The Cheesecake Factory, along with a group of sit-down restaurant stocks including Texas Roadhouse and BJ’s Restaurants, have seen a median gain of about 62% over the past three months, according to recent data from Yahoo Finance. The news outlet also reported that the 62-point gap was “wider than anything seen from 2016 through 2025,” and comes as stocks from popular fast-casual chains like Chipotle, Wingstop, and Shake Shack have, in comparison, stayed put.
Why is Cheesecake Factory’s stock now outperforming more historically successful fast-food and fast-casual restaurant chains at a time when many Americans are tightening their belts due to the strain of inflation and the high cost of living?
To find out why, we examined The Cheesecake Factory’s most recent earnings report from July 28, which beat expectations by bringing in—for the first time ever—a record $1.03 billion in quarterly revenue. Compared with $955.8 million in revenue for Q2 2025, this amounts to a 7.7% year-over-year increase.
Earnings were also up, with adjusted diluted earnings per share (EPS) rising 24% year over year to $1.44, beating estimates of $1.18.
What is driving the growth? A look at the earnings report points to strong same-store sales, new restaurant openings, and brand growth.
Breaking that down: Restaurant sales grew 7% year over year, reaching $729.5 million, while comparable restaurant sales increased 5.8%.
At the same time, the sit-down chain opened four new restaurant locations across its many brands, which, in addition to The Cheesecake Factory, include North Italia (serving pizza and pasta), Flower Child (healthy meals), and a collection of other Fox Restaurant Concepts brands.
In Q2, The Cheesecake Factory Inc. opened two North Italia restaurants, one Flower Child, and one Fox Restaurant Concepts location. Early in Q3, the company debuted a new Cheesecake Factory location, for a total of 375 restaurants. It expects to open 26 new restaurants in fiscal 2026—including as many as six Cheesecake Factory restaurants. (Flower Child Q2 sales were up 18% year over year, coming in at $56.6 million, with 13% comparable sales growth; North Italia sales were up 8% year over year, coming in at $98.4 million.)
Founder and CEO David Overton credited the chain’s growth to “menu innovation, rewards program and marketing efforts . . . operational execution . . . and year-over-year improvements in labor productivity and food efficiency supporting strong profitability.”
As Fast Company has previously reported, the company is known for its operational efficiency and high restaurant sales volume.
