The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how The Cheesecake Factory (NASDAQ: CAKE) and the rest of the sit-down dining stocks fared in Q4.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 11 sit-down dining stocks we track reported a satisfactory Q4. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.8% since the latest earnings results.

The Cheesecake Factory (NASDAQ: CAKE)

Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ: CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.

The Cheesecake Factory reported revenues of $961.6 million, up 4.4% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ revenue estimates but a slight miss of analysts’ same-store sales estimates.

“We delivered solid fourth quarter and full-year results in 2025, generating record annual revenue supported by 25 new restaurant openings for the year,” said David Overton, Chairman and Chief Executive Officer.

Unsurprisingly, the stock is down 11.9% since reporting and currently trades at $56.45.

Is now the time to buy The Cheesecake Factory? Access our full analysis of the earnings results here, it’s free.

Best Q4: Red Robin (NASDAQ: RRGB)

Known for its bottomless steak fries, Red Robin (NASDAQ: RRGB) is a chain of casual restaurants specializing in burgers and general American fare.

Red Robin reported revenues of $269 million, down 5.7% year on year, outperforming analysts’ expectations by 1.8%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance beating analysts’ expectations.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.9% since reporting. It currently trades at $3.45.

Is now the time to buy Red Robin? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Texas Roadhouse (NASDAQ: TXRH)

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Texas Roadhouse reported revenues of $1.48 billion, up 3.1% year on year, falling short of analysts’ expectations by 0.8%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 6.1% since the results and currently trades at $171.44.

Read our full analysis of Texas Roadhouse’s results here.

Brinker International (NYSE: EAT)

Founded by Norman Brinker in Dallas, Brinker International (NYSE: EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.45 billion, up 6.9% year on year. This print beat analysts’ expectations by 2.9%. It was a very strong quarter as it also recorded an impressive beat of analysts’ same-store sales estimates and a solid beat of analysts’ revenue estimates.

Brinker International pulled off the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is down 9.4% since reporting and currently trades at $142.51.

Read our full, actionable report on Brinker International here, it’s free.

Kura Sushi (NASDAQ: KRUS)

Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ: KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.

Kura Sushi reported revenues of $73.46 million, up 14% year on year. This number met analysts’ expectations. Taking a step back, it was a slower quarter as it logged a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

Kura Sushi delivered the highest full-year guidance raise among its peers. The stock is up 2.8% since reporting and currently trades at $57.19.

Read our full, actionable report on Kura Sushi here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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