Canonical URL: https://giftcard.news/research-trends/cheesecake-factory-q3-2026-gift-card-activations-liability/ --- description: The restaurant group disclosed $19.85 million in activations and $176.39 million in outstanding gift card liabilities in its November 2 filing. title: Cheesecake Factory gift card activations fall 5.7% in Q3 2026 image: https://giftcard.news/images/social/v1/cheesecake-factory-s-gift-card-activations-fall-5-7-third-quarter-3026a5d3480d0e8b32f66b4cdb0549e6.jpg --- 1. [Home](https://giftcard.news/) 2. [Research & Trends](https://giftcard.news/research-trends/) # Cheesecake Factory’s gift card activations fall 5.7% in the third quarter The restaurant group disclosed $19.85 million in activations and $176.39 million in outstanding gift card liabilities in its November 2 filing. By [Oliver Reed](https://giftcard.news/author/oliver-reed/) November 2, 2026 2 min read [ Google News ](https://google.com/preferences/source?q=giftcard.news&utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news) Share [ ](https://x.com/intent/post?url=https%3A%2F%2Fgiftcard.news%2Fresearch-trends%2Fcheesecake-factory-q3-2026-gift-card-activations-liability%2F%3Futm%5Fsource%3Dx%26utm%5Fmedium%3Dsocial&text=Cheesecake+Factory%E2%80%99s+gift+card+activations+fall+5.7%25+in+the+third+quarter&utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news "X") [ ](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fgiftcard.news%2Fresearch-trends%2Fcheesecake-factory-q3-2026-gift-card-activations-liability%2F%3Futm%5Fsource%3Dlinkedin%26utm%5Fmedium%3Dsocial&utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news "LinkedIn") [ ](https://wa.me/?text=Cheesecake+Factory%E2%80%99s+gift+card+activations+fall+5.7%25+in+the+third+quarter+https%3A%2F%2Fgiftcard.news%2Fresearch-trends%2Fcheesecake-factory-q3-2026-gift-card-activations-liability%2F%3Futm%5Fsource%3Dwhatsapp%26utm%5Fmedium%3Dsocial&utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news "WhatsApp") ![The Cheesecake Factory restaurant exterior in Gainesville, Florida](https://giftcard.news/images/variants/v1/cheesecake-factory-s-gift-card-activations-fall-5-7-third-quarter-restaurant-w1280.webp) A Cheesecake Factory restaurant in Gainesville, Florida, photographed in November 2024\. Photo: Michael Rivera, CC0. Photo: Michael Rivera / Wikimedia Commons, CC0 [The Cheesecake Factory](https://giftcard.news/company/the-cheesecake-factory/) activated $19.85 million of gift cards in its fiscal third quarter, down 5.7% from a year earlier. The restaurant group reported the figure in its November 2 Form 10-Q. Its October 27 earnings release gave investors the overall results but did not break out gift card activations or the outstanding liability. [\[S1\]](#article-source-1) [\[S2\]](#article-source-2) [\[S3\]](#article-source-3) ## Activations fell while cards continued to be redeemed The company recorded $26.91 million of redemptions and breakage combined during the 13 weeks ended September 29\. Together they exceeded new activations by $7.07 million, taking the gift card liability from $183.45 million at the start of the quarter to $176.39 million at the end. The comparable 2025 quarter ended at $189.35 million. [\[S1\]](#article-source-1) The data behind the story ### Cheesecake Factory gift card activity in the third quarter The filing reports new activations and a separate combined reduction for redemptions and breakage. Q3 2025Q3 2026 USD millions Tap or hover for details. Select a series above to show or hide it. Source The Cheesecake Factory, Form 10-Q, Note 4 Redemptions and breakage are shown as the magnitude of a decrease in the liability. The filing does not split the two in this table. Show data tableHide data table Scroll left or right to see all columns __Cheesecake Factory gift card activity in the third quarter (USD millions)__ | Category | Q3 2025 | Q3 2026 | | ------------------------ | ------------------- | ------------------- | | Activations | 21.042 USD millions | 19.845 USD millions | | Redemptions and breakage | 27.983 USD millions | 26.910 USD millions | Activations add to the amount the company owes in meals or other eligible purchases when customers use their cards. The company recognizes some unredeemed balances as [breakage based on redemption patterns](https://giftcard.news/research-trends/gift-card-breakage-the-money-left-behind/). Its consumer terms say purchased gift cards do not