The Cheesecake Factory surprises with strong first quarter

After a tough end to 2025, this year is off to a much better start for The Cheesecake Factory.

Same-store sales at the casual-dining chain rose 1.6% year over year in the first quarter ended March 31, exceeding the company’s forecast of 1% same-store sales growth for the period.

Traffic was still down 1.4% year over year, but that was a marked improvement from the 4% decline last quarter. Bad weather also had a 1.7% negative impact on sales.

Executives said they expect the pace to continue through this quarter, when the company is projecting total revenues of between $990 million and $1 billion, a step up from last quarter’s $978.8 million.

The momentum comes as American consumers remain on uncertain footing due to rising gas prices and other economic concerns.

Executives for 216-unit Cheesecake Factory credited the broad appeal and flexibility of its menu, especially amid the rise of GLP-1 medications that are changing users’ eating habits.

“You can get anything you want to eat at Cheesecake Factory,” said CFO Matt Clark during an earnings call Wednesday. “You can get steamed salmon with broccoli if that's what you want, and heavy up on the proteins.”

The chain has also found strong demand for a new lineup of smaller-portioned “bites” at lower price points. And it reported strong engagment with its new mobile app and loyalty program, which could help drive more traffic, though it declined to provide specific numbers.

Cheesecake may also be benefiting from the so-called K-shaped economy, in which lower-income consumers are looking to save money while higher earners spend more freely.

Clark noted that the chain did not see any impact from gas prices, which began to spike after the Iran war began in late February. And Cheesecake Factory customers do not seem to be holding back: While the bites menu is partially geared toward price-conscious customers, many diners are choosing to add the small plates on to their meal rather than using them as a substitute.

“Many of our concepts in our portfolio benefit from higher-income cohorts, and so I think that there's a piece of that,” Clark said.

Elsewhere in the Cheesecake family, the fast-casual Flower Child continues to be a rising star, posting same-store sales growth of 10% in the quarter, outpacing both internal expectations and the broader fast-casual category, which was flat in the period. Same-store sales were up 15% on a two-year basis, and annualized average unit volumes at the 40-plus-unit chain are now $4.9 million.

President David Gordon said the brand could be taking share from quick-service chains or other fast casuals that have had to raise prices recently.

“Flower Child has not had to do that, and has an elevated experience,” he said.

The company is bullish on the brand and plans to open six or seven new Flower Childs this year.

Cheesecake’s other large sibling, the upscale-casual North Italia, did not fare as well. Same-store sales declined 2% in the quarter on a 6% traffic slide.

The brand is rolling out a new lunch menu with lighter fare and lower price points. And executives also noted that recent openings in Los Angeles and Northern California were the two best in North Italia’s history. It now has 50 locations and expects to add six or seven more this year.

Companywide, Cheesecake Factory revenues in the quarter rose more than 5% year over year to $978.8 million. Net income improved by 50%, to $49.5 million.

It ended the quarter with 370 total restaurants across all brands.