CAKE

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how The Cheesecake Factory (NASDAQ:CAKE) and the rest of the sit-down dining stocks fared in Q2. Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants. The 9 sit-down dining stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.1%. Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results. Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands. The Cheesecake Factory reported revenues of $1.03 billion, up 7.7% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ same-store sales and EPS estimates. “We built on our strong start to the year with another quarter of better-than-expected financial results, as revenue, margins and earnings all exceeded our expectations,” said David Overton, Chairman and Chief Executive Officer. Interestingly, the stock is up 29.4% since reporting and currently trades at $115.22. Is now the time to buy The Cheesecake Factory? Access our full analysis of the earnings results here, it’s free. Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist. BJ's reported revenues of $388.9 million, up 6.4% year on year, outperforming analysts’ expectations by 3.2%. The business had a very strong quarter with an impressive beat of analysts’ same-store sales estimates and full-year EBITDA guidance slightly topping analysts’ expectations. BJ's delivered the biggest analyst estimate beat of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.4% since reporting. It currently trades at $68.00. Is now the time to buy BJ's? Access our full analysis of the earnings results here, it’s free. Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners. Dine Brands reported revenues of $240.9 million, up 4.4% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a mixed quarter as it posted a miss of analysts’ EBITDA estimates. Interestingly, the stock is up 1% since the results and currently trades at $35.21. Read our full analysis of Dine Brands’s results here. Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ:KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology. Kura Sushi reported revenues of $85.92 million, up 16.2% year on year. This print missed analysts’ expectations by 0.7%. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a significant miss of analysts’ same-store sales estimates. Kura Sushi pulled off the fastest revenue growth but had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 10.7% since reporting and currently trades at $47.23. Read our full, actionable report on Kura Sushi here, it’s free. With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks. Texas Roadhouse reported revenues of $1.68 billion, up 11.1% year on year. This result met analysts’ expectations. It was a satisfactory quarter as it also recorded same-store sales in line with analysts’ estimates. The stock is down 2.2% since reporting and currently trades at $203.67. Read our full, actionable report on Texas Roadhouse here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for Starbucks (SBUX). Shares have added about 1.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Starbucks due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Starbucks Corporation before we dive into how investors and analysts have reacted as of late. Starbucks Corporation reported mixed third-quarter fiscal 2026 results, with adjusted earnings beating the Zacks Consensus Estimate but net revenues missing the same. Adjusted earnings of 85 cents per share topped the consensus estimate of 66 cents by 28.8% and increased 70% year over year. Net revenues of $9.32 billion missed the consensus mark of $9.44 billion by 1.22% and declined 1.4%. Global comparable store sales increased 7.9%, driven by transaction and ticket growth. Starbucks’ GAAP operating income increased 4.8% year over year to $980.4 million. GAAP operating margin expanded 60 basis points to 10.5%, supported by sales leverage and lower inflation paired with tariff refunds.These benefits were partially offset by higher restructuring costs and labor investments largely tied to the “Back to Starbucks” plan. Restructuring and impairment expenses increased to $302.6 million from $20.8 million in the prior-year quarter.On a non-GAAP basis, operating margin expanded 430 basis points year over year to 14.4%. Product and distribution costs declined 4.3%, while depreciation and amortization expenses decreased 15.4%. General and administrative expenses fell 11.6%. North America remained Starbucks’ largest revenue contributor. Segment net revenues increased 6.8% year over year to $7.40 billion, primarily reflecting growth in company-operated store revenues.Comparable store sales rose 8.1%, driven by a 4.5% increase in comparable transactions and a 3.5% rise in average ticket. The company attributed the improvement to higher delivery sales and strength in customer food attachment and beverage modifications.North America’s operating income increased 9.8% to $1.01 billion from $918.7 million. Operating margin expanded 30 basis points to 13.6%, aided by sales leverage, lower inflation, tariff refunds and the comparison with Leadership Experience costs in 2025.Higher restructuring expenses, labor investments supporting the company’s turnaround strategy and unfavorable product mix partly offset the segment’s profitability gains. International segment net revenues declined 34.2% year over year to $1.32 billion. The decrease primarily reflected the conversion of Starbucks retail operations in China to a licensed joint venture model during the fiscal third quarter.Comparable store sales grew 5.7%, supported by a 2.6% rise in transactions and a 3.1% increase in average ticket. Starbucks ended the quarter with 22,933 International stores, up 3% year over year.International operating income declined 7.3% to $252.8 million. However, operating margin expanded 550 basis points to 19.1%, primarily benefiting from the transition of the China business to the licensed joint venture structure. Higher restructuring costs partly offset the margin improvement. Channel Development posted strong fiscal third-quarter growth, with net revenues increasing 21.5% year over year to $587.9 million. This improvement was primarily driven by higher revenues from the Global Coffee Alliance.Segment operating income increased 40.2% to $306.2 million from $218.4 million. Operating margin expanded 700 basis points to 52.1%, supported by tariff impacts, including refunds.These benefits were partially offset by product mix shifts and lower income from the North American Coffee Partnership joint venture relative to segment revenue growth. Starbucks ended the quarter with cash and cash equivalents of $3.45 billion, up from $3.22 billion at the end of fiscal 2025. Long-term debt declined to $11.78 billion from $14.58 billion.During the first three quarters of fiscal 2026, operating activities generated $3.60 billion in cash. Capital expenditures totaled $887.8 million, while cash dividends paid amounted to $2.12 billion.The company used a portion of the China transaction proceeds to repurchase approximately $1.3 billion of outstanding senior notes through tender offers. Starbucks declared a quarterly dividend of 62 cents per share, payable Aug. 28, 2026, to shareholders of record as of Aug. 14. Starbucks raised its fiscal 2026 outlook following stronger comparable-sales and margin performance. The company now expects full-year U.S. comparable store sales growth slightly above 6%, compared with its previous forecast of at least 5%. Global comparable store sales growth is projected to approach 6%, up from the earlier expectation of at least 5%.For the fiscal fourth quarter, SBUX expects U.S. comparable store sales growth of at least 6.5%. Consolidated net revenues are projected to remain flat or increase slightly year over year, while non-GAAP operating margin is expected to exceed 11%. Previously, management had called for year-over-year non-GAAP operating margin improvement without providing a specific threshold.The company raised its adjusted earnings guidance to $2.55-$2.65 per share from the prior range of $2.25-$2.45. Starbucks maintained its plan to open approximately 600-650 net new coffeehouses globally across company-operated and licensed businesses. Since the earnings release, investors have witnessed a upward trend in fresh estimates. Currently, Starbucks has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Starbucks has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Starbucks belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Cheesecake Factory (CAKE), has gained 8.