The Cheesecake Factory (CAKE) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $1,029.6 million, up 7.7% year-over-year, with net income of $68.4 million and adjusted diluted EPS of $1.44, driven by higher comparable sales and new restaurant openings.

• Comparable sales at flagship restaurants grew 5.8%, outpacing industry benchmarks, with positive traffic and strong guest engagement through digital initiatives and rewards programs.

• Four new restaurants opened in Q2, with up to 26 new openings planned for fiscal 2026, targeting 7% annual unit growth and continued expansion of North Italia, Flower Child, and FRC brands.

• Menu innovation, operational excellence, and digital engagement, including a successful app launch, drove growth and attracted younger demographics.

• Recognized for best-in-class staffing, high retention, and strong consumer engagement, with brand strength amplified by high media visibility.

Financial highlights

• Q2 2026 total revenue was $1.03 billion, up 7.7% year-over-year; net income was $68.4 million, up 25% year-over-year; adjusted EBITDA reached $118 million, up 18% year-over-year.

• Adjusted diluted EPS for Q2 2026 was $1.44, up 24% year-over-year; basic net income per share was $1.47.

• Cheesecake Factory Q2 sales: $729.5 million (+6.8% YoY); North Italia: $98.4 million (+8.4% YoY); Flower Child: $56.6 million (+17.5% YoY); FRC brands: $104.0 million (+15.4% YoY).

• Cash and cash equivalents at June 30, 2026, were $195.2 million; available liquidity totaled $561.7 million.

• Returned $25 million to shareholders in Q2 via dividends and share repurchases; quarterly dividend of $0.30 per share declared.

Outlook and guidance

• Up to 26 new restaurants expected to open in fiscal 2026, including 5-6 core brand locations, with capital expenditures projected at $210 million.

• Q3 2026 revenue expected between $980–$990 million; full-year 2026 revenue projected at ~$4 billion.

• Q3 adjusted net income margin anticipated at 4.3%; full-year net income margin expected at 5.4%.

• Management expects current liquidity and cash flow to be adequate for the next 12 months and foreseeable future.

• Continued focus on menu innovation, digital capabilities, and operational execution to drive growth.