WallStSmart

Denny’s Corp (DENN)vsDarden Restaurants Inc (DRI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 2692% more annual revenue ($12.76B vs $457.21M). DRI leads profitability with a 8.7% profit margin vs 2.2%. DENN appears more attractively valued with a PEG of 1.06. DRI earns a higher WallStSmart Score of 55/100 (C-).

DENN

Hold

41

out of 100

Grade: D

Growth: 3.3Profit: 5.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.08

DRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 1.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DENNSignificantly Overvalued (-359.6%)

Margin of Safety

-359.6%

Fair Value

$1.36

Current Price

$6.25

$4.89 premium

UndervaluedFair: $1.36Overvalued
DRISignificantly Overvalued (-229.4%)

Margin of Safety

-229.4%

Fair Value

$64.60

Current Price

$201.66

$137.06 premium

UndervaluedFair: $64.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DENN1 strengths · Avg: 10.0/10
Debt/EquityHealth
-12.7410/10

Conservative balance sheet, low leverage

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
51.5%10/10

Every $100 of equity generates 52 in profit

Areas to Watch

DENN4 concerns · Avg: 3.5/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Market CapQuality
$321.87M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : DENN

The strongest argument for DENN centers on Debt/Equity. PEG of 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bear Case : DENN

The primary concerns for DENN are P/E Ratio, Revenue Growth, Market Cap. Thin 2.2% margins leave little buffer for downturns.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

DENN carries more volatility with a beta of 1.37 — expect wider price swings.

DRI is growing revenue faster at 5.9% — sustainability is the question.

DRI generates stronger free cash flow (606M), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DRI scores higher overall (55/100 vs 41/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Denny’s Corp

CONSUMER CYCLICAL · RESTAURANTS · USA

Denny's Corporation, through its subsidiary, Denny's, Inc., owns and operates full-service restaurant chains under the Denny's brand. The company is headquartered in Spartanburg, South Carolina.

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Darden Restaurants Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.

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