The Cheesecake Factory (CAKE, Financial) (“CAKE” or “Company) is a Calabasas, CA – based restaurant company with over 200 Cheesecake Factory locations. The Company has one of the leading sales per square foot metrics of almost $1,000 in sales per square foot. 10 In October 2019, the Company acquired Fox Restaurant Concepts, which brought North Italia, Flower Child and several other brands under its umbrella. The new brands are tested in multiple states, but not yet scaled nationwide. The Company is expecting that the new concepts will enable it to reinvigorate growth and utilize its core scaling expertise and benefit from a number of operational synergies.
Despite industry challenges, the Company beat consensus EPS during the last quarter and guided higher than consensus.
From FPA Capital Fund (Trades, Portfolio)'s fourth-quarter 2019 commentary.
