The Cheesecake Factory, Inc. (NASDAQ:CAKE)
CAPS Rating:
Operates upscale, full-service, casual dining restaurants under The Cheesecake Factory® and Grand Lux Cafe® marks. The Company also operates one self-service, limited menu express foodservice operation under The Cheesecake Factory Express® mark.
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I reupped Cake because I felt the reasons I took them off changed. Oil prices are lower and the Company has reported good earnings. They changed their menu to include more light menu items. They reported earnings per share gains of 31% in the last quarter (2Q:2011). They only have 164 stores, but they grow that store base slowly.
My Cap price is $27.22 - the PE ratio is 18.27. They have $58 million in cash and no debt. Even after capital expenditures, they are producing $2.20 per share in cash flow giving them a cash flow yield of 8%. I think that makes them cheap.