Darden Restaurants Inc (DRI)vsMcDonald’s Corporation (MCD)
DRI
Darden Restaurants Inc
$194.56
+1.29%
CONSUMER CYCLICAL · Cap: $22.31B
MCD
McDonald’s Corporation
$284.10
+0.38%
CONSUMER CYCLICAL · Cap: $201.95B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 111% more annual revenue ($26.88B vs $12.76B). MCD leads profitability with a 31.9% profit margin vs 8.7%. DRI appears more attractively valued with a PEG of 1.70. MCD earns a higher WallStSmart Score of 56/100 (C).
DRI
Buy55
out of 100
Grade: C-
MCD
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-65.0%
Fair Value
$128.94
Current Price
$194.56
$65.62 premium
Margin of Safety
-85.1%
Fair Value
$153.50
Current Price
$284.10
$130.60 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Mega-cap, among the largest globally
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.1%
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 10.6x 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 31.9% and operating margin at 45.1%.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
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 0.63 — expect wider price swings.
MCD is growing revenue faster at 9.7% — sustainability is the question.
MCD generates stronger free cash flow (1.6B), providing more financial flexibility.
Bottom Line
MCD scores higher overall (56/100 vs 55/100), backed by strong 31.9% 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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