Cheesecake Factory (NYSE: CAKE) operates 127 upscale casual dining restaurants under its namesake in the United States. The company also includes 10 Grand Lux Cafes, a growing secondary chain with a more upscale design ^[1]. The company is unique in that it offers both a broader menu selection and more upscale experience than many of its more casual peers. It is also able to compete with more upscale restaurants, by pricing its selections on the lower end of the upscale casual dining spectrum. Because Cheesecake Factory restaurants operate near capacity, opportunities for same store sales growth are limited. Instead the company has achieved steady growth over last five years by growing its number of stores. By the end of their fiscal year 2007, CAKE aims to open 21 new stores. At the same time, CAKE has successfully established both Grand Lux and Cheesecake Factory as two distinct brands in the eyes of consumers, giving the company the opportunity grow both concepts without fear of cannibalization.

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