WallStSmart

Darden Restaurants Inc (DRI)vsWingstop Inc (WING)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 1732% more annual revenue ($12.76B vs $696.85M). WING leads profitability with a 25.0% profit margin vs 8.7%. 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

WING

Hold

49

out of 100

Grade: D+

Growth: 6.7Profit: 8.5Value: 7.3Quality: 7.0
Piotroski: 5/9Altman Z: 0.74
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
WINGSignificantly Overvalued (-174.0%)

Margin of Safety

-174.0%

Fair Value

$88.93

Current Price

$166.31

$77.38 premium

UndervaluedFair: $88.93Overvalued

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

WING3 strengths · Avg: 9.0/10
Debt/EquityHealth
-1.8010/10

Conservative balance sheet, low leverage

Profit MarginProfitability
25.0%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
27.2%8/10

Strong operational efficiency at 27.2%

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

WING4 concerns · Avg: 3.8/10
PEG RatioValuation
2.074/10

Expensive relative to growth rate

P/E RatioValuation
27.7x4/10

Moderate valuation

EPS GrowthGrowth
4.7%4/10

4.7% earnings growth

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 : WING

The strongest argument for WING centers on Debt/Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 25.0% and operating margin at 27.2%.

Bear Case : DRI

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

Bear Case : WING

The primary concerns for WING are PEG Ratio, P/E Ratio, EPS Growth.

Key Dynamics to Monitor

DRI profiles as a value stock while WING is a mature play — different risk/reward profiles.

WING carries more volatility with a beta of 1.86 — expect wider price swings.

WING is growing revenue faster at 8.6% — sustainability is the question.

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

Bottom Line

DRI scores higher overall (55/100 vs 49/100). 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.

Wingstop Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Wingstop Inc., franchises and operates restaurants under the Wingstop brand. The company is headquartered in Dallas, Texas.

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