WallStSmart

Darden Restaurants Inc (DRI)vsRestaurant Brands International Inc (QSR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 33% more annual revenue ($12.58B vs $9.43B). DRI leads profitability with a 8.9% profit margin vs 8.2%. QSR appears more attractively valued with a PEG of 1.16. DRI earns a higher WallStSmart Score of 61/100 (C+).

DRI

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 8.7Quality: 4.3
Piotroski: 4/9Altman Z: 1.33

QSR

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 0.93
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRIUndervalued (+12.6%)

Margin of Safety

+12.6%

Fair Value

$243.45

Current Price

$203.05

$40.40 discount

UndervaluedFair: $243.45Overvalued
QSRSignificantly Overvalued (-295.4%)

Margin of Safety

-295.4%

Fair Value

$17.88

Current Price

$73.75

$55.87 premium

UndervaluedFair: $17.88Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
54.1%10/10

Every $100 of equity generates 54 in profit

QSR2 strengths · Avg: 8.5/10
Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
26.4%8/10

Strong operational efficiency at 26.4%

Areas to Watch

DRI3 concerns · Avg: 3.3/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

Price/BookValuation
10.3x4/10

Trading at 10.3x book value

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

QSR3 concerns · Avg: 2.7/10
P/E RatioValuation
28.0x4/10

Moderate valuation

EPS GrowthGrowth
-57.4%2/10

Earnings declined 57.4%

Altman Z-ScoreHealth
0.932/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bull Case : QSR

The strongest argument for QSR centers on Return on Equity, Operating Margin. PEG of 1.16 suggests the stock is reasonably priced for its growth.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, Altman Z-Score.

Bear Case : QSR

The primary concerns for QSR are P/E Ratio, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

DRI carries more volatility with a beta of 0.60 — expect wider price swings.

QSR is growing revenue faster at 7.4% — sustainability is the question.

QSR generates stronger free cash flow (441M), providing more financial flexibility.

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

Bottom Line

DRI scores higher overall (61/100 vs 57/100). 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.

Restaurant Brands International Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Restaurant Brands International Inc. owns, operates and franchises quick-service restaurants under the Tim Hortons (TH), Burger King (BK) and Popeyes (PLK) brands. The company is headquartered in Toronto, Canada.

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