WallStSmart

Darden Restaurants Inc (DRI)vsPapa John's International Inc (PZZA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 521% more annual revenue ($12.76B vs $2.05B). DRI leads profitability with a 8.7% profit margin vs 1.5%. DRI appears more attractively valued with a PEG of 1.81. DRI earns a higher WallStSmart Score of 55/100 (C-).

DRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 1.33

PZZA

Hold

35

out of 100

Grade: F

Growth: 2.0Profit: 5.0Value: 7.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRISignificantly Overvalued (-229.4%)

Margin of Safety

-229.4%

Fair Value

$64.60

Current Price

$201.66

$137.06 premium

UndervaluedFair: $64.60Overvalued
PZZASignificantly Overvalued (-455.7%)

Margin of Safety

-455.7%

Fair Value

$6.12

Current Price

$33.12

$27.00 premium

UndervaluedFair: $6.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
51.5%10/10

Every $100 of equity generates 52 in profit

PZZA0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

PZZA4 concerns · Avg: 3.5/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

P/E RatioValuation
36.8x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.09B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bull Case : PZZA

PZZA has a balanced fundamental profile.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.

Bear Case : PZZA

The primary concerns for PZZA are PEG Ratio, P/E Ratio, Market Cap. Thin 1.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

PZZA carries more volatility with a beta of 1.24 — expect wider price swings.

DRI is growing revenue faster at 5.9% — sustainability is the question.

DRI generates stronger free cash flow (606M), providing more financial flexibility.

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

Bottom Line

DRI scores higher overall (55/100 vs 35/100). Both earn "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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