Thursday after the bell, The Cheesecake Factory Incorporated (CAKE) reported an increase in its profit for the third quarter, reflecting lower costs and expenses, despite a slight decline in revenues.
Cheesecake's profit increased to $16.25 million or $0.27 per share from $11.78 million or $0.19 per share in the year-ago period.
The company said its recent quarter included a $2.0 million pre-tax charge that resulted from a payment to partially unwind an interest rate collar on a portion of the outstanding balance on its revolving credit facility.
Excluding this item, non-GAAP net income was $17.5 million or $0.29 per share. On an average, 27 analysts polled by Thomson Reuters expected earnings of $0.24 per share for the quarter. Analysts estimates typically exclude one-time items
Total revenues were slightly down to $400.6 million from last year's $405.1 million. The Street expected revenues of $396.74 million.
Comparable restaurant sales slipped 2.8%, and by concept, comparable restaurant sales slid 2.4% and 6.0% at The Cheesecake Factory and Grand Lux Cafe, respectively.
Segment-wise, restaurant revenues went down to $386.54 million from $390.84 million, while bakery revenues went up to $27.87 million from $27.45 million in the year-ago period.
The company's total costs and expenses went down to $373.30 million from $384.09 million in the year-ago period.
"We achieved significant year-over-year growth in net income and earnings per share in the third quarter, driven by a third consecutive quarter of moderate gains in comparable restaurant sales and solid execution on our cost management initiatives. We realized over $8 million in cost savings this quarter, yet saw another step up in guest satisfaction scores," said David Overton, Chairman and CEO, Cheesecake Factory.
The company reduced the balance on its revolving credit facility by $50 million and repaid an additional $25 million early in the fourth quarter; leaving the current outstanding balance at $125 million.
For the nine-month period, net income was down to $42.84 million or $0.71 per share from $45.21 million or $0.69 per share. Year-to-date, revenues were marginally down to $1.202 billion from $1.206 billion a year ago.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.