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Research Alert: Cake: Q1 Beat On Cheesecake Factory Strength; Margins Stable

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

CAKE posted Q1 adjusted EPS of $1.05, up 13% Y/Y and beating the $1.01 consensus estimate, while total revenue of $979M, up 5.6%, also beat the $965M consensus. Adjusted operating income of $57M (up 7%) exceeded the $55M estimate, with operating margins stable at 5.8% despite food and labor cost inflation of 5% each. This marks the third consecutive quarter of margin stability, demonstrating operational leverage as management's staff retention and supply chain initiatives continue to offset volatile costs, with results exceeding expectations despite weather-related impacts. Management reaffirmed guidance to open up to 26 new restaurants in 2026, including up to six Cheesecake Factory locations and multiple North Italia, Flower Child, and FRC concepts. The company maintained strong liquidity of $601.6M, with no outstanding debt and returned capital through $19.2M in share repurchases and a $0.30 quarterly dividend, reflecting confidence in cash generation.

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