Arcos Dorados Holdings Inc (ARCO)vsDarden Restaurants Inc (DRI)
ARCO
Arcos Dorados Holdings Inc
$8.20
-0.73%
CONSUMER CYCLICAL · Cap: $1.83B
DRI
Darden Restaurants Inc
$198.12
+2.41%
CONSUMER CYCLICAL · Cap: $24.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 165% more annual revenue ($12.76B vs $4.82B). DRI leads profitability with a 8.7% profit margin vs 4.9%. ARCO appears more attractively valued with a PEG of 0.54. ARCO earns a higher WallStSmart Score of 70/100 (B-).
ARCO
Strong Buy70
out of 100
Grade: B-
DRI
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+25.8%
Fair Value
$11.33
Current Price
$8.20
$3.13 discount
Intrinsic value data unavailable for DRI.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 159.4% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 53 in profit
Areas to Watch
Grey zone — moderate risk
Smaller company, higher risk/reward
4.9% margin — thin
Negative free cash flow — burning cash
Expensive relative to growth rate
Trading at 10.8x book value
Earnings declined 3.3%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCO
The strongest argument for ARCO centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 12.9% demonstrates continued momentum. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bear Case : ARCO
The primary concerns for ARCO are Altman Z-Score, Market Cap, Profit Margin. Debt-to-equity of 2.82 is elevated, increasing financial risk. Thin 4.9% margins leave little buffer for downturns.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 2.94 is elevated, increasing financial risk.
Key Dynamics to Monitor
DRI carries more volatility with a beta of 0.59 — expect wider price swings.
ARCO is growing revenue faster at 12.9% — sustainability is the question.
DRI generates stronger free cash flow (610M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARCO scores higher overall (70/100 vs 55/100) and 12.9% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Arcos Dorados Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Arcos Dorados Holdings Inc. is a McDonald's restaurant franchise. The company is headquartered in Montevideo, Uruguay.
Visit Website →Darden Restaurants Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.
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