Should You Invest in The Cheesecake Factory?

PHOTO CREDIT: The Cheesecake Factory

OVERVIEW

Why You Should?

  1. The Cheesecake Factory will benefit off more COVID-19 stimulus. Not only will the company receive some of these funds in order to aid its recovery but people who have more disposable income due in part because of this stimulus will go out to a Cheesecake Factory restaurant in order to spend it. This will benefit both the company and its investors.
  2. The Cheesecake Factory has some good brand recognition across most of the markets that it will serve. It is known as a great fast-casual dining restaurant which serves good Italian and American food. This will benefit the company’s recovery as more people will flock to these restaurants due in part because of strong brand recognition. This will benefit the company and investors in the company.
  3. The company has seen rising revenues and profits over the past couple of financial years. Though this might not return for some time, these previous financial numbers have somewhat aided the company through these dark economic and financial times. This has benefited the company and investors in the company. In the financial year of 2019, the company reported revenues of around 2.33 billion and profits of around 99 million. Both of these metrics are higher than what the company reported in the financial year of 2018 when they had lower revenues of around 2.26 billion but higher profits of around 157 million.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. The COVID-19 pandemic has hurt the company’s sales over the past couple of financial quarters. This is because of the COVID-19 pandemic, which has shut down some of the company’s restaurants. Furthermore, this has also shut down indoor dining something which Cheesecake Factory relies on for most of its revenue. This has hurt both the company and its investors.

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.