The Cheesecake Factory Inc.
) is on the verge of launching new restaurants in Latin America.
In this regard, Cheesecake Factory has penned a licensing
agreement with Alsea, S.A.B. de C.V. Cheesecake Factory has
chosen the emerging markets of Latin America to tap its
increasing growth potential.
Under the terms of the agreement, Cheesecake Factory will
develop nearly 12 new restaurants across Mexico and Chile over
the next eight years. Cheesecake Factory will mark its first
appearance in Latin America with the opening of a new outlet in
Mexico City in 2014.
In addition, the contract also includes expansion plans in
other Latin American countries including Argentina, Brazil,
Colombia and Peru. These openings are expected to give a boost to
the company's earnings and revenue growth, going forward.
Cheesecake Factory is continuously trying to expand its
presence in the international market. Earlier, Cheesecake Factory
made its international debut with the opening of its first
restaurant in Dubai in August 2012 and it has also opened another
restaurant in The Avenues Mall in Kuwait. By 2016, the company is
expected to launch 22 new Cheesecake Factory outlets in five
countries of the Middle East.
During the fourth quarter of 2012, Cheesecake Factory reported
net earnings of 51 cents a share, down 3.8% year over year due to
sluggish sales. Cheesecake Factory's revenues fell 2.7% year over
year to $464.7 million. Hurricane Sandy played foul with the
quarterly sales. The company currently operates 177 restaurants,
including the units opened during the fourth quarter.
Cheesecake Factory currently carries a Zacks Rank #3 (Hold).
Some restaurant companies that are also worth a look at present
Red Robin Gourmet Burgers Inc.
) carrying a Zacks Rank #1 (Strong Buy) as well as
Burger King Worldwide Inc.
Cracker Barrel Old Country Store, Inc.
), both carrying a Zacks Rank #2 (Buy).
BURGER KING WWD (BKW): Free Stock Analysis
CHEESECAKE FACT (CAKE): Free Stock Analysis
CRACKER BARREL (CBRL): Free Stock Analysis
RED ROBIN GOURM (RRGB): Free Stock Analysis
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