WallStSmart

Darden Restaurants Inc (DRI)vsFirst Watch Restaurant Group Inc (FWRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 944% more annual revenue ($12.76B vs $1.22B). DRI leads profitability with a 8.7% profit margin vs 1.6%. DRI trades at a lower P/E of 21.2x. FWRG earns a higher WallStSmart Score of 56/100 (C).

DRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 1.33

FWRG

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 4.0Value: 6.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.15
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRISignificantly Overvalued (-229.4%)

Margin of Safety

-229.4%

Fair Value

$64.60

Current Price

$201.66

$137.06 premium

UndervaluedFair: $64.60Overvalued
FWRGOvervalued (-14.3%)

Margin of Safety

-14.3%

Fair Value

$14.51

Current Price

$11.27

$3.24 premium

UndervaluedFair: $14.51Overvalued

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

FWRG3 strengths · Avg: 8.7/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.2%8/10

Revenue surging 20.2% year-over-year

EPS GrowthGrowth
22.9%8/10

Earnings expanding 22.9% YoY

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

FWRG4 concerns · Avg: 3.3/10
P/E RatioValuation
37.0x4/10

Premium valuation, high expectations priced in

Market CapQuality
$700.64M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.2%3/10

ROE of 3.2% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bull Case : FWRG

The strongest argument for FWRG centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 20.2% demonstrates continued momentum.

Bear Case : DRI

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

Bear Case : FWRG

The primary concerns for FWRG are P/E Ratio, Market Cap, Return on Equity. Debt-to-equity of 1.62 is elevated, increasing financial risk. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

DRI profiles as a value stock while FWRG is a growth play — different risk/reward profiles.

FWRG carries more volatility with a beta of 0.92 — expect wider price swings.

FWRG is growing revenue faster at 20.2% — sustainability is the question.

DRI generates stronger free cash flow (606M), providing more financial flexibility.

Bottom Line

FWRG scores higher overall (56/100 vs 55/100) and 20.2% 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.

Darden Restaurants Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

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

First Watch Restaurant Group Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

First Watch Restaurant Group Inc (FWRG) is a leading entity in the fast-casual dining landscape, focusing on breakfast, brunch, and lunch with an emphasis on health-conscious, fresh, and high-quality ingredients. Established in 1983, the company has developed a dedicated customer following through its innovative menu that evolves with culinary trends. First Watch's commitment to outstanding customer service and a distinctive dining experience is complemented by its strategic expansion into new markets, laying the foundation for sustainable growth and enhanced shareholder value in the competitive restaurant industry.

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