Back to top

Image: Bigstock

The Cheesecake Factory Launches Grand Lux Cafe in Texas

Read MoreHide Full Article

On Nov 15, The Cheesecake Factory Incorporated (CAKE - Free Report) announced the opening of its newest Grand Lux Café in Austin, TX. The restaurant is located at 11506 Century Oaks Terrace.

Grand Lux Café is an upscale-casual dining segment of The Cheesecake Factory which offers internationally inspired cuisine, served in an elegant ambiance. This restaurant type is inspired by exploratory European travel blending the grandeur and luxury of European cafes with the spirit of an all-American eatery.

Notably, over the past few quarters, the company has been increasing menu prices at this segment. This increase amid a soft consumer spending environment in the restaurant space has led to declining traffic trends and has been consequently hurting comps. Going forward, the underperformance of the Grand Lux Café segment remains a matter of concern.

Currently, the company operates 13 restaurants under the Grand Lux Café mark in addition to 193 restaurants under The Cheesecake Factory mark across the U.S. and Puerto Rico.

Along with domestic market, the company has been foraying into lucrative markets lately, such as the Middle East, North Africa, Russia, Turkey, Kuwait, Lebanon and Chile. This expansion drive is fuelled to keep up with the strategies followed by other restaurant industry giants like Yum! Brands, Inc. (YUM - Free Report) , McDonalds Corporation (MCD - Free Report) and Papa John’s International, Inc. (PZZA - Free Report) . As of now, the company operates 13 restaurants under licensing agreements, internationally.

CHEESECAKE FACT Price

 

Last month, Cheesecake Factory posted better-than-expected third-quarter 2016 results with both earnings and revenues surpassing the Zacks Consensus Estimate. Further, the company raised its earnings guidance for full-year 2016. The third quarter marked the company’s 27th consecutive quarter of positive comps.

Moving ahead, Cheesecake Factory’s focus on menu innovation coupled with various initiatives to boost sales and traffic volume should aid in keeping up the trend of positive comps and help counter macroeconomic woes.

The Cheesecake Factory currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in