WallStSmart

Darden Restaurants Inc (DRI)vsRed Robin Gourmet Burgers Inc (RRGB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 955% more annual revenue ($12.76B vs $1.21B). DRI leads profitability with a 8.7% profit margin vs -1.9%. RRGB appears more attractively valued with a PEG of 1.36. DRI earns a higher WallStSmart Score of 55/100 (C-).

DRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 1.33

RRGB

Avoid

33

out of 100

Grade: F

Growth: 2.7Profit: 2.5Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRISignificantly Overvalued (-229.4%)

Margin of Safety

-229.4%

Fair Value

$64.60

Current Price

$201.66

$137.06 premium

UndervaluedFair: $64.60Overvalued

Intrinsic value data unavailable for RRGB.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
51.5%10/10

Every $100 of equity generates 52 in profit

RRGB0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

RRGB4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$56.39M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-2.4%2/10

ROE of -2.4% — below average capital efficiency

Revenue GrowthGrowth
-5.7%2/10

Revenue declined 5.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bull Case : RRGB

PEG of 1.36 suggests the stock is reasonably priced for its growth.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.

Bear Case : RRGB

The primary concerns for RRGB are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

DRI profiles as a value stock while RRGB is a turnaround play — different risk/reward profiles.

RRGB carries more volatility with a beta of 2.16 — expect wider price swings.

DRI is growing revenue faster at 5.9% — sustainability is the question.

DRI generates stronger free cash flow (606M), providing more financial flexibility.

Bottom Line

DRI scores higher overall (55/100 vs 33/100). Both earn "Buy" and "Avoid" 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.

Red Robin Gourmet Burgers Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Red Robin Gourmet Burgers, Inc. develops, operates and franchises full-service restaurants and casual dining. The company is headquartered in Greenwood Village, Colorado.

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