WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 123% more annual revenue ($12.76B vs $5.73B). DRI leads profitability with a 8.7% profit margin vs 8.1%. EAT appears more attractively valued with a PEG of 0.89. EAT earns a higher WallStSmart Score of 61/100 (C+).

DRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.33

EAT

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 7.0Quality: 4.5
Piotroski: 5/9Altman Z: 2.63

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
52.5%10/10

Every $100 of equity generates 53 in profit

EAT3 strengths · Avg: 8.7/10
Return on EquityProfitability
114.0%10/10

Every $100 of equity generates 114 in profit

PEG RatioValuation
0.898/10

Growing faster than its price suggests

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

Price/BookValuation
11.5x4/10

Trading at 11.5x book value

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

EAT3 concerns · Avg: 3.0/10
Price/BookValuation
17.4x4/10

Trading at 17.4x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

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.

Bull Case : EAT

The strongest argument for EAT centers on Return on Equity, PEG Ratio, P/E Ratio. PEG of 0.89 suggests the stock is reasonably priced for its growth.

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.

Bear Case : EAT

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

Key Dynamics to Monitor

EAT carries more volatility with a beta of 1.28 — expect wider price swings.

DRI is growing revenue faster at 5.9% — 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

EAT scores higher overall (61/100 vs 55/100). Both earn "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.

Visit Website →

Want to dig deeper into these stocks?