Darden Restaurants Inc (DRI)vsShake Shack Inc (SHAK)
DRI
Darden Restaurants Inc
$209.89
+1.14%
CONSUMER CYCLICAL · Cap: $24.18B
SHAK
Shake Shack Inc
$63.65
+3.16%
CONSUMER CYCLICAL · Cap: $2.70B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 751% more annual revenue ($13.21B vs $1.55B). DRI leads profitability with a 9.1% profit margin vs 2.6%. DRI appears more attractively valued with a PEG of 1.94. DRI earns a higher WallStSmart Score of 67/100 (B-).
DRI
Strong Buy67
out of 100
Grade: B-
SHAK
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.7%
Fair Value
$113.99
Current Price
$209.89
$95.90 premium
Margin of Safety
+30.1%
Fair Value
$138.90
Current Price
$63.65
$75.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
17.2% revenue growth
Areas to Watch
Expensive relative to growth rate
Trading at 10.8x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
ROE of 7.8% — below average capital efficiency
2.6% margin — thin
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, EPS Growth. Revenue growth of 13.7% demonstrates continued momentum.
Bull Case : SHAK
The strongest argument for SHAK centers on Revenue Growth. Revenue growth of 17.2% demonstrates continued momentum.
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 : SHAK
The primary concerns for SHAK are Return on Equity, Profit Margin, PEG Ratio. A P/E of 70.8x leaves little room for execution misses. Thin 2.6% 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 1.66 — expect wider price swings.
SHAK is growing revenue faster at 17.2% — sustainability is the question.
SHAK generates stronger free cash flow (-736,000), providing more financial flexibility.
Bottom Line
DRI scores higher overall (67/100 vs 42/100) and 13.7% revenue growth. SHAK offers better value entry with a 30.1% margin of safety. Both earn "Strong 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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