Darden Restaurants Inc (DRI)vsShake Shack Inc (SHAK)
DRI
Darden Restaurants Inc
$212.23
+2.54%
CONSUMER CYCLICAL · Cap: $22.74B
SHAK
Shake Shack Inc
$63.05
-0.24%
CONSUMER CYCLICAL · Cap: $2.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 786% more annual revenue ($13.21B vs $1.49B). DRI leads profitability with a 9.1% profit margin vs 2.8%. DRI appears more attractively valued with a PEG of 1.77. DRI earns a higher WallStSmart Score of 67/100 (B-).
DRI
Strong Buy67
out of 100
Grade: B-
SHAK
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.5%
Fair Value
$112.30
Current Price
$212.23
$99.93 premium
Margin of Safety
+28.1%
Fair Value
$135.04
Current Price
$63.05
$71.99 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Earnings expanding 28.7% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 11.0x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
ROE of 7.8% — below average capital efficiency
2.8% margin — thin
Elevated debt levels
Expensive relative to growth rate
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 : SHAK
The strongest argument for SHAK centers on EPS Growth. Revenue growth of 14.3% demonstrates continued momentum.
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 : SHAK
The primary concerns for SHAK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 58.1x leaves little room for execution misses. Debt-to-equity of 1.78 is elevated, increasing financial risk.
Key Dynamics to Monitor
SHAK carries more volatility with a beta of 1.63 — expect wider price swings.
SHAK is growing revenue faster at 14.3% — sustainability is the question.
SHAK generates stronger free cash flow (-17M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (67/100 vs 51/100) and 13.7% revenue growth. SHAK offers better value entry with a 28.1% margin of safety. Both earn "Strong 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.
Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
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