WallStSmart

Chipotle Mexican Grill Inc (CMG)vsDarden Restaurants Inc (DRI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 6% more annual revenue ($13.21B vs $12.42B). CMG leads profitability with a 11.4% profit margin vs 9.1%. DRI appears more attractively valued with a PEG of 1.82. DRI earns a higher WallStSmart Score of 67/100 (B-).

CMG

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 8.0Value: 4.3Quality: 4.5
Piotroski: 4/9Altman Z: 2.47

DRI

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 7.0Value: 4.0Quality: 4.0
Piotroski: 6/9Altman Z: 1.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CMG.

DRISignificantly Overvalued (-89.5%)

Margin of Safety

-89.5%

Fair Value

$112.30

Current Price

$204.57

$92.27 premium

UndervaluedFair: $112.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMG1 strengths · Avg: 10.0/10
Return on EquityProfitability
64.5%10/10

Every $100 of equity generates 65 in profit

DRI2 strengths · Avg: 9.0/10
Return on EquityProfitability
54.7%10/10

Every $100 of equity generates 55 in profit

EPS GrowthGrowth
36.0%8/10

Earnings expanding 36.0% YoY

Areas to Watch

CMG4 concerns · Avg: 3.5/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

P/E RatioValuation
34.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
19.4x4/10

Trading at 19.4x book value

EPS GrowthGrowth
-1.3%2/10

Earnings declined 1.3%

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Free Cash FlowQuality
$-159.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.402/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CMG

The strongest argument for CMG centers on Return on Equity.

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.

Bear Case : CMG

The primary concerns for CMG are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.46 is elevated, increasing financial risk.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, Free Cash Flow. Debt-to-equity of 2.74 is elevated, increasing financial risk.

Key Dynamics to Monitor

CMG carries more volatility with a beta of 0.96 — expect wider price swings.

DRI is growing revenue faster at 13.7% — sustainability is the question.

CMG generates stronger free cash flow (463M), providing more financial flexibility.

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

Bottom Line

DRI scores higher overall (67/100 vs 54/100) and 13.7% 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.

Chipotle Mexican Grill Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Chipotle Mexican Grill, Inc., often known simply as Chipotle, is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and Mission burritos that are made to order in front of the customer.

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Darden Restaurants Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.

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