The Cheesecake Factory Inc.
), recently unveiled a restaurant in Escondido, California. With
the 7,500 square-foot restaurant, the company stepped into San
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 restaurant, located in Westfield North County mall in
Escondido, can accommodate around 205 diners at a time. We
believe that the restaurant's strategic location, along with its
attractive platter and contemporary ambience, will drive traffic,
California is the home court for the restaurateur where it
boasts as many as 34 outlets. As per the National Restaurant
Association, California's restaurant industry contributes
considerably to the state's revenues. According to the research
organization, California's restaurants are expected to record
$67.4 billion in sales in 2013. Californians are inclined toward
eating out frequently and this is favorable for the sector's
growth. We believe Cheesecake Factory's venture into California,
the most densely populated U.S. states, will immensely benefit
The Zacks Rank #3 (Hold) company is on a growth trajectory and
intends to open 8 to 10 units in the U.S. in 2013. Apart from the
traditional units, management is focusing on formats of different
sizes and scales to cater to local demand. The
better-than-expected income from the smaller units has encouraged
the company to focus more on smaller sites to improve the return
on investments. The company is also considering international
expansion for further growth.
Investors interested in the restaurant industry may consider
Buffalo Wild Wings Inc.
Darden Restaurants, Inc.
). While Buffalo Wild Wings carries a Zacks Rank #1 (Strong Buy),
DineEquity and Darden Restaurants hold a Zacks Rank #2 (Buy).
BUFFALO WLD WNG (BWLD): Free Stock Analysis
CHEESECAKE FACT (CAKE): Free Stock Analysis
DINEEQUITY INC (DIN): Free Stock Analysis
DARDEN RESTRNT (DRI): Free Stock Analysis
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