Top 5 Consumer Discretionary Stocks to Buy in 2021

2. The Cheesecake Factory Incorporated (NASDAQ:CAKE)

Intrinsic Edge opened a large position in The Cheesecake Factory Incorporated (NASDAQ:CAKE) during Q3, buying just under 691,000 shares valued at $19.17 million on September 30, perhaps in anticipation of positive developments on the coronavirus vaccine front. Those developments started in early November and CAKE shares have gained over 50% since.

The restaurant operator has understandably struggled through the pandemic, but its execution has nonetheless been relatively strong, with revenue and comparable sales both beating estimates in Q3. Hedge funds have also been impressed by the company’s off-premise sales, which surged during the initial pandemic lockdowns and have largely been maintained even as dining rooms have reopened.