The Cheesecake Factory (CAKE)vsDarden Restaurants Inc (DRI)
CAKE
The Cheesecake Factory
$66.13
+3.59%
CONSUMER CYCLICAL · Cap: $3.74B
DRI
Darden Restaurants Inc
$210.56
+2.41%
CONSUMER CYCLICAL · Cap: $24.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 236% more annual revenue ($12.76B vs $3.80B). DRI leads profitability with a 8.7% 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+
DRI
Buy55
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
Intrinsic value data unavailable for DRI.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 36 in profit
Earnings expanding 52.2% YoY
Every $100 of equity generates 53 in profit
Areas to Watch
Expensive relative to growth rate
Grey zone — moderate risk
4.3% margin — thin
Elevated debt levels
Expensive relative to growth rate
Trading at 11.5x 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, EPS Growth.
Bull Case : DRI
The strongest argument for DRI centers on Return on Equity.
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 : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 2.94 is elevated, increasing financial risk.
Key Dynamics to Monitor
CAKE carries more volatility with a beta of 1.04 — expect wider price swings.
DRI is growing revenue faster at 5.9% — sustainability is the question.
DRI generates stronger free cash flow (610M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CAKE scores higher overall (62/100 vs 55/100). 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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