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Cheesecake Factory reported revenues of $1.03 billion in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $1.44 for the same period compares with $1.16 a year ago. For the current quarter, Cheesecake Factory is expected to post earnings of $0.85 per share, indicating a change of +25% from the year-ago quarter. The Zacks Consensus Estimate has changed +18.7% over the last 30 days. Cheesecake Factory has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Starbucks Corporation (SBUX) : Free Stock Analysis Report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Cheesecake Factory (CAKE). Shares have added about 14.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Cheesecake Factory due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. Cheesecake Factory reported second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate and increasing year over year. Total revenues also surpassed the consensus mark and improved from the year-ago quarter.Results benefited from strong comparable restaurant sales at The Cheesecake Factory concept, along with improved labor productivity and food efficiency. Management also highlighted continued momentum from menu innovation, its rewards program and marketing efforts. For the quarter under review, CAKE reported adjusted earnings per share of $1.44, beating the Zacks Consensus Estimate of $1.17 by 23.1%. In the year-ago period, the company reported adjusted earnings of $1.16 per share.Quarterly revenues were $1,029.6 million, up 7.7% from $955.8 million a year ago and topped the Zacks Consensus Estimate of $999 million by 3.1%. Adjusted net income increased to $69.7 million from $55.7 million in the prior-year quarter. Comparable restaurant sales at The Cheesecake Factory restaurants increased 5.8% year over year in the second quarter. This compared favorably with growth of 1.2% in the year-ago quarter. Management stated that comparable sales and traffic meaningfully outperformed the broader casual dining industry.From a segment standpoint, the namesake Cheesecake Factory restaurants generated $729.5 million of revenues versus $683.3 million in the year-ago quarter. North Italia revenues rose to $98.4 million from $90.8 million, while Other FRC revenues increased to $104 million from $90.2 million. Other segment revenues advanced to $97.7 million from $91.6 million. Operating performance strengthened year over year. Income from operations increased to $78.6 million from $64.8 million in the prior-year quarter. As a percentage of revenues, operating margin expanded 80 basis points to 7.6%, supported by higher sales and improved restaurant-level execution.Labor expenses declined 80 basis points to 34.1% of revenues, while other operating costs and expenses improved 30 basis points to 26.5%. Food and beverage costs increased 20 basis points to 21.8%, while general and administrative expenses rose 30 basis points to 6.4%. Preopening costs decreased to $7 million from $9 million. CAKE continued to add restaurants across its growth concepts. During the quarter, the company opened four new restaurants, including two North Italia locations, one Flower Child and one FRC restaurant. Subsequent to quarter-end, it opened one additional The Cheesecake Factory location.Management reiterated expectations to open as many as 26 new restaurants in fiscal 2026. The plan includes five to six The Cheesecake Factory restaurants, six to seven North Italia locations, seven Flower Child restaurants and as many as seven FRC restaurants. Shareholder returns remained active, with the company repurchasing approximately 158,600 shares for $9.3 million and declaring a quarterly dividend of 30 cents per share, payable Aug. 25, 2026, to shareholders of record as of Aug. 11. CAKE ended the quarter with $561.7 million of total available liquidity, comprising $195.2 million in cash and $366.5 million of revolver availability with no outstanding balance. Cash and cash equivalents were $195.2 million as of June 30, 2026, compared with $215.7 million at the end of fiscal 2025.During the quarter, the company repaid the remaining $69 million principal amount of its 0.375% convertible senior notes due 2026. Total debt principal stood at $575 million, representing the 2% convertible senior notes due 2030. Long-term debt, net of issuance costs, was $630.1 million compared with $562.9 million as of Dec. 30, 2025. With substantial revolver availability and no outstanding balance on the facility, CAKE retained financial flexibility to support restaurant development and shareholder returns. Since the earnings release, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 18.72% due to these changes. Currently, Cheesecake Factory has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cheesecake Factory has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

In recent months, Cheesecake Factory has been highlighted as a momentum stock by Zacks, supported by positive earnings estimate revisions and favorable analyst sentiment, which occurred prior to today. This shift in expectations reflects growing confidence in the company’s ability to sustain its operational improvements and capitalize on demand trends across its restaurant concepts. Next, we’ll explore how this stronger earnings outlook and momentum might influence Cheesecake Factory’s existing investment narrative and risk-reward balance. We've uncovered the 10 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Cheesecake Factory stock, you need to believe its experiential, full service model and multi brand portfolio can offset pressures from shifting dining habits, mall exposure, and rising labor costs. The recent Zacks momentum call mainly reinforces the near term earnings catalyst around upgraded estimates and strong recent price performance, but does not materially change the core risk that traffic growth could stay under strain if off premise and digital first competitors gain more share. Among recent announcements, the launch of the refreshed Cheesecake Rewards app with a free slice offer stands out as most connected to the current momentum story. Stronger earnings expectations are closely tied to whether this loyalty push and digital engagement can lift visit frequency and check size, which would support the existing catalyst around higher unit economics while partially offsetting the risk that traffic growth lags as consumer preferences keep evolving. Yet beneath the upbeat earnings revisions, there is still a less obvious risk that investors should be aware of if off premise trends accelerate faster than... Read the full narrative on Cheesecake Factory (it's free!) Cheesecake Factory's narrative projects $4.8 billion revenue and $334.2 million earnings by 2029. This requires 7.4% yearly revenue growth and a $155.6 million earnings increase from $178.6 million today. Uncover how Cheesecake Factory's forecasts yield a $90.80 fair value, a 20% downside to its current price. Some of the lowest ranked analysts paint a much harsher picture, assuming only about 5.8 percent annual revenue growth to roughly US$4.5 billion and earnings of about US$263.0 million by 2029, which contrasts sharply with today’s upbeat momentum signal and suggests that expectations for margin resilience and valuation could still shift as new information comes in. Explore 4 other fair value estimates on Cheesecake Factory - why the stock might be worth less than half the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Cheesecake Factory