WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 35% more annual revenue ($12.76B vs $9.43B). DRI leads profitability with a 8.7% profit margin vs 8.2%. QSR appears more attractively valued with a PEG of 0.94. QSR earns a higher WallStSmart Score of 59/100 (C).

DRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 4.0Quality: 4.3
Piotroski: 4/9Altman Z: 1.33

QSR

Buy

59

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

DRISignificantly Overvalued (-65.0%)

Margin of Safety

-65.0%

Fair Value

$128.94

Current Price

$194.56

$65.62 premium

UndervaluedFair: $128.94Overvalued
QSRUndervalued (+32.6%)

Margin of Safety

+32.6%

Fair Value

$104.92

Current Price

$81.69

$23.23 discount

UndervaluedFair: $104.92Overvalued

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

QSR3 strengths · Avg: 8.3/10
Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.948/10

Growing faster than its price suggests

Operating MarginProfitability
26.4%8/10

Strong operational efficiency at 26.4%

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

Price/BookValuation
10.6x4/10

Trading at 10.6x book value

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

QSR3 concerns · Avg: 2.7/10
P/E RatioValuation
30.4x4/10

Premium valuation, high expectations priced in

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, PEG Ratio, Operating Margin. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bear Case : DRI

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

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 0.63 — expect wider price swings.

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

DRI generates stronger free cash flow (610M), providing more financial flexibility.

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

Bottom Line

QSR scores higher overall (59/100 vs 55/100). 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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