Can Cake sell more?

Yes, Cheesecake Factory (CAKE) has the potential to sell more, and there are several indicators that support this conclusion:

1. Strategic Expansion: The company has announced plans to open as many as 20 to 22 new restaurants in fiscal 2023, including additions to its existing brands and international expansion. This strategic move demonstrates confidence in its ability to expand its customer base and increase sales.
2. Same-Store Sales Growth: Despite falling short of analysts' expectations in Q3 FY2023, same-store sales for the quarter increased by 5.89% year-over-year, reaching $830.2 million. Additionally, same-store sales grew by 5.7% year-over-year in Q1, and by 14.9% relative to the pre-pandemic fiscal year of 2019.
3. Diverse Menu and Brands: Cheesecake Factory's extensive menu and multiple restaurant brands, such as Flower Child and North Italia, provide a wide appeal to different customer segments. This diversification can help attract new customers and increase overall sales.
4. Digital and Delivery Initiatives: The company has been improving off-premise sales through digital and delivery efforts, which can help capture a broader customer base and increase sales opportunities.
5. Financial Health and Growth Metrics: Cheesecake Factory has demonstrated strong earnings growth, with an EPS increase of 84% in the last twelve months. The company's revenue growth rate, although modest at 4.37% as of Q2 2024, indicates a positive trend.

CAKE Total Revenue YoY, Total Revenue

6. Market Position and Brand Recognition: As a well-established and iconic restaurant chain, Cheesecake Factory has a strong brand presence that can drive sales through customer loyalty and repeat visits.
7. Analyst Confidence: Analysts have raised price targets and given positive ratings, indicating confidence in the company's future performance and potential for increased sales.

In conclusion, Cheesecake Factory's strategic expansions, strong same-store sales growth, diverse menu, digital initiatives, and robust financial performance all suggest that the company has the potential to sell more in the future.