The Cheesecake Factory (NASDAQ:CAKE) is seeing CAKE stock soar on Wednesday following news of a business update related to the novel coronavirus.
The Cheesecake Factory dropped a news release late on Tuesday with details about its reopening plans. According to the company, it has already reopened 25% of its restaurants, which includes 34 Cheesecake Factory locations.
The Cheesecake Factory notes that it plans to continue opening more restaurants in the coming weeks. Its current goal is to have 65% of its locations open to the public again by the middle of the month.
While The Cheesecake Factory did have to close locations, that didn’t keep it from doing business. Instead, it just didn’t allow customers to dine-in. It says that this, and the recent reopenings, have allowed it to recapture 75% of sales compared to the same time last year.
The Cheesecake Factory also points out that comparable sales for its fiscal second quarter were down 63% as of May 31. It attributes part of this decline to the ongoing protests and riots taking place in the U.S., which are forcing it to keep some locations closed.
The Cheesecake Factory is on the way to recovery, but it may still face additional hurdles as it does so. That includes further demonstrations in the U.S. that could result in it having to keep stores closed for longer than expected.
CAKE stock was up 19.1% as of Wednesday afternoon but is down 46.2% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.