The Cheesecake Factory Incorporated CAKE is likely to benefit from menu innovation, off-premise offerings and digital initiatives. Also, more focus on the Fox Restaurant Concepts bodes well. However, pandemic-induced soft traffic and higher costs are a concern.
Let us delve into the factors highlighting why investors should retain the stock for the time being.
Factors Driving Growth
Cheesecake Factory is committed toward bolstering sales to stay afloat in the competitive environment. Notably, menu-innovation and advanced digital capabilities are the primary fortes of the company. Going forward, it intends to carry on with menu innovation by adding new Super Food items and the famous indulgences of Cheesecake Factory. The Super Foods program has increased consumer awareness of brands. Also, the company also launched its Timeless Classics special menu card nationally.
The company is also benefiting from its robust off-premise sales. In the first and the second quarter of fiscal 2021, off-premise