The Cheesecake Factory (CAKE)vsMcDonald’s Corporation (MCD)
CAKE
The Cheesecake Factory
$66.13
+3.59%
CONSUMER CYCLICAL · Cap: $3.74B
MCD
McDonald’s Corporation
$279.84
+0.82%
CONSUMER CYCLICAL · Cap: $203.29B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 622% more annual revenue ($27.45B vs $3.80B). MCD leads profitability with a 31.6% 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+
MCD
Buy56
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
Margin of Safety
-84.4%
Fair Value
$151.11
Current Price
$279.84
$128.73 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Earnings expanding 52.2% YoY
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.3%
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
Grey zone — moderate risk
4.3% margin — thin
Elevated debt levels
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CAKE
The strongest argument for CAKE centers on Return on Equity, EPS Growth.
Bull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.6% and operating margin at 44.3%.
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 : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
CAKE profiles as a value stock while MCD is a mature play — different risk/reward profiles.
CAKE carries more volatility with a beta of 1.04 — expect wider price swings.
MCD is growing revenue faster at 9.4% — sustainability is the question.
MCD generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
CAKE scores higher overall (62/100 vs 56/100). 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.
McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
Visit Website →Compare with Other RESTAURANTS Stocks
Want to dig deeper into these stocks?