Casual dining restaurateur, The Cheesecake Factory Inc. (CAKE), which currently boasts nearly 177 restaurants across the United States, has recently unveiled a restaurant in Buford, Georgia. This is the 7th of the company’s targeted 8–10 outlet openings in 2013 and bears evidence to its strategy of expanding in the lucrative domestic market.
Cheesecake Factory’s 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 10,300 square foot-restaurant is located in the Mall of Georgia and can accommodate around 295 diners at a time. We believe that the restaurant’s strategic location, along with its attractive platter and contemporary ambience, will drive traffic, going ahead.
According to the National Restaurant Association, the restaurant industry of Georgia acts as a major catalyst in its economic development. The state’s restaurant industry is projected to generate around $16.0 billion revenues in 2013. We believe Cheesecake Factory’s venture into the untapped market of Georgia will immensely augment its sales.
This Zacks Rank #3 (Hold) company is growing on both national and international fronts. Also, Cheesecake Factory is actively expanding its other formats, of different sizes and scale, to cater to local demand. The company’s smaller prototype restaurants will likely accelerate its growth in non-traditional locations and also improve return on invested capital.
Investors interested in the restaurant industry may consider stocks like Buffalo Wild Wings Inc. (BWLD), DineEquity, Inc. (DIN) and Darden Restaurants, Inc. (DRI). All these copmpanies hold a Zacks Rank #2 (Buy).
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