WallStSmart

Darden Restaurants Inc (DRI)vsYum China Holdings Inc (YUMC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 6% more annual revenue ($12.76B vs $12.09B). DRI leads profitability with a 8.7% profit margin vs 7.8%. YUMC appears more attractively valued with a PEG of 1.27. YUMC earns a higher WallStSmart Score of 62/100 (C+).

DRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 4.0Quality: 4.3
Piotroski: 4/9Altman Z: 1.33

YUMC

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 6.0Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 2.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRISignificantly Overvalued (-65.0%)

Margin of Safety

-65.0%

Fair Value

$128.94

Current Price

$194.56

$65.62 premium

UndervaluedFair: $128.94Overvalued
YUMCSignificantly Overvalued (-18.1%)

Margin of Safety

-18.1%

Fair Value

$47.52

Current Price

$48.39

$0.87 premium

UndervaluedFair: $47.52Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
51.5%10/10

Every $100 of equity generates 52 in profit

YUMC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

Price/BookValuation
10.6x4/10

Trading at 10.6x book value

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

YUMC1 concerns · Avg: 3.0/10
Profit MarginProfitability
7.8%3/10

7.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bull Case : YUMC

PEG of 1.27 suggests the stock is reasonably priced for its growth.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.

Bear Case : YUMC

The primary concerns for YUMC are Profit Margin.

Key Dynamics to Monitor

DRI carries more volatility with a beta of 0.63 — expect wider price swings.

YUMC is growing revenue faster at 9.7% — sustainability is the question.

DRI generates stronger free cash flow (610M), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

YUMC scores higher overall (62/100 vs 55/100). 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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