In a bid to boost business, several U.S.-based restaurateurs
are at present focused on unit expansion. Calabasas Hills,
CA-based upscale casual dining restaurateur,
The Cheesecake Factory Inc.
), which operates as many as 178 units worldwide, is geared to
expand its presence in the lucrative domestic market. With the
resurgence of consumer confidence, management has accelerated its
unit openings and plans to unveil another nine units in 2013.
Recently, the restaurateur opened an outlet in Chestnut Hill,
Massachusetts. The location is a major regional shopping center,
which is strategically positioned on Route 9 near Boston.
Cheesecake Factory's restaurants are primarily located in or near
malls and shopping centers to attract upper-class customers The
8,635 square-feet restaurant accommodates around 225 guests and
is expected to drive traffic with its broad platter and chic
Apart from this unit, the company operates six other
restaurants in Massachusetts. The state's restaurant industry
acts as a major catalyst of its economic development and,
according to the National Restaurant Association, is projected to
generate around $13.2 billion revenues in 2013. We believe that
the high demand and spending ability of the state which are the
major factors behind the sector's growth has caught the attention
of Cheesecake Factory.
We believe, the Zacks Rank #3 (Hold) company's venture into
the underserved market of Massachusetts, one of the most densely
populated U.S. states, will add to its sales.
In the domestic market, apart from the traditional units,
management is focusing on formats of different sizes and scales
to cater to local demand. The better-than-expected returns from
its smaller units have encouraged the company to focus more on
the smaller sites to spur ROI.
Some other players in the restaurant industry which look
attractive at present include
Cracker Barrel Old Country Store, Inc.
Bob Evans Farms, Inc.
). All the companies hold a Zacks Rank #2 (Buy).
BOB EVANS FARMS (BOBE): Free Stock Analysis
CHEESECAKE FACT (CAKE): Free Stock Analysis
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