Forward-Looking Statements Certain information included in this Form 10-Q and other materials we have filed or may file with the Securities and Exchange Commission (“SEC”), as well as information included in oral or written statements made by us or on our behalf, may contain forward-looking statements about our current and presently expected performance trends, growth plans, business goals and other matters. These statements may be contained in our filings with the SEC, in our press releases, in other written communications, and in oral statements made by or with the approval of one of our authorized officers. These statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as codified in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (together with the Securities Act, the “Acts”). This includes, without limitation, statements regarding corporate social responsibility (“CSR”), including in our CSR report, the effects of geopolitical and macroeconomic factors, including evolving government policies and global trade dynamics, on our financial condition and our results of operations, financial guidance and projections, as well as expectations of our future financial condition, results of operations, sales, target growth rates, cash flows, quarterly dividends, share repurchases, capital structure and leverage, corporate strategy, potential price increases, plans, targets, goals, objectives, performance, growth potential, competitive position and business, and statements regarding our ability to: leverage our competitive strengths, including developing and investing in new restaurant concepts and expanding The Cheesecake Factory® brand to other retail opportunities; maintain our aggregate sales volumes; deliver comparable sales growth; provide a differentiated experience to customers; outperform the casual dining industry and increase our market share; leverage sales increases and manage flow through; manage market risks and cost pressures, including increasing wage rates and insurance costs, and increase margins; grow earnings; remain relevant to consumers; attract and retain qualified management and other staff; increase shareholder value; find suitable sites and manage increasing construction costs; profitably expand our concepts domestically and in Canada, and work with our licensees to expand The Cheesecake Factory internationally; support the growth of North Italia, Flower Child and additional brands within our Fox Restaurant Concepts (“Other FRC”) restaurants; and utilize our capital effectively. These forward-looking statements may be affected by various factors including: economic, public health and political conditions that impact consumer confidence and spending, including government shutdowns, trade policy, changes in interest rates, periods of heightened inflation and market instability, and armed conflicts; supply chain disruptions; demonstrations, political unrest, potential damage to or closure of our restaurants and potential reputational damage to us or any of our brands; pandemics and related containment measures, including the potential for quarantines or restriction on in-person dining; acceptance and success of The Cheesecake Factory in international markets; acceptance and success of North Italia, Flower Child and Other FRC restaurants; the risks of doing business abroad through Company-owned restaurants and/or licensees; foreign exchange rates, tariffs and cross border taxation; changes in unemployment rates; increases in minimum wages and benefit costs; the economic health of our landlords and other tenants in retail centers in which our restaurants are located, and our ability to successfully manage our lease arrangements with landlords; the economic health of suppliers, licensees, vendors and other third parties providing goods or services to us; the timing of our new unit development and related permitting; compliance with debt covenants; strategic capital allocation decisions including with respect to share repurchases or dividends; the ability to achieve projected financial results; the resolution of uncertain tax positions with the Internal Revenue Service and the impact of tax reform legislation; changes in laws impacting our business; adverse weather conditions and natural disasters in regions in which our restaurants are located; factors that are under the control of government agencies, landlords and other third parties; the risks, costs and uncertainties associated with opening new restaurants; and other risks and uncertainties detailed from time to time in our filings with the SEC. Such forward-looking statements include all other statements that are not historical facts, as well as statements that are preceded by, followed by or that include words or phrases such as “believe,” “plan,” “will likely result,” “expect,” “intend,” “will continue,” “is anticipated,” “estimate,” “project,” “may,” “could,” “would,” “should” and similar expressions. These statements are based on our current expectations and involve risks and uncertainties that may cause results to differ materially from those set forth in such statements. 