research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Our free Cheesecake Factory research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cheesecake Factory's overall financial health at a glance. Opportunities like this don't last. These are today's most promising picks. Check them out now: The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 17 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. AI is about to change healthcare. These 42 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CAKE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Download the Complete Report Here Key Takeaways 2Q26 marked a meaningful operating inflection as comparable sales returned to growth and transactions turned positive across all three segments despite the revenue impact from planned closures and relocation timing. STKS reported 2Q26 revenue of $200.5 million, down 3.3% y/y from $207.4 million and slightly below the prior $202-$206 million guidance range, while company-owned restaurant net revenue declined 3.2% to $197.3 million from $203.9 million. The decline primarily reflected permanent and temporary Grill Concepts closures and the delayed downtown New York STK relocation, partly offset by new openings and 0.9% consolidated comparable-sales growth. Comparable sales improved from a 0.3% decline in 1Q26 and a 1.8% decline in 4Q25, while transactions were positive across STK, Benihana and Grill Concepts, supporting continued relative market-share gains despite a mixed consumer backdrop. Management, license, franchise and incentive fee revenue declined to $3.2 million from $3.5 million, mainly due to the 2Q25 exit from the Scottsdale management agreement. STK led the comparable-sales recovery, while Benihana remained resilient and Grill Concepts improved again sequentially following the portfolio rationalization. Total U.S. STK comparable sales increased 3.2% in 2Q26, including 2.5% growth at company-owned restaurants and 6.4% growth at managed restaurants, bringing total U.S. STK comparable sales growth to 2.2% for the first half. Benihana comparable sales increased 0.8%, improving from approximately flat performance in 1Q26 and a 0.4% decline in 4Q25. Grill Concepts comparable sales declined 2.9%, but improved from declines of 5.3% in 1Q26 and 9.4% in 4Q25, while transactions turned positive across the retained portfolio. The improving cadence indicates that the underlying business has stabilized materially since late 2025, with traffic trends strengthening even as consumers remain selective on overall spend. Restaurant-level profitability expanded meaningfully as procurement savings and Benihana integration benefits more than offset higher marketing and maintenance investment. Company-owned restaurant cost of sales improved 170 bps to 19.5% of owned restaurant net revenue from 21.2% in 2Q25, supported by acquisition synergies, supply-chain initiatives, menu optimization and increased pricing. Cost of sales has now improved from 25.5% in 2021 to 19.5% in 2Q26, a cumulative reduction of 600 bps, supporting the view that the improvement reflects sustained operating and procurement efficiencies rather than a one-quarter commodity benefit. Owned restaurant operating expenses increased 50 bps to 64.0% from 63.5%, reflecting higher World Cup-related marketing and additional repair and maintenance spending to expand air-conditioning capacity at select Benihana locations. Nevertheless, total owned operating expenses improved 110 bps to 83.6% from 84.7%, driving restaurant operating profit to $32.4 million and margin expansion to 16.4% from 15.3%. Operating income improved sharply as stronger restaurant-level profitability and lower integration costs more than offset higher marketing, technology and corporate spending. Operating income increased to $6.6 million from $0.7 million in 2Q25, reflecting the 110-bp restaurant-margin improvement and a decline in transition and integration expense to $0.2 million from $3.9 million. Lease termination and restaurant closure expense fell to $0.9 million from $5.6 million, while depreciation and amortization remained broadly stable at $11.0 million versus $10.9 million. These benefits were partly offset by pre-opening expense of $2.9 million, up from $1.6 million, including costs associated with STK Phoenix, the delayed Chelsea opening and approximately $1.1 million of non-cash pre-opening rent. The significant improvement in GAAP operating income indicates that transaction and integration costs are largely rolling off, while procurement and operating synergies from the Benihana acquisition continue to support restaurant margins. Temporary external factors and the delayed STK relocation constrained 2Q26 sales and EBITDA, while early 3Q26 trends suggest these pressures have moderated. World Cup matches shifted dining occasions toward at-home viewing during evening and weekend periods that overlap with STKS’ highest-volume dayparts, while elevated temperatures reduced Benihana traffic in several Midwest and Northeast markets. The downtown New York STK relocation was expected to open at the beginning of 2Q26 but did not begin operating until July because of permitting and inspection delays. The relocated Chelsea restaurant is expected to generate approximately $150,000-$200,000 of weekly revenue, while most labor and pre-opening costs remained in the expense base during the delay. Approximately 40% of the adjusted EBITDA shortfall versus guidance was attributed to the relocation delay and roughly 60% to incremental marketing, with revenue also finishing near the low end of expectations. Traffic momentum continued into July following the end of the World Cup, while Las Vegas remained a notable area of strength with continued high sales velocity. Positive traffic alongside more modest comparable-sales growth indicates that STKS is gaining visits but remains exposed to a selective consumer spending environment. Guests continue to respond to lower-price-point access across the portfolio while remaining selective about premium spending outside celebration occasions, creating a gap between transaction and sales growth. STKS’ barbell strategy is designed for this environment: the $3, $6 and $9 happy hour and Weeknights Date Nights support traffic during slower weekday periods, while premium steak, seafood and beverage offerings capture higher-intent celebration spending. Mother’s Day, Father’s Day and graduation demand performed well across the portfolio, reinforcing the brands’ positioning as celebration destinations. The Friends with Benefits loyalty program continues to gain traction, with newly enrolled guests showing strong repeat participation and loyalty members spending meaningfully more per visit than non-members, while the program represents an increasing share of quarterly transactions. Seasonal menu innovation, including Wagyu offerings, premium cocktails and wellness-oriented additions, together with expansion of the high-margin off-premise channel, provides additional opportunities to support traffic, mix and guest engagement. Beef-cost visibility has extended through year-end, reducing a key 2H margin risk. STKS had previously contracted beef pricing through September 2026 and has now secured a significant portion of its requirements through the balance of the year. Cost of sales is expected to remain near the current 19.5% level, with no material negative beef impact anticipated during 2H26. The company continues to benefit from consolidated beef procurement, vendor scale and menu engineering, supporting greater cost visibility despite continued commodity volatility. Maintaining cost of sales near 19.5% will be important as 3Q historically represents the lowest-margin quarter, with owned operating expenses guided to 85%-87% of owned restaurant net revenue. STKS maintained its 6 to 10 venue opening target for 2026, but shifted the majority of the remaining pipeline toward asset-light formats to prioritize free cash flow and returns over owned revenue growth. The remaining development