Darden Restaurants Inc (DRI)vsYum! Brands Inc (YUM)
DRI
Darden Restaurants Inc
$194.56
+1.29%
CONSUMER CYCLICAL · Cap: $22.31B
YUM
Yum! Brands Inc
$153.93
-0.30%
CONSUMER CYCLICAL · Cap: $43.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 50% more annual revenue ($12.76B vs $8.49B). YUM leads profitability with a 20.5% profit margin vs 8.7%. DRI appears more attractively valued with a PEG of 1.70. YUM earns a higher WallStSmart Score of 65/100 (C+).
DRI
Buy55
out of 100
Grade: C-
YUM
Buy65
out of 100
Grade: C+
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
-77.2%
Fair Value
$89.76
Current Price
$153.93
$64.17 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Strong operational efficiency at 31.0%
Earnings expanding 72.2% YoY
Keeps 21 of every $100 in revenue as profit
15.2% revenue growth
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
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
DRI profiles as a value stock while YUM is a growth play — different risk/reward profiles.
YUM carries more volatility with a beta of 0.66 — expect wider price swings.
YUM is growing revenue faster at 15.2% — sustainability is the question.
DRI generates stronger free cash flow (610M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 55/100), backed by strong 20.5% margins and 15.2% revenue growth. 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.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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