Darden Restaurants Inc (DRI)vsYum China Holdings Inc (YUMC)
DRI
Darden Restaurants Inc
$219.39
-1.54%
CONSUMER CYCLICAL · Cap: $24.50B
YUMC
Yum China Holdings Inc
$47.85
+1.64%
CONSUMER CYCLICAL · Cap: $14.97B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 7% more annual revenue ($13.37B vs $12.44B). DRI leads profitability with a 8.8% profit margin vs 7.8%. YUMC appears more attractively valued with a PEG of 1.01. YUMC earns a higher WallStSmart Score of 69/100 (B-).
DRI
Buy51
out of 100
Grade: C-
YUMC
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-81.9%
Fair Value
$117.01
Current Price
$219.39
$102.38 premium
Intrinsic value data unavailable for YUMC.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 57 in profit
Attractively priced relative to earnings
Earnings expanding 21.4% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 12.0x book value
Earnings declined 6.7%
Distress zone — elevated risk
7.8% margin — thin
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 P/E Ratio, EPS Growth. Revenue growth of 12.6% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.
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 : YUMC
The primary concerns for YUMC are Profit Margin.
Key Dynamics to Monitor
DRI carries more volatility with a beta of 0.62 — expect wider price swings.
YUMC is growing revenue faster at 12.6% — sustainability is the question.
YUMC generates stronger free cash flow (305M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
YUMC scores higher overall (69/100 vs 51/100) and 12.6% 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 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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