A：The Cheesecake Factory Incorporated achieved year-end results with strong sales growth across core concepts, the most new restaurant openings in a single year, supporting record annual revenue and adjusted diluted earnings per share. The operator's consistent execution drove meaningful profitability growth, with the adjusted restaurant level profit margin at The Cheesecake Factory increasing 60 basis points year over year to 17.6%. The company also opened 25 new restaurants in 2025, delivering approximately 7% unit growth.

A：The Cheesecake Factory introduced new menu items across various categories and price points, which have resonated well with guests. In the fourth quarter, the company opened two Cheesecake Factory restaurants, three North Italia locations, and three FRC restaurants. Subsequent to the quarter, one flower child restaurant was opened and four restaurants were closed, including two Cheesecake Factory restaurants, one Grand Lux Cafe, and one FRC restaurant. A total of seven new restaurants were opened in the fourth quarter.

A：The company expects to open as many as 26 restaurants in 2026, supported by a strong development pipeline and confidence in the strength and consistency of the business model.

A：Operational leadership and disciplined execution drove meaningful performance improvements, including continued gains in overall guest satisfaction. This progress was supported by a strong staffing position and advancements in industry-leading retention for both hourly staff and management. Stability in staffing enabled operators to reinforce core operational standards, leading to exceptional hospitality that guests have come to expect.

A：The menu rollout has been well received, with encouraging results such as year-over-year growth in appetizer attachment rates and improved entree ordering patterns. The Cheesecake Factory rewards program has seen meaningful progress, including strong membership growth and improved engagement. The company is leveraging expanded capabilities to refine offers and deepen member engagement, with plans to launch a dedicated rewards app to enhance the guest experience and provide better insights into member behavior.

A：Sales decelerated in the fourth quarter, as reflected by the Black Box Casual Dining Index, with a sequential decline in the fourth quarter compared to the third. The Cheesecake Factory's comparable sales were negative, down from the third quarter, but demonstrated relative stability compared to the industry's decline. Adjusted annualized AUV was $12.2 million for the quarter, supported by an off-premise sales mix. North Italia's fourth quarter annualized AUV was $7.6 million, with comparable sales declining 4%, reflecting industry sales trends and pressure from recently opened restaurants and the impact of the Los Angeles fires. The company's focus on operational execution and investing in staff retention helped maintain confidence in the ability to compete effectively in a challenging environment.

A：For the fourth quarter, total revenues were $961.6 million with $17.3 million of gift card breakage revenue, adjusted net income margin was ly, ly, and adjusted diluted earnings per share was 1 dollar. For the full year, total revenues were $3.75 billion, adjusted diluted earnings per year increased 10% year over year to 3 dollars and 77 cents, and adjusted EBITDA was $354 million, with more than $206 million returned to shareholders via dividends and stock repurchases.

A：In the fourth quarter, total sales at Cheesecake Factory restaurants were $681.4 million, up 2% from the prior year, and sales per operating week were $139100. Sales for North Italia were $88.2 million, up 8% from the prior year period. FRC sales totaled $99.4 million, up 17% from the prior year, and flower child sales were $45.5 million, up 19% from the prior year, with sales per operating week at $83400. External bakery sales were $17.2 million.

A：While specific comparable sales and earnings guidance is not provided, the company expects total revenues between $955 and $970 million for the upcoming quarter, factoring in weather-related restaurant closures and a lower sales trend in the current consumer environment. For the full year, the company anticipates total revenues of approximately $3.9 billion, with total inflation across the commodity basket, labor, and other operating expenses in the low to mid single digits. Adjusted net income margin is expected to be about Ed at the midpoint of the sales range provided.

A：Cost of sales decreased by ly basis points primarily due to the gift card breakage benefit, with the remainder attributable to favorable commodity costs and mix shift. Labor as a percent of sales declined script basis points, with the gift card breakage benefit accounting for ly basis points. Other operating expenses declined ed basis points, with the majority of variance due to the gift card breakage benefit, offset by timing of marketing spend. Gna as a percent of sales increased 70 basis points, mainly driven by the write down of gift card inventory.

A：The company ended the quarter with total available liquidity of approximately $582.2 million, including a cash balance of $215.7 million and $366.5 million available on a revolving credit facility. The total principal amount of debt outstanding was $644 million, and CapEx for the fourth quarter was approximately $25 million for new unit development and maintenance. The company also completed approximately $11.2 million in share repurchases and returned $128.800 million to shareholders via dividends.

A：The company expects effective commodity inflation of low single digits, with a stable broad market basket. They are modeling net total labor inflation of low to mid single digits, factoring in the latest trends and wage rates, minimum wage increases, and other components of labor. Gna is estimated to be approximately $63 million to $64 million, and depreciation is estimated to be about $28 million.

A：The company projects total revenues for fiscal 2026 to be approximately $3.9 billion at the midpoint of their sensitivity modeling. They estimate a full year net income margin to be approximately Ed at the sales estimate provided, with total inflation across the commodity basket, labor, and other operating expenses in the low to mid single digit range.

