CHEESECAKE FACTORY'S STOCK SOARS ON GROWTH PLAN.Byline: Dave McNary Daily News Staff Writer Calabasas-based Cheesecake Factory issued a bullish Bullish Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook. bullish outlook Friday, saying it plans to continue its aggressive nationwide expansion and its second-quarter earnings were strong. The report boosted its stock by 15 percent. The chain, with 19 outlets and a recently opened ``bakery cafe'' at the Ontario Mills Ontario Mills is a large enclosed outlet mall located in Ontario, California; it is one of the primary tourist attractions in the Inland Empire. shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into , announced it will open at least six new restaurants next year. The company indicated it may significantly boost the cafes, with a trio set to open Sunday Sunday: see Sabbath; week. at Washington National Airport and another unnamed site in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County later this year. Cheesecake Factory, which has a 200-item menu with more than 50 signature cheesecakes, also said it was in talks with an unnamed food-service operator to sell its products in 370 stores and disclosed it has agreed to open a restaurant in the $2 billion Venetian resort in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , set for a 1999 debut. The announcements and an earnings report that beat Wall Street's expectations lifted Cheesecake Factory stock by $3.275 to $24.375, matching its high for the year. Trading was heavy with 1.18 million shares, or nearly 10 times its average this year. The company posted second-quarter earnings of $2.4 million, or 22 cents a share, up 17 percent from the 1996 quarter and a penny above analysts' consensus estimate. Sales gained 37 percent to $46.3 million and revenues at outlets open in both periods rose 4.6 percent. Analyst Tami TAMI Cardiology A series of clinical trials–Thrombolysis & Angioplasty in Myocardial Infarction designed to examine the role of angioplasty, urokinase, heparin, and prostacyclin in managing acute MI. See Acute myocardial infarction, tPA, Urokinase. Cf TIMI. McNamara of Fahnestock & Co. said the chain appears to have solved capacity problems with its 45,000-square-foot bakery facility in Calabasas and added that the restaurants are generating strong enough revenues to justify expansion. She also endorsed the bakery cafes, which are operated with Host Marriott, as a sensible way to boost Cheesecake Factory as a brand name. ``I think that Cheesecake Factory is able to draw well because it has a fun atmosphere at a time when people are moving toward more entertainment at restaurants,'' said McNamara. The analyst may boost her target price of $29 a share, a figure originally set for next March. In reaction to the report, analyst Andrew Zarnett of Ladenberg Thalmann added a nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69; m.p. about 1,453°C;; b.p. about 2,732°C;; sp. gr. 8.902 at 25°C;; valence 0, +1, +2, +3, or +4. to his 1998 earnings estimate to $1.20 a share, upgraded his rating on the issue to ``buy'' from ``long-term buy'' and set a 12-month price target of $30. ``The story on Cheesecake Factory is very simple,'' he said. ``They needed to grow into their bakery and now they've done it, so they'll be able to leverage operating efficiencies as they expand. All their outlets are operating at brisk Brisk as a proper name may refer to:
David Overton, chairman and chief executive officer, said management was ``very pleased'' at the performance of all restaurants, seven of which are in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . He noted that sales trends for July were strong at outlets open for at least a year while newer restaurants continue to meet or exceed initial projections. The company opened its 19th restaurant in April in Denver and is evaluating sites for a potential additional restaurant or two in that market. It will open another outlet in Westbury, N.Y., in early September, and in Las Vegas, Cambridge, Mass., and Miami by the end of 1997 as part of its goal to increase square footage annually by 25 percent to 30 percent in 1997 and 1998. Overton also said performance by the Ontario Mills site, which opened July 14, has met expectations. ``If successful, the bakery cafe concept could be expanded more rapidly than our full-size restaurants and could represent an additional source of sales and operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. for our bakery business,'' he said. CAPTION(S): Photo Photo: (color) Calabasas-based Cheesecake Factory announced it plans to open six new restaurants like this one in Woodland Hills. Bob Halvorsen/Daily News |
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