Darden Restaurants Inc (DRI)vsStarbucks Corporation (SBUX)
DRI
Darden Restaurants Inc
$204.57
-0.81%
CONSUMER CYCLICAL · Cap: $23.32B
SBUX
Starbucks Corporation
$104.97
+1.55%
CONSUMER CYCLICAL · Cap: $118.51B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 191% more annual revenue ($38.47B vs $13.21B). DRI leads profitability with a 9.1% profit margin vs 3.9%. SBUX appears more attractively valued with a PEG of 1.28. DRI earns a higher WallStSmart Score of 67/100 (B-).
DRI
Strong Buy67
out of 100
Grade: B-
SBUX
Buy51
out of 100
Grade: C-
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
+21.9%
Fair Value
$126.84
Current Price
$104.97
$21.87 discount
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
Large-cap with strong market position
Earnings expanding 32.6% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 10.6x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
ROE of 0.0% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
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 : SBUX
The strongest argument for SBUX centers on Debt/Equity, Market Cap, EPS Growth. PEG of 1.28 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 : SBUX
The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 80.0x 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 0.97 — expect wider price swings.
DRI is growing revenue faster at 13.7% — sustainability is the question.
SBUX generates stronger free cash flow (92M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (67/100 vs 51/100) and 13.7% revenue growth. SBUX offers better value entry with a 21.9% margin of safety. Both earn "Strong 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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