20 Table of Contents In connection with the “safe harbor” provisions of the Acts, we have identified and are disclosing important factors, risks and uncertainties that could cause our actual results to differ materially from those projected in forward-looking statements made by us, or on our behalf. (See Part II, Item 1A of this report, “Risk Factors,” and Part I, Item 1A, “Risk Factors,” included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2025.) These cautionary statements are to be used as a reference in connection with any forward-looking statements. The factors, risks and uncertainties identified in these cautionary statements are in addition to those contained in any other cautionary statements, written or oral, which may be made or otherwise addressed in connection with a forward-looking statement or contained in any of our subsequent filings with the SEC. Because of these factors, risks and uncertainties, we caution against placing undue reliance on forward-looking statements. Although we believe that the assumptions underlying forward-looking statements are currently reasonable, any of the assumptions could be incorrect or incomplete, and there can be no assurance that forward-looking statements will prove to be accurate. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by law. The below discussion and analysis, which contains forward-looking statements, should be read in conjunction with our interim unaudited condensed consolidated financial statements and related notes in Part I, Item 1 of this report, Part II, Item 1A of this report, “Risk Factors,” and with the following items included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2025: the audited consolidated financial statements and related notes in Part IV, Item 15; “Risk Factors” included in Part I, Item 1A; “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Part II, Item 7; and the cautionary statements included throughout this Form 10-Q. The inclusion of supplementary analytical and related information herein may require us to make estimates and assumptions to enable us to fairly present, in all material respects, our analysis of trends and expectations with respect to our results of operations and financial position. Geopolitical and Other Macroeconomic Impacts to our Operating Environment In recent years, our operating results were impacted by geopolitical and macroeconomic events, causing supply chain challenges and significantly increased commodity and wage inflation. Our commodity and wage inflationary environment began returning to more historical levels in fiscal 2024. The impact of ongoing geopolitical and macroeconomic events, including evolving government policies and global trade and tariff dynamics, could lead to issues such as further wage inflation, product and services cost inflation, disruptions in the supply chain, staffing challenges, shifts in consumer behavior and delays in new restaurant openings. Adverse weather conditions and natural disasters may further exacerbate a number of these factors. For more information regarding the risks to our business relating to the geopolitical and macroeconomic events, see Part II, Item 1A of this report, “Risk Factors,” and “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 30, 2025. General The Cheesecake Factory Incorporated is a leader in experiential dining. We are culinary forward and relentlessly focused on hospitality. We currently own and operate 375 restaurants throughout the United States and Canada under brands including The Cheesecake Factory® (217 locations), North Italia® (51 locations), Flower Child® (44 locations) and additional brands within our FRC portfolio (57 locations). Internationally, 36 The Cheesecake Factory® restaurants operate under licensing agreements. Our bakery division operates two facilities that produce quality cheesecakes and other baked products for our restaurants, international licensees and third-party bakery customers. Overview Our strategy is driven by our commitment to deliver exceptional food and hospitality, and is centered primarily on menu innovation, service and operational execution to differentiate our concepts and drive competitively strong performance that is sustainable over the long-term. Financially, we are focused on prudently managing expenses at our restaurants, bakery facilities and corporate support center, while leveraging our scale, purchasing power and operational discipline to support financial performance. Our top long-term capital allocation priority is to develop new Company-owned restaurants, with a focus on opening our concepts in premier locations within new and existing markets. We plan to continue expanding The Cheesecake Factory, North Italia and Flower Child concepts. In addition, our FRC subsidiary serves as an incubator, innovating new food, dining and hospitality experiences to create differentiated, high-quality concepts. 21 Table of Contents Our revenue growth is primarily driven by new restaurant openings and increases in comparable restaurant sales. For The Cheesecake Factory concept, our strategy is to increase comparable restaurant sales by growing average check while maintaining customer traffic. We strive to accomplish this by (1) continuing to offer innovative, high quality menu items that offer customers a wide range of options in terms of flavor, price and value, (2) focusing on service and hospitality with the goal of delivering an exceptional dining experience and (3) continuing to provide our customers with convenient options for off-premise dining. We continue to support these efforts through a number of initiatives, including menu innovation, increasing customer throughput in our restaurants, leveraging our gift card program, partnering with a third party to provide delivery services for our restaurants, increasing customer awareness of our online ordering capabilities and improving the pick-up experience, augmenting our marketing programs, including our Cheesecake Rewards® program, enhancing our training programs and leveraging insights from our customer satisfaction measurement platform. Average check variations are driven by menu price increases and/or changes in menu mix. We generally update The Cheesecake Factory menus twice a year, and our philosophy