In order to boost its national presence,
The Cheesecake Factory Inc. (
CAKE
)
recently opened its new outlet at Quaker Bridge Mall situated in
Lawrence Township, New Jersey. The company plans to open around
seven to eight outlets in the U.S. in 2012.
Quaker Bridge Mall is one of the oldest and largest shopping
centers of New Jersey. Strategically located in proximity to
interstate highways and major roadways, the mall exhibits major
American retail giants. The new Cheesecake restaurant accommodates
around 293 diners and is the eighth outlet of the company in the
New Jersey area. The restaurant includes an 8,644 square foot
dining room and a 1,517 square foot patio.
We believe the opening of the new restaurant in New Jersey, one
of the most densely populated and wealthiest U.S. states with
respect to household income, will immensely benefit the company in
driving traffic.
The restaurant industry of New Jersey acts as a major catalyst
of its economic development. The restaurant industry of the state
is projected to generate around $13.6 billion in revenue in 2012.
This factor has also caught the attention of one of the company's
close peers -
Cosi Inc. (
COSI
)
- which recently opened its fourth outlet in Hackensack region of
New Jersey.
The company is on a growth itinerary on both national and
international fronts. Of the planned new outlets in U.S., two are
slated to open in November 2012 in two premier shopping malls. One
restaurant will be positioned in the Potomac Mills in Washington
D.C and the other in Baybrook Mall in Texas.
On the international front, Cheesecake Factory recently opened an
outlet at The Dubai Mall, which marked its overseas debut. The
company, in collaboration with Alshaya group of companies, expects
to open around 22 Cheesecake Factory restaurants over the next five
years in five Middle Eastern countries -- United Arab Emirates,
Kuwait, Bahrain, Qatar and the Kingdom of Saudi Arabia. The
expansion plans also include the other markets of the Middle East
and North Africa, Central and Eastern Europe, Russia and
Turkey.
However, the company should be wary of its competitors, who are
also poised to spread their footprints in major domestic and
international markets.
Darden Restaurants Inc. (
DRI
)
has planned to open around 60 restaurants under its three major
brands in Bahrain, Egypt, Kuwait, Lebanon, Qatar, Saudi Arabia and
United Arab Emirates by 2015. One of the major rivals of
Cheesecake,
Yum! Brands Inc. (
YUM
)
is also set to open 1700 new restaurants worldwide this year.
Cheesecake Factory operates upscale, full-service, casual dining
restaurants under The Cheesecake Factory, Grand Lux Cafe and the
RockSugar Pan Asian Kitchen names. We presently have a long-term
Neutral recommendation on the Cheesecake Factory. However, it
carries a Zacks #4 Rank that translates into a short-term Sell
rating.
CHEESECAKE FACT (CAKE): Free Stock Analysis
Report
COSI INC (COSI): Free Stock Analysis Report
DARDEN RESTRNT (DRI): Free Stock Analysis
Report
YUM! BRANDS INC (YUM): Free Stock Analysis
Report
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