Morgan Stanley Sees Stable Growth Story for The Cheesecake Factory

In a report published Thursday, Morgan Stanley analyst John Glass reiterated an Equal-Weight rating on The Cheesecake Factory CAKE. In the report, Morgan Stanley noted, “We maintain our Equal-Weight rating on CAKE. A stable growth story with reliable comp growth, Capacity growth is accelerating to 6+% in ‘14, and the benefits of the int'l story are starting to be felt. Leaner cost structure could generate peak margins once again, with less than peak AUVs. High AUV model means that and each point of comp is worth about $0.08+ in EPS.” The Cheesecake Factory closed on Wednesday at $45.33.