The Cheesecake Factory: Upside Is Not Attractive Despite Positive Fundamental Momentum

Group 1 - The Cheesecake Factory (CAKE) is given a hold rating due to the near-term upside being already priced in [1] - Strong performance in 1Q25 margin, steady same-store sales growth (SSSG), and momentum in new store openings are encouraging [1] - The investment approach focuses on understanding core business economics, competitive moat, unit economics, reinvestment opportunities, and management quality [1] Group 2 - The analyst emphasizes the importance of long-term free cash flow generation and shareholder value creation [1] - The analysis aims to help readers focus on factors that drive long-term equity value [1] - The investment insights shared are intended to be both analytical and accessible for readers seeking high-quality, long-term investment opportunities [1]