Doug

I agree the SSG for CAKE does not look as good as their cheesecake. 

My view is the great growth years of CAKE are over and future growth will increasingly depend upon same store sales.  I am looking for future sales growth of 7% vs your 10% although I do expect at some point to see an improvement in profit margins plus share buy backs that should help EPS grow faster than sales for  a while.

I am using a future high PE of 20 vs your 31.4.  I do note this company has had historic high PE ratios but that was during the period when the company was rapidly growing.  So I do not feel comfortable with a high PE based upon historic results and rather in a case like this prefer a more conservative approach of about 1.5 times analysts future growth estimates. 

My SSG shows a total return of 18%.  Normally I would consider this in the buy zone, however in this environment with many high quality  companies being hard hit by lower prices andselling at attractive multiples I view an 18% total return not good enough to invest my hard earned money.

Dan Hess

Yes, I agree that the high P/E Ratio in the Stock Study that I uploaded is too high. I will prepare a new study and upload it for review!

Doug