Darden Restaurants Inc (DRI)vsYum! Brands Inc (YUM)
DRI
Darden Restaurants Inc
$219.39
-1.54%
CONSUMER CYCLICAL · Cap: $24.50B
YUM
Yum! Brands Inc
$157.01
-0.37%
CONSUMER CYCLICAL · Cap: $40.98B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 53% more annual revenue ($13.37B vs $8.72B). YUM leads profitability with a 25.4% profit margin vs 8.8%. YUM appears more attractively valued with a PEG of 1.90. YUM earns a higher WallStSmart Score of 65/100 (C+).
DRI
Buy51
out of 100
Grade: C-
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-81.9%
Fair Value
$117.01
Current Price
$219.39
$102.38 premium
Margin of Safety
-77.1%
Fair Value
$89.82
Current Price
$157.01
$67.19 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 57 in profit
Strong operational efficiency at 32.8%
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 12.0x book value
Earnings declined 6.7%
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.
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 32.8%. Revenue growth of 12.2% demonstrates continued momentum.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 3.20 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 0.62 — expect wider price swings.
YUM is growing revenue faster at 12.2% — sustainability is the question.
YUM generates stronger free cash flow (407M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 51/100), backed by strong 25.4% margins and 12.2% 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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