Darden Restaurants Inc (DRI)vsNathans Famous Inc (NATH)
DRI
Darden Restaurants Inc
$208.08
-0.50%
CONSUMER CYCLICAL · Cap: $24.18B
NATH
Nathans Famous Inc
$97.94
-0.74%
CONSUMER CYCLICAL · Cap: $400.79M
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 7711% more annual revenue ($13.21B vs $169.13M). NATH leads profitability with a 11.8% profit margin vs 9.1%. NATH appears more attractively valued with a PEG of 1.56. DRI earns a higher WallStSmart Score of 67/100 (B-).
DRI
Strong Buy67
out of 100
Grade: B-
NATH
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.1%
Fair Value
$114.33
Current Price
$208.08
$93.75 premium
Margin of Safety
-36.0%
Fair Value
$74.16
Current Price
$97.94
$23.78 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Strong operational efficiency at 23.9%
15.0% revenue growth
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
Smaller company, higher risk/reward
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 : NATH
The strongest argument for NATH centers on Debt/Equity, Altman Z-Score, Operating Margin. Revenue growth of 15.0% demonstrates continued momentum.
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 : NATH
The primary concerns for NATH are PEG Ratio, Market Cap, Return on Equity.
Key Dynamics to Monitor
DRI carries more volatility with a beta of 0.59 — expect wider price swings.
NATH is growing revenue faster at 15.0% — sustainability is the question.
NATH generates stronger free cash flow (882,000), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (67/100 vs 49/100) and 13.7% revenue growth. Both earn "Strong Buy" and "Hold" 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.
Nathans Famous Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Nathan's Famous, Inc. operates in the foodservice industry. The company is headquartered in Jericho, New York.
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