In order to beef up its domestic portfolio,
The Cheesecake Factory Inc.
), recently unveiled a new restaurant in Knoxville, Tenn. The
8,500 square foot-restaurant marks the company's debut in
The latest restaurant, which is located in The West Town Mall
in Knoxville, can accommodate around 205 diners at a time.
Cheesecake Factory's restaurants are primarily located in or near
malls and shopping centers to attract upper-class customers. The
West Town Mall, one of the oldest and most popular shopping
centers of Knoxville, boasts stores of major American retail
giants such as
American Eagle Outfitters, Inc.
Apart from this new unit, the company operates another
restaurant in Nashville, Tenn. As per the National Restaurant
Association, the restaurant industry in Tennessee plays a vital
role in the state's revenues. According to this research site,
Tennessee's restaurants are expected to record $9.9 billion in
sales in 2013. This factor has also caught the attention of
Yum! Brands, Inc.
), which has been expanding in the region.
We believe that the opening of the new restaurant in
Tennessee, with its attractive menu and contemporary ambience
will help the company drive traffic, going ahead.
The Zacks Rank #2 (Buy) 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. Its smaller units are
generating better-than-expected returns, which has compelled the
company to focus more on smaller sites to improve the return on
Additionally, the company is trying to expand in the
international market. In Mar 2013, The Cheesecake Factory penned
a licensing agreement with Alsea, S.A.B. de C.V. to develop
nearly 12 restaurants across Mexico and Chile over the next eight
years. Apart from this, the company is also growing its new units
in the Middle East. Management expects that its international
growth will boost operating margins in 2013.
AMER EAGLE OUTF (AEO): Free Stock Analysis
AEROPOSTALE INC (ARO): Free Stock Analysis
CHEESECAKE FACT (CAKE): Free Stock Analysis
YUM! BRANDS INC (YUM): Free Stock Analysis
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