Cherry on top: Cheesecake Factory dishes out an earnings win from the center of the Obama-Trump controversy
· Business Insider
Timothy Hiatt/Getty Images/The Cheesecake Factory
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- The Cheesecake Factory served up some sweet sales numbers in an earnings call Tuesday.
- The chain had a lot on its plate: It's been at the center of a presidential feud for days.
- The Cheesecake Factory has yet to comment on the Obama-Trump food fight.
The Cheesecake Factory's moment in the spotlight just got a little sweeter.
The California-based restaurant chain reported solid third-quarter earnings on Tuesday, a few days after getting dragged into a political feud that's become bigger than its famously large portion sizes.
It all started after former president Barack Obama stirred the pot on Saturday when he compared President Donald Trump's White House renovations to Saddam Hussein's take on a Cheesecake Factory, prompting Republicans to seize on the comments and defend the chain.
Amid the firestorm, The Cheesecake Factory reported quarterly revenue of $1.03 billion, up nearly 14% year-over-year, while comparable sales at its restaurants rose over 15% year-over-year.
CEO David Overton credited the chain's new menu items, rewards program, and social media engagement for the growth in sales.
"The Cheesecake Factory has long enjoyed tremendous brand affinity across generations, and its ability to attract younger guests reinforces the enduring appeal and relevance of our namesake concept," Overton said.
Executives did not address the feud during the earnings call Tuesday, and the company has not publicly commented on it.
The company's fiscal third quarter ended September 29, before Obama's comment, so any potential boost the chain gets from the current headlines may be icing on the cake.
Thanks, Obama
The food fight started after Obama invoked The Cheesecake Factory while mocking Trump at a campaign rally in Cleveland on Saturday.
"He's got the White House looking like Saddam Hussein opened a Cheesecake Factory. There's gold everywhere," Obama told the crowd, referring to the gold accents and furnishings Trump has added to the Oval Office. "He's clearly not focused on lowering prices for you."
The White House seized on the comment, while Republican commentators said it showed Obama was an elitist who's out of touch with most Americans.
Treasury Secretary Scott Bessent visited a Cheesecake Factory for lunch on Monday and said he got his usual: the French dip cheeseburger.
"I would tell the Martha's Vineyard set to give it a try," Bessent told Fox Business. He also took a jab at Obama's taste in design, comparing his newly opened presidential library to "Darth Vader's tomb."
Trump, of course, got a piece of the pie as well.
"The White House is now in the best shape it's been since 1792 when it was built," Trump told reporters on Monday, sprinkling in a direct message for Obama: "For you to say it's The Cheesecake Factory, that just shows why you were a lousy president."
Only time will tell if Obama and Trump go back in for seconds.
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