A mall developer affiliated with Cheesecake Factory (NASDAQ: CAKE) just got $74 million richer after a jury found that the owner of the Glendale Galleria Mall attempted to block the chain from opening a location in the competing mall. And that's just the beginning.
According to The New York Times, "The Galleria's owner, General Growth Properties, is also facing the prospect of substantial punitive damages because the jury found the company acted with "malice, oppression or fraud" by interfering with negotiations between the restaurant chain and Caruso Affiliated Holdings, the developer of the new shopping center. The punitive damage phase begins on Tuesday."
With the restaurateur's shares languishing near a multi-year low, this could be a good time to look anew at this once-hot growth stock.
The company enjoys phenomenal per-store sales and profitability -- they're nearly always full and the food is pretty expensive -- and currently has around 123 stores. There could be a lot of growth left to be had here. And it all comes at just 20 times earnings.
And the lawsuit also highlights the company's competitive strength: The brand is strong enough that General Growth Properties sought to stop the company from opening a location at a rival's mall. Can you imagine this happening with Applebee's or a similar second-tier chain? This lawsuit shows just how powerful of a draw Cheesecake Factory is.
Last updated: May 16, 2012: 07:09 PM
Hot Stocks
DailyFinance Headlines
- Think Your Mortgage Refi Rate is Great? IBM Pays Less Than 1%
- Weird-Mart: Tales of the Bizarre from the Walmart Aisles
- Solid Reasons for the Unbanked to Shun Chase's New 'Liquid Card'
- GM Had 1,999 Reasons to Crash Facebook's IPO Party
- JCPenney's Ron Johnson: 'Customers Don't Get Our Pricing Strategy'
Benzinga Headlines
- Sears to Shed Clothing
- Is Cisco About to Buy NDS?
- Current Account, Import Prices Says US is Buying Goods on the Cheap
- Goldman Sachs Executive Director Calls the Bank "Toxic" on the Way Out
- BB&T Acquires BankAtlantic
TheFlyOnTheWall.com Headlines
- Veolia Environment issues statement regarding sale of U.S. Solid Waste business
- iStar Financial announces new $20M stock repurchase plan
- Optimer announces positive results from DIFICID phase 3 studies
- Ackman: J.C. Penney is a great contrarian investment play
- Ackman: J.C. Penney is not fundamentally broken
BioHealth Investor Headlines
- Shouldn’t VIVUS Raise Capital Now? (VVUS)
- Can Human Genome Really Double Its Stock Price? (HGSI)
- Alimera Implosion Analysis, What Is Next (ALIM, PSDV)
- Implosion Analysis For Targacept… What Lies Ahead? (TRGT, AZN)
- Rare Analyst Calls With Huge Upside in Vical and VIVUS (VICL, VVUS, BMY)
WalletPop Headlines
- Think Your Mortgage Refi Rate is Great? IBM Pays Less Than 1%
- Weird-Mart: Tales of the Bizarre from the Walmart Aisles
- Solid Reasons for the Unbanked to Shun Chase's New 'Liquid Card'
- GM Had 1,999 Reasons to Crash Facebook's IPO Party
- JCPenney's Ron Johnson: 'Customers Don't Get Our Pricing Strategy'
My Portfolios
Track your stocks here!
Find out why more people track their portfolios on AOL Money & Finance then anywhere else.
BloggingStocks Partners
More from AOL Money & Finance
- Business News
- Stock Screener
- Stock Quotes
- Stock Charts
- Banking
- Identity Theft
- DJIA
- Debt Management
- Loans
- Auto Loan
- Mortgages
- Taxes
- Retirement
- Insurance
- Small Business
- Earnings
- Tech News
- Tax Forms
- Tax Deductions
- Tax Credit
- Tax Audit
- Tax Advice
- Stock Ticker
- Stock Brokers
- Resume Builder
- Pig Flu
- Online Tax Filing
- Madoff
- Investing For Retirement
- Income Tax
- Historical Stock Prices
- GOOG
- ETF Investing
- Deals
- DailyFinance
- Crude Oil Prices
- Credit Score Calculator
- Common Tax Filing Mistakes
- AMT
GM Kills $10 Million Facebook Ad Campaign Because It Didn't Work
JCPenney's Ron Johnson: 'Customers Don't Get Our Pricing Strategy'


Reader Comments (Page 1 of 1)
11-10-2007 @ 7:24PM
floater99 said...
FYI, the $74M judgement isn't for Cheesecake Factory. It went to the developer of the rival mall. Cheesecake was only the subject of the lawsuit. The suit was between Caruso Affiliated (the rival developer) and General Growth. None of this judgement goes to Cheesecake.
11-11-2007 @ 11:45AM
Rick Lemmo said...
This headline is completely incorrect. Cheesecake Factory was not a party to this lawsuit. It was won by developer Rick Caruso of Caruso Affilitated Holdings.
I know because I work for Mr. Caruso.
Rick Lemmo
11-12-2007 @ 12:48PM
don said...
I believe the headline says Landlord. The Cheesecake Factory would be the tenant. Nothing in this article implies CCF would get money.