The Cheesecake Factory (CAKE)vsMcDonald’s Corporation (MCD)
CAKE
The Cheesecake Factory
$106.76
-3.57%
CONSUMER CYCLICAL · Cap: $5.63B
MCD
McDonald’s Corporation
$278.04
-0.55%
CONSUMER CYCLICAL · Cap: $182.66B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 614% more annual revenue ($27.70B vs $3.88B). MCD leads profitability with a 31.7% profit margin vs 5.2%. CAKE appears more attractively valued with a PEG of 1.42. CAKE earns a higher WallStSmart Score of 64/100 (C+).
CAKE
Buy64
out of 100
Grade: C+
MCD
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+1.2%
Fair Value
$62.33
Current Price
$106.76
$44.43 discount
Margin of Safety
-65.0%
Fair Value
$156.42
Current Price
$278.04
$121.62 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Earnings expanding 80.3% YoY
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 46.5%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 2.0B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 10.2x book value
Grey zone — moderate risk
5.2% margin — thin
3.7% revenue growth
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. Revenue growth of 13.9% demonstrates continued momentum. PEG of 1.42 suggests the stock is reasonably priced for its growth.
Bull Case : MCD
The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.7% and operating margin at 46.5%.
Bear Case : CAKE
The primary concerns for CAKE are P/E Ratio, Price/Book, Altman Z-Score. Debt-to-equity of 4.01 is elevated, increasing financial risk.
Bear Case : MCD
The primary concerns for MCD are Revenue Growth, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
CAKE carries more volatility with a beta of 1.04 — expect wider price swings.
CAKE is growing revenue faster at 13.9% — sustainability is the question.
MCD generates stronger free cash flow (2.0B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CAKE scores higher overall (64/100 vs 53/100) and 13.9% revenue growth. 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.
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