The Cheesecake Factory posts record-breaking revenues for the second quarter in a row

The Cheesecake Factory topped $1 billion in revenue again after doing so for the first time last quarter.

The casual-dining chain reported another strong earnings period for the third quarter ended Sept. 29, with a 15.2% increase in same-store sales, primarily driven by 9.5% traffic growth, and outperforming analyst expectations. Brand president David Gordon said during the earnings call on Tuesday that the company also saw record AUVs even though the third quarter is historically the company’s slowest of the year.

“This performance reinforces our conviction in our strategy and reflects our continued focus on several key priorities: best-in-class operational execution supported by industry-leading retention, menu innovation and the ongoing growth and evolution of our Cheesecake Rewards and marketing efforts,” Gordon said.

Cheesecake Factory has become a lot more aggressive with its marketing strategy, with executives noting that leaning into brand differentiation and social media commentary has translated both into digital engagement and in-store visits.

Related:Brinker’s 2027 off to a strong start as Chili’s compounds same-store sales growth

Gordon noted that although Cheesecake Factory has always been a “word of mouth” business, the company has been trying to utilize the natural appeal of the brand to lean into social media engagement and drive rewards membership momentum for the program that was just launched earlier this year.

“12 months ago, we were a little more gun-shy to engage, and today, where appropriate, we’re talking about the brand, we’re sharing more about what we’re doing that’s new,” Gordon said. “We’ve actually taken a new approach with some of our content and how our menu items look in social, and we think that’s resonating really well with guests.”

Executives also mentioned the reciprocal relationship between awareness of the rewards app and social media reach, which in turn has attracted new guests to the brand, especially social media-savvy younger generations.

In addition to digital marketing and the rewards program, Cheesecake Factory’s third focal point for the third quarter and moving forward has been culinary innovation. Gordon noted that the Bowls & Bites section of the menu is particularly doing well.

For the third quarter ended Sept. 29, Cheesecake Factory reported total revenues of just over $1 billion, as compared to $907.3 million the same quarter the year prior. The company reported net income of $61.3 million or $1.19 per share for the second quarter, nearly double the $31.9 million or $0.66 per share the same quarter the year prior.

Related:2 Red Robin board members bow out following improvements

The company opened six new restaurants, ending the quarter with 380 restaurants across its portfolio.

Cheesecake Factory expects to open as many as 26 new restaurants during the remainer of the fiscal year.

Contact Joanna at [email protected]