Darden Restaurants Inc (DRI)vsYum China Holdings Inc (YUMC)
DRI
Darden Restaurants Inc
$203.05
-0.67%
CONSUMER CYCLICAL · Cap: $23.62B
YUMC
Yum China Holdings Inc
$51.74
-3.65%
CONSUMER CYCLICAL · Cap: $18.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 7% more annual revenue ($12.58B vs $11.80B). DRI leads profitability with a 8.9% profit margin vs 7.9%. YUMC appears more attractively valued with a PEG of 1.34. YUMC earns a higher WallStSmart Score of 64/100 (C+).
DRI
Buy61
out of 100
Grade: C+
YUMC
Buy64
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
+52.2%
Fair Value
$117.47
Current Price
$51.74
$65.73 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 54 in profit
Earnings expanding 34.3% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 10.3x book value
Distress zone — elevated risk
7.9% margin — thin
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : YUMC
The strongest argument for YUMC centers on EPS Growth. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, Altman Z-Score.
Bear Case : YUMC
The primary concerns for YUMC are Profit Margin, Free Cash Flow.
Key Dynamics to Monitor
DRI carries more volatility with a beta of 0.60 — expect wider price swings.
YUMC is growing revenue faster at 8.8% — sustainability is the question.
DRI generates stronger free cash flow (147M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
YUMC scores higher overall (64/100 vs 61/100). 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 China Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.
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