pipeline is now weighted toward franchised and licensed locations, materially changing the ownership mix without reducing the system-wide opening target. The company opened STK Downtown Phoenix in June, relocated STK Downtown New York to Chelsea in July and converted Kona Grill Riverton into a Benihana in July. Phoenix and Chelsea each required $1.0 million or less of net company investment after tenant-improvement allowances, while future company-owned projects generally target no more than $1.5 million of net investment. STKS is also prioritizing its existing lease pipeline over substantial new company-owned commitments, supporting greater capital flexibility, free cash flow generation and debt reduction. The lower 2026 revenue guidance primarily reflects this shift toward asset-light development and deferred conversion timing, together with a modest reduction in comparable-sales expectations, rather than a broad deterioration in underlying traffic trends. Benihana Express is emerging as a scalable, capital-light growth platform, supported by proven unit economics, a standardized prototype and increasing franchise interest. Following the acquisition of the Miami Benihana Express location, STKS has spent approximately three months refining the branding, restaurant design and operating model, creating a standardized prototype to support broader franchise expansion. The concept operates in an 800-1,000 sq. ft. footprint, with food and labor costs of approximately 20% and 25%, respectively, supporting a prime margin above 50%. The existing Miami location is generating approximately $1.2 million of annual revenue, while development costs are expected at roughly $500 per sq. ft., or approximately $0.4-$0.5 million for a typical unit. A company-owned Denver location and a licensed Florida Keys location are under development, while additional franchise interest has emerged following completion of the prototype. Future agreements are expected to generate a 6% royalty plus a 2% marketing contribution, implying approximately $72,000 of annual royalty revenue per unit at a $1.2 million AUV and supporting meaningful scalability with limited incremental capital. The broader asset-light pipeline is also expanding, with two licensed STK locations planned at a major U.S. airport, RA Sushi Niagara Falls, and franchised Benihana and licensed Benihana Express locations in the Florida Keys, supporting approximately $14 million of managed, franchise and licensing revenue expected in 2026. Grill portfolio rationalization is progressing, although conversion timing has shifted later while improving traffic reduces the need for additional closures. STKS continues converting selected Grill locations into higher-return STK and Benihana restaurants, with five Grill locations temporarily closed in January 2026 for conversion, two conversions now reopened and Baltimore expected to reopen in 3Q26. Remaining projects have shifted toward year-end and could move to franchised formats, lowering near-term owned revenue and capital requirements. No additional Grill closures are currently planned, with future reviews generally tied to one to two lease expirations annually. Grill comparable sales improved to -2.9% from -5.3% in 1Q26 and transactions turned positive, although restaurant operating profit declined to $1.2 million from $2.2 million y/y, indicating that profitability has not yet fully recovered. STKS continues to execute against four strategic priorities centered on traffic growth, capital-efficient expansion, portfolio optimization and balance-sheet improvement. The 2Q26 results showed progress across each, with positive transactions, improving margins, lower capital deployment and continued debt reduction. Underlying earnings improved materially in 2Q26, although the capital structure continues to constrain common equity earnings. Net loss attributable to The ONE Group narrowed significantly to $2.1 million from $10.1 million in the prior-year period, reflecting improved restaurant-level profitability and lower transition and integration costs. However, net loss available to common shareholders remained elevated at $12.0 million versus $18.2 million in the prior year, as $9.9 million of Series A preferred stock paid-in-kind dividends and accretion materially reduced earnings available to common shareholders. Updated 2026 guidance continues to prioritize free cash flow generation and capital discipline while maintaining modest top-line growth. Management guided for 2026 revenue of $805-$820 million, implying consolidated comparable-sales growth of 1%-2%, alongside approximately $14 million of managed, franchise and licensing revenue. Owned restaurant operating expenses are expected to remain around 82% of restaurant revenue, while Adjusted EBITDA is guided to $95-$105 million and adjusted G&A to approximately $50 million. The company also expects net capital expenditures of approximately $30 million, down from the prior $38-$42 million range and consistent with the shift toward more asset-light development. Liquidity remains adequate, but the still-heavy capital structure reinforces the importance of sustained cash generation and disciplined capital allocation. STKS ended 2Q26 with $17.1 million of cash and short-term credit-card receivables and $28.7 million of revolver availability, representing $45.8 million of short-term liquidity. The term facility currently has no active financial covenant under prevailing conditions, reducing near-term covenant risk and providing flexibility as the company shifts development toward franchise and licensing models. However, STKS still carries approximately $347.7 million of gross debt and $210.6 million of Series A preferred stock, which increased from $191.3 million at year-end through $19.3 million of first-half paid-in-kind dividends and accretion. The preferred carries a 13% starting dividend rate that compounds over time, further reinforcing debt reduction and balance-sheet improvement as key capital-allocation priorities. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. Valuation remains attractive as the operating thesis increasingly shifts from recovery toward cash conversion and capital efficiency. Positive traffic across all segments, improving restaurant margins and continued Benihana synergies are strengthening the earnings base, while the move toward asset-light development and Benihana Express should reduce capital intensity and improve returns on growth. At the same time, higher operating cash flow and lower capex are supporting debt reduction, creating a clearer path to lower interest expense and improved earnings conversion. If STKS can sustain positive comparable sales, deliver within its $95-$105 million 2026 Adjusted EBITDA guidance range and continue deleveraging, the current discount to historical and peer multiples should have room to narrow. P/S Multiple analysis. STKS currently trades at approximately 0.07x forward P/S, near the bottom of its three-year range and well below the 0.19x three-year mean. As fundamentals strengthen and free cash flow increasingly supports deleveraging, the stock could see multiple expansion over time. Illustratively, a reversion to mean to 0.19x P/S would imply a value of approximately $4.9/share based on current forward revenue estimates. Peer analysis (relative valuation). Peer valuation also suggests meaningful discounting. As of the 8/7 close, STKS traded at 6.1x EV/NTM EBITDA, representing a ~51% discount to the 12.4x peer average. Its 0.7x EV/NTM Sales multiple also represents an approximately 48% discount to the 1.4x industry average. While elevated debt, preferred equity and execution risk justify some discount, sustained traffic growth, margin expansion and stronger free cash flow conversion could support a narrowing of the gap. Read Exec Edge’s Initiation on The ONE Group Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post The ONE Group: A Restaurant Stock With Rising Traffic, Expanding Margins – Quarterly Update Report appeared first on ExecEdge.

