Darden Restaurants Inc (DRI)vsYum! Brands Inc (YUM)
DRI
Darden Restaurants Inc
$204.57
-0.81%
CONSUMER CYCLICAL · Cap: $23.32B
YUM
Yum! Brands Inc
$147.68
-0.75%
CONSUMER CYCLICAL · Cap: $41.85B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 51% more annual revenue ($13.21B vs $8.72B). YUM leads profitability with a 25.4% profit margin vs 9.1%. DRI appears more attractively valued with a PEG of 1.82. DRI earns a higher WallStSmart Score of 67/100 (B-).
DRI
Strong Buy67
out of 100
Grade: B-
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.5%
Fair Value
$112.30
Current Price
$204.57
$92.27 premium
Margin of Safety
-79.7%
Fair Value
$88.51
Current Price
$147.68
$59.17 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Strong operational efficiency at 32.2%
Earnings expanding 131.6% YoY
Conservative balance sheet, low leverage
Keeps 25 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Trading at 10.6x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Distress zone — elevated risk
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 : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.4% and operating margin at 32.2%. Revenue growth of 12.3% 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 : YUM
The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
DRI profiles as a value stock while YUM is a mature play — different risk/reward profiles.
DRI carries more volatility with a beta of 0.58 — expect wider price swings.
DRI is growing revenue faster at 13.7% — sustainability is the question.
YUM generates stronger free cash flow (341M), providing more financial flexibility.
Bottom Line
DRI scores higher overall (67/100 vs 65/100) and 13.7% revenue growth. 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.
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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