WallStSmart

Darden Restaurants Inc (DRI)vsYum China Holdings Inc (YUMC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Darden Restaurants Inc generates 7% more annual revenue ($13.37B vs $12.44B). DRI leads profitability with a 8.8% profit margin vs 7.8%. YUMC appears more attractively valued with a PEG of 1.01. YUMC earns a higher WallStSmart Score of 69/100 (B-).

DRI

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 7.0Value: 4.0Quality: 4.0
Piotroski: 6/9Altman Z: 1.40

YUMC

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 6.5Value: 6.3Quality: 6.0
Piotroski: 5/9Altman Z: 2.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRISignificantly Overvalued (-81.9%)

Margin of Safety

-81.9%

Fair Value

$117.01

Current Price

$219.39

$102.38 premium

UndervaluedFair: $117.01Overvalued

Intrinsic value data unavailable for YUMC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRI1 strengths · Avg: 10.0/10
Return on EquityProfitability
57.2%10/10

Every $100 of equity generates 57 in profit

YUMC2 strengths · Avg: 8.0/10
P/E RatioValuation
16.3x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.4%8/10

Earnings expanding 21.4% YoY

Areas to Watch

DRI4 concerns · Avg: 3.0/10
PEG RatioValuation
2.194/10

Expensive relative to growth rate

Price/BookValuation
12.0x4/10

Trading at 12.0x book value

EPS GrowthGrowth
-6.7%2/10

Earnings declined 6.7%

Altman Z-ScoreHealth
1.402/10

Distress zone — elevated risk

YUMC1 concerns · Avg: 3.0/10
Profit MarginProfitability
7.8%3/10

7.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : DRI

The strongest argument for DRI centers on Return on Equity.

Bull Case : YUMC

The strongest argument for YUMC centers on P/E Ratio, EPS Growth. Revenue growth of 12.6% demonstrates continued momentum. PEG of 1.01 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 3.20 is elevated, increasing financial risk.

Bear Case : YUMC

The primary concerns for YUMC are Profit Margin.

Key Dynamics to Monitor

DRI carries more volatility with a beta of 0.62 — expect wider price swings.

YUMC is growing revenue faster at 12.6% — sustainability is the question.

YUMC generates stronger free cash flow (305M), providing more financial flexibility.

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

Bottom Line

YUMC scores higher overall (69/100 vs 51/100) and 12.6% revenue growth. 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.

Yum China Holdings Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.

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