The Cheesecake Factory Reports Agreement to Expand in Asia
The Cheesecake Factory Incorporated (NASDAQ: CAKE) today announced that it has entered into an exclusive licensing agreement with Hong Kong-based Maxim's Caterers Limited, a diversified operator of full-service and quick-service restaurants, as well as bakery and coffee shops, in Asia, to build and operate The Cheesecake Factory® restaurants. The agreement provides for the development of a minimum of 14 restaurants over the next 10 years in Hong Kong, Macau, Taiwan and the People's Republic of China, with the opportunity to expand to Japan, South Korea, Malaysia, Singapore and Thailand. The first restaurant is expected to open in fiscal 2015.
“Our brand has experienced a tremendous level of success outside of the U.S.A. and we are excited to announce another step forward in our global expansion efforts. Our strategy of entering into license agreements with highly qualified, experienced restaurant operators that have broad geographic capabilities is proving to be an excellent way to expand our complex, high volume concept internationally. The agreement with Maxim's provides an incredible opportunity for us to develop in Asia with an established, multi-unit restaurant operator that has nearly 60 years of operating experience in the region,” said David Overton, Chairman and CEO.
“International expansion will become an increasingly meaningful driver to achieving our goal of delivering mid-teens earnings per share growth over time as the number of restaurants operated by our licensees gradually increases. Together with our ongoing development of Company-owned restaurants and consistent increases in sales from our existing base of restaurants, we are poised to continue to deliver high-quality and dependable financial performance for many years to come,” concluded Overton.
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