WallStSmart

Darden Restaurants Inc (DRI)vsGood Times Restaurants Inc (GTIM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 9546% more annual revenue ($13.21B vs $136.96M). DRI leads profitability with a 9.1% profit margin vs 1.3%. GTIM appears more attractively valued with a PEG of 1.22. DRI earns a higher WallStSmart Score of 67/100 (B-).

DRI

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 7.0Value: 5.0Quality: 3.5
Piotroski: 5/9Altman Z: 1.40

GTIM

Hold

49

out of 100

Grade: D+

Growth: 4.0Profit: 4.0Value: 8.7Quality: 4.0
Piotroski: 3/9Altman Z: 1.71
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for DRI.

GTIMUndervalued (+88.8%)

Margin of Safety

+88.8%

Fair Value

$10.94

Current Price

$1.44

$9.50 discount

UndervaluedFair: $10.94Overvalued

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

GTIM2 strengths · Avg: 10.0/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Areas to Watch

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

Expensive relative to growth rate

Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Free Cash FlowQuality
$-159.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.402/10

Distress zone — elevated risk

GTIM4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.714/10

Distress zone — elevated risk

Market CapQuality
$14.89M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
1.3%3/10

1.3% margin — thin

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 : GTIM

The strongest argument for GTIM centers on P/E Ratio, Price/Book. PEG of 1.22 suggests the stock is reasonably priced for its growth.

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 : GTIM

The primary concerns for GTIM are Altman Z-Score, Market Cap, Return on Equity. Thin 1.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

GTIM carries more volatility with a beta of 0.65 — expect wider price swings.

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

GTIM generates stronger free cash flow (191,000), providing more financial flexibility.

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

Bottom Line

DRI scores higher overall (67/100 vs 49/100) and 13.7% revenue growth. GTIM offers better value entry with a 88.8% 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.

Darden Restaurants Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

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

Good Times Restaurants Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Good Times Restaurants Inc., is dedicated to the restaurant business in the United States. The company is headquartered in Lakewood, Colorado.

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