is to use price increases to help offset key operating cost increases in a manner that supports both our margin and customer traffic objectives. Prior to fiscal 2022, we targeted menu price increases of approximately 2% to 3% annually, utilizing a market-based strategy to help mitigate cost pressure in higher-wage geographies. In the last three fiscal years, we implemented price increases above our historical levels, to help offset significant inflationary cost pressures. We will continue to take the cost and inflationary environment into consideration when implementing future pricing decisions. In addition, on a regular basis, we carefully consider opportunities to adjust our menu offerings or ingredients to help manage product quality, availability and cost. Margins are subject to fluctuations in commodity costs, labor, restaurant-level occupancy expenses, general and administrative (“G&A”) expenses and preopening expenses. Our objective is to drive margin expansion over time by leveraging incremental sales to increase restaurant-level margins at The Cheesecake Factory concept, leveraging our bakery operations, international and consumer packaged goods royalty revenue streams and G&A expense, and optimizing our restaurant portfolio. We plan to employ a balanced capital allocation strategy, comprised of investing in new restaurants that are expected to meet our targeted returns, managing our aggregate debt levels and returning capital to shareholders through our dividend and share repurchase programs. Future decisions to pay, increase or decrease dividends or to repurchase shares are at the discretion of the Board and will be dependent on a number of factors, including limitations pursuant to the terms and conditions of our Loan Agreement and applicable law. 22 Table of Contents Results of Operations The following table presents, for the periods indicated, information from our condensed consolidated statements of income expressed as percentages of revenues. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any other interim period or for the full fiscal year. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ ​ ​ Thirteen ​ ​ ​ Twenty-Six ​ ​ ​ Twenty-Six ​ ​ ​ Weeks Ended ​ Weeks Ended Weeks Ended ​ Weeks Ended ​ ​ ​ June 30, 2026 ​ July 1, 2025 ​ June 30, 2026 ​ July 1, 2025 ​ Revenues 100.0 % 100.0 % 100.0 % 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Costs and expenses: ​ ​ ​ ​ ​ ​ ​ Food and beverage costs ​ 21.8 ​ 21.6 ​ 21.7 21.7 ​ Labor expenses ​ 34.1 34.9 ​ 34.8 35.3 ​ Other operating costs and expenses ​ 26.5 26.8 ​ 26.8 26.7 ​ General and administrative expenses ​ 6.4 6.1 ​ 6.5 6.3 ​ Depreciation and amortization expenses ​ 2.8 2.8 ​ 2.8 2.8 ​ Impairment of assets and lease termination expenses ​ 0.0 ​ 0.0 ​ 0.0 ​ 0.0 ​ Acquisition-related contingent consideration, compensation and amortization expenses ​ 0.1 ​ 0.1 ​ 0.1 ​ 0.1 ​ Preopening costs ​ 0.7 0.9 ​ 0.6 0.9 ​ Total costs and expenses ​ 92.4 93.2 ​ 93.3 93.8 ​ Income from operations ​ 7.6 6.8 6.7 ​ 6.2 ​ Interest expense, net ​ (0.1) (0.3) ​ (0.2) (0.3) ​ Loss on extinguishment of debt, ​ — ​ — ​ — ​ (0.8) ​ Other income, net ​ 0.0 ​ 0.0 ​ (0.0) ​ (0.0) ​ Income before income taxes ​ 7.5 6.5 ​ 6.5 5.1 ​ Income tax provision ​ 0.9 0.8 ​ 0.6 0.4 ​ Net income ​ 6.6 % 5.7 % 5.9 % 4.7 % ​ Thirteen Weeks Ended June 30, 2026 Compared to Thirteen Weeks Ended July 1, 2025 Revenues Revenues increased 7.7% to $1,029.6 million for the fiscal quarter ended June 30, 2026 compared to $955.8 million for the comparable prior year period, primarily due to an increase in comparable restaurant sales and additional revenue related to new restaurant openings. The Cheesecake Factory Restaurants sales increased 6.8% to $729.5 million for the second quarter of fiscal 2026, compared to $683.3 million for the second quarter of fiscal 2025. Average sales per restaurant operating week increased 6.2% to $259,785 in the second quarter of fiscal 2026 from $244,544 in the second quarter of fiscal 2025. Total operating weeks at The Cheesecake Factory Restaurants increased 0.5% to 2,808 in the second quarter of fiscal 2026 compared to 2,794 in the prior year. The Cheesecake Factory comparable sales increased by 5.8%, or $38.9 million, from the second quarter of fiscal 2025. The increase from the second quarter of fiscal 2025 was primarily driven by an increase in average check of 3.1% (based on an increase of 3.0% in menu pricing and a 0.1% positive change from menu mix) and higher customer traffic of 2.7%. We implemented effective menu price increases of approximately 1.5% in both the first quarter of fiscal 2026 and the third quarter of fiscal 2025, respectively. We are in the process of implementing approximately a 1.5% menu price increase in the third quarter of fiscal 2026. Sales through the off-premise channel comprised approximately 21% of our restaurant sales during both the second quarter of fiscal 2026 and fiscal 2025. North Italia sales increased 8.4% to $98.4 million for the second quarter of fiscal 2026, compared to $90.8 million for the second quarter of fiscal 2025. Average sales per restaurant operating week decreased 1.6% to $151,446 in the second quarter of fiscal 2026 from $153,949 in the second quarter of fiscal 2025. Total operating weeks at North Italia increased 10.2% to 650 in the second quarter of fiscal 2026 compared to 590 in the prior year. North Italia comparable sales decreased approximately 3% from the second quarter of fiscal 2025. The decrease from fiscal 2025 was primarily driven by decreased customer traffic of 5%, partially offset by an increase in average check of 2% (based on an increase of 3% in menu pricing and a 1% negative impact from mix). We implemented effective menu price increases of approximately 1.0% and 1.5% in the second quarter of fiscal 2026 and fourth quarter of fiscal 2025, respectively. 