Cheesecake Factory Posts 15.2% Same-Store Sales Growth on Viral Traffic

The Cheesecake Factory grew same-store sales 15.2 percent in Q3, with traffic up 9.5 percent — a figure that beat the Black Box casual-dining index by 940 basis points. Annualized average unit volumes exceeded $13.9 million, another record, during what president David Gordon called typically the company's slowest quarter.

The gains spanned regions, meal periods and days of the week. Off-premises held at roughly 21 percent of sales. Companywide revenue topped $1.033 billion, the second consecutive quarterly record. Adjusted EBITDA rose 38 percent to $98.7 million.

The traffic came largely through social media discovery, which introduced younger consumers to the brand. That claim carries a caveat. CFO Matthew Clark said four months of momentum is not enough to assess how often those new guests will return. Sales trends have stayed consistent through that period, without significant swings tied to the timing of organic social content.

Can viral traffic become repeat business?

The company's stated challenge is converting demand into repeat visits without eroding service. Gordon addressed the risk directly on the earnings call.

"We don't want it to be a one-and-done situation," Gordon said. "It never has been at Cheesecake Factory. We're building brand loyalty and guest loyalty for the long term."

The company will keep monitoring social channels and influencing them "when we think we should," he added. Execution at the restaurant level remains the stated priority.

One menu item illustrates the mechanics. Cajun Salmon, an existing entrée, drew attention through viral customization ideas. Guests who came to try it brought companions who ordered established favorites, including Chicken Madeira and Avocado Eggrolls. The item sits toward the upper end of the entrée price range, which helped produce 3.3 percent positive sales mix alongside 2.4 percent pricing. Alcohol incidence also rose. Cheesecake incidence held flat at an all-time high.

The menu calendar will not accelerate despite the results. Gordon said the company will keep two menu changes a year "for the foreseeable future."

What is the loyalty app contributing?

Cheesecake Rewards and its app launched in the second quarter. Weekly member acquisition is running at twice the pre-launch level. Gordon said personalized offers are supporting repeat visits, and the app is taking a larger role in digital ordering and guest communication. Clark said rewards participants visit more frequently, which gives the company one lever to sustain sales after the social wave.

At the flagship concept, restaurant-level profit margin expanded 240 basis points to 18.7 percent. Labor costs fell 80 basis points as a percentage of companywide sales, helped by sales leverage. Roughly $4 million of the benefit went back to frontline restaurant managers as one-time discretionary bonuses — a signal the company is protecting execution at the store level.

Where is development money going?

The portfolio ended Q3 with 218 U.S. Cheesecake Factory locations and 35 internationally licensed units. North Italia had 52. Development is shifting toward Flower Child, which posted 11 percent same-store sales growth and 18 percent on a two-year basis. Its annualized unit volumes reached $5.1 million. Adjusted mature restaurants earned a 20.2 percent restaurant-level margin, up 280 basis points.

The company expects 11 to 13 Flower Child openings next year, against as many as seven in 2026. Construction costs run approximately $2.8 million to $3 million per restaurant. Gordon expects an even split between new and existing markets.

"We see some great synergy when we're able to get that second and third restaurant open in an existing market," he said.

North Italia presents the opposite problem. Same-store sales fell 3 percent, and adjusted mature restaurant-level margin dropped to 13.2 percent from 15.7 percent, primarily on sales deleverage. The fixes include a new menu with more accessible price points, a refreshed happy hour with shareable dishes and beverages, and increased media spending in two markets to test whether awareness converts to trial. A kitchen technology rollout is intended to improve order coordination and throughput.

Across the portfolio, the company plans as many as 27 openings in 2027, roughly three-quarters of them in the second half. Cheesecake Factory itself could add as many as five restaurants. A recent Wichita, Kansas, opening tested a smaller format of about 6,500 square feet, and Gordon said the chain has capacity for more than four to six openings annually, depending on site availability.

Q4 revenue guidance sits at $1.04 billion to $1.05 billion. For 2027, the company projects approximately $4.425 billion in annual revenue. The projections assume the social-media cohort stays — an assumption four months of data cannot yet confirm.