CAKE vs EAT: Correlation
The Cheesecake Factory Incorporated (CAKE) and Brinker International, Inc. (EAT) show a moderate relationship: their 3-year correlation of weekly returns is 0.56.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAKE and EAT?
On 3 years of weekly data the CAKE/EAT correlation comes out at 0.56, moderate. Recent behaviour matches the longer record: 0.54 over 1 year against 0.56 over 3. The 5-year figure is 0.67, and annualized covariance runs at 920.2 %².
By 3-year correlation, EAT places #6 of the 23 assets tracked against CAKE. Correlation aside, the last 12 months split them widely, with CAKE ahead by 31.7 points (+81.1% versus +49.4%).
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 EAT: side by side
| CAKE (The Cheesecake Factory Incorporated) | EAT (Brinker International, Inc.) | |
|---|---|---|
| 1-year return | +81.1% | +49.4% |
| 5-year return | +170.4% | +347.9% |
| Volatility (ann.) | 34.8% | 47.1% |
| Beta vs S&P 500 | 0.93 | 0.67 |
| Max drawdown (3Y) | -36.4% | -45.9% |
| Market cap | $5.5B | $10.0B |
| P/E (trailing) | 31.2 | 21.5 |
| Dividend yield | 0.99% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CAKE | EAT |
|---|---|---|
| 2022 | -17.0% | -12.8% |
| 2023 | +14.0% | +35.3% |
| 2024 | +39.3% | +206.4% |
| 2025 | +8.6% | +8.5% |
| 2026 | +120.8% | +62.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAKE and EAT good diversifiers for each other?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAKE and EAT?
Using weekly returns as of 2026-08-27: 0.56 over 3 years, with 0.54 over the last year and 0.67 over 5 years.
Is EAT a good diversifier for CAKE?
Somewhat, no more. With 0.56 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.56 mean?
On the −1 to +1 scale, 0.56 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/cake-vs-eat.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/cake-vs-eat/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: CAKE correlations · EAT correlations
