Darden Restaurants Inc (DRI)vsRestaurant Brands International Inc (QSR)
DRI
Darden Restaurants Inc
$204.57
-0.81%
CONSUMER CYCLICAL · Cap: $23.32B
QSR
Restaurant Brands International Inc
$73.88
+1.29%
CONSUMER CYCLICAL · Cap: $33.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 38% more annual revenue ($13.21B vs $9.59B). QSR leads profitability with a 10.0% profit margin vs 9.1%. QSR appears more attractively valued with a PEG of 1.26. QSR earns a higher WallStSmart Score of 68/100 (B-).
DRI
Strong Buy67
out of 100
Grade: B-
QSR
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.5%
Fair Value
$112.30
Current Price
$204.57
$92.27 premium
Margin of Safety
+24.9%
Fair Value
$94.14
Current Price
$73.88
$20.26 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Earnings expanding 100.0% YoY
Every $100 of equity generates 26 in profit
Strong operational efficiency at 25.9%
Areas to Watch
Expensive relative to growth rate
Trading at 10.6x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
Distress zone — elevated risk
Elevated debt levels
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 : QSR
The strongest argument for QSR centers on EPS Growth, Return on Equity, Operating Margin. PEG of 1.26 suggests the stock is reasonably priced for its growth.
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 : QSR
The primary concerns for QSR are Altman Z-Score, Debt/Equity. Debt-to-equity of 4.19 is elevated, increasing financial risk.
Key Dynamics to Monitor
DRI carries more volatility with a beta of 0.58 — expect wider price swings.
DRI is growing revenue faster at 13.7% — sustainability is the question.
QSR generates stronger free cash flow (169M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
QSR scores higher overall (68/100 vs 67/100). Both earn "Strong Buy" and "Strong 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.
Restaurant Brands International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Restaurant Brands International Inc. owns, operates and franchises quick-service restaurants under the Tim Hortons (TH), Burger King (BK) and Popeyes (PLK) brands. The company is headquartered in Toronto, Canada.
Compare with Other RESTAURANTS Stocks
Want to dig deeper into these stocks?