The Cheesecake Factory reported a strong second quarter with restaurant-level margins reaching 20%, the highest in a decade, as comparable sales rose 5.8% and revenues topped $1 billion for the first time. The margin gains came from sales leverage, improved labor productivity, and better food efficiency, which offset higher commodity costs. Management raised its full-year margin improvement outlook to about 60 basis points, up from 25 basis points previously, and expects 2026 revenues of about $4 billion with plans to open up to 26 new restaurants. The company's margin performance outpaces rivals like Darden and Brinker, and its shares have surged 71.6% over the past six months. Earnings estimates for 2026 and 2027 have been revised upward, projecting year-over-year growth of 19.9% and 11%, respectively.
The Cheesecake FactoryQ2 restaurant-level margins hit a decade-high 20% with comps up 5.8% and revenue topping $1B, prompting raised full-year margin outlook and upward earnings revisions.
Darden Restaurants Inc
Brinker International Inc