Darden Restaurants Inc (DRI)vsFirst Watch Restaurant Group Inc (FWRG)
DRI
Darden Restaurants Inc
$209.89
+1.14%
CONSUMER CYCLICAL · Cap: $24.18B
FWRG
First Watch Restaurant Group Inc
$11.35
+1.43%
CONSUMER CYCLICAL · Cap: $758.45M
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 902% more annual revenue ($13.21B vs $1.32B). DRI leads profitability with a 9.1% profit margin vs 1.4%. DRI trades at a lower P/E of 20.4x. DRI earns a higher WallStSmart Score of 67/100 (B-).
DRI
Strong Buy67
out of 100
Grade: B-
FWRG
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.7%
Fair Value
$113.99
Current Price
$209.89
$95.90 premium
Margin of Safety
+3.5%
Fair Value
$17.19
Current Price
$11.35
$5.84 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Reasonable price relative to book value
15.2% revenue growth
Earnings expanding 26.4% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 10.8x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of 2.8% — below average capital efficiency
1.4% margin — thin
Operating margin of 2.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.
Bull Case : FWRG
The strongest argument for FWRG centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 15.2% demonstrates continued momentum.
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 : FWRG
The primary concerns for FWRG are Market Cap, Return on Equity, Profit Margin. A P/E of 43.9x leaves little room for execution misses. Debt-to-equity of 1.69 is elevated, increasing financial risk.
Key Dynamics to Monitor
DRI profiles as a value stock while FWRG is a growth play — different risk/reward profiles.
FWRG carries more volatility with a beta of 1.03 — expect wider price swings.
FWRG is growing revenue faster at 15.2% — sustainability is the question.
FWRG generates stronger free cash flow (-14M), providing more financial flexibility.
Bottom Line
DRI scores higher overall (67/100 vs 52/100) 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.
First Watch Restaurant Group Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
First Watch Restaurant Group Inc (FWRG) is a prominent fast-casual dining chain specializing in breakfast, brunch, and lunch, renowned for its health-conscious menu and high-quality ingredients. Founded in 1983, the company has cultivated a loyal customer base by innovatively adapting its menu to reflect contemporary culinary trends while prioritizing exceptional service. With a strategic focus on expanding its footprint in both existing and new markets, First Watch is well-positioned for sustained growth, making it a compelling investment opportunity in the dynamic dining sector.
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