Darden Restaurants Inc (DRI)vsMcDonald’s Corporation (MCD)
DRI
Darden Restaurants Inc
$203.05
-0.67%
CONSUMER CYCLICAL · Cap: $23.62B
MCD
McDonald’s Corporation
$308.85
-0.24%
CONSUMER CYCLICAL · Cap: $220.40B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 114% more annual revenue ($26.88B vs $12.58B). MCD leads profitability with a 31.9% profit margin vs 8.9%. DRI appears more attractively valued with a PEG of 1.82. DRI earns a higher WallStSmart Score of 61/100 (C+).
DRI
Buy61
out of 100
Grade: C+
MCD
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.6%
Fair Value
$243.45
Current Price
$203.05
$40.40 discount
Margin of Safety
-30.1%
Fair Value
$237.45
Current Price
$308.85
$71.40 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 54 in profit
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.1%
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.3x book value
Distress zone — elevated risk
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 45.1%.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : MCD
The primary concerns for MCD are P/E Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
DRI profiles as a value stock while MCD is a mature play — different risk/reward profiles.
DRI carries more volatility with a beta of 0.60 — expect wider price swings.
MCD is growing revenue faster at 9.7% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
DRI scores higher overall (61/100 vs 53/100). 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.
McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
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