Executives from Cheesecake Factory (NASDAQ:CAKE) outlined the company’s growth strategy, brand positioning, and financial outlook during a presentation at Raymond James’ conference, emphasizing unit expansion across its portfolio, continued momentum in off-premise sales, and ongoing capital returns to shareholders.
Portfolio overview and expansion runway
President David Gordon described the company as a leader in “experiential dining,” pointing to a portfolio anchored by The Cheesecake Factory brand and supported by growth concepts led by North Italia and Flower Child, along with the Fox Restaurant Concepts (FRC) portfolio.
For its growth concepts, management reiterated long-term domestic potential targets:
- North Italia: 48 restaurants across 16 states plus Washington, D.C., with a potential to reach 200 domestic locations over time and a plan for roughly 20% average annual unit growth.
- Flower Child: 43 locations across 15 states, targeting 20% average annual unit growth and a long-term potential of 700 domestic locations.
- FRC (excluding Flower Child): 55 restaurants, positioned as an “incubation engine” for innovative concepts. Gordon highlighted Culinary Dropout and The Henry as concepts the company believes could represent future growth potential.
Gordon said development has accelerated in recent years, with 16 openings in 2023, 23 in 2024, and 25 in 2025, which he characterized as approximately 7% unit growth. The company expects to open as many as 26 new restaurants this year across the portfolio.
Brand differentiation: menu innovation, ambiance, and bakery integration
Gordon framed The Cheesecake Factory’s resilience around four strategic points: menu innovation, operational execution, a high-energy ambiance with hospitality, and an integrated bakery.
He said the chain’s menu includes more than 225 items made fresh from scratch in-house, including over 70 sauces, dressings, and marinades. The company changes its menu twice per year, which Gordon said helps keep the offering relevant without relying on discounting.
He highlighted recently launched menu categories “Bowls” and “Bites,” citing early results as encouraging, including strong interest and improved appetizer attachment rates. The company also cited its bakery as a key differentiator, noting “industry-leading dessert sales” of approximately 17% and production of 58 cheesecakes and other baked desserts for restaurants, international licensees, and retail CPG sales.
Operations, labor, and marketing approach
Management emphasized operational execution as a foundation for consistency, noting an experienced field operations organization with many tenures spanning 16 to 37 years. Gordon also underscored employee retention and workplace recognition, including 12 consecutive years on Fortune’s 100 Best Companies to Work For list and recognition as a 2025 Black Box Intelligence Employer of Choice in upscale dining.
On marketing, Gordon said the brand has historically not relied on traditional paid advertising, instead building awareness through word of mouth and organic buzz. He added that the company continues to leverage social media and broader media exposure, describing its Instagram following as larger than any other major casual dining brand.
Off-premise sales and loyalty program updates
Gordon said the company has driven “meaningful and incremental” off-premise growth supported by a differentiated positioning and value proposition. Delivery is available across restaurants through an exclusive national partnership with DoorDash. Off-premise now represents approximately 22% of sales, which he said equates to about $2.7 million per restaurant annually.
The company also provided an update on Cheesecake Rewards, launched in June 2023 as a “surprise and delight” membership program. Gordon said performance has surpassed expectations, with strong engagement and satisfaction scores, and that the program is driving incremental visits from existing guests while attracting new guests. Management expects to launch a dedicated Cheesecake Rewards mobile app in the second quarter to create a more seamless experience.
Financial performance, capital returns, and 2026 assumptions
CFO Matt Clark said the company has delivered consistent comparable sales growth over several years, which he said translated into record adjusted EBITDA of $354 million in 2025. He added that in 2025 the company generated over $301 million in operating cash flow, opened 25 new restaurants, and returned more than $206 million to shareholders through dividends and share repurchases.
Clark also noted that the company increased its share repurchase authorization and raised its quarterly dividend in the first quarter, citing confidence in the business and a disciplined capital allocation approach.
On 2025 concept-level performance, Clark reported:
- The Cheesecake Factory restaurants: total sales up 1% year over year; AUVs of $12.4 million.
- North Italia: 15% total sales growth; AUVs of $7.6 million.
- Flower Child: 28% sales growth; AUVs of $4.6 million.
Reviewing assumptions previously discussed on the company’s February earnings call, Clark said that based on current trends and assuming no material disruptions, the company anticipates approximately $3.9 billion in total revenue for the year and is aiming to offset inflation with menu pricing. Under those assumptions, he said the company would expect a full-year net income margin of approximately 5%. The company is planning for as many as 26 new restaurant openings in 2026 and expects approximately $210 million in cash capital expenditures to support development and maintenance.
Looking longer-term, Clark said management expects to generate 7% long-term annual unit growth based on the anticipated roadmap for each brand, with diversification across restaurant segments, price points, real estate, and labor models. He also said the company’s expansion opportunities could generate over $5 billion in additional revenue at scale, while citing additional upside from concepts such as Culinary Dropout and The Henry.
About Cheesecake Factory (NASDAQ:CAKE)
The Cheesecake Factory Incorporated (NASDAQ:CAKE) is an American restaurant company and distributor renowned for its full-service casual-dining concept and specialty cheesecakes. Headquartered in Calabasas Hills, California, the company operates more than 200 restaurants under The Cheesecake Factory® brand across the United States, Puerto Rico and select international markets. In addition to sit-down dining, Cheesecake Factory franchised locations offer catering and take-out services, while a separate manufacturing arm supplies branded cheesecakes and desserts to supermarkets, hotels and other foodservice operators.
The origins of the brand trace back to a small cheesecake bakery founded in Detroit in the 1940s.
