Casual dining restaurateur,
The Cheesecake Factory Inc.
) recently opened a Cheesecake Factory restaurant at Plaza Las
Américas shopping center in San Juan, Puerto Rico. The new 10,000
square feet restaurant can accommodate up to 305 guests. This new
unit marks Cheesecake Factory's entry into the Peruvian market.
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Cheesecake Factory restaurants are primarily located in or near
malls and shopping centers. We believe that such a location is
strategically perfect in order to attract high-end customers. The
latest opening perfectly complements Cheesecake's strategy of
expanding beyond the North American market.
Earlier this year, Cheesecake signed a deal with its development
partner Alsea, S.A.B. de C.V. Per the deal, Cheesecake Factory
will develop nearly 12 new restaurants across Mexico and Chile
over the next eight years. In addition, the contract also
includes expansion plans in some other countries including
Argentina, Brazil, Colombia and Peru.
This Zacks Rank #3 (Hold) company is continuously trying to
expand its presence in the international market. This
Calif.-based restaurateur started its overseas expansion in
August last year by venturing into Dubai and has already opened
three restaurants in the Middle East so far.
By 2016, the company is expected to launch 22 new Cheesecake
Factory outlets in five countries of the Middle East.
In fact, the company expects to attain historically peak margin
levels in 2013, driven by international expansion, strong
performance of its existing overseas units and lower food costs.
However, on the flip side, the company's presence in
high-potential international market is still relatively low.
While several other restaurateurs including
Yum! Brands Inc.
Krispy Kreme Doughnuts, Inc.
), have joined the bandwagon to open new restaurants to
capitalize on the emerging market potential; Cheesecake is
comparatively slow on this front. We believe that the company
needs to spread its presence beyond the U.S. more aggressively,
given cut-throat competition in the rather saturated domestic