In a bid to boost business, several U.S.-based restaurateurs
are at present focusing on unit expansion. Calabasas Hills,
Calif.-based upscale casual dining restaurateur,
The Cheesecake Factory Inc.
) is also geared to expand its presence in the lucrative domestic
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Recently, the restaurateur opened an outlet in Bethesda, Md., at
the Westfield Montgomery mall. We note that the company relocated
its former North Bethesda, Md. unit to the current site. Spread
over an area of 10,680 square feet, the new outlet can
accommodate 320 guests. This relocated restaurant has a varied
menu comprising 200 items and more than 50 low calorie items.
Moreover, with new menu choices for Montgomery mall shoppers, the
outlet has more than 50 signature cheesecakes and desserts.
Meanwhile, like the extensive menu, the unit has a modern décor
with French limestone flooring and wall paintings.
Maryland is one of the most densely populated states of the
United States. We believe that the restaurant's strategic
location, along with its attractive offerings and contemporary
ambience, will drive traffic, going ahead.
Cheesecake Factory restaurants are primarily located in or near
malls and shopping centers. We believe that such a location is
strategically perfect for attracting high-end customers.
Recently, the company unveiled a restaurant in Westfield North
County mall in Escondido, Calif. With the 7,500 square-foot
restaurant, the company stepped into San Diego County.
Cheesecake Factory is well positioned to sustain its same-stores
sales growth driven by improved guest traffic. Pricing actions,
introduction of a new menu and the resurgence of high-end
consumers are also encouraging. However, food cost inflation
remains a matter of concern.
The company presently has a short-term Zacks Rank #3 (Hold). Some
better-ranked stocks in the industry include
Buffalo Wild Wings Inc.
Burger King Worldwide, Inc.
Cracker Barrel Old Country Store, Inc.
). All these stocks carry a Zacks Rank #2 (Buy).