Darden Restaurants Inc (DRI)vsShake Shack Inc (SHAK)
DRI
Darden Restaurants Inc
$201.66
+0.57%
CONSUMER CYCLICAL · Cap: $23.46B
SHAK
Shake Shack Inc
$89.50
-0.60%
CONSUMER CYCLICAL · Cap: $3.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 783% more annual revenue ($12.76B vs $1.45B). DRI leads profitability with a 8.7% profit margin vs 3.2%. DRI appears more attractively valued with a PEG of 1.81. DRI earns a higher WallStSmart Score of 55/100 (C-).
DRI
Buy55
out of 100
Grade: C-
SHAK
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-229.4%
Fair Value
$64.60
Current Price
$201.66
$137.06 premium
Margin of Safety
-90.2%
Fair Value
$51.01
Current Price
$89.50
$38.49 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Revenue surging 21.9% year-over-year
Earnings expanding 28.7% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 11.0x book value
Earnings declined 3.3%
Distress zone — elevated risk
3.2% margin — thin
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : SHAK
The strongest argument for SHAK centers on Revenue Growth, EPS Growth. Revenue growth of 21.9% demonstrates continued momentum.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Bear Case : SHAK
The primary concerns for SHAK are Profit Margin, Piotroski F-Score, PEG Ratio. A P/E of 82.6x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
DRI profiles as a value stock while SHAK is a growth play — different risk/reward profiles.
SHAK carries more volatility with a beta of 1.77 — expect wider price swings.
SHAK is growing revenue faster at 21.9% — sustainability is the question.
DRI generates stronger free cash flow (606M), providing more financial flexibility.
Bottom Line
DRI scores higher overall (55/100 vs 50/100). Both earn "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.
Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
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