The Cheesecake Factory Incorporated (CAKE) vs Wingstop Inc. (WING)

The Cheesecake Factory Incorporated and Wingstop Inc. are both Restaurants companies. The Cheesecake Factory Incorporated is the larger, with a market value of $5.5B against $4.5B — 1.2× the size. The Cheesecake Factory Incorporated trades at the lower P/E: 24.9× against 38.8×. The Cheesecake Factory Incorporated grew revenue faster over the last twelve months: 7.87% against 6.90%. Wingstop Inc. has the higher net margin (16.0% vs 5.20%) and the higher return on invested capital (41.1% vs 17.0%). Both pay a dividend; The Cheesecake Factory Incorporated yields more (1.05% vs 0.74%). Across the 22 metrics below, The Cheesecake Factory Incorporated leads on 11 and Wingstop Inc. on 11.

Valuation

Metric CAKE WING Restaurants median
P/E 24.88 38.79 26.18
P/S 1.30 6.17 1.11
P/B 9.04 n/m 2.06
Price to free cash flow 23.77 38.66 17.92
EV/EBITDA 17.01 23.77 12.81
EV/Sales 1.52 7.66 1.29
Earnings yield 4.02% 2.58% 2.23%
Free cash flow yield 4.21% 2.59% 3.23%

Profitability

Metric CAKE WING Restaurants median
Gross margin 16.92% 86.10% 38.86%
Operating margin 6.04% 27.74% 4.59%
Net margin 5.20% 16.03% 1.83%
Free cash flow margin 5.45% 15.97% 2.47%
Return on equity 41.63% (15.87%) 3.72%
Return on assets 6.22% 16.63% 1.10%
Return on invested capital 17.01% 41.10% 3.01%

Growth

Metric CAKE WING Restaurants median
Revenue growth (TTM) 7.87% 6.90% 5.52%
EPS growth (last fiscal year) (4.38%) 67.84% (5.05%)
Revenue growth, 5-year CAGR 13.60% 22.87% 10.57%
Net income growth, 5-year CAGR 0.00% 49.54% 0.00%

Health

Metric CAKE WING Restaurants median
Debt to equity 0.98 (1.57) 0.22
Current ratio 0.36 2.12 0.78
Net debt to EBITDA 1.40 4.75 0.43

Dividend

Metric CAKE WING Restaurants median
Dividend yield 1.05% 0.74% 1.79%
Payout ratio 0.28 0.29 0.45

Size

Metric CAKE WING Restaurants median
Market cap 5.52b 4.48b 612.23m

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