Darden Restaurants Inc (DRI)vsMcDonald’s Corporation (MCD)
DRI
Darden Restaurants Inc
$209.28
+1.23%
CONSUMER CYCLICAL · Cap: $24.18B
MCD
McDonald’s Corporation
$248.24
-0.10%
CONSUMER CYCLICAL · Cap: $178.70B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 110% more annual revenue ($27.70B vs $13.21B). MCD leads profitability with a 31.7% profit margin vs 9.1%. DRI appears more attractively valued with a PEG of 1.94. DRI earns a higher WallStSmart Score of 67/100 (B-).
DRI
Strong Buy67
out of 100
Grade: B-
MCD
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.1%
Fair Value
$114.33
Current Price
$209.28
$94.95 premium
Margin of Safety
-59.5%
Fair Value
$155.74
Current Price
$248.24
$92.50 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 46.5%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 2.0B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.8x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
3.7% revenue growth
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.
Bull Case : MCD
The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.7% and operating margin at 46.5%.
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.
Bear Case : MCD
The primary concerns for MCD are PEG Ratio, Revenue Growth, Return on Equity.
Key Dynamics to Monitor
DRI carries more volatility with a beta of 0.59 — expect wider price swings.
DRI is growing revenue faster at 13.7% — sustainability is the question.
MCD generates stronger free cash flow (2.0B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (67/100 vs 53/100) 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.
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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