SYSCO Corporation (SYY), Darden Restaurants, Inc. (DRI), The Cheesecake Factory Incorporated (CAKE): Investing in Everlasting Trends

Page 2 of 2

Sales for The Cheesecake Factory Incorporated (NASDAQ:CAKE) are expected to be up 4% in 2013, driven in part by the expected 1.2% increase in average menu-item prices. The company is also making the move into Mexico, Chile and four other Latin American countries — Argentina, Brazil, Colombia and Peru — by 2021. Cheesecake plans to open the first of these restaurants in Mexico City in early fiscal 2014. One of the company’s other big initiatives is to open smaller stores to cater to specific markets.

In late July, The Cheesecake Factory Incorporated (NASDAQ:CAKE) posted 2Q EPS $0.54, compared to $0.51 for the same period last year. At the same time, the company decided to boost its shareholder- reward program:  boosting its dividend payment 17% and upping its share- repurchase program by 18%. I take The Cheesecake Factory Incorporated (NASDAQ:CAKE)’s recent initiative to return more capital to shareholders as indicative of a strengthening casual-dining market. 

Bottom line

The beauty of Sysco? Everyone has to eat. Sysco is a broad bet that this trend won’t change anytime soon. And what’s more, it’s a bet on the rebounding economy and the return of the dining-out market. The solid performance that various restaurants, including Darden Restaurants, Inc. (NYSE:DRI) and The Cheesecake Factory Incorporated (NASDAQ:CAKE), are showing, suggests that the dining-out market is performing well. 

The article Investing in Everlasting Trends originally appeared on Fool.com and is written by Marshall Hargrave.

Marshall Hargrave has no position in any stocks mentioned. The Motley Fool recommends Sysco. The Motley Fool owns shares of Darden Restaurants (NYSE:DRI). Marshall is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2