Darden Restaurants Inc (DRI)vsMcDonald’s Corporation (MCD)
DRI
Darden Restaurants Inc
$198.12
+2.41%
CONSUMER CYCLICAL · Cap: $24.22B
MCD
McDonald’s Corporation
$279.84
-1.84%
CONSUMER CYCLICAL · Cap: $203.29B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 115% more annual revenue ($27.45B vs $12.76B). MCD leads profitability with a 31.6% profit margin vs 8.7%. DRI appears more attractively valued with a PEG of 1.85. MCD earns a higher WallStSmart Score of 56/100 (C).
DRI
Buy55
out of 100
Grade: C-
MCD
Buy56
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 53 in profit
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.3%
Conservative balance sheet, low leverage
Generating 1.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.8x book value
Earnings declined 3.3%
Distress zone — elevated risk
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : MCD
The strongest argument for MCD centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 31.6% and operating margin at 44.3%.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 2.94 is elevated, increasing financial risk.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
DRI profiles as a value stock while MCD is a mature play — different risk/reward profiles.
DRI carries more volatility with a beta of 0.59 — expect wider price swings.
MCD is growing revenue faster at 9.4% — sustainability is the question.
MCD generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
MCD scores higher overall (56/100 vs 55/100), backed by strong 31.6% margins. 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.
McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
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