Being European, it's hard to fully grasp some of the more 'embedded' backgrounds of the US Stock Market. Maybe the analysis of US restaurants is part of that. On paper, Cheesecake Factory shows decent figures, decent P/E and Forward P/E, decent financial results, a stock buyback program and overall, I can't see anything wrong with the stock. Yet, it's not really popular on SocialPicks, which might mean I'm missing something important.
In my view, the chain has what it takes. It offers variety, has a clear target audience, is quaint in its massiveness and seems to attract people in masses. The concept is clearly working and in my, European, view, it's a concept that can work for years and years. So I'm just ignoring the SocialPicks general consensus that CAKE is not a solid pick. In my view, it's a solid pick that won't quadruple overnight but will show a steady rise in the next couple of years.
$15.61 (07/16/08)
