Mon, May 5, 9:02 PM (7 days ago)
**The Cheesecake Factory Incorporated (CAKE) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $927.2 million, up 4.0% from $891.2 million in Q1 2024, driven by new restaurant openings and increased comparable restaurant sales. - **Net Income:** $32.9 million, slightly down from $33.2 million in Q1 2024. - **Earnings per Share (EPS):** $0.67 (diluted), down from $0.68 in Q1 2024. - **Operating Income:** $51.9 million, up from $39.3 million in Q1 2024. **Profit Margins:** - **Operating Margin:** 5.6% of revenue, up from 4.4% in Q1 2024. - **Net Margin:** 3.6% of revenue, down from 3.7% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $78.9 million, up from $66.7 million in Q1 2024. - **Capital Expenditures:** $42.8 million, down from $37.1 million in Q1 2024. - **Free Cash Flow:** $36.1 million, up from $29.6 million in Q1 2024. **Segment Performance:** - **The Cheesecake Factory Restaurants:** Sales up 0.7%, comparable sales up 1.0%. - **North Italia:** Sales up 17.6%, comparable sales down 1.0%. - **Flower Child:** Sales up 26.1%, comparable sales up 5.0%. - **Other FRC:** Sales up 17.8%, impacted by new restaurant openings and concept mix. **Trends and Uncertainties:** - **Menu Price Increases:** Effective increases of 2.4% in Q1 2025 and 2.0% planned for Q2 2025. - **Commodity and Wage Inflation:** Returning to historical levels, but ongoing geopolitical and macroeconomic events pose risks. - **New Restaurant Openings:** 8 new restaurants opened in Q1 2025, with plans for up to 25 new restaurants in 2025. **Future Operations Impact:** - **Capital Allocation:** Focus on new restaurant development, maintaining debt levels, and returning capital to shareholders through dividends and share repurchases. - **Debt Management:** Repurchased $276.0 million of 2026 Notes, issued $575.0 million of 2030 Notes. - **Share Repurchases:** Repurchased 2.6 million shares in Q1 2025, totaling $141.4 million. **Conclusion:** The Cheesecake Factory Incorporated demonstrated solid revenue growth and improved operating margins in Q1 2025. However, net income and EPS saw slight declines. The company continues to invest in new restaurant openings and manage costs effectively, while navigating ongoing economic uncertainties.