The Cheesecake Factory Incorporated (CAKE) vs Brinker International, Inc. (EAT)

The Cheesecake Factory Incorporated and Brinker International, Inc. are both Restaurants companies. Brinker International, Inc. is the larger, with a market value of $8.6B against $5.3B — 1.6× the size. Brinker International, Inc. trades at the lower P/E: 18.5× against 27.3×. Brinker International, Inc. grew revenue faster over the last twelve months: 7.86% against 5.66%. Brinker International, Inc. has the higher net margin (8.39% vs 4.61%) and the higher return on invested capital (51.4% vs 14.4%). Across the 22 metrics below, Brinker International, Inc. leads on 17 and The Cheesecake Factory Incorporated on 5.

Valuation

Metric CAKE EAT Restaurants median
P/E 27.25 18.48 22.14
P/S 1.26 1.55 0.91
P/B 9.38 20.32 2.01
Price to free cash flow 23.72 16.16 19.41
EV/EBITDA 16.71 11.27 11.48
EV/Sales 1.37 1.63 1.20
Earnings yield 3.67% 5.41% 2.30%
Free cash flow yield 4.22% 6.19% 3.92%

Profitability

Metric CAKE EAT Restaurants median
Gross margin 16.50% 18.65% 38.77%
Operating margin 5.27% 10.67% 4.30%
Net margin 4.61% 8.39% 1.85%
Free cash flow margin 5.29% 9.61% 3.12%
Return on equity 38.83% 119.57% 3.07%
Return on assets 5.54% 17.73% 1.50%
Return on invested capital 14.39% 51.43% 3.14%

Growth

Metric CAKE EAT Restaurants median
Revenue growth (TTM) 5.66% 7.86% 5.16%
EPS growth (last fiscal year) (4.38%) 30.65% —
Revenue growth, 5-year CAGR 13.60% 11.71% 10.57%
Net income growth, 5-year CAGR 0.00% 29.91% 0.00%

Health

Metric CAKE EAT Restaurants median
Debt to equity 1.08 0.95 0.10
Current ratio 0.59 0.45 0.81
Net debt to EBITDA 1.40 0.37 0.43

Dividend

Metric CAKE EAT Restaurants median
Dividend yield 3.04% — 2.32%
Payout ratio 0.81 0.00 0.00

Size

Metric CAKE EAT Restaurants median
Market cap 5.27b 8.63b 482.66m

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