Oct 27, 2026 earnings call — Record revenue and restaurant expansion plan
The company reported total revenues of over $1.033 billion, a record quarterly revenue.
Revenue $1.0B (est $1.0B) · EPS $1.02 (est $0.96) · Next-quarter revenue outlook $1.0B–$1.1B
Key quotes
"And we have an increased focus on driving frequency, driving repeat visits, using all the data that we've been able to gather over the past couple of years to continue to offer personalized offers for guests who are part of that rewards program."
"Given the strength and consistency of Flower Child's performance, we believe the concept is well-positioned for a meaningful acceleration in unit growth."
"We ended the quarter with total available liquidity of $585.3 million, including a cash balance of $249.3 million and $336 million available on our revolving credit facility."
Analyst Q&A 11
labor costs and incentive bonuses
Q (Jon Tower · Citi): Analyst asked if the labor cost increase is sustainable and how to break out incentive compensation.
A: Management said there was about $4 million in other OpEx that was a discretionary one-time bonus. They feel good about current labor levels and are prioritizing staffing to maintain service. Cheesecake Factory mix makes dollars-per-week look different, but by concept they are comfortable.
"And so in that other OpEx line, there is about $4 million that would be attributable to that reinvestment in a discretionary one-time bonus." — Matthew Clark (CFO)
start of Q4 and holiday effects
Q (Andrew Barish · Jefferies): Analyst asked how October/trends look and how calendar shifts (Halloween, Christmas, New Year) affect Q4.
A: Management said they don't give quarter-to-date trends but explained the Q4 guide assumes Q3 comp strength is durable. They modeled the last 3 weeks of the quarter at 3% pricing, assuming flat traffic, and deducted 1% for holiday shifts in the guide.
"The last 3 weeks of the quarter are typically pretty much at capacity for Cheesecake Factory, given the holidays, and we modeled those just at our pricing of 3%, so just assuming that would be flat traffic." — Matthew Clark (CFO)
unit growth plans for 2027
Q (John Ivankoe · JPM): Analyst wanted clarity on unit counts for fiscal '27 and whether Flower Child or Cheesecake openings can accelerate in '28.
A: Management said the matching of year numbers was a coincidence and they are excited to open 26 restaurants this year. They plan to accelerate Flower Child to 11 to 13 next year and said Cheesecake openings can increase as good sites become available; smaller footprints have worked well.
"Yes, so it would be 11 to 13 for next year." — David Gordon (PRESIDENT)
guest behavior, capacity, marketing mix
Q (James Salera · Stephens): Analyst asked about new guest frequency, what they order, any capacity limits, and whether marketing spend should shift toward newer brands.
A: Management said peak waits on Friday/Saturday extend shoulder periods and there is still capacity late night and off-premise; off-premise is 21%. New guests act like historical guests and some came in for the Cajun Salmon while also ordering classics. They will increase marketing spend in newer concepts and pilot marketing for North Italia in select markets.
"Well, certainly, as we bring the newer concepts into newer markets where they don't have as much awareness, then we would increase that marketing spend, whether that's for a North Italia or a Flower." — David Gordon (PRESIDENT)
younger customers and quarter metrics
Q (Sharon Zackfia · William Blair): Analyst asked whether younger guests are durable and requested traffic and ticket figures for the quarter.
A: Management said a large percentage of recent guests are younger and it's early at about 4 months, but sales trends have been consistent across months. They reported 2.4% pricing, a positive 3.3% mix and 9.5% traffic for the quarter.
"It was 2.4% pricing, a positive 3.3% mix and 9.5% traffic." — Matthew Clark (CFO)
what changed in marketing and flow-through
Q (Christopher O'Cull · Baird): Analyst asked what the company is doing differently in marketing now and how to think about restaurant-level flow-through going into Q4.
A: Management said they are producing more organic social content and have taken a new approach to content and menu visuals that is resonating with guests. On flow-through, Q2 was unusually productive at 35%, and Q3 levels adjusted for sales imply Q4 restaurant-level flow-through around a 20% to 25% range on a weighted basis, incorporating reinvestments.
"We've actually taken a new approach in some of our content and how our menu items look in social, and we think that's resonating really, really well with guests also." — David Gordon (PRESIDENT)
4Q guide, 2027 mix, converts
Q (Sara Senatore · BofA): Analyst asked how to reconcile Q4 comp outlook with unit mix in 2027 and asked about the convertible being in the money.
A: Management reiterated the Q4 guide doesn't imply a full quarter deceleration; only the last three holiday weeks were modeled conservatively. They said Q1 of fiscal '27 should be stronger, they expect some tapering as they lap big quarters, and noted the convert is in the money and its dilution is already embedded in guidance as they "earn into" that dilution.
"At this point in time, what we're talking about is kind of earning into that dilution, and it's early days with where the stock is at, and we'll see how that plays out over time." — Matthew Clark (CFO)
menu innovation cadence
Q (Jeffrey Farmer · Gordon Haskett): Analyst asked whether menu innovation has increased and how the cadence will look in 2027.
A: Management said menu innovation has been key for decades and the cadence remains two menu changes a year. They do not expect that cadence to change moving into next year.
"The cadence is the 2 menu changes a year, and that will be the same cadence moving into next year and for the foreseeable future." — David Gordon (PRESIDENT)
other OpEx, Q4 bonuses, Flower Child economics
Q (Brian Vaccaro · Raymond James): Analyst asked if any bonuses are included in Q4 guidance and why other OpEx rose; also asked about Flower Child unit economics and market expansion.
A: Management said the higher other OpEx is largely from higher sales and higher electricity rates, and that Q4 guidance includes continued reinvestment including some incentive comp and marketing. They said Flower Child is at roughly $5 million AUV, about 20% mature margins, build costs around $2.8 million to $3 million, planning 11 to 13 openings next year with about a 50-50 split between new and existing markets.
"And for the fourth quarter, everything that we talk about in terms of reinvestment is in there." — Matthew Clark (CFO)
sustainability of traffic and labor variability
Q (Brian Bittner · Oppenheimer): Analyst asked for evidence that traffic gains are sustainable and what will convert traffic into long-term business; followed up on labor cost variability and productivity.
A: Management said they are encouraged by multiple indicators: near-record NPS scores, rewards program driving twice as many acquisitions per week since the app launch, and rewards members having higher frequency. They also said operator tenure and execution support taking share, and on labor they focused on staffing to give new guests strong service, viewing some higher labor as an investment for future returns.
"We continue to have twice as many acquisitions per week with the rewards program than we did before the launch of the app." — Matthew Clark (CFO)
holiday capacity and pricing assumption
Q (Lauren Silberman · Deutsche Bank): Analyst asked if there's room to grow traffic during the busy holiday weeks and whether Q4 assumed 3% pricing and if that applies to '27.
A: Management said holiday weeks are markedly busier, about 25% to 30% more than average, and while some capacity exists they modeled the weeks conservatively as flat traffic. They advised using 3% as a run-rate pricing assumption for next year, though they may update it around menu changes and cost trends.
"So 3% as sort of a run rate is good to use for next year as well at this point in time." — Matthew Clark (CFO)