WallStSmart

Dine Brands Global Inc (DIN)vsDarden Restaurants Inc (DRI)

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Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 1368% more annual revenue ($13.21B vs $899.90M). DRI leads profitability with a 9.1% profit margin vs 0.8%. DIN appears more attractively valued with a PEG of 1.29. DRI earns a higher WallStSmart Score of 67/100 (B-).

DIN

Hold

46

out of 100

Grade: D+

Growth: 2.7Profit: 5.0Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.69

DRI

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 7.0Value: 4.0Quality: 4.0
Piotroski: 6/9Altman Z: 1.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DINUndervalued (+49.2%)

Margin of Safety

+49.2%

Fair Value

$68.23

Current Price

$28.17

$40.06 discount

UndervaluedFair: $68.23Overvalued
DRISignificantly Overvalued (-86.1%)

Margin of Safety

-86.1%

Fair Value

$114.33

Current Price

$199.75

$85.42 premium

UndervaluedFair: $114.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DIN1 strengths · Avg: 10.0/10
Debt/EquityHealth
-5.7910/10

Conservative balance sheet, low leverage

DRI2 strengths · Avg: 9.0/10
Return on EquityProfitability
54.7%10/10

Every $100 of equity generates 55 in profit

EPS GrowthGrowth
36.0%8/10

Earnings expanding 36.0% YoY

Areas to Watch

DIN4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Market CapQuality
$358.13M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
0.8%3/10

0.8% margin — thin

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

Price/BookValuation
10.3x4/10

Trading at 10.3x book value

Free Cash FlowQuality
$-159.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.402/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : DIN

The strongest argument for DIN centers on Debt/Equity. PEG of 1.29 suggests the stock is reasonably priced for its growth.

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.

Bear Case : DIN

The primary concerns for DIN are Revenue Growth, Market Cap, Return on Equity. A P/E of 45.6x leaves little room for execution misses. Thin 0.8% margins leave little buffer for downturns.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, Free Cash Flow. Debt-to-equity of 2.74 is elevated, increasing financial risk.

Key Dynamics to Monitor

DIN carries more volatility with a beta of 0.95 — expect wider price swings.

DRI is growing revenue faster at 13.7% — sustainability is the question.

DIN generates stronger free cash flow (-3M), providing more financial flexibility.

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

Bottom Line

DRI scores higher overall (67/100 vs 46/100) and 13.7% revenue growth. DIN offers better value entry with a 49.2% margin of safety. Both earn "Strong 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.

Dine Brands Global Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Dine Brands Global, Inc. owns, franchises, operates and leases full service restaurants in the United States and internationally. The company is headquartered in Glendale, California.

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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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