CAKE's recent 172% gain limits clear short-term upside, but the stock may undergo a valuation re-rating to a 25-35 forward PE as investors recognize the growth potential of its Flower Child and North Italia concepts.

Look at the Cheesecake Factory, up another $13,000 here today. Unbelievable. Now up $228,000 on Cheesecake Factory. Congratulations anybody that's been riding this Cheesecake Factory stock. Absolutely unbelievable.

Cheesecake Factory. This is one of the hottest stocks in the entire market. Now, it's up 172%. It doesn't even account for dividends received in the stock.

I'm not sure how much more Cheesecake can move in the short term. I mean, it has had an incredible run. And I'm just not sure how much more can run. So, this is one, yeah, it has the momentum right now, but I'm just not sure how much more short-term upside it has, right?

But you also have to look at a stock like Cheesecake from a perspective of yeah, maybe it doesn't have a ton more upside short-term, but maybe it does. Like, who knows? But the thing with Cake is there is a possibility of a valuation re-rating with this stock where people are willing to pay a lot higher PE ratio for it and forward PE ratio than previous because people are starting to understand the story about they've got multiple growth concepts coming behind them.

And now people are looking at Flower Child and looking at these comps and like, "Oh my gosh, one of the best comps we've seen in recent history for any of these restaurant concepts."

And like, they got a banger. And so, people might be willing to pay a lot more for Cheesecake Factory stock than they used to pay, right? Cuz if you reviewed it just from the Cheesecake Factory, you might pay a 12, 14, maybe a 16 PE.

But then when you think about North Italia, and then when you really think about Flower Child, that's the big dog. Now you're like, "Shoot, those are two major growth concepts for the next decade.

Maybe I'm willing to pay, uh you know, a 25 forward PE for that stock, or a 34 PE, or 35 forward PE, or something like that, right?"