Ashley W. Hanscom, Principal Accounting Officer of The Cheesecake Factory Incorporated (NASDAQ:CAKE), sold 3,500 shares of common stock at $100.00 per share on July 30, 2026, according to an SEC Form 4 filing. Transaction value based on SEC Form 4 weighted average sale price ($100.00); post-transaction value based on July 30, 2026 market close ($101.31). What is the magnitude of this disposal relative to the insider's total position?The sale of 3,500 shares reduced Hanscom's direct position by 32%, leaving the Principal Accounting Officer with 7,541 shares of common stock; however, she has 11,110 additional shares at risk of forfeiture. How has the stock performed leading up to this transaction?The Cheesecake Factory shares appreciated 52% during the 12-month period ending on the transaction date. The Cheesecake Factory operates a diversified restaurant portfolio comprising company-operated Cheesecake Factory locations and additional branded concepts across the United States and Canada, supplemented by proprietary bakery operations that produce signature cheesecakes and baked goods distributed through both internal and external channels. The company generates revenue through multiple streams including company-operated restaurant operations, franchise and licensing arrangements with international partners, and wholesale distribution of bakery products to foodservice operators, retailers, and third-party customers. The company serves casual dining consumers seeking full-service restaurant experiences and premium baked goods, with primary customers including individual diners at company-operated locations, international licensees, foodservice operators, and retail distributors. The Cheesecake Factory operates as a significant player in the casual dining sector with a portfolio of restaurants generating approximately $3.9 billion in TTM revenue. The company leverages its iconic brand and proprietary bakery operations to create a differentiated business model that extends beyond traditional restaurant operations into wholesale distribution channels. With a market capitalization of $5.0 billion and a diversified revenue base spanning owned operations, licensing arrangements, and bakery distribution, the company maintains a competitive position through brand recognition and operational scale. Hanscom sold exactly 3,500 shares at a flat $100.00, which trimmed her direct holdings by about a third. That said, the figure that matters sits just below it in the filing: she has 11,110 additional shares still subject to forfeiture, more than she now holds outright. Most of her stake, in other words, is still tied to hitting future targets. Selling a slice into record highs, days after a standout quarter, is the sort of thing an accounting officer does on schedule.And that quarter certainly gave her a strong exit point. The flagship Cheesecake Factory brand grew comparable sales 5.8% on positive traffic of 2.7%, meaningfully outpacing the casual dining industry, as menu additions and a new rewards app drew guests. President David Gordon credited "culinary innovation” and the launch of the Cheesecake Rewards app. For long-term investors, that traffic is the signal to watch more than a sale like this one. Real guest growth is carrying results, and whether it sustains as the chain expands is what will matter more to the stock from here. Before you buy stock in Cheesecake Factory, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cheesecake Factory wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $394,601!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,197,093!* Now, it’s worth noting Stock Advisor’s total average return is 895% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 31, 2026. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. A Cheesecake Factory Insider Sold Into Record Highs After Blowout Quarter was originally published by The Motley Fool

Interested in BJ's Restaurants, Inc.? Here are five stocks we like better. BJ’s Restaurants delivered strong Q2 fiscal 2026 results: Comparable sales increased 6.5% on 8.3% traffic growth, while revenue rose 6.4% to $388.9 million and restaurant-level operating profit grew to $66.8 million. Despite a 1.8% decline in average check and roughly 5% commodity inflation, labor leverage and operational improvements expanded restaurant-level margin to 17.2%. Seasonal Pizookie offerings, menu updates and continued traffic gains were key performance drivers. Management raised its full-year outlook for comparable sales, restaurant-level operating profit and adjusted EBITDA, while debt fell to about $30 million. BJ’s plans to open two restaurants in Q4 and continues investing in remodels, maintenance and future growth. Does Cheesecake Factory Stock Have Any Upside Left on the Menu? BJ's Restaurants (NASDAQ:BJRI) reported second-quarter fiscal 2026 results marked by continued traffic growth, higher restaurant-level profit and an increased full-year outlook, while management said it is investing in menu innovation, restaurant upkeep and future unit development. Chief Executive Officer and President Lyle Tick said the company recorded its eighth consecutive quarter of sales and traffic growth and its seventh consecutive quarter of profit growth. Comparable restaurant sales rose 6.5% in the second quarter, driven by 8.3% traffic growth. The company said it continued to outperform Black Box casual dining benchmarks. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 2 stocks that missed earnings but surged higher Total revenue increased 6.4% year over year to $388.9 million. Restaurant-level operating profit rose $4.7 million to $66.8 million, while adjusted EBITDA increased $2.3 million to $44.4 million. Average check declined 1.8% during the quarter, as guest mix shifted toward promotional and seasonal offerings. Tick said Tuesday promotions aimed at younger consumers and the Pizookie Meal Deal on Fridays contributed to the pressure on check averages, but said the company was generating “profitable traffic” and was not overly dependent on any single day or promotion. → 3 Value ETFs to Consider as Growth Stocks Lag Behind 3 Restaurant Stocks Ready To Rally Seasonal Pizookie offerings were a major driver of traffic. The Biscoff Pizookie doubled Pizookie incidents compared with the prior year during the quarter, according to Tick. He said the product generated substantial trial, including from younger customers making smaller purchases, while supporting repeat visits over time. Management said sales and traffic increased across all geographies, dayparts and days of the week. Mother’s Day sales rose more than 8% year over year, while Father’s Day sales increased more than 3%. More than 80 restaurants set daily or weekly sales records during the quarter, Tick said. