It has been about a month since the last earnings report for Cheesecake Factory (CAKE Quick QuoteCAKE - Free Report) . Shares have lost about 5.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cheesecake Factory due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for The Cheesecake Factory Incorporated before we dive into how investors and analysts have reacted as of late.

Cheesecake Factory Q3 Earnings Top Estimates, Revenues Lag

Cheesecake Factory reported third-quarter fiscal 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both the top and bottom lines increased from the prior-year quarter’s figures.

CAKE’s Q3 Earnings & Revenue Discussion

For the quarter under review, CAKE reported adjusted earnings per share (EPS) of 68 cents, topping the Zacks Consensus Estimate of 60 cents. In the year-ago period, the company reported adjusted EPS of 58 cents.

Quarterly revenues of $907.2 million missed the consensus estimate of $913 million by 0.6%. The top line increased 4.8% on a year-over-year basis.

CAKE’s Q3 Comps

In the reported quarter, comparable sales at Cheesecake Factory restaurants rose 0.3% year over year compared with a 1.6% increase reported in the prior-year quarter.

North Italia comps declined 3% year over year against 2% growth reported in the year-ago quarter.

CAKE’s Costs in Detail

The cost of food and beverage, as a percentage of revenues, contracted 80 basis points (bps) year over year to 21.8% in the fiscal third quarter.

Labor expenses, as a percentage of total revenues, declined 30 bps year over year to 35.6%.

Other operating costs, as a percentage of total revenues, increased 50 bps year over year to 28.2%.

General and administrative expenses accounted for 6.5% of revenues, remaining flat year over year.

Balance Sheet of CAKE

As of Sept. 30, 2025, Cheesecake Factory’s cash and cash equivalents totaled $190 million, up from $84.2 million as of 2024-end. Long-term debt (net of issuance costs) stood at $629.2 million, compared with $452.1 million as of Dec. 31, 2024. The company reported total available liquidity of $556.5 million, including its undrawn revolving credit facility.

Management declared a quarterly cash dividend of 27 cents per share, payable on Nov. 25, 2025, to its shareholders of record as of Nov. 11. During the quarter, CAKE repurchased approximately 18,900 shares for $1.2 million.

CAKE’s Store Developments

In the third quarter of fiscal 2025, the company expanded its footprint with two new FRC restaurant openings and two Cheesecake Factory restaurants in Mexico under licensing agreements.

For fiscal 2025, CAKE continues to anticipate up to 25 new restaurant openings across its portfolio, including up to four Cheesecake Factory units, six North Italia locations, six Flower Child restaurants and nine FRC concepts.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -11.35% due to these changes.

VGM Scores

Currently, Cheesecake Factory has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cheesecake Factory has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Cheesecake Factory is part of the Zacks Retail - Restaurants industry. Over the past month, Domino's Pizza (DPZ Quick QuoteDPZ - Free Report) , a stock from the same industry, has gained 2.4%. The company reported its results for the quarter ended September 2025 more than a month ago.

Domino's Pizza reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $4.08 for the same period compares with $4.19 a year ago.

Domino's Pizza is expected to post earnings of $5.38 per share for the current quarter, representing a year-over-year change of +10%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Domino's Pizza. Also, the stock has a VGM Score of B.