Darden Restaurants Inc (DRI)vsFirst Watch Restaurant Group Inc (FWRG)
DRI
Darden Restaurants Inc
$198.12
+2.41%
CONSUMER CYCLICAL · Cap: $24.22B
FWRG
First Watch Restaurant Group Inc
$10.18
-0.59%
CONSUMER CYCLICAL · Cap: $763.78M
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 904% more annual revenue ($12.76B vs $1.27B). DRI leads profitability with a 8.7% profit margin vs 1.4%. DRI trades at a lower P/E of 22.3x. DRI earns a higher WallStSmart Score of 55/100 (C-).
DRI
Buy55
out of 100
Grade: C-
FWRG
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for DRI.
Margin of Safety
-35.5%
Fair Value
$12.24
Current Price
$10.18
$2.06 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 53 in profit
Reasonable price relative to book value
Earnings expanding 2290.0% YoY
17.3% revenue growth
Areas to Watch
Expensive relative to growth rate
Trading at 10.8x book value
Earnings declined 3.3%
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of 2.8% — below average capital efficiency
1.4% margin — thin
Operating margin of 0.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : FWRG
The strongest argument for FWRG centers on Price/Book, EPS Growth, Revenue Growth. Revenue growth of 17.3% demonstrates continued momentum.
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 : FWRG
The primary concerns for FWRG are Market Cap, Return on Equity, Profit Margin. A P/E of 44.3x leaves little room for execution misses. Thin 1.4% margins leave little buffer for downturns.
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 1.06 — expect wider price swings.
FWRG is growing revenue faster at 17.3% — sustainability is the question.
DRI generates stronger free cash flow (610M), providing more financial flexibility.
Bottom Line
DRI scores higher overall (55/100 vs 54/100). 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.
First Watch Restaurant Group Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
First Watch Restaurant Group Inc (FWRG) is a prominent player in the fast-casual dining sector, specializing in breakfast, brunch, and lunch, with a strong emphasis on health-conscious and high-quality culinary offerings. Founded in 1983, the company has cultivated a loyal customer base through an innovative and adaptable menu that reflects contemporary food trends. With a commitment to exceptional customer service and a unique dining experience, First Watch is strategically expanding its footprint in new markets, positioning itself for sustainable growth and increased shareholder value in a competitive landscape.
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