23 Table of Contents Flower Child sales increased 17.5% to $56.6 million for the second quarter of fiscal 2026, compared to $48.2 million for the second quarter of fiscal 2025. Flower Child sales per restaurant operating week increased 10.8% to $101,252 in the second quarter of fiscal 2026 from $91,400 in the second quarter of fiscal 2025. Total operating weeks at Flower Child increased 6.1% to 559 in the second quarter of fiscal 2026 compared to 527 in the prior year. Flower Child comparable sales increased approximately 13% from the second quarter of fiscal 2025. The increase from the second quarter of fiscal 2025 includes an increase of 3% in menu pricing. Other FRC sales increased 15.4% to $104.0 million for the second quarter of fiscal 2026, compared to $90.2 million for the second quarter of fiscal 2025. Other FRC average sales per restaurant operating week increased 3.9% to $142,120 in the second quarter of fiscal 2026 from $136,841 in the second quarter of fiscal 2025. Total operating weeks at Other FRC increased 11.1% to 732 in the second quarter of fiscal 2026 compared to 659 in the prior year. Restaurants become eligible to enter the comparable sales base in their 19th month of operation. As of June 30, 2026, there were six The Cheesecake Factory Restaurants, nine North Italia restaurants and eight Flower Child locations not yet in their respective comparable sales bases. International licensed locations and restaurants that are no longer in operation, including those which we have relocated, are excluded from comparable sales calculations. Food and Beverage Costs Food and beverage costs consist of raw materials and ingredients used in the food and beverage products sold in our restaurants and to our third-party bakery customers. As a percentage of revenues cost of sales were 21.8% and 21.6% in the second quarters of fiscal 2026 and 2025, respectively, primarily due to higher meat, produce and seafood costs (0.7%), partially offset by lower dairy pricing (0.4%) Labor Expenses As a percentage of revenues, labor expenses, which include restaurant-level labor costs and bakery production labor, including associated fringe benefits, were 34.1% and 34.9% in the second quarters of fiscal 2026 and 2025, respectively. This decrease was primarily due to sales leverage and associated productivity gains (0.6%). Other Operating Costs and Expenses Other operating costs and expenses consist of all other restaurant-level operating costs, the major components of which are occupancy expenses (rent, common area expenses, insurance, licenses, taxes and utilities), dining room and to-go supplies, repairs and maintenance, janitorial expenses, credit card processing fees, marketing including delivery commissions, and incentive compensation, as well as bakery production overhead. As a percentage of revenues, other operating costs and expenses were 26.5% and 26.8% in the second quarter of fiscal 2026 and 2025, respectively. This variance was primarily driven by sales leverage (0.3%) and lower insurance costs (0.3%), partially offset by higher marketing costs (0.3%) G&A Expenses G&A expenses consist of the restaurant management recruiting and training program, restaurant field supervision, corporate support and bakery administrative organizations, as well as gift card commissions to third-party distributors. As a percentage of revenues, G&A expenses were 6.4% and 6.1% in the second quarter of fiscal 2026 and 2025, respectively. This variance was primarily driven by higher legal fees (0.1%) and higher stock-based compensation expense (0.1%). Impairment of Assets and Lease Termination Expenses During the second quarter of fiscal 2026, we recorded impairment of assets and lease termination expenses of $0.1 million primarily related to lease termination costs for one Grand Lux Cafe location. During the second quarter of fiscal 2025, we recorded impairment of assets and lease termination expenses of $0.2 million primarily related to lease termination costs for one The Cheesecake Factory location. Preopening Costs Preopening costs were $7.0 million and $9.0 million in the second quarter of fiscal 2026 and 2025, respectively. We opened two North Italia, one Flower Child and one Other FRC locations in the second quarter of fiscal 2026 compared to two The Cheesecake Factory, one North Italia, three Flower Child and two Other FRC locations in the second quarter of fiscal 2025. Restaurant-level 24 Table of Contents preopening costs include all costs to relocate and compensate restaurant management staff members during the preopening period, costs to recruit and train hourly restaurant staff members, and wages, travel and lodging costs for our opening training team and other support staff members. Preopening costs also include expenses for maintaining a roster of trained managers for pending opening and the associated temporary housing and other costs necessary to relocate managers in alignment with future restaurant opening and operating needs. Preopening costs can fluctuate significantly from period to period based on the number, mix and timing of restaurant openings and the specific preopening costs incurred for each restaurant. Income Tax Provision Our effective income tax rate was 11.1% and 11.9% for the second quarter of fiscal 2026 and 2025, respectively. The decrease was primarily due to non-deductible costs in fiscal 2025 associated with the repurchase of our 2026 Notes (1.2%), higher non-taxable gains in the current fiscal quarter as compared to the comparable prior period