The Cheesecake Factory, Inc. (CAKE) released its third quarter earnings report on Tuesday, October 28. The restaurant chain reported quarterly revenue that missed expectations, causing shares to fall over 1% following the release of the report.

The Cheesecake Factory posted quarterly revenue of $907.2 million. This was up from $865.5 million reported at the same time last year and below analysts’ expectations of $911.9 million.

“We delivered another quarter of solid results, with revenue within our guidance range and earnings and profitability finishing above the high end of our expectations,” said The Cheesecake Factory CEO, David Overton. “While the restaurant industry is navigating a softer environment, we remain confident in our ability to manage through it while continuing to execute our long-term strategy.”

For the third quarter, The Cheesecake Factory reported net income of $31.9 million or $0.66 per adjusted share. This is up from $30.0 million or $0.61 per adjusted share reported at this time last year.

The Cheesecake Factory’s comparable restaurant sales in the third quarter increased 0.3% year-over-year. The company opened two Cheesecake Factory locations and two Fox Restaurant Concepts (FRC) restaurants during the quarter. The company still anticipates opening up to 25 new restaurants in fiscal 2025. Currently, the company has a total of 365 restaurants. The company’s Board of Directors declared a quarterly dividend of $0.27 per share payable on November 25, 2025, to stockholders of record on November 11, 2025.

The Cheesecake Factory, Inc. (CAKE) shares closed at $49.80, down 12% for the week.

Starbucks Reports Earnings

Starbucks Corporation (SBUX) reported its fourth quarter and full year financial results on Wednesday, October 29. Despite the coffeehouse chain reporting revenue that surpassed expectations, its shares fell more than 1%.

The company reported fourth quarter revenue of $9.57 billion, up 5.5% from $9.07 billion reported in the same quarter last year. This exceeded analysts’ expected revenue of $9.35 billion. For the full year, revenue came in at $37.18 billion, up 2.8% from $36.18 billion the year prior.

“We are a year into our ‘Back to Starbucks’ strategy, and it is clear that our turnaround is taking hold,” said Starbucks CEO, Brian Niccol. “Our return to global comp growth and the momentum we are building give me confidence we are on the right path to deliver the very best of Starbucks for our customers, partners and shareholders.”

Starbucks’ net income for the quarter was $133.1 million or $0.12 per adjusted share. This was down from $909.3 million or $0.80 per adjusted share in the same quarter last year. For the full year, the company’s net income was $1.86 billion, down from $3.76 billion reported last year.

Starbucks experienced 107 net store closures in the fourth quarter and ended the period with 40,990 stores in total. Comparable store sales in North America remained flat while International comparable sales increased 3% from the prior year. The company declared a quarterly cash dividend of $0.62 per share. The cash dividend will be due to the stockholders of record on November 14, 2025, with a payment date of November 28, 2025.

Starbucks Corporation (SBUX) shares ended the week at $80.87, down 6.2% for the week.

Alphabet Releases Quarterly Results

Alphabet Inc. (GOOGL) released its third quarter earnings report on Wednesday, October 29. The tech titan reported better-than-expected revenue, causing shares to rise 5% following the earnings release.

The company reported revenue of $102.35 billion, up 16% from $88.27 billion during the same quarter last year. Revenue surpassed analysts’ expected quarterly revenue of $99.89 billion.

“Alphabet had a terrific quarter, with double-digit growth across every major part of our business,” said Alphabet CEO, Sundar Pichai. “We delivered our first-ever $100 billion quarter. Our full stack approach to AI is delivering strong momentum and we are shipping at speed, including the global rollout of AI Overviews and AI Mode in Search in record time. We are investing to meet customer demand and capitalize on the growing opportunities across the company.”

Alphabet posted net income of $34.98 billion or $2.87 per adjusted share for the third quarter. This was up from $26.30 billion or $2.12 per adjusted share during the same time last year.

Alphabet, the parent company of Google, reported Google advertising revenue of $74.18 billion for the quarter, up from $65.85 billion during the same quarter last year. YouTube advertising revenue increased to $10.26 billion compared to $8.92 billion at the same time last year. Google Cloud revenue came in at $15.16 billion, up from $11.35 billion one year ago. Operating income for the quarter was $31.23 billion, up from $28.52 billion in the year prior.

Alphabet Inc. (GOOGL) shares ended the week at $281.82, up 6.2% for the week.

The Dow started the week at 47,413 and closed at 47,563 on 10/31. The S&P 500 started the week at 6,845 and closed at 6,840. The NASDAQ started the week at 23,537 and closed at 23,725.

U.S. Treasury yields stayed steady early in the week with a better-than-expected consumer confidence report. Yields increased toward the end of the week after the Federal Reserve cut interest rates for the second time this year.

On Tuesday, the Conference Board reported that its Consumer Confidence Index decreased 1.0 point to 94.6 in October. This marked a decline from September’s revised reading of 95.6 and came in better than economists’ forecast of 93.2. The decline reflected concerns over inflation, tariffs and employment uncertainty, which continue to weigh on consumer sentiment.

“Consumers’ view of current business conditions inched upward, while their appraisal of current job availability improved for the first time since December 2024,” said senior economist of global indicators at The Conference Board, Stephanie Guichard. “On the other hand, all three components of the Expectations Index weakened somewhat. Consumers were a bit more pessimistic about future job availability and future business conditions while optimism about future income retreated slightly.”

The benchmark 10-year Treasury note yield opened the week of October 27 at 4.02% and traded as high as 4.12% on Thursday. The 30-year Treasury bond opened the week at 4.60% and traded as high as 4.67% on Thursday.

On Wednesday, the Federal Open Market Committee (FOMC) announced a 10-2 vote in favor of lowering interest rates by one quarter of a percentage point to a range of 3.75% to 4%. This marks the lowest interest rate levels since 2022. The Fed continues to manage monetary policy without essential government published economic data due to the government shutdown.

“In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December,” said Federal Reserve Chair, Jerome Powell. “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it.”

The 10-year Treasury note yield finished the week of 10/27 at 4.08%, while the 30-year Treasury note yield finished the week at 4.66%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, October 30. The survey showed mortgage rates dropping for the fourth week in a row.

This week, the 30-year fixed rate mortgage averaged 6.17%, down from last week’s average of 6.19%. Last year at this time, the 30-year fixed rate mortgage averaged 6.72%.

The 15-year fixed rate mortgage averaged 5.41% this week, down from last week’s 5.44%. During the same week last year, the 15-year fixed rate mortgage averaged 5.99%.

“Mortgage rates decreased for the fourth consecutive week,” said Freddie Mac’s Chief Economist, Sam Khater. “The last few months have brought lower rates and homebuyers are increasingly entering the market.”

Based on published national averages, the savings rate was 0.40% as of 10/20. The one-year CD averaged 1.68%.

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