The Cheesecake Factory (CAKE)vsChipotle Mexican Grill Inc (CMG)
CAKE
The Cheesecake Factory
$66.13
+3.59%
CONSUMER CYCLICAL · Cap: $3.74B
CMG
Chipotle Mexican Grill Inc
$29.34
+4.12%
CONSUMER CYCLICAL · Cap: $41.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Chipotle Mexican Grill Inc generates 219% more annual revenue ($12.14B vs $3.80B). CMG leads profitability with a 12.0% profit margin vs 4.3%. CAKE appears more attractively valued with a PEG of 1.55. CAKE earns a higher WallStSmart Score of 62/100 (C+).
CAKE
Buy62
out of 100
Grade: C+
CMG
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2.6%
Fair Value
$60.01
Current Price
$66.13
$6.12 premium
Intrinsic value data unavailable for CMG.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Earnings expanding 52.2% YoY
Every $100 of equity generates 60 in profit
Areas to Watch
Expensive relative to growth rate
Grey zone — moderate risk
4.3% margin — thin
Elevated debt levels
Expensive relative to growth rate
Moderate valuation
Trading at 15.7x book value
Earnings declined 17.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : CAKE
The strongest argument for CAKE centers on Return on Equity, EPS Growth.
Bull Case : CMG
The strongest argument for CMG centers on Return on Equity.
Bear Case : CAKE
The primary concerns for CAKE are PEG Ratio, Altman Z-Score, Profit Margin. Debt-to-equity of 4.66 is elevated, increasing financial risk. Thin 4.3% margins leave little buffer for downturns.
Bear Case : CMG
The primary concerns for CMG are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.18 is elevated, increasing financial risk.
Key Dynamics to Monitor
CAKE carries more volatility with a beta of 1.04 — expect wider price swings.
CMG is growing revenue faster at 7.4% — sustainability is the question.
CMG generates stronger free cash flow (471M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CAKE scores higher overall (62/100 vs 54/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
The Cheesecake Factory
CONSUMER CYCLICAL · RESTAURANTS · USA
Cheesecake Factory Incorporated operates restaurants. The company is headquartered in Calabasas, California.
Chipotle Mexican Grill Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Chipotle Mexican Grill, Inc., often known simply as Chipotle, is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and Mission burritos that are made to order in front of the customer.
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