WallStSmart

Darden Restaurants Inc (DRI)vsBrinker International Inc (EAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 130% more annual revenue ($13.21B vs $5.73B). DRI leads profitability with a 9.1% profit margin vs 8.1%. EAT appears more attractively valued with a PEG of 1.56. DRI earns a higher WallStSmart Score of 67/100 (B-).

DRI

Strong Buy

67

out of 100

Grade: B-

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

EAT

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 5.0Quality: 4.5
Piotroski: 5/9Altman Z: 2.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRISignificantly Overvalued (-89.5%)

Margin of Safety

-89.5%

Fair Value

$112.30

Current Price

$210.94

$98.64 premium

UndervaluedFair: $112.30Overvalued

Intrinsic value data unavailable for EAT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

EAT1 strengths · Avg: 10.0/10
Return on EquityProfitability
114.0%10/10

Every $100 of equity generates 114 in profit

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

Price/BookValuation
10.9x4/10

Trading at 10.9x book value

Free Cash FlowQuality
$-159.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.402/10

Distress zone — elevated risk

EAT4 concerns · Avg: 2.8/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Price/BookValuation
23.8x2/10

Trading at 23.8x book value

Debt/EquityHealth
4.311/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

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

Bull Case : EAT

The strongest argument for EAT centers on Return on Equity.

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.

Bear Case : EAT

The primary concerns for EAT are PEG Ratio, Revenue Growth, Price/Book. Debt-to-equity of 4.31 is elevated, increasing financial risk.

Key Dynamics to Monitor

EAT carries more volatility with a beta of 1.25 — expect wider price swings.

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

EAT generates stronger free cash flow (181M), providing more financial flexibility.

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

Bottom Line

DRI scores higher overall (67/100 vs 57/100) and 13.7% 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.

Darden Restaurants Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

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

Brinker International Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Brinker International, Inc. owns, develops, operates and franchises casual dining restaurants in the United States and internationally. The company is headquartered in Dallas, Texas.

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