The Cheesecake Factory Incorporated
) entered into an exclusive licensing agreement with Hong
Kong-based Maxim's Caterers Limited to build and operate
Cheesecake-branded restaurants in Asia. Per the deal, at least 14
restaurants will be developed over the next decade in Hong Kong,
Macau, Taiwan and China. The agreement also allows unit openings in
Japan, South Korea, Malaysia, Singapore and Thailand. The first
restaurant is expected to be opened in fiscal 2015.
Established in 1956, Maxim's Caterers, operates under Hong Kong
Maxim's Group, and is primarily a Food & Beverage company
comprising Chinese, Asian and European restaurants, quick service
restaurants, bakery shops and institutional catering.
Cheesecake Factory is looking to cash in on Maxims' expertise in
) restaurants in Hong Kong, Macau and Vietnam markets. However,
partnering with Maxim's internationally is a major shift for
California-based company's strategy which owns and operates
restaurants in the U.S. and has franchises internationally.
The deal marks Cheesecake Factory's entry into East Asia which is
also its third international market. In 2012, the restaurateur
forayed in Dubai and is set to debut in Guadalajara, Mexico in
July, beginning its Latin American journey.
East Asia has, in the recent times, become one of the world's few
bright spots for economic growth and healthy investment returns.
Boasting a relatively younger population and growing middle class
with comparatively higher disposable income, East Asia has become
the target of several companies, including Cheesecake Factory, that
are striving to gain market share in the growing economy.
Cheesecake currently has a Zacks Rank #4 (Sell). Better-ranked
Burger King Worldwide, Inc.
Fiesta Restaurant Group, Inc.
), which have a Zacks Rank #2 (Buy).
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