Cheesecake Factory Inc

Owning properties reduces real estate costs A restaurant business that owns its own building is a bit different from a restaurant business that rents its buildings or lands. From a business standpoint, you can think of a restaurant that owns its buildings as the sum of two businesses: restaurant and real estate. Because the real […]

McDonald’s (MCD) competition includes large international and national food chains as well as regional and local retailers of food products.

Casual-dining restaurants Casual-dining restaurants have a relaxed, casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service. The menu is higher-priced than fast-food restaurants. Olive Garden, under the umbrella of Darden Restaurants (DRI), for example, has a price range of $10 to $20 for […]

Target price As of December 28, 2017, Chipotle Mexican Grill (CMG) was trading at $294.06. On the same day, analysts were expecting the stock to reach $317.26 in the next four quarters, which represents a return potential of 7.9%. Before the announcement of Chipotle’s 3Q17 earnings, analysts had forecast a 12-month target price of $375.46. […]

A company is greatly impacted by its management’s decisions. In this article, we’ll discuss The Cheesecake Factory’s (CAKE) management and its achievements.

The Cheesecake Factory (CAKE) is competing in a highly competitive restaurant business, where innovation is absolutely necessary to keep up.

In 1992, when CAKE was listed, its average check size was at $13.6. By the end of 2015, the company’s average check size had increased to $20.8.

In the last five years, The Cheesecake Factory’s (CAKE) same-store sales growth was in the range of 1%–3%, largely driven by rises in its menu prices.

The Cheesecake Factory earns its revenue from its company-owned restaurant sales, franchisee fees and royalties, and its bakery operations.

The Cheesecake Factory (CAKE) created the Grand Lux Cafe brand at the request of Venetian Resort Hotel Casino in Las Vegas in 1999.

The Cheesecake Factory has positioned itself as an upscale casual dining concept that focuses on providing a distinctive, high-quality dining experience.

In February 1992, The Cheesecake Factory (CAKE) went public by offering 2.3 million shares at $20 per share. It closed its opening day at $27.3 per share.

The Cheesecake Factory (CAKE) is a casual restaurant chain that was founded in 1978. The California-based company owns and operates 201 restaurants.

The origin of The Cheesecake Factory dates back to the 1940s, when Evelyn Overton found a recipe in a local newspaper that inspired her original cheesecake.

In 2014, Olive Garden contributed about 58% to Darden’s revenues as of fiscal 2014. Olive Garden gained importance after Darden sold Red Lobster in 2014.

As of 2014, Darden Restaurants owned 1,520 restaurants, excluding more than 700 Red Lobster locations.

A company can increase its marketing and promotional activities to bring in more customers and obtain operating leverage.

The company increased its menu prices by 1.5% in early December of 2013, and in 2012, it increased menu prices by 2.2%.

In the last part of this series, we briefly covered Texas Roadhouse’s (TXRH) steak-focused menu. Let’s look at it in more detail in this article.

Mainstream channels of marketing—like radio, TV, and print ads—are still common. But many restaurant chains have also used social media to increase their brand presence.

In the last part of this series, we looked at the franchise model. Let’s now take a look at the company-operated restaurant model.

The most common business models in the restaurant industry are for franchised and company-operated restaurants. Let’s look at the franchise model in closer detail.

Average revenue per square foot To get a better picture of Darden’s business, we further looked into casual dining restaurants’ average revenue per square foot—the square feet of restaurants across primarily the United States and their guest traffic. This will help us decide whether Darden’s Olive Garden and Red Lobster brands should pick up a […]