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Cheesecake Factory Beats Q1 Forecast with Higher Profit

Wall Street Journal US Business •
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The Cheesecake Factory delivered a stronger first‑quarter performance, posting net profit of $49.5 million, or $1.02 per share, up from $32.9 million and 67 cents a year earlier. Adjusted earnings came in at $1.05 per share, edging past the $1.01 consensus. Same‑store sales rose 1.6% year‑over‑year, fueling the earnings lift. Analysts see the beat as a buffer against potential slowdown in discretionary spending.

Revenue rose to $978.8 million, outpacing the $927.2 million a year earlier and beating the $964.6 million consensus. The 1.6% same‑store sales increase was the first uptick after two quarters of flat performance, indicating diners remain drawn to the chain’s upscale‑casual menu despite lingering inflation. The top line growth bolsters confidence in the brand’s clear pricing power.

Earnings beat expectations and sales momentum kept the stock up modestly in after‑hours trade. Management ruled out major menu changes, zeroing in on operational efficiency and debt reduction. The numbers show the chain can sustain profitability without drastic shifts, cementing its role as a steady‑earning casual‑dining player. The company's steady cash flow turned positive for the quarter, giving it headroom to accelerate share buybacks.