Arcos Dorados Holdings Inc (ARCO)vsDarden Restaurants Inc (DRI)
ARCO
Arcos Dorados Holdings Inc
$8.37
+3.46%
CONSUMER CYCLICAL · Cap: $1.76B
DRI
Darden Restaurants Inc
$201.66
+0.57%
CONSUMER CYCLICAL · Cap: $23.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 173% more annual revenue ($12.76B vs $4.68B). DRI leads profitability with a 8.7% profit margin vs 4.5%. ARCO appears more attractively valued with a PEG of 0.54. ARCO earns a higher WallStSmart Score of 60/100 (C).
ARCO
Buy60
out of 100
Grade: C
DRI
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.4%
Fair Value
$6.87
Current Price
$8.37
$1.50 premium
Margin of Safety
-229.4%
Fair Value
$64.60
Current Price
$201.66
$137.06 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 33 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 52 in profit
Areas to Watch
Smaller company, higher risk/reward
4.5% margin — thin
Weak financial health signals
Earnings declined 56.9%
Expensive relative to growth rate
Trading at 11.0x book value
Earnings declined 3.3%
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ARCO
The strongest argument for ARCO centers on P/E Ratio, Return on Equity, PEG Ratio. Revenue growth of 10.7% demonstrates continued momentum. PEG of 0.54 suggests the stock is reasonably priced for its growth.
Bull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bear Case : ARCO
The primary concerns for ARCO are Market Cap, Profit Margin, Piotroski F-Score. Debt-to-equity of 2.77 is elevated, increasing financial risk. Thin 4.5% margins leave little buffer for downturns.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
DRI carries more volatility with a beta of 0.60 — expect wider price swings.
ARCO is growing revenue faster at 10.7% — sustainability is the question.
DRI generates stronger free cash flow (606M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ARCO scores higher overall (60/100 vs 55/100) and 10.7% 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.
Arcos Dorados Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Arcos Dorados Holdings Inc. is a McDonald's restaurant franchise. The company is headquartered in Montevideo, Uruguay.
Visit Website →Darden Restaurants Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.
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