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Restaurant-level operating margin expanded 20 basis points to 17.2%, despite cost-of-sales pressure. Cost of sales increased 70 basis points to 25.5% of sales, primarily due to about 5% inflation in the company’s commodity basket. CFO Todd Wilson said beef costs rose about 20% and were the largest contributor to the pressure, while severe weather and transportation expenses also increased produce costs. Wilson said the company expects year-over-year commodity inflation to moderate during the remainder of the year, though sequential beef-cost increases remain a factor. BJ’s expects some cost-of-sales improvement in the second half, but not a major decline, he said. Total labor expense improved 90 basis points to 34.5% of sales as higher revenue and operational execution more than offset a 10-basis-point increase in workers’ compensation costs. Management said restaurant operators improved hourly labor, management and benefits expenses while continuing to raise guest-satisfaction measures. The company also cited lower food waste and fewer food and beverage comp incidents. Tick said investments in training, point-of-sale simplification, tablet upgrades and an AI-supported activity-based labor model are intended to make restaurant jobs easier and support service levels. The labor model is expected to expand through year-end. BJ’s shifted marketing spending from the first quarter to the second quarter to support its celebration season. Second-quarter marketing expense rose $1.2 million, or 20 basis points, year over year. However, year-to-date marketing dollars were unchanged and marketing expense declined 10 basis points as a share of sales, Wilson said. Tick said the company continues to place greater emphasis on social, digital, cultural and word-of-mouth marketing, particularly for product news and Pizookie campaigns. The company plans to hold marketing investment as a percentage of sales roughly flat for the full year while seeking further efficiency. The company increased repair and maintenance spending by about $1 million, or 14%, during the quarter as part of a broader effort to address deferred facilities work and improve restaurant conditions. Management expects to continue investing at a measured pace over the next several quarters. BJ’s said its refreshed pizza, burger and chicken sandwich categories are producing higher incidence, sales, average prices and dollar margins than prior offerings. The company has invested more than $1.5 million in product quality, particularly in pizza, according to Tick. Management does not expect another broad category refresh before year-end, though it is testing additional category and item changes. Seasonal offerings may provide early indications of future menu work, Tick said. The company is also testing a potential premium tier for the Pizookie Meal Deal, though management said the effort remains in an early stage. Tick said the company expects average-check pressure to ease in the third quarter and projected a return to moderate average-check growth in the fourth quarter. Wilson said the extent of seasonal Pizookie popularity could affect those results because strong Pizookie demand can reduce check averages while benefiting traffic, sales and profit dollars. BJ’s plans to open two new restaurants in the fourth quarter: one in Buckeye, Arizona, and one in Joliet, Illinois. Tick said both locations will feature a refreshed version of the brand’s restaurant design. The company operates 219 existing restaurants. The company also completed five remodels during the quarter and said remodeled locations are generating traffic growth above the rest of the portfolio. Based on first-half performance, BJ’s increased its fiscal 2026 guidance for several metrics: Comparable restaurant sales growth is now expected to be 3% to 4%, compared with prior guidance of 1% to 3%. Restaurant-level operating profit is projected at $228 million to $235 million, up from $221 million to $233 million. Adjusted EBITDA is expected to total $145 million to $152 million, compared with prior guidance of $140 million to $150 million. Capital expenditures remain forecast at $85 million to $95 million. Share repurchases remain authorized at up to $50 million, subject to market conditions. During the second quarter, BJ’s spent $23.3 million on capital expenditures, repurchased about 64,000 shares for $2.4 million and repaid $18 million of debt. Net debt ended the quarter at about $30 million, down from $61 million at the beginning of the year. Wilson said the third quarter began with continued sales and traffic growth, with the company again outperforming the Black Box casual dining benchmark. He said Black Box casual dining traffic remained slightly negative and sales slightly positive early in the third quarter, similar to the second-quarter pattern. BJ's Restaurants, Inc is a publicly traded casual dining chain known for its deep‐dish pizzas, California‐style thin crust offerings and in‐house craft beer selections. Operating under the BJ's Restaurant & Brewhouse brand, the company combines a microbrewery concept with full‐service dining, offering an extensive menu that includes appetizers, salads, pasta dishes, sandwiches and the signature Pizookie dessert. Founded in 1978 in Orange County, California, BJ's Restaurants began as BJ's Chicago Pizzeria, bringing a Chicago‐style pizza experience to the West Coast. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BJ's Restaurants Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

The company's main Cheesecake Factory restaurants recorded a 5.8% increase in same-store sales in Q2. The surge was mainly because more customers visited its restaurants, not just because menu prices were higher. Bank of America and Oppenheimer lifted their price targets, citing resilient consumer demand and strong execution. The Cheesecake Factory (CAKE) stock is heading for its best month in five years as investors digest a record-breaking quarter that pushed the company past $1 billion in revenue for the first time. Strong customer traffic, expanding margins and resilient demand across its brands have fueled a sharp rally, highlighting renewed confidence in the restaurant chain’s growth strategy. On Tuesday evening, The Cheesecake Factory said it surpassed $1 billion in fiscal second-quarter (Q2) sales for the first time in its nearly five-decade history, generating $1.03 billion in revenue, an 8% increase year-on-year, with adjusted earnings of 1.44 per share. Both exceeded the Street expectations of $999 million and $1.18, respectively, as per Fiscal AI data. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox The company’s core locations posted a 5.8% comparable sales increase during Q2, supported by rising guest counts rather than higher prices. Customer traffic increased 2.7%, while average weekly sales pushed annualized volumes beyond $13.5 million per restaurant. The company achieved restaurant-level operating margins of 20%, marking its strongest performance in roughly a decade. CAKE stock inched 0.06% lower overnight, after clocking its best day in over five years in the regular session. The stock also surged past $100 for the first time. After the strong Q2 results, several Wall Street analysts raised their price targets for Cheesecake Factory. Bank of America analyst Sara Senatore increased her target to $98 from $86 while keeping a ‘Neutral’ rating. She said customer demand remains strong, helped in part by the company's digital business, but added that the next few months will show whether this momentum can continue. Oppenheimer also raised its price target on CAKE to $101 from $91 and kept its Outperform rating. The firm said the company delivered a strong quarter and raised its 2026 sales and profit margin outlook. Oppenheimer believes management's forecasts may still be cautious, leaving room for estimates to move even higher in the coming months. On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day. The stock saw a 5,000% jump in retail messages over the past week. A user said, “strong companies show up in bloody markets.” Another user said, “$CAKE is a good reminder that revenue growth isn’t the only way to create value. Sales growth was modest, but better cost control showed up much more clearly in the bottom line.” Also See: ONDS Stock Gains Overnight: BlackRock Reveals 7.2% Ondas Stake, High Short Interest Keeps Traders Watching For updates and corrections, email newsroom[at]stocktwits[dot]com. Shivani Kumaresan has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: COIN Stock Slides After Earnings Miss — Coinbase CEO Says The Crypto Exchange Is Becoming More Than A Bitcoin Bet Why Is KPTI Stock Down 69% After-Hours Today? PHAT Stock Clocks Worst Day In Over 1.5 Years — What Sparked The Selloff?

