Why I Bought Cheesecake Factory (NYSE: FUN) This is my oldest son's favorite restaurant. That's one of the reasons why it replaced Six Flags (NYSE: PKS) -- which despite its poorly run ways had miraculously appreciated in his educational IRA -- in the spring of 2004. I'll have to admit, it's the most reliable casual dining chain my taste buds have known as well. Even its Grand Lux higher end concept has never let me down (okay, so I only hit that one once when we went to Vegas in the summer of 2004). Since going public in a dozen years ago Cheesecake Factory has produced same-store sales growth every single quarter except once. That's a testament to a concept that is not a fad. It is real. Folks are drawn by the large portions and quality eats. Many don't even make it to the signature dessert menu! Crowded on weekends (and even during the week more often than not) it's the perfect restaurant chain. Operationally speaking it hasn't exactly been perfect with various fiscal hiccups along the way. Yet, as always, concept popularity saves the day and Cheesecake Factory eventually gets it right. Why would I sell Cheesecake Factory? No, a bad meal wouldn't find me itching for the Sell button. I'm not that way. However, if comps were to start declining, consistently, I would have to look into my assessment that the company's popularity appears eternal. Many great restaurant chains have come undone that way. I would keep an eye on comps, even more than actual earnings (because those will fluctuate) as the one major factor in swaying me off the stock. Go Back UNDER

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