The Cheesecake Factory (CAKE)vsDarden Restaurants Inc (DRI)
CAKE
The Cheesecake Factory
$56.32
-1.18%
CONSUMER CYCLICAL · Cap: $2.81B
DRI
Darden Restaurants Inc
$201.66
+0.57%
CONSUMER CYCLICAL · Cap: $23.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 240% more annual revenue ($12.76B vs $3.75B). DRI leads profitability with a 8.7% profit margin vs 4.0%. CAKE appears more attractively valued with a PEG of 1.19. DRI earns a higher WallStSmart Score of 55/100 (C-).
CAKE
Buy52
out of 100
Grade: C-
DRI
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-195.9%
Fair Value
$20.81
Current Price
$56.32
$35.51 premium
Margin of Safety
-229.4%
Fair Value
$64.60
Current Price
$201.66
$137.06 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 34 in profit
Every $100 of equity generates 52 in profit
Areas to Watch
4.4% revenue growth
Grey zone — moderate risk
4.0% margin — thin
Earnings declined 27.9%
Expensive relative to growth rate
Trading at 11.0x book value
Earnings declined 3.3%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CAKE
The strongest argument for CAKE centers on Return on Equity. PEG of 1.19 suggests the stock is reasonably priced for its growth.
Bull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bear Case : CAKE
The primary concerns for CAKE are Revenue Growth, Altman Z-Score, Profit Margin. Thin 4.0% margins leave little buffer for downturns.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
CAKE carries more volatility with a beta of 0.95 — expect wider price swings.
DRI is growing revenue faster at 5.9% — sustainability is the question.
DRI generates stronger free cash flow (606M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (55/100 vs 52/100). 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.
Darden Restaurants Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.
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