WallStSmart

Darden Restaurants Inc (DRI)vsStarbucks Corporation (SBUX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 201% more annual revenue ($38.47B vs $12.76B). DRI leads profitability with a 8.7% profit margin vs 3.9%. SBUX appears more attractively valued with a PEG of 1.37. DRI earns a higher WallStSmart Score of 55/100 (C-).

DRI

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.33

SBUX

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 5.0Value: 5.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for DRI.

SBUXUndervalued (+22.2%)

Margin of Safety

+22.2%

Fair Value

$127.45

Current Price

$95.29

$32.16 discount

UndervaluedFair: $127.45Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
52.5%10/10

Every $100 of equity generates 53 in profit

SBUX3 strengths · Avg: 9.0/10
Debt/EquityHealth
-2.8810/10

Conservative balance sheet, low leverage

Market CapQuality
$115.78B9/10

Large-cap with strong market position

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

Price/BookValuation
10.8x4/10

Trading at 10.8x book value

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

SBUX4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
77.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bull Case : SBUX

The strongest argument for SBUX centers on Debt/Equity, Market Cap, EPS Growth. PEG of 1.37 suggests the stock is reasonably priced for its growth.

Bear Case : DRI

The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 2.94 is elevated, increasing financial risk.

Bear Case : SBUX

The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 77.5x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

SBUX carries more volatility with a beta of 0.98 — expect wider price swings.

SBUX is growing revenue faster at 8.8% — sustainability is the question.

DRI generates stronger free cash flow (610M), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DRI scores higher overall (55/100 vs 51/100). SBUX offers better value entry with a 22.2% margin of safety. 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.

Starbucks Corporation

CONSUMER CYCLICAL · RESTAURANTS · USA

Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.

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