Here's Why Investors Should Retain Cheesecake Factory Stock

Core Insights - The Cheesecake Factory has seen a 20.7% increase in shares over the past three months, contrasting with a 0.9% decline in the industry, driven by strong comparable sales performance, expansion efforts, and rewards programs [1] Financial Performance - In the fiscal third quarter of 2024, comparable sales at Cheesecake Factory restaurants increased by 1.6% year over year, down from a 2.4% rise in the same quarter the previous year [2] - The company reported labor expenses of $949.2 million for the first nine months of fiscal 2024, an increase from $919.3 million in the prior-year period [5] Growth Strategy - The company plans to open 22 new restaurants in fiscal 2024, with eight openings scheduled for the fourth quarter, including three Cheesecake Factory locations and six North Italia restaurants [3] - The Cheesecake Rewards program has shown high levels of member activity and engagement, contributing positively to customer visits and brand growth [4] Cost Management - Increased costs remain a concern, with pre-opening costs, higher labor expenses, and additional cleaning costs expected to impact profits [5] - For the fourth quarter of fiscal 2024, the company anticipates commodity inflation in the low-single digits and net total labor inflation in the mid-single digits [12] Operational Enhancements - The company has implemented operational and supply chain improvements, including a kitchen display system and a new loyalty platform, aimed at enhancing guest experience and driving cost efficiencies [11]