Cheesecake Factory’s Stock Surge Boosts Founder’s Fortune Above $300 Million
The Cheesecake Factory’s shares peaked at an all-time high on Wednesday after a hotter-than-expected earnings report, adding fuel to a stock that has nearly doubled in value this year, boosting founder and CEO David Overton’s fortune above $300 million.
Shares of Cheesecake Factory, traded on Nasdaq under the ticker “CAKE,” surged 12% to just below $101 as of Wednesday afternoon.
The restaurant chain reported on Tuesday quarterly revenue above $1 billion for the first time, while net income jumped to $68.4 million, surpassing FactSet estimates of $999 million and $57.5 million, respectively.
Overton, who said his firm’s revenue, margins and earnings “all exceeded our expectations,” also reaffirmed plans for Cheesecake Factory to expand to 26 new locations in fiscal 2026.
His stake in Cheesecake Factory, totaling just under 3.2 million shares held by the David M. Overton Family Trust, is now valued at $320 million as of Wednesday’s share price—and that’s not including just over $40 million before taxes from exercising options and selling shares over the years.
Nearly 91%. That’s how much Cheesecake Factory’s stock has grown this year, almost doubling in value after opening the year at just over $52. Its market value has also swelled to nearly $5 billion, a record and a more than 500% turnaround since falling below $1 billion in 2020.
The Cheesecake Factory, which began as a bakery in 1972 before Overton opened the first restaurant in 1978, has expanded to 375 locations across the U.S. and Canada. Unlike other restaurant chains that have relied on higher prices to counteract declining customer traffic, Cheesecake Factory has reported steady traffic growth. Overton noted in the latest earnings report that its traffic was “meaningfully outperforming the broader casual dining industry.” The firm has also expanded to other brands following its acquisition of Fox Restaurant Concepts, including Flower Child and North Italia, among others.