Total revenue for the fourth quarter of fiscal 2025 reached $961.6 million, up 4.2% from $921.0 million in the same period a year earlier. GAAP diluted earnings per share were $0.60, missing the consensus estimate of $0.98, while adjusted diluted EPS of $1.00 beat the estimate by $0.02. The adjusted figure reflects the impact of a $24.6 million pre‑tax expense related to asset impairment and lease termination items, underscoring the company’s ability to generate strong underlying profitability after one‑time charges.
Comparable restaurant sales at The Cheesecake Factory locations fell 2.2% year‑over‑year. Management attributed the decline to a 2.5% drop in traffic, partially offset by a 4.5% lift in menu pricing. The mix shift toward higher‑margin items helped mitigate the sales decline, but the overall comparable sales trend signals a deceleration in same‑store growth for the core brand.
In the prior year’s fourth quarter, net income was $41.2 million and diluted EPS was $0.83, with adjusted diluted EPS at $1.04. The current quarter’s GAAP EPS miss and comparable sales decline contrast with the previous year’s stronger profitability, highlighting the impact of the one‑time impairment expense and the challenging operating environment reported by management.
Revenue from the company’s North Italia brand contributed $88.2 million in Q4 2025, while gift card breakage added $17.3 million to total revenue. These segment details illustrate the diversified revenue mix across the company’s portfolio and the role of ancillary income streams in supporting overall top‑line growth.
During the earnings call, Chairman and CEO David Overton noted that the company “delivered solid fourth‑quarter and full‑year results in 2025, generating record annual revenue supported by 25 new restaurant openings for the year.” He added that the “operating environment remains competitive, but strong operational execution, menu innovation, and a portfolio of high‑quality concepts differentiate our business and position us well for long‑term growth.”
The company increased its quarterly dividend to $0.30 per share, effective March 17, 2026, and expanded its share‑repurchase authorization by 5.0 million shares. These actions signal management’s confidence in the company’s cash‑flow generation and commitment to shareholder value.
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