on our investments in variable life insurance contracts used to support our non-qualified deferred compensation plan (0.6%), a greater tax benefit in the current fiscal quarter from foreign intangibles income (0.4%) and a greater tax windfall in the current fiscal quarter related to equity compensation (0.3%). The decrease was also impacted by the effect of applying a lower estimated annual effective tax rate in the second quarter of fiscal 2026 compared to the first quarter of fiscal 2026, whereas the estimated annual effective tax rate increased from the first quarter to the second quarter of fiscal 2025, resulting in an unfavorable impact in the comparable prior year period (0.9%). These factors were partially offset by leverage on higher annual forecasted income before taxes, predominantly related to employment credits (1.8%) and a change to our reserve for uncertain tax positions (0.8%). Twenty-Six Weeks Ended June 30, 2026 Compared to Twenty-Six Weeks Ended July 1, 2025 Revenues increased 6.7% to $2,008.5 million for the first six months ended June 30, 2026 compared to $1,883.0 million for the comparable prior year period, primarily due to additional revenue related to new restaurant openings and an increase in comparable restaurant sales. The Cheesecake Factory Restaurants sales increased 4.7% to $1,419.9 million for the first six months of fiscal 2026, compared to $1,356.0 million for the first six months of fiscal 2025. Average sales per restaurant operating week increased 4.1% to $252,480 in the first six months of fiscal 2026 from $242,618 in the first six months of fiscal 2025. Total operating weeks at The Cheesecake Factory Restaurants increased 0.6% to 5,624 in the first six months of fiscal 2026 compared to 5,589 in the prior year. The Cheesecake Factory comparable sales increased by 3.7%, or $49.2 million, from the first six months of fiscal 2025. The increase from the first six months of fiscal 2025 was primarily driven by an increase in average check of 3.1% (based on an increase of 3.2% in menu pricing, partially offset by a 0.1% negative change from menu mix) and higher customer traffic of 0.6%. Sales through the off-premise channel comprised approximately 22% and 21% of our restaurant sales during the first six months of fiscal 2026 and fiscal 2025, respectively. North Italia sales increased 7.9% to $187.9 million for the first six months of fiscal 2026, compared to $174.2 million for the first six months of fiscal 2025. Average sales per restaurant operating week decreased 2.7% to $147,388 in the first six months of fiscal 2026 from $151,513 in the first six months of fiscal 2025. Total operating weeks at North Italia increased 10.9% to 1,275 in the first six months of fiscal 2026 compared to 1,150 in the prior year. North Italia comparable sales decreased approximately 3% from the first six months of fiscal 2025. The decrease from fiscal 2025 was primarily driven by decreased customer traffic of 5%, partially offset by an increase in average check of 2% (based on an increase of 3% in menu pricing, partially offset by a 1% negative impact from mix). Flower Child sales increased 19.2% to $109.2 million for the first six months of fiscal 2026, compared to $91.6 million for the first six months of fiscal 2025. Flower Child sales per restaurant operating week increased 8.9% to $97,894 in the first six months of fiscal 2026 from $89,920 in the first six months of fiscal 2025. Total operating weeks at Flower Child increased 9.5% to 1,116 in the first six months of fiscal 2026 compared to 1,019 in the prior year. Flower Child comparable sales increased approximately 11% from fiscal 2025. The increase from fiscal 2025 includes an increase of 3% in menu pricing. Other FRC sales increased 17.4% to $208.6 million for the first six months of fiscal 2026, compared to $177.6 million for the first six months of fiscal 2025. Other FRC average sales per restaurant operating week increased 3.9% to $143,632 in the first six months of fiscal 2026 from $138,212 in the first six months of fiscal 2025. Total operating weeks at Other FRC increased 13.0% to 1,452 in the first six months of fiscal 2026 compared to 1,285 in the prior year. Food and Beverage Costs 25 Table of Contents As a percentage of revenues cost of sales were 21.7% in the first six months of both fiscal 2026 and 2025, primarily due to higher meat, produce and seafood costs (0.7%), partially offset by lower dairy pricing (0.6%) Labor Expenses As a percentage of revenues, labor expenses were 34.8% and 35.3% in the first six months of fiscal 2026 and 2025, respectively. This decrease was primarily due to sales leverage and associated productivity gains (0.5%). G&A Expenses As a percentage of revenues, G&A expenses were 6.4% and 6.3% in the first six months of fiscal 2026 and 2025, respectively. This variance was primarily driven by higher legal fees (0.1%). Impairment of Assets and Lease Termination Expenses During the first six months of fiscal 2026, we recorded impairment of assets and lease termination expenses of $1.0 million primarily related to lease termination costs for two The Cheesecake Factory, two Grand Lux Cafe and one Other FRC location. During the first six months of fiscal 2025, we recorded impairment of assets and lease termination expenses of $0.6 million primarily related to lease termination costs for one The Cheesecake Factory and one Other FRC location. Preopening Costs Preopening costs were $12.4 million and $17.1 million in the first six months of fiscal 2026 and 2025, respectively. We opened three North Italia, two Flower Child and two Other FRC locations in the first six months of fiscal 2026 compared to two The Cheesecake Factory, four