A：The company plans to continue accelerating unit growth in 2026, expecting to open as many as 26 new restaurants, with roughly three quarters of those openings planned for the second half of the year. Of these, they would anticipate approximately $210 million in cash CapEx to support unit development and restaurant maintenance.

A：The company is very pleased with the overall performance of the business unit, with all lines of business meeting or exceeding expectations. A person from cheesecake has been working with the team in C and operations are going excellently. The company will continue to look at opportunities to add benefits via scale or expertise and will continue to innovate and incubate.

A：The bittesby bowls have been well-received, and they were rolled out with a heightened sense of awareness, featuring them on a separate menu cart and marketing them through social channels. The company has seen great awareness and attachment rates due to the value they provide. The company is planning to continue rolling out the menu, possibly integrating new items into the main menu.

A：North Italia's same store sales have been impacted, with the sales transfer being approximately the same magnitude as the previous quarter. There's a weakness in lunch, which is a consistent trend in the fourth quarter. However, there is positive news as the comp is recovering, indicating that the cannibalization of the fire is not as impactful as initially feared.

A：Weather had a negative net impact on the quarter, with the company experiencing record restaurant closures. About 120 restaurants were closed on the peak day. The impact is reflected in the guidance provided by the company, which assumes no further weather impact.

A：Customers have widely popularized all menu items, with no single item being overwhelmingly preferred. A couple of bowls and all the bites have performed very well, showcasing the large menu variety that customers enjoy at the Cheesecake Factory.

A：The company has observed a slowdown in industry trends and volatility in the consumer spending backdrop due to weather and other factors. The recent changes in consumer trends are not fundamentally different; they are influenced by external factors such as weather impact and shifts in consumer behavior.

A：The expected impact of the menu rollouts, specifically the 'bites' at lower check sizes, is to drive transactions. Although there was a negative mix in Q4, with new menu items just rolled out in early September, it is anticipated that the negative mix will continue to improve at a lesser rate as the year progresses. The guide indicates a negative one for the year on a mix perspective.

A：The company does not count on getting any benefits from tax refunds. Their performance is attributed to their execution, menu innovation, and other initiatives they are undertaking. There is no pronounced correlation to tax refunds or external factors like gas prices in their performance.

A：The company's guidance for restaurant levels shows an expectation of a slight pressure in G&A (General and Administrative expenses) due to specific accounting items, but overall, the ly basis points of Ed Wall margin is expected for the restaurant levels. The full-year outlook is positive, with a clean outlook and a slight improvement expected for the year.

A：The company's menu pricing strategy for this year will focus on value, with an expectation to bring down prices. For instance, the running price for cheesecake is in the 3.5 to 4% range. The plan is to manage mix and price to maintain prices well below the industry level, aided by lower inflation costs and improved sales trends. This is expected to be an achievable level based on current market conditions and consumer behavior.

A：The overall business performance has been predictable despite more weather impacts than usual. The business is in the range expected, with the company feeling good about the guidance provided.

A：At North, the focus is on menu innovation, particularly in the lunch day part, and continued bar innovation. There has been a positive trend in bar incident rates and the company aims to make North more stable and in line with the rest of the industry.

A：The goal is to launch the dedicated Rewards app in the second quarter, with a strong social media presence planned for the launch.

A：Yes, the company has seen stable performance across the portfolio again after the regional trends caused by government shutdowns, despite weather variations.

A：The same store sales for Q2 were implied to be roughly plus 1%.

A：The company aims to make the guest experience seamless and provide value but will not share finer details. The focus is on making it easy for guests to access reservations and view order history. Impact metrics will be shared if and when the information is available.

A：The company is enthusiastic about the performance of the flower child brand in new and existing markets, with strong reception even in new locations. The brand is on-trend, healthy, and offers a unique dining experience. Operations systems have been put in place for consistent execution, and the guest experience has received very positive reviews. While there is a potential for faster development, the company wants to ensure the right leadership and staff are in place to maintain brand standards.

A：Menu pressure has been contributed to by alcohol and dessert stabilization, indicating that the pricing differential of new products is a significant factor. However, exact numbers were not provided during the transcript.

A：The anticipated impact suggests that despite new product pricing, the offset from increased order rates will neutralize some of the pricing impact.

A：The current off-premise sales mix for the restaurant is approximately 20% for delivery, 10% for the restaurant, and the rest is split evenly between online ordering and phone pickup.

A：Yes, all the concepts owned by the company are already covered under the DoorDash agreement.

A：The company plans to open up to 6 new Cheesecake Factory units, with the size range varying from 6500 to 10000 square feet, with an average size of about 7700 square feet for the 6 units.

A：The new units have generated sales at effectively the average a.u.s.b. (average sales per square foot) margins, and the company has been sitting right between the 8% and 9% cash on cash return targets.

A：The expected rate of commodity inflation for the upcoming year is about 2.5 percent and is expected to be steady throughout the year.