Cheesecake Factory's stock plummeted 6.56% in pre-market trading following the release of its fourth-quarter fiscal 2025 results.

The restaurant chain reported that comparable sales at its namesake Cheesecake Factory locations declined 2.2% during the quarter, a key indicator of organic growth that signals weakening consumer demand. Additionally, net income fell to $28.8 million from $41.2 million a year earlier, with adjusted earnings per share declining to $1.00 from $1.04.

The company also recorded a pre-tax net expense of $24.6 million related to asset impairments, lease termination costs, and acquisition-related items. While total revenue of $961.6 million surpassed analyst estimates, the negative comparable sales and lower profitability overshadowed the top-line beat, leading to investor concerns.