North Italia, six Flower Child and four Other FRC locations in the first half of fiscal 2025. Loss on Extinguishment of Debt We recorded a $15.9 million loss on early debt extinguishment in the first quarter of fiscal 2025. On February 28, 2025, we repurchased approximately $276.0 million aggregate principal amount of the 2026 Notes for aggregate consideration of $289.8 million, which included a premium of $13.8 million. The repurchase was accounted for as a debt extinguishment. In addition, we recorded $2.1 million of unamortized issuance costs. (See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion on our long-term debt.) Income Tax Provision Our effective income tax rate was 9.5% and 9.3% for the first six months of fiscal 2026 and 2025, respectively. The increase was primarily due to leverage on higher annual forecasted income before taxes, primarily due to employment credits (2.4%), a change to our reserve for uncertain tax positions (0.6%) and an increase in non-deductible executive compensation (0.5%). These factors were partially offset by non-deductible costs in fiscal 2025 associated with the repurchase of our 2026 Notes (1.2%), a greater tax windfall in the first six months of fiscal 2026 as compared to the comparable prior period related to equity compensation (1.2%) and higher non-taxable gains in the first six months of 2026 as compared to the comparable prior period on our investments in variable life insurance contracts used to support our non-qualified deferred compensation plan (0.6%). Non-GAAP Measures Adjusted net income, adjusted diluted net income per share and adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”) are supplemental measures of our performance that are not required by or presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly-titled measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We calculate these non-GAAP measures by eliminating from net income, diluted net income per common share and EBITDA, the impact of items we do not consider indicative of our ongoing operations. Additionally, EBITDA and adjusted EBITDA exclude the impact of certain non-cash transactions. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items. In the future, we may incur expenses or generate income similar to the adjusted items. 26 Table of Contents Following is a reconciliation from net income and diluted net income per share to the corresponding adjusted measures (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ Thirteen ​ Twenty-Six ​ Twenty-Six ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ ​ ​ ​ June 30, 2026 ​ ​ ​ July 1, 2025 ​ ​ ​ June 30, 2026 ​ ​ ​ July 1, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 68,394 ​ $ 54,812 ​ $ 117,942 ​ $ 87,753 Impairment of assets and lease termination expenses ​ ​ 124 ​ ​ 222 ​ ​ 953 ​ ​ 600 Acquisition-related contingent consideration, compensation and amortization expenses ​ ​ 1,235 ​ ​ 1,012 ​ ​ 2,437 ​ ​ 2,010 Loss on extinguishment of debt (1) ​ ​ — ​ ​ — ​ ​ — ​ ​ 15,891 Uncertain tax positions (2) ​ ​ 310 ​ ​ — ​ ​ 310 ​ ​ — Tax effect of adjustments (3) ​ ​ (353) ​ ​ (321) ​ (882) ​ (4,811) Adjusted net income ​ $ 69,710 ​ $ 55,725 ​ $ 120,760 ​ $ 101,443 Diluted net income per share ​ $ 1.41 ​ $ 1.14 ​ $ 2.43 ​ $ 1.80 Impairment of assets and lease termination expenses ​ ​ 0.00 ​ ​ 0.00 ​ ​ 0.02 ​ ​ 0.01 Acquisition-related contingent consideration, compensation and amortization expenses ​ ​ 0.03 ​ ​ 0.02 ​ ​ 0.05 ​ ​ 0.04 Loss on extinguishment of debt (1) ​ — ​ ​ — ​ ​ — ​ ​ 0.33 Uncertain tax positions (2) ​ ​ 0.01 ​ ​ — ​ ​ 0.01 ​ ​ — Tax effect of adjustments (3) ​ ​ (0.01) ​ (0.01) ​ (0.02) ​ (0.10) Adjusted diluted net income per share (4) ​ $ 1.44 ​ $ 1.16 ​ $ 2.49 ​ $ 2.08 (1) See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion on our debt. (2) Represents a change to a reserve for uncertain tax positions taken in prior years related to tenant improvement allowances and Section 199 deductions. Uncertain tax positions taken in a tax return are recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by tax authorities based on technical merits, taking into account available administrative remedies and litigation. (3) Based on the federal statutory rate and an estimated blended state tax rate, the tax effect on all adjustments assumes a 26% tax rate. (4) Adjusted net income per share may not add due to rounding. Following is a reconciliation from net income to EBITDA and adjusted EBITDA measures (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen ​ ​ ​ Thirteen ​ ​ ​ Twenty-Six ​ ​ ​ Twenty-Six ​ ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ Weeks Ended ​ ​ June 30, 2026 ​ July 1, 2025 ​ June 30, 2026 ​ July 1, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 68,394 ​ $ 54,812 ​ $ 117,942 ​ $ 87,753 Depreciation and amortization expenses ​ 29,103 ​ ​ 26,860 ​ ​ 57,087 ​ 52,942 Interest expense, net ​ 2,057 ​ ​ 2,873 ​ ​ 4,052 ​ 5,201 Income tax provision ​ 8,509 ​ ​ 7,417 ​ ​ 12,312 ​ 8,959 EBITDA ​ $ 108,063 ​ $ 91,962 ​ $ 191,393 ​ $ 154,855 Impairment of assets and lease termination expenses ​ 124 ​ ​ 222 ​ ​ 953 ​ 600 Acquisition-related contingent consideration, compensation and amortization expenses ​ 1,235 ​ ​ 1,012 ​ ​ 2,437 ​ 2,010 Loss on extinguishment of debt ​ — ​ ​ — ​ ​ — ​ 15,891 Stock-based compensation (1) ​ 8,761 ​ ​ 7,189 ​ ​ 15,775 ​ 14,770 Adjusted EBITDA ​ $ 118,183 ​ $ 100,385 ​ $ 210,558 ​ $ 188,126 (1) See Note 9 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion of stock-based compensation. 