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. The Cheesecake Factory delivered one of its strongest quarters in company history, surpassing $1 billion in quarterly revenues for the first time ever, driven primarily by 2.7% traffic growth. Executives cited operational excellence, the evolution of the rewards program, and menu innovation as major factors that boosted traffic growth. The Calabasas Hills, Calif.-based company is outpacing the rest of the casual-dining segment, posting yet another quarter of positive same-store sales, with 5.8% growth year over year, led primarily by its flagship Cheesecake Factory brand. “Our success remains rooted in the fundamentals that have defined us for decades: exceptional hospitality, high-quality food, and memorable dining experiences,” CEO David Overton said during Tuesday’s earnings call. “We are building on that foundation with menu innovation, deeper guest engagement through our rewards program, and operational excellence across our restaurants. Our results demonstrate that our strategy is working and reinforce our confidence in our ability to drive growth and create shareholder value.” Overton and the rest of the executive team clarified multiple times that the company’s investment in new menu items (like the new bowls and shareable bites), enhanced digital capabilities and social media advertising contributed to the positive performance rather than increased pricing. The company has also introduced menu items at multiple price points for all three of its brands. “We're extremely pleased with the successful launch and early performance of the Cheesecake Rewards app,” brand president David Gordon said. “Guest adoption exceeded our expectations, driving strong member acquisition and engagement, and creating a powerful new channel for direct communication. The app is already providing valuable insights into guest behavior, and enabling us to deliver increasingly personalized, targeted offers to drive incremental visits and improve marketing efficiency. Strong member growth, positive guest feedback, and rising engagement reinforce our confidence in the platform as a meaningful, long-term growth driver.” While the Cheesecake Factory had the most notably stellar quarter, its subsidiaries had more mixed results. Flower Child performed “exceedingly well” with a 13% increase in same-store sales. North Italia, meanwhile, saw a 3% decline in same-store sales, though the company continues to introduce “targeted initiatives” to improve performance like adding value-oriented menu offerings to strengthen value perception. For the second quarter ended June 30, Cheesecake Factory reported total revenues of just over $1 billion, as compared to $955.8 million the same quarter the year prior. The company reported net income of $68.4 million or $1.41 per share for the second quarter, compared with $54.8 million or $1.18 per share the same quarter the year prior. The company opened four new restaurants, ending the quarter with 375 restaurants across its portfolio.  Contact Joanna at [email protected]

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Cheesecake Factory’s recent earnings beat, with higher than expected EPS and revenue, has drawn fresh attention to US restaurant stocks. Shake Shack (SHAK) is now back on many investors’ watchlists. See our latest analysis for Shake Shack. Shake Shack’s recent momentum has picked up, with a 1-day share price return of 2.65% and a 7-day share price return of 11.98%. However, the 90-day share price return has declined 37.18% and the 1-year total shareholder return is down 53.91%, which signals that short term interest has returned after a tough stretch. If Shake Shack’s volatility has you thinking about diversification, this is a good moment to widen your watchlist with 18 top founder-led companies After this sharp bounce in Shake Shack following a steep 1 year drawdown, the next call is timing. Does it make more sense to lean into the recent strength now, or wait for valuation to reset again? Shake Shack’s most followed narrative pegs fair value at $83.13 compared with the latest close at $63.20. That gap is built on specific growth and margin assumptions rather than short term trading swings. Read the complete narrative. Curious what sits behind that earnings bridge and premium future multiple? The narrative leans on faster profit growth, slightly trimmed revenue expectations, and a richer P/E than the wider hospitality sector. The exact mix of growth rates, margins, and discount rate does a lot of heavy lifting in getting to that $83 range. Result: Fair Value of $83.13 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, investors still need to watch for rising input costs and softer traffic trends, which could pressure Shake Shack margins and challenge its growth narrative. Find out about the key risks to this Shake Shack narrative. The first narrative points to Shake Shack trading below a fair value of $83.13. Yet on earnings multiples the picture looks very different. The stock trades on a P/E of 61.9x compared with 24.7x for the US Hospitality industry and a fair ratio of 24.9x, which signals far less room for error if growth assumptions slip. For a closer look at what this richer multiple could mean for valuation risk, See what the numbers say about this price — find out in our valuation breakdown. If the mixed sentiment around Shake Shack has you on the fence, this is a good time to review the data and make a timely decision. To see what investors are optimistic about today, take a closer look at the 2 key rewards Do not stop your research with Shake Shack. The best opportunities often sit just outside your current watchlist, and you do not want to overlook them. Spot potential recovery stories early by scanning 20 elite penny stocks with strong financials that already show stronger financial foundations than many peers. Target quality at a reasonable price by reviewing companies in the 49 high quality undervalued stocks that combine solid fundamentals with more modest valuations. Prioritise resilience by focusing on businesses in the 83 resilient stocks with low risk scores that score well on balance sheet strength and earnings stability. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SHAK. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

