Darden Restaurants Inc (DRI)vsYum! Brands Inc (YUM)
DRI
Darden Restaurants Inc
$203.05
-0.67%
CONSUMER CYCLICAL · Cap: $23.62B
YUM
Yum! Brands Inc
$156.41
+0.10%
CONSUMER CYCLICAL · Cap: $43.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 53% more annual revenue ($12.58B vs $8.21B). YUM leads profitability with a 19.0% profit margin vs 8.9%. DRI appears more attractively valued with a PEG of 1.82. DRI earns a higher WallStSmart Score of 61/100 (C+).
DRI
Buy61
out of 100
Grade: C+
YUM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.6%
Fair Value
$243.45
Current Price
$203.05
$40.40 discount
Margin of Safety
+38.8%
Fair Value
$259.74
Current Price
$156.41
$103.33 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 54 in profit
Strong operational efficiency at 31.9%
Earnings expanding 27.7% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 10.3x book value
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. Profitability is solid with margins at 19.0% and operating margin at 31.9%.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, Altman Z-Score.
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 mature play — different risk/reward profiles.
YUM carries more volatility with a beta of 0.64 — expect wider price swings.
DRI is growing revenue faster at 7.3% — sustainability is the question.
YUM generates stronger free cash flow (482M), providing more financial flexibility.
Bottom Line
DRI scores higher overall (61/100 vs 59/100). YUM offers better value entry with a 38.8% margin of safety. 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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