Shaun Currie, CFA
Long/short equity, hedge fund analyst, momentum

The Cheesecake Factory: A Low Bar, But A Fair Value

I have recently been completing an analysis of the restaurant industry and chose to review The Cheesecake Factory (NASDAQ:CAKE). I have always been impressed by the management team, and the $10MM AUVs are simply amazing. After completing this analysis, I believe the company may be fairly valued, but risk on the company is to the upside going forward. Furthermore, the company's business model and valuation compared to performance put it in much better position than some of its competitors. The company's latest earnings results were sluggish, but the sell-off in the stock has brought down estimates to a range that management should be able to beat going forward.

Short-Term "Blip"

CAKE missed estimates during the last quarter (CAKE's...

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