The Cheesecake Factory (CAKE)vsDarden Restaurants Inc (DRI)
CAKE
The Cheesecake Factory
$106.76
-3.57%
CONSUMER CYCLICAL · Cap: $5.63B
DRI
Darden Restaurants Inc
$226.35
-1.01%
CONSUMER CYCLICAL · Cap: $24.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 245% more annual revenue ($13.37B vs $3.88B). DRI leads profitability with a 8.8% 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+
DRI
Buy51
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
-81.3%
Fair Value
$117.34
Current Price
$226.35
$109.01 premium
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 57 in profit
Areas to Watch
Premium valuation, high expectations priced in
Trading at 10.2x book value
Grey zone — moderate risk
5.2% margin — thin
Expensive relative to growth rate
Trading at 12.4x book value
Earnings declined 6.7%
Distress zone — elevated risk
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 : DRI
The strongest argument for DRI centers on Return on Equity.
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 : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 3.20 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.
DRI generates stronger free cash flow (101M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CAKE scores higher overall (64/100 vs 51/100) 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.
Darden Restaurants Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.
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