27 Table of Contents Liquidity and Capital Resources Our corporate financial objectives are to maintain a sufficiently strong and conservative balance sheet to support our operating initiatives and unit growth while maintaining financial flexibility to provide the financial resources necessary to protect and enhance the competitiveness of our restaurant and bakery brands and to provide a prudent level of financial capacity to manage the risks and uncertainties of conducting our business operations under various economic and industry cycles. Typically, cash flows generated from operating activities are our principal source of liquidity, which we use to finance our restaurant expansion plans, ongoing maintenance of our restaurants and bakery facilities and investment in our corporate and information technology infrastructures. Similar to many restaurant and retail chain store operations, we utilize operating lease arrangements for all of our restaurant locations. Accordingly, our lease arrangements reduce, to some extent, our capacity to utilize funded indebtedness in our capital structure. We are not limited to the use of lease arrangements as our only method of opening new restaurants. However, we believe our operating lease arrangements continue to provide appropriate leverage for our capital structure in a financially efficient manner. During the first six months of fiscal 2026, our cash and cash equivalents decreased by $20.5 million to $195.2 million. The following table presents, for the periods indicated, a summary of our key cash flows from operating, investing and financing activities (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Twenty-Six ​ Twenty-Six ​ ​ Weeks Ended ​ Weeks Ended ​ ​ ​ ​ June 30, 2026 ​ ​ ​ July 1, 2025 Cash provided by operating activities ​ $ 188.9 ​ $ 135.8 Additions to property and equipment ​ ​ (86.3) ​ ​ (84.4) Repayment on credit facility ​ ​ — ​ ​ (110.0) Proceeds from long-term convertible debt ​ ​ — ​ ​ 575.0 Repayment on long-term convertible debt, including premium on extinguishment ​ ​ (69.0) ​ ​ (289.8) Issuance cost associated with long-term debt ​ ​ (1.4) ​ ​ (16.5) Proceeds from exercise of options ​ ​ 7.3 ​ ​ 23.0 Common stock dividends paid ​ ​ (29.9) ​ ​ (26.8) Treasury stock purchases, inclusive of excise tax ​ ​ (29.4) ​ ​ (141.5) ​ Cash Provided by Operating Activities Cash flows from operations increased by $53.1 million from the first six months of fiscal 2025 primarily due to net income after excluding the non-cash activity, lower accounts and other receivable balances, timing of operating lease commencements, higher payables and inventory movement, partially offset by increased payment of deferred consideration and compensation related to the FRC acquisition in excess of acquisition-date fair value and higher income taxes paid. Typically, our requirement for working capital has not been significant since our restaurant customers pay for their food and beverage purchases in cash or cash equivalents at the time of sale, and we are able to sell many of our restaurant inventory items before payment is due to the suppliers of such items. Property and Equipment Capital expenditures for new restaurants, including locations under development, were $46.7 million and $44.0 million for the first six months of fiscal 2026 and 2025, respectively. Capital expenditures also included $35.1 million and $33.6 million for our existing restaurants and $4.5 million and $6.8 million for bakery and corporate capacity and infrastructure investments, in the first six months of fiscal 2026 and 2025, respectively. We opened seven restaurants in the first six months of fiscal 2026 comprised of three North Italia, two Flower Child and two Other FRC locations compared to 16 restaurants in the first six months of fiscal 2025 comprised of two The Cheesecake Factory, four North Italia, six Flower Child and four Other FRC locations. We expect to open as many as 26 new restaurants in fiscal 2026 across our portfolio of concepts. We anticipate approximately $210 million in capital expenditures to support this level of unit development, as well as required maintenance on our restaurants. This estimate includes new restaurant construction expenses, some of which may be classified as operating lease assets instead of additions to property and equipment in the statement of cash flows. 28 Table of Contents Revolving Credit Facility On March 26, 2026, we entered into a Fifth Amended and Restated Loan Agreement (the “Loan Agreement” and the revolving credit facility provided thereunder, the “Revolver Facility”). The Revolver Facility, which matures on March 26, 2031, provides us with revolving loan commitments that total $400 million, of which $85 million may be used for issuances of letters of credit and $10 million for swingline loans. The Revolver Facility contains (i) a commitment increase feature that, subject to certain conditions precedent, could provide for an additional $200 million in revolving loan commitments and (ii) a feature that permits the letter of credit issuers thereunder to increase their letter of credit sublimits by $25 million in the aggregate. Our obligations under the Revolver Facility are unsecured. Certain of our material subsidiaries have guaranteed our obligations under the Revolver Facility. As of June 30, 2026, we had net availability for borrowings of $366.5 million, based on no outstanding debt balance and $33.5 million in standby letters of credit under the Revolver Facility. Under the Revolver Facility, we are subject to financial covenants, as well as to customary events of default that, if triggered, could result in acceleration of the maturity of the Revolver Facility. Subject to certain exceptions, the Loan Agreement contains a number of covenants and restrictions that, among other things, restrict the Company’s and its