The Cheesecake Factory Is Thriving In 2024

While restaurant prices increase and some chains struggle to prove their value to customers, one chain restaurant has stood the test of time. The Cheesecake Factory's performance has remained so steady, its executives are raving about the predictability of casual dining spot.

Restaurant Business reports that on the company's latest earnings call, Cheesecake Factory executives used the word "stability" 12 times to describe the brand. Backing up that image of strength are the actual numbers: Cheesecake Factory's same-store sales in Q4 increased 2.5% from the previous year, and this growth has been the trend for the past four quarters. The restaurant's foot traffic also remained respectably consistent, per its latest earnings report.

"It was a really strong quarter from start to finish, to be honest," said CFO Matthew Clark on the call. "Operators were in full control through the quarter. It was very predictable and overall right on track."

The Cheesecake Factory has remained steady on all fronts, not really undergoing any major changes; the brand's biggest update recently was the introduction of its loyalty program. Although Cheesecake Rewards membership is thriving, Clark noted on the call that the company doesn't expect to see any significant sales results from the program for at least a year.

Meanwhile, other casual chains have faced challenges, leaving them struggling to stay afloat. Boston Market, a rotisserie chicken chain that once had a strong presence nationwide, has been dying a slow and painful death riddled with lawsuits, bankruptcy filings, and closures from which it might never recover.

Red Lobster is also going through it, but to a lesser extent. The seafood chain has reported disappointing sales, and the recent decision to make its Endless Shrimp deal a permanent feature actually cost the company more money than it made. The situation is so concerning that one of Red Lobster's minority owners aims to exit the business altogether.

Denny's is another casual restaurant brand that isn't faring so well. The breakfast chain's footprint nationwide has shrunk significantly, going from 1,735 locations in 2017 to 1,573 in 2023. The company even predicts its same-store sales growth for 2024 could be 0%.

This isn't to say Denny's hasn't tried to claw its way back. The chain has tried to increase sales through various efforts, including revamping its rewards program, maintaining a 24/7 business model, creating an augmented reality menu, and opening drive-thru locations. Unfortunately, none of these efforts appear to have resulted in the boost the brand needs.

In these uncertain times, The Cheesecake Factory's steady, predictable performance is nothing but a good thing. Maybe it's the massive menu, or just its damn good slices of cheesecake, but whatever the secret sauce is, investors are happy to leave the drama to other full-service restaurants in the industry.