expire. [\[S1\]](#article-source-1) [\[S4\]](#article-source-4) [\[S5\]](#article-source-5) ## Distribution costs sit separately from customer balances The filing also tracks a separate asset for costs the company defers when selling gift cards, such as eligible commissions and credit card fees. The company deferred $2.35 million in the quarter and amortized $3.59 million of previously deferred costs, leaving $14.67 million in gift card contract assets. The year-earlier ending balance was $15.10 million. [\[S1\]](#article-source-1) [\[S4\]](#article-source-4) The data behind the story ### Cheesecake Factory deferred gift card cost activity in the third quarter Deferred costs added and amortized in each 13-week period. Q3 2025Q3 2026 USD millions Tap or hover for details. Select a series above to show or hide it. Source The Cheesecake Factory, Form 10-Q, Note 4 Amortization is shown as a positive magnitude. These are costs of selling cards, separate from the card balances owed to customers. Show data tableHide data table Scroll left or right to see all columns __Cheesecake Factory deferred gift card cost activity in the third quarter (USD millions)__ | Category | Q3 2025 | Q3 2026 | | ------------------ | ------------------ | ------------------ | | New cost deferrals | 2.472 USD millions | 2.347 USD millions | | Amortization | 3.659 USD millions | 3.594 USD millions | The company says it recognizes those costs over the same pattern as related gift card revenue. It also identifies third-party distributor commissions as a component of corporate expenses. The filing provides no channel-by-channel split of activations, redemptions or the deferred costs. [\[S1\]](#article-source-1) [\[S4\]](#article-source-4) ## In this article ### Companies * [The Cheesecake Factory](https://giftcard.news/company/the-cheesecake-factory/) ### Sources and documents * [\[S1\] Third-quarter Form 10-Q, Note 4](https://www.sec.gov/Archives/edgar/data/887596/000110465926121460/cake-20260929x10q.htm?utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news) — The Cheesecake Factory Incorporated / SEC * [\[S2\] EDGAR filing date and accession](https://www.sec.gov/Archives/edgar/data/887596/000110465926121460/0001104659-26-121460-index.htm?utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news) — U.S. Securities and Exchange Commission * [\[S3\] October 27 earnings release, before the gift card tables](https://www.sec.gov/Archives/edgar/data/887596/000110465926119176/tm2628239d1%5Fex99-1.htm?utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news) — The Cheesecake Factory Incorporated / SEC * [\[S4\] 2025 annual report, revenue recognition and gift cards](https://s29.q4cdn.com/187116270/files/doc%5Fdownloads/2026/The-Cheesecake-Factory-2025-Annual-Report.pdf?utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news) — The Cheesecake Factory Incorporated * [\[S5\] Consumer gift card terms and expiry policy](https://www.thecheesecakefactory.com/gift-cards?utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news) — The Cheesecake Factory Share [ ](https://x.com/intent/post?url=https%3A%2F%2Fgiftcard.news%2Fresearch-trends%2Fcheesecake-factory-q3-2026-gift-card-activations-liability%2F%3Futm%5Fsource%3Dx%26utm%5Fmedium%3Dsocial&text=Cheesecake+Factory%E2%80%99s+gift+card+activations+fall+5.7%25+in+the+third+quarter&utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news "X") [ ](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fgiftcard.news%2Fresearch-trends%2Fcheesecake-factory-q3-2026-gift-card-activations-liability%2F%3Futm%5Fsource%3Dlinkedin%26utm%5Fmedium%3Dsocial&utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news "LinkedIn") [ ](https://wa.me/?text=Cheesecake+Factory%E2%80%99s+gift+card+activations+fall+5.7%25+in+the+third+quarter+https%3A%2F%2Fgiftcard.news%2Fresearch-trends%2Fcheesecake-factory-q3-2026-gift-card-activations-liability%2F%3Futm%5Fsource%3Dwhatsapp%26utm%5Fmedium%3Dsocial&utm%5Fsource=giftcard.news&utm%5Fcampaign=giftcard.news "WhatsApp") ![Portrait of Oliver Reed](https://giftcard.news/images/variants/v1/oliver-reed-editorial-portrait-w320.webp) About the author ## [Oliver Reed](https://giftcard.news/author/oliver-reed/) Journalist — Industry Deals & Research Oliver Reed covers industry acquisitions, investment and market research for Gift Card News. From reading to building ## Your next move in gift cards. Tell us what you’re building. We’ll help you explore suitable providers. 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