85 million in Q4 sales, up 20% YoY.
President David Gordon: “Our industry-leading management and staff retention continue to improve, supporting ongoing operational enhancements.”
Market Insights
The Cheesecake Factory continues to capitalize on:
Casual Dining Resilience: Despite economic uncertainty, CAKE’s premium dining experience remains a strong consumer choice.
Off-Premise Strength: 21% of sales continue to come from off-premise dining, reinforcing digital ordering trends.
Strategic Pricing: Effective menu pricing adjustments contributed to margin expansion without eroding customer traffic.
Strategic Initiatives
Expansion Plans: The company plans to open 25 new locations in 2025, including:
3–4 Cheesecake Factory restaurants
6–7 North Italia locations
6–7 Flower Child locations
8–9 FRC restaurants
Technology & Operations: Investments in labor efficiency, kitchen optimization, and supply chain improvements are supporting operational scalability.
Cheesecake Rewards Program: The company continues to drive guest frequency through its successful loyalty program.
Matt Clark, CFO: “Our financial performance reinforces confidence in our ability to sustain growth, expand margins, and generate long-term shareholder value.”
The Bottom Line
The Cheesecake Factory wrapped up a record-breaking 2024, demonstrating resilient sales growth, expanding profitability, and strong execution. With 25 new locations planned, continued menu innovation, and loyalty-driven engagement, CAKE remains well-positioned for sustained success in 2025 and beyond.
--
Comments