The Cheesecake Factory (CAKE)vsDarden Restaurants Inc (DRI)
CAKE
The Cheesecake Factory
$107.05
-0.24%
CONSUMER CYCLICAL · Cap: $5.04B
DRI
Darden Restaurants Inc
$213.76
+1.34%
CONSUMER CYCLICAL · Cap: $23.32B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 241% more annual revenue ($13.21B vs $3.88B). DRI leads profitability with a 9.1% profit margin vs 4.6%. DRI appears more attractively valued with a PEG of 1.82. DRI earns a higher WallStSmart Score of 67/100 (B-).
CAKE
Buy55
out of 100
Grade: C
DRI
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-0.4%
Fair Value
$61.32
Current Price
$107.05
$45.73 premium
Margin of Safety
-89.5%
Fair Value
$112.30
Current Price
$213.76
$101.46 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Earnings expanding 23.7% YoY
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 11.6x book value
Grey zone — moderate risk
Expensive relative to growth rate
Trading at 11.0x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CAKE
The strongest argument for CAKE centers on Return on Equity, EPS Growth.
Bull Case : DRI
The strongest argument for DRI centers on Return on Equity, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.
Bear Case : CAKE
The primary concerns for CAKE are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 4.66 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, Free Cash Flow. Debt-to-equity of 2.74 is elevated, increasing financial risk.
Key Dynamics to Monitor
CAKE carries more volatility with a beta of 1.01 — expect wider price swings.
DRI is growing revenue faster at 13.7% — sustainability is the question.
CAKE generates stronger free cash flow (52M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (67/100 vs 55/100) and 13.7% revenue growth. Both earn "Strong 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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