Darden Restaurants Inc (DRI)vsEl Pollo Loco Holdings Inc (LOCO)
DRI
Darden Restaurants Inc
$219.39
-1.54%
CONSUMER CYCLICAL · Cap: $24.50B
LOCO
El Pollo Loco Holdings Inc
$15.55
-0.13%
CONSUMER CYCLICAL · Cap: $438.84M
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 2569% more annual revenue ($13.37B vs $500.79M). DRI leads profitability with a 8.8% profit margin vs 7.0%. LOCO appears more attractively valued with a PEG of 1.16. LOCO earns a higher WallStSmart Score of 65/100 (C+).
DRI
Buy51
out of 100
Grade: C-
LOCO
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-81.9%
Fair Value
$117.01
Current Price
$219.39
$102.38 premium
Margin of Safety
+20.2%
Fair Value
$13.42
Current Price
$15.55
$2.13 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 57 in profit
Reasonable price relative to book value
Earnings expanding 79.2% YoY
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Trading at 12.0x book value
Earnings declined 6.7%
Distress zone — elevated risk
3.0% revenue growth
Distress zone — elevated risk
Smaller company, higher risk/reward
7.0% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : LOCO
The strongest argument for LOCO centers on Price/Book, EPS Growth, P/E Ratio. PEG of 1.16 suggests the stock is reasonably priced for its growth.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 3.20 is elevated, increasing financial risk.
Bear Case : LOCO
The primary concerns for LOCO are Revenue Growth, Altman Z-Score, Market Cap.
Key Dynamics to Monitor
LOCO carries more volatility with a beta of 0.67 — expect wider price swings.
DRI is growing revenue faster at 5.1% — sustainability is the question.
DRI generates stronger free cash flow (101M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LOCO scores higher overall (65/100 vs 51/100). 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.
El Pollo Loco Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
El Pollo Loco Holdings, Inc., through its subsidiary El Pollo Loco, Inc., develops, franchises, licenses and operates quick service restaurants under the name El Pollo Loco. The company is headquartered in Costa Mesa, California.
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