CALABASAS HILLS, Calif., July 28, 2026--(BUSINESS WIRE)--The Cheesecake Factory Incorporated (NASDAQ: CAKE) today reported financial results for the second quarter of fiscal 2026, which ended on June 30, 2026. Total revenues were $1,029.6 million in the second quarter of fiscal 2026 compared to $955.8 million in the second quarter of fiscal 2025. Net income and diluted net income per share were $68.4 million and $1.41, respectively, in the second quarter of fiscal 2026. The Company recorded a pre-tax net expense of $1.4 million related to Fox Restaurant Concepts ("FRC") acquisition-related items, and impairment of assets and lease termination expenses. Excluding the after-tax impact of these items and certain other items, adjusted net income and adjusted diluted net income per share for the second quarter of fiscal 2026 were $69.7 million and $1.44, respectively. Please see the Company’s reconciliation of non-GAAP financial measures at the end of this press release. Comparable restaurant sales at The Cheesecake Factory restaurants increased 5.8% year-over-year in the second quarter of fiscal 2026. "We built on our strong start to the year with another quarter of better-than-expected financial results, as revenue, margins and earnings all exceeded our expectations," said David Overton, Chairman and Chief Executive Officer. "Our performance was led by The Cheesecake Factory restaurants, with comparable sales and traffic meaningfully outperforming the broader casual dining industry. Continued momentum from our menu innovation, rewards program and marketing efforts strengthened consumer awareness and engagement, contributing to our strong top-line performance. At the same time, our operators remained sharply focused on execution, delivering year-over-year improvements in labor productivity and food efficiency supporting strong profitability." Mr. Overton continued, "Our success has long been driven by our commitment to delivering the exceptional hospitality, high-quality food and memorable dining experiences our guests have come to expect. We continue to lean into culinary innovation and our digital capabilities to build on those strengths, ensuring our concepts evolve and resonate with guests in an increasingly competitive environment. Together with our experienced operators, differentiated concepts and strong financial foundation, these efforts position us well to continue executing our strategy, delivering profitable growth and creating shareholder value." Development During the second quarter of fiscal 2026, the Company opened four new restaurants, including two North Italia’s, one Flower Child and one FRC restaurant. Subsequent to quarter-end, the Company opened one The Cheesecake Factory location. The Company continues to expect to open as many as 26 new restaurants in fiscal 2026, including as many as five to six The Cheesecake Factory restaurants, six to seven North Italia locations, seven Flower Child locations and as many as seven FRC restaurants. Liquidity and Capital Allocation As of June 30, 2026, the Company had total available liquidity of $561.7 million, including a cash balance of $195.2 million and $366.5 million of availability on its revolving credit facility with no outstanding balance. During the quarter, the Company repaid the remaining $69.0 million principal amount of 0.375% convertible senior notes due 2026. As of June 30, 2026, total principal amount of debt outstanding was $575 million, representing the principal amount of 2.00% convertible senior notes due 2030. During the second quarter of fiscal 2026, the Company repurchased approximately 158,600 shares of its stock at a cost of $9.3 million. In addition, the Company’s Board of Directors has declared a quarterly dividend of $0.30 per share to be paid on August 25, 2026, to shareholders of record at the close of business on August 11, 2026. Conference Call and Webcast The Company will hold a conference call to review its results for the second quarter of fiscal 2026 today at 2:00 p.m. Pacific Time. The conference call will be webcast live on the Company’s website at investors.thecheesecakefactory.com. About The Cheesecake Factory Incorporated The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. Delicious, memorable experiences created by passionate people—this defines who we are and where we are going. We currently own and operate 375 restaurants throughout the United States and Canada under brands including The Cheesecake Factory®, North Italia®, Flower Child® and a collection of other FRC brands. Internationally, 36 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. In 2026, we were named to the FORTUNE Magazine "100 Best Companies to Work For®" list for the thirteenth consecutive year. To learn more, visit www.thecheesecakefactory.com, www.northitalia.com, www.iamaflowerchild.com and www.foxrc.com. Safe Harbor Statement This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, without limitation, statements regarding the Company’s operations, growth, restaurant development and other objectives. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as "believe," "plan," "will likely result," "expect," "intend," "will continue," "is anticipated," "estimate," "project," "may," "could," "would," "should" and similar expressions. These statements are based on current expectations and involve risks and uncertainties which may cause results to differ materially from those set forth in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including government shutdowns, trade policy, interest rate fluctuations, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of the Company’s restaurants and potential reputational damage to the Company or any of its brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, Flower Child and Other Fox Restaurant Concepts restaurants; the risks of doing business abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross-border taxation; changes in unemployment rates; increases in minimum wages and benefit costs; the economic health of the Company’s landlords and other tenants in retail centers in which its restaurants are located, and the Company’s ability to successfully manage its lease arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to the Company; the timing of new unit development and related permitting; compliance with debt covenants; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of changes in tax laws; changes in laws impacting the Company’s business; adverse weather conditions and natural disasters in regions in which the Company’s restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission ("SEC"). Forward-looking statements speak only as of the dates on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC, which are available at www.sec.gov. Reconciliation of Non-GAAP Results to GAAP Results In addition to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP") in this press release, the Company is providing non-GAAP measurements which present net income and net income per share excluding the impact of certain items. The non-GAAP measurements are intended to supplement the presentation of the Company’s financial results in accordance with GAAP. These non-GAAP measures are calculated by eliminating from net income and diluted net income per share the impact of items the Company does not consider indicative of its ongoing operations. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. View source version on businesswire.com: https://www.businesswire.com/news/home/20260728584286/en/ Contacts Etienne Marcus(818) [email protected]