Darden Restaurants Inc (DRI)vsBrinker International Inc (EAT)
DRI
Darden Restaurants Inc
$201.66
+0.57%
CONSUMER CYCLICAL · Cap: $23.46B
EAT
Brinker International Inc
$147.11
-2.96%
CONSUMER CYCLICAL · Cap: $6.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 124% more annual revenue ($12.76B vs $5.69B). DRI leads profitability with a 8.7% profit margin vs 8.0%. EAT appears more attractively valued with a PEG of 0.89. EAT earns a higher WallStSmart Score of 61/100 (C+).
DRI
Buy55
out of 100
Grade: C-
EAT
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-229.4%
Fair Value
$64.60
Current Price
$201.66
$137.06 premium
Margin of Safety
+24.3%
Fair Value
$219.83
Current Price
$147.11
$72.72 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Trading at 11.0x book value
Earnings declined 3.3%
Distress zone — elevated risk
Trading at 16.9x book value
ROE of 1.8% — below average capital efficiency
8.0% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : EAT
The strongest argument for EAT centers on PEG Ratio, P/E Ratio. PEG of 0.89 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 : EAT
The primary concerns for EAT are Price/Book, Return on Equity, Profit Margin. Debt-to-equity of 4.65 is elevated, increasing financial risk.
Key Dynamics to Monitor
EAT carries more volatility with a beta of 1.36 — expect wider price swings.
EAT is growing revenue faster at 6.9% — 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
EAT scores higher overall (61/100 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.
Brinker International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Brinker International, Inc. owns, develops, operates and franchises casual dining restaurants in the United States and internationally. The company is headquartered in Dallas, Texas.
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