Cheesecake Factory Q1 EPS $1.05 on $978.8M Revenue; Flower Child Sales +10%
The Cheesecake Factory delivered Q1 net income of $49.5M and adjusted EPS of $1.05 on revenue of $978.8M, surpassing consensus by $12.6M. Flower Child comps rose 10%, while pricing gains of 3.3% offset a 1.4% traffic decline, and marketing spend will ramp in Q2 to launch a rewards app.
1. Q1 Financial Results
The Cheesecake Factory reported first-quarter net income of $49.5 million and adjusted earnings per share of $1.05 on revenue of $978.8 million. These results exceeded the average analyst revenue estimate of $966.2 million and EPS forecast of $1.03, driven by stronger-than-expected comp performance.
2. Comparable Sales and Mix Trends
Overall comparable sales at core locations held steady, with pricing up 3.3% offsetting a 1.4% traffic decline and a 0.3% negative mix effect. The Flower Child fast-casual brand achieved a 10% comparable sales increase, significantly outpacing the segment and contributing to the revenue beat.
3. Rewards App Rollout and Expense Outlook
Management plans to increase marketing expenses in the second quarter to support the launch of its new rewards app, which has already seen strong download and sign-in activity. Executives expect personalized marketing through the app to drive guest engagement, incremental visits and long-term ROI.