Darden Restaurants Inc (DRI)vsTexas Roadhouse Inc (TXRH)
DRI
Darden Restaurants Inc
$201.66
+0.57%
CONSUMER CYCLICAL · Cap: $23.46B
TXRH
Texas Roadhouse Inc
$169.08
+0.69%
CONSUMER CYCLICAL · Cap: $11.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 117% more annual revenue ($12.76B vs $5.88B). DRI leads profitability with a 8.7% profit margin vs 6.9%. 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-
TXRH
Hold49
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
-342.1%
Fair Value
$41.48
Current Price
$169.08
$127.60 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Areas to Watch
Expensive relative to growth rate
Trading at 11.0x book value
Earnings declined 3.3%
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
3.1% revenue growth
6.9% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : DRI
The strongest argument for DRI centers on Return on Equity.
Bull Case : TXRH
The strongest argument for TXRH centers on Altman Z-Score, Return on Equity.
Bear Case : DRI
The primary concerns for DRI are PEG Ratio, Price/Book, EPS Growth.
Bear Case : TXRH
The primary concerns for TXRH are PEG Ratio, P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
TXRH carries more volatility with a beta of 0.87 — 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.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRI scores higher overall (55/100 vs 49/100). 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.
Texas Roadhouse Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Texas Roadhouse, Inc., operates casual restaurants in the United States and internationally. The company is headquartered in Louisville, Kentucky.
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