Darden Restaurants Inc (DRI)vsPapa John's International Inc (PZZA)
DRI
Darden Restaurants Inc
$213.76
+1.34%
CONSUMER CYCLICAL · Cap: $23.32B
PZZA
Papa John's International Inc
$24.47
-0.69%
CONSUMER CYCLICAL · Cap: $983.77M
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 556% more annual revenue ($13.21B vs $2.01B). DRI leads profitability with a 9.1% profit margin vs 1.4%. 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-
PZZA
Hold35
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.5%
Fair Value
$112.30
Current Price
$213.76
$101.46 premium
Margin of Safety
+37.1%
Fair Value
$54.06
Current Price
$24.47
$29.59 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 11.0x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 0.0% — below average capital efficiency
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 : PZZA
The strongest argument for PZZA centers on Debt/Equity.
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 : PZZA
The primary concerns for PZZA are PEG Ratio, P/E Ratio, Market Cap. Thin 1.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
PZZA carries more volatility with a beta of 1.11 — expect wider price swings.
DRI is growing revenue faster at 13.7% — sustainability is the question.
PZZA generates stronger free cash flow (-6M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (67/100 vs 35/100) and 13.7% revenue growth. PZZA offers better value entry with a 37.1% 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.
Papa John's International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Papa John's International, Inc. operates and franchises pizza delivery and take-out restaurants under the Papa John's trademark in the United States and internationally. The company is headquartered in Louisville, Kentucky.
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