Cheesecake Factory Expands Into Latin America

The Cheesecake Factory is going south of the border -- way south. On Wednesday, the restaurateur announced it has entered into an exclusive licensing agreement with Latin American restaurant operator Alsea, S.A.B. de C.V., by virtue of which Alsea will open and operate at least 12 Cheesecake Factory restaurants in Mexico and Chile over the next eight years. Alsea intends to open its first restaurant in Mexico early next year.

If all goes well, the agreement envisions Alsea expanding its Cheesecake franchises into Argentina, Brazil, Columbia, and Peru.

Financial terms were not disclosed.


Cheesecake Factory also reported fiscal Q4 and full-year 2012 earnings yesterday, with revenues down 2.7%, at $464.7 million, and profits tumbling 26%, to $0.40 per diluted share.

Cheesecake Factory opened lower today on the news, but has made up its early losses, and currently trades 1.8% above yesterday's close at $33.68.

The article Cheesecake Factory Expands Into Latin America originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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