CAKE vs. CMG: Which Stock Is the Better Value Option?

Core Viewpoint - The analysis compares Cheesecake Factory (CAKE) and Chipotle Mexican Grill (CMG) to determine which stock is more attractive to value investors [1] Valuation Metrics - CAKE has a forward P/E ratio of 13.93, while CMG has a forward P/E of 44.56 [5] - CAKE's PEG ratio is 1.23, indicating a more favorable expected EPS growth rate compared to CMG's PEG ratio of 2.21 [5] - CAKE's P/B ratio is 6.62, significantly lower than CMG's P/B of 21.35, suggesting CAKE is more undervalued relative to its book value [6] Earnings Outlook - CAKE is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7] - CAKE holds a Zacks Rank of 2 (Buy), while CMG has a Zacks Rank of 3 (Hold), indicating a stronger earnings estimate revision for CAKE [3]