Darden Restaurants Inc (DRI)vsMcDonald’s Corporation (MCD)
DRI
Darden Restaurants Inc
$204.57
-0.81%
CONSUMER CYCLICAL · Cap: $23.32B
MCD
McDonald’s Corporation
$268.34
+1.17%
CONSUMER CYCLICAL · Cap: $187.27B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 108% more annual revenue ($27.45B vs $13.21B). MCD leads profitability with a 31.6% profit margin vs 9.1%. DRI appears more attractively valued with a PEG of 1.82. DRI earns a higher WallStSmart Score of 67/100 (B-).
DRI
Strong Buy67
out of 100
Grade: B-
MCD
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.5%
Fair Value
$112.30
Current Price
$204.57
$92.27 premium
Margin of Safety
-79.3%
Fair Value
$152.31
Current Price
$268.34
$116.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.3%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.6x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
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, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.
Bull Case : MCD
The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.6% and operating margin at 44.3%.
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 : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
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 0.58 — expect wider price swings.
DRI is growing revenue faster at 13.7% — sustainability is the question.
MCD generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
DRI scores higher overall (67/100 vs 55/100) 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.
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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