Core Insights - Cheesecake Factory (CAKE) is experiencing growth driven by expansion initiatives, operational execution, and strategic innovation, positioning the company for sustainable long-term growth [1] - The stock has increased by 59% over the past year, significantly outperforming the Zacks Retail - Restaurants industry's 0.8% rise [2] - Earnings estimates for fiscal 2025 have risen to $3.77 per share, reflecting operational excellence and steady demand despite macroeconomic challenges [3] Growth Drivers - Sales-Building & Margin-Driving Initiatives: The company is enhancing sales through innovative menu items, focused marketing, and advanced digital capabilities, aiming for continued margin improvement [7] - In Q2 FY25, Cheesecake Factory achieved 1.2% year-over-year comparable sales growth, with record-high average weekly sales of nearly $12.8 million per unit and a 4-wall restaurant margin of 18.5%, up 80 basis points year-over-year [8][9] - Expansion Efforts: The company opened eight new restaurants in Q2 FY25 and plans to launch up to 25 new restaurants throughout the year, with capital expenditures projected at $190-$200 million [10][11] Menu and Digital Innovation - Focus on Menu Innovation: Cheesecake Factory introduced 14 new dishes in Q2 FY25, enhancing its reputation for variety and culinary creativity [12] - Digital Initiatives: The company signed an exclusive delivery partnership with DoorDash and has implemented operational changes and technology upgrades, leading to stronger customer engagement and loyalty [14][15]