The Cheesecake Factory (CAKE)vsRestaurant Brands International Inc (QSR)
CAKE
The Cheesecake Factory
$106.76
-3.57%
CONSUMER CYCLICAL · Cap: $5.63B
QSR
Restaurant Brands International Inc
$77.69
-1.09%
CONSUMER CYCLICAL · Cap: $34.14B
Smart Verdict
WallStSmart Research — data-driven comparison
Restaurant Brands International Inc generates 150% more annual revenue ($9.70B vs $3.88B). QSR leads profitability with a 13.1% profit margin vs 5.2%. QSR appears more attractively valued with a PEG of 1.15. QSR earns a higher WallStSmart Score of 68/100 (B-).
CAKE
Buy64
out of 100
Grade: C+
QSR
Strong Buy68
out of 100
Grade: B-
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
+37.8%
Fair Value
$113.69
Current Price
$77.69
$36.00 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Earnings expanding 80.3% YoY
Every $100 of equity generates 38 in profit
Earnings expanding 151.2% YoY
Strong operational efficiency at 27.7%
Areas to Watch
Premium valuation, high expectations priced in
Trading at 10.2x book value
Grey zone — moderate risk
5.2% margin — thin
4.6% revenue growth
Distress zone — elevated risk
Elevated debt levels
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 : QSR
The strongest argument for QSR centers on Return on Equity, EPS Growth, Operating Margin. PEG of 1.15 suggests the stock is reasonably priced for its growth.
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 : QSR
The primary concerns for QSR are Revenue Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.92 is elevated, increasing financial risk.
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.
QSR generates stronger free cash flow (479M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
QSR scores higher overall (68/100 vs 64/100). 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.
Restaurant Brands International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Restaurant Brands International Inc. owns, operates and franchises quick-service restaurants under the Tim Hortons (TH), Burger King (BK) and Popeyes (PLK) brands. The company is headquartered in Toronto, Canada.
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