$CAKE · Financial Education · 2026-10-26

But then you have a stock like The Cheesecake Factory, right? You might think this is the best time ever for that company. The stock is at $110. I was buying stock of this company a few years ago when it was in the 30s, and now it's at $110.

You think this is the best time for restaurants in the history of mankind. It's really strange, isn't it?

No, the thing about Cake is that this is a very rare investment opportunity. We have multiple concepts that Wall Street started with. Street is finally getting the hang of it, and I've been talking about this for years, haven't I?

But Wall Street is finally starting to realize that they have multiple concepts that will be scaled across the USA, and how often do you get an opportunity like that? It almost never happens.

To have even one concept that you can implement across the USA, with great revenue, excellent profit margins, and high profitability per restaurant. That's tough, man. Incredibly tough.

And they have it with Flowerchild. They're talking about potentially scaling it up to 800 locations in the long term. Right now they have about 50 locations or a little more, right?

Under 100 right now. They're talking about reaching 800 locations in the long term while maintaining great profit margins. That's tough to achieve. But they have it, haven't they?

And then there's North Italy, and to a lesser extent, but they'll be able to scale it up in distinct and different regions across the USA, right? That's an extraordinary opportunity by any measure.

You simply don't find anything like it. Two concepts You'll expand with them across the United States, and you'll be able to generate impressive revenue figures each year, excellent profit margins, and high profitability for every restaurant.

That's tough, man. And that's what you get with Cake Inc. That's what you get with Cake Inc.

Plus, you get their own ATM, The Cheesecake Factory, which is one of the very few restaurant concepts that remains strong regardless of the state of the economy. It doesn't matter if you're in a recession, a good economy, a bad economy, or just okay; Cheesecake Factory will always make its numbers.

They'll always be busy. They're one of the few who can actually do that, right?

So, you know, if Cheesecake Factory is in trouble, it means the whole restaurant industry is finished. I don't know what else to say. They're the strongest of the strong.

I look at them and Texas Road House as the two strongest restaurant operators in the United States by a long way. It's Texas Road House and them. So if Texas Road House or Cheesecake Factory has trouble, goodbye.

That's the end of the whole restaurant industry. You won't have a chance as a restaurateur, will you?

That doesn't mean Cheesecake will go up 6,500% or 27,000%. But the point here is, you can see how big those gains are when you consider that both were just one concept." It's incredibly successful. Cheesecake has two.

Now, do they have anything on the scale of what Starbucks was? No. That's why the stock isn't going to go up 27,000%, is it? Or do they have anything on the scale of Chipotle? I don't think so.

Florchild is incredibly successful, but I don't think it's a 6,500% opportunity, is it? It's more like a 500% or 1,000% opportunity, which is also huge, isn't it?

Now, if you compare Cheesecake to Cava, Cava's market capitalization is $6.25 billion. Cheesecake is $5.39 billion, right?

But the point here is, you get a huge discount buying Cheesecake Factory stock today compared to buying Cava stock, right?

And Cheesecake has been a hot stock for the past few years, while Cava has been pretty much stagnant, hasn't it? Right?

Now, look at this. You're getting a forward P/E ratio for Cake stock that's around 23.

But look at Cake's forward P/E ratio, it's 23 versus 54 for Cava, right? So, P/E Cake's future profitability is less than half that of Cava, right?

And remember, Cake has a large, established, and long-standing business. If it weren't for that, Cake's growth rates would actually be much faster overall than they appear on the surface, right?

So, you're actually getting Cake at a crazy discount if you compare it to something like Cava, right? This is just to open your eyes and make you realize Cake, even here, despite its huge rise, is still actually at a significant discount.

That's why you don't see me selling Cake stock. I mean, where would I publicly sell my shares? I have no interest. Not a single one. Like, "Oh, I'll sell my shares on the public account."

No, thank you. I'm fine. Because I'm still getting those shares at a discount compared to other opportunities in the market, right?