Shares in Cheesecake Factory Inc. rose Monday after an analyst upgraded the casual dining operator’s stock, saying investors should expect earnings to rise despite consumer spending and cost concerns.

SunTrust analyst Robinson Humphrey said in a research note to investors that the company is more attractive now because it plans to lower the number of restaurants it opens, which will benefit the brand in the long run.

Last month, Cheesecake Factory said it would open 17 restaurants in 2008, which is slightly off of its 2007 pace which has seen 21 locations open so far this year.

“While fewer unit openings negatively impacts top-line growth, it benefits the margin by reducing the amount of pre-opening expense during the year, thus the company is targeting net income growth to outpace revenue during 2008, the report said.

The report also said that the Calabasas-based casual dinning chain has withstood a difficult operating environment while some of its peers have faltered. The sector has been plagued by lower consumer spending, higher raw material and increased labor costs.

Shares in Cheesecake Factory rose 3.1 percent, or 66 cents, to $22.32 in afternoon trading Monday on the Nasdaq.