CAKE vs DRI: Correlation
The Cheesecake Factory Incorporated (CAKE) and Darden Restaurants (DRI) show a moderate relationship: their 3-year correlation of weekly returns is 0.58.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and DRI?
Across a 3-year window, the weekly returns of CAKE and DRI correlate at 0.58, moderate. The relationship has been stable: the 1-year correlation (0.64) sits close to the 3-year figure. Stretching to 5 years gives 0.68, with an annualized covariance of 507.8 %².
In CAKE's tracked universe of 23 assets, DRI sits right near the top at #3. Their recent paths diverged sharply: over the last 12 months CAKE outperformed by 75.5 percentage points (+81.1% for CAKE against +5.6% for DRI).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
CAKE vs DRI: side by side
| CAKE (The Cheesecake Factory Incorporated) | DRI (Darden Restaurants) | |
|---|---|---|
| 1-year return | +81.1% | +5.6% |
| 5-year return | +170.4% | +66.1% |
| Volatility (ann.) | 34.8% | 25.2% |
| Beta vs S&P 500 | 0.93 | 0.52 |
| Max drawdown (3Y) | -36.4% | -23.9% |
| Market cap | $5.5B | $24.0B |
| P/E (trailing) | 31.2 | 21.0 |
| Dividend yield | 0.99% | 2.74% |
| Sector / category | US Listed | Consumer Discretionary |
Year-by-year returns
| Year | CAKE | DRI |
|---|---|---|
| 2022 | -17.0% | -4.8% |
| 2023 | +14.0% | +22.8% |
| 2024 | +39.3% | +17.7% |
| 2025 | +8.6% | +1.6% |
| 2026 | +120.8% | +17.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and DRI good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAKE and DRI?
The CAKE/DRI correlation stands at 0.58 on a 3-year window (1 year: 0.64, 5 years: 0.68), computed from weekly returns as of 2026-08-27.
Is DRI a good diversifier for CAKE?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.58 mean?
On the −1 to +1 scale, 0.58 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: CAKE correlations · DRI correlations
