Cheesecake Factory’s first quarter print was largely in line with expectations, with shares finishing nearly flat (+0.3%) after the report. Results reflected modest comp sales growth, ongoing menu innovation, and generally stable margins, with no material surprises in guidance or outlook.

• Cheesecake Factory comparable sales increased 1.6%, with annualized unit volumes reaching $12.8 million—a new high for the brand.
• Restaurant-level profit margins at The Cheesecake Factory improved 10bps year-over-year to 17.5%; North Italia margins declined to 14.8% (from 16.6%) due to sales deleverage and higher operating costs.
• North Italia saw a 2% decline in first quarter comparable sales, though management pointed to positive trends at recent openings and a menu refresh targeting lunch traffic.
• 3 new restaurants opened in the quarter across the portfolio, with guidance unchanged for as many as 26 new openings this year.
• Early performance and engagement on the newly launched Cheesecake Rewards app have been above initial expectations, with high download activity and positive guest feedback.