WallStSmart

The Cheesecake Factory (CAKE)vsChipotle Mexican Grill Inc (CMG)

VS

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

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 4.7Quality: 4.0
Piotroski: 4/9Altman Z: 1.91

CMG

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 5.0Quality: 4.5
Piotroski: 4/9Altman Z: 2.47
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CAKEFair Value (-2.6%)

Margin of Safety

-2.6%

Fair Value

$60.01

Current Price

$66.13

$6.12 premium

UndervaluedFair: $60.01Overvalued

Intrinsic value data unavailable for CMG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAKE2 strengths · Avg: 10.0/10
Return on EquityProfitability
35.9%10/10

Every $100 of equity generates 36 in profit

EPS GrowthGrowth
52.2%10/10

Earnings expanding 52.2% YoY

CMG1 strengths · Avg: 10.0/10
Return on EquityProfitability
60.3%10/10

Every $100 of equity generates 60 in profit

Areas to Watch

CAKE4 concerns · Avg: 3.0/10
PEG RatioValuation
1.554/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.914/10

Grey zone — moderate risk

Profit MarginProfitability
4.3%3/10

4.3% margin — thin

Debt/EquityHealth
4.661/10

Elevated debt levels

CMG4 concerns · Avg: 3.5/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

P/E RatioValuation
29.6x4/10

Moderate valuation

Price/BookValuation
15.7x4/10

Trading at 15.7x book value

EPS GrowthGrowth
-17.9%2/10

Earnings declined 17.9%

Comparative Analysis Report

WallStSmart Research

Bull 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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