The Cheesecake Factory Incorporated CAKE recently opened a restaurant in King of Prussia, PA under the Grand Lux Cafe brand. This marks the brand’s debut in the suburb of Philadelphia.
Located at the Plaza at King of Prussia Mall, the restaurant is spread across an area of approximately 10,400 square feet. This new restaurant can accommodate roughly 255 guests. The Grand Lux café will serve its globally inspired menu — which includes popular in-house bakery items and desserts.
Among the casual dining chains, Cheesecake Factory is one of the few that have been expanding even amid a sluggish economy. With the resurgence of consumer confidence, management accelerated its unit openings and expects to maintain the trend. In 2015, the company plans to open 11 company-owned restaurants domestically. The first company-owned restaurant is expected to be opened in the second quarter. In addition, three restaurants will be unveiled in the Middle East and Mexico under licensing agreements.
Cheesecake Factory reported the 21st consecutive quarter of positive comps in the first quarter of 2015, and we believe it is well-positioned to sustain the comps growth assisted mainly by growth in its footprint. The company has a solid position within the niche casual dining segment, and the brand has a strong recognition in the domestic market. With the recent opening, the company will further strengthen its position.
Cheesecake Factory carries a Zacks Rank #2 (Buy). Other well-ranked restaurant stocks are BJ's Restaurants, Inc. BJRI, Cracker Barrel Old Country Store, Inc. CBRL and Chuy's Holdings, Inc. CHUY. All these stocks have a Zacks Rank #2.
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