subsidiaries’ ability to incur additional debt, pay dividends and make distributions, make certain investments and acquisitions, create liens, enter into agreements with affiliates, sell material assets, and merge or consolidate. (See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion of our debt.) 2030 Convertible Senior Notes On February 28, 2025, we issued $575.0 million in aggregate principal amount of convertible senior notes (“2030 Notes”), which will mature on March 15, 2030, unless earlier repurchased, redeemed or converted. The net proceeds from the sale of the 2030 Notes were approximately $558.5 million after deducting issuance costs of $16.5 million. As of June 30, 2026, the 2030 Notes had a balance of $562.9 million, net of unamortized issuance costs of $12.1 million. As of June 30, 2026, the conversion rate for the 2030 Notes was 14.1514 shares of common stock per $1,000 principal amount of the 2030 Notes, which represents a conversion price of approximately $70.66 per share of common stock. In connection with the cash dividend that was declared by our Board on July 23, 2026, we will, on August 11, 2026, adjust the conversion rate (which is expected to increase) and the conversion price (which is expected to decrease) of the 2030 Notes in accordance with the terms. (See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion on our debt.) 2026 Convertible Senior Notes On June 15, 2021, we issued $345.0 million in aggregate principal amount of convertible senior notes (“2026 Notes”). The net proceeds from the sale of the 2026 Notes were approximately $334.9 million after deducting issuance costs of $10.1 million. On February 28, 2025, we used part of the net proceeds from the issuance of the 2030 Notes to repurchase approximately $276.0 million aggregate principal amount of the 2026 Notes in a privately-negotiated transaction for aggregate consideration of $289.8 million, which included a premium of $13.8 million. During the second quarter of fiscal 2026, noteholders converted $0.1 million aggregate principal amount of the 2026 Notes which we settled in cash, including payment of accrued interest. The 2026 Notes matured on June 15, 2026 and we repaid in cash the remaining outstanding principal balance of $69.0 million, together with all accrued interest. (See Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion on our debt.) Common Stock Dividends Common stock dividends of $29.9 million and $26.8 million were paid in the six months of fiscal 2026 and 2025, respectively. As further discussed in Note 12 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report, in July 2026, our Board declared a quarterly dividend to be paid in August 2026. Future decisions to pay or to increase or decrease dividends are at the discretion of the Board and will be dependent on our operating performance, financial condition, capital expenditure requirements, limitations on cash distributions pursuant to the terms and conditions of the Loan Agreement and applicable law, and other such factors that the Board considers relevant. Share Repurchases On February 12, 2026, our Board increased the authorization to repurchase our common stock by 5.0 million shares to 66.0 million shares. Under this authorization, we have cumulatively repurchased 60.4 million shares at a total cost of $2,012.1 million, 29 Table of Contents excluding excise tax, through June 30, 2026. We repurchased 0.5 million shares at a cost of $28.5 million, excluding excise tax, during the first six months of fiscal 2026. We repurchased 2.6 million shares at a cost of $141.5 million, excluding excise tax, during the first six months of fiscal 2025. Our objectives with regard to share repurchases have been to offset the dilution to our shares outstanding that results from equity compensation grants and to supplement our earnings per share growth. Our share repurchase program does not have an expiration date, does not require us to purchase a specific number of shares and may be modified, suspended or terminated at any time. Future decisions to repurchase shares are at the discretion of the Board and are based on several factors, including current and forecasted operating cash flows, capital needs associated with new restaurant development and maintenance of existing locations, dividend payments, debt levels and cost of borrowing, obligations associated with the FRC acquisition, our share price and current market conditions. The timing and number of shares repurchased are also subject to legal constraints and financial covenants under our Loan Agreement that limit share repurchases based on a defined ratio. (See Note 8 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for further discussion of our repurchase authorization.) Cash Flow Outlook We believe that our cash and cash equivalents, combined with expected cash flows provided by operations and available borrowings under the Revolver Facility, will provide us with adequate liquidity for the next 12 months and the foreseeable future. As of June 30, 2026, we had no financing transactions, arrangements or other relationships with any unconsolidated entities or related parties. Additionally, we had no financing arrangements involving synthetic leases or trading activities involving commodity contracts. Critical Accounting Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from these estimates. Our critical accounting estimates have not changed materially from those previously reported in our Annual Report on Form 10-K for the fiscal year ended December 30, 2025. Recent Accounting Pronouncements See Note 1 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this report for a summary of new accounting standards. ​