Ya Want Some Cake?

Cheesecake Factory (CAKE)
Share price as of Tuesday's close: $27.74
Share price now: $25.69
Percent change: -7.4%
Volume: 3.5 million shares, daily average 1.4 million

We've been to the Cheesecake Factory a couple of times lately. The portion sizes are absolutely massive; after ordering appetizers (stuff like potstickers and chicken satay, always served up by the boatload) we were, invariably, too full to think about the entree list, and generally not even still hungry enough to split a slice of their rich, decadent cheesecake.

Generally, any refusal of entrees or dessert led the waiters to look at us as if we'd slapped them in the face. I couldn't tell if they were desperate for tips or thought we were suffering from anorexia. We had been wondering if anyone had the appetite -- or expandable pants -- necessary to make it through a full meal with dessert there. Based on their recent results, I guess not.

They also have a new concept restaurant, the Grand Lux Cafe. We were in Houston a couple weeks ago and spotted one there across the street from the Galleria. Upon seeing it, I noticed immediately that it looked just like a Cheesecake Factory (the waitress eagerly confirmed). The look and feel, the price point, and the menu are all essentially similar. The portion size was, too, as a dim sum appetizer was enough for us to consider dinner. Decent, but they'd be better off, I think, if their "concept" restaurant were a new concept.