WallStSmart

Darden Restaurants Inc (DRI)vsJack in the Box Inc. (JACK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 822% more annual revenue ($13.21B vs $1.43B). DRI leads profitability with a 9.1% profit margin vs 2.5%. JACK appears more attractively valued with a PEG of 0.37. 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

JACK

Hold

42

out of 100

Grade: D

Growth: 2.0Profit: 5.0Value: 8.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRISignificantly Overvalued (-89.5%)

Margin of Safety

-89.5%

Fair Value

$112.30

Current Price

$212.23

$99.93 premium

UndervaluedFair: $112.30Overvalued
JACKUndervalued (+47.2%)

Margin of Safety

+47.2%

Fair Value

$39.07

Current Price

$16.34

$22.73 discount

UndervaluedFair: $39.07Overvalued

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

JACK2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3710/10

Growing faster than its price suggests

Debt/EquityHealth
-2.8310/10

Conservative balance sheet, low leverage

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.774/10

Expensive relative to growth rate

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

Free Cash FlowQuality
$-159.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.402/10

Distress zone — elevated risk

JACK4 concerns · Avg: 2.8/10
Market CapQuality
$277.52M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Revenue GrowthGrowth
-4.3%2/10

Revenue declined 4.3%

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 : JACK

The strongest argument for JACK centers on PEG Ratio, Debt/Equity. PEG of 0.37 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 : JACK

The primary concerns for JACK are Market Cap, Return on Equity, Profit Margin. Thin 2.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

JACK carries more volatility with a beta of 1.40 — expect wider price swings.

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

JACK generates stronger free cash flow (-27M), providing more financial flexibility.

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

Bottom Line

DRI scores higher overall (67/100 vs 42/100) and 13.7% revenue growth. JACK offers better value entry with a 47.2% 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.

Jack in the Box Inc.

CONSUMER CYCLICAL · RESTAURANTS · USA

Jack in the Box Inc. operates and franchises Jack in the Box quick service restaurants. The company is headquartered in San Diego, California.

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