Special Situations
CAKE: Plan in Place for Restaurants, Provides Forward Vision of Improvement
While so many restaurants have been impacted by the ongoing pandemic with little end in sight, it's reassuring to see one with a plan in place to start reopening in a rational way. As pandemic safety restrictions begin to ease, The Cheesecake Factory, Inc. (CAKE) already knows how it will restart its dine-in operations. Additionally, it has measures in place to maintain liquidity before its dine-in revenue is rejuvenated. This provides confidence in the management and the company moving forward.

  • Higher-Than-Expected Profitability Makes Up for Slight Earnings Miss
  • Running on Cash Flow Break-Even / Further Sales Improvement Would Stop Cash Burn
  • Management Provide Update to Cash Preservation & Cost Rationalization Measures
  • Recovery to Full-Service Operations Expected to be Gradual
  • Target Price Revised / CAKE is a Current Special Situations Model Portfolio Holding
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