Cheesecake Factory Reports Strong Q2 Earnings with Revenue Over $1 Billion
The Cheesecake Factory reported strong second-quarter fiscal 2026 results, exceeding expectations. The company achieved a revenue milestone of over $1 billion for the first time and saw adjusted diluted earnings per share rise by 24% year-over-year to $1.44. Core brand restaurants posted 5.8% comparable-sales growth with positive traffic, while restaurant-level margin reached 20%, its highest in a decade. Performance varied across concepts: Flower Child's sales surged 13%, but North Italia saw a decline of 3%. Management is testing value-focused promotions to improve performance at the latter concept. The company maintained an expansion outlook for fiscal 2026, forecasting revenue near $4 billion with up to 26 new restaurants planned and capital expenditures around $210 million. Third-quarter guidance was set between $980 million and $990 million in revenue. Management attributed the strong performance to disciplined execution, menu innovation, rewards-program engagement, and digital initiatives such as a newly launched app that exceeded adoption expectations.
Tickers: $CAKE
Topics: comparable sales growth margin expansion restaurant industry revenue performance