Darden Restaurants Inc (DRI)vsStarbucks Corporation (SBUX)
DRI
Darden Restaurants Inc
$194.56
+1.29%
CONSUMER CYCLICAL · Cap: $22.31B
SBUX
Starbucks Corporation
$104.97
-0.88%
CONSUMER CYCLICAL · Cap: $119.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 201% more annual revenue ($38.47B vs $12.76B). DRI leads profitability with a 8.7% profit margin vs 3.9%. DRI appears more attractively valued with a PEG of 1.70. DRI earns a higher WallStSmart Score of 55/100 (C-).
DRI
Buy55
out of 100
Grade: C-
SBUX
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-65.0%
Fair Value
$128.94
Current Price
$194.56
$65.62 premium
Margin of Safety
+26.7%
Fair Value
$135.29
Current Price
$104.97
$30.32 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Large-cap with strong market position
Earnings expanding 32.6% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 10.6x book value
Earnings declined 3.3%
Distress zone — elevated risk
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : SBUX
The strongest argument for SBUX centers on Market Cap, EPS Growth.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 80.8x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
SBUX carries more volatility with a beta of 1.01 — expect wider price swings.
SBUX is growing revenue faster at 8.8% — 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
DRI scores higher overall (55/100 vs 49/100). SBUX offers better value entry with a 26.7% margin of safety. 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.
Starbucks Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
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