Darden Restaurants Inc (DRI)vsYum China Holdings Inc (YUMC)
DRI
Darden Restaurants Inc
$209.28
+1.23%
CONSUMER CYCLICAL · Cap: $24.18B
YUMC
Yum China Holdings Inc
$41.12
-0.56%
CONSUMER CYCLICAL · Cap: $14.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Darden Restaurants Inc generates 6% more annual revenue ($13.21B vs $12.44B). DRI leads profitability with a 9.1% profit margin vs 7.8%. YUMC appears more attractively valued with a PEG of 0.97. YUMC earns a higher WallStSmart Score of 71/100 (B).
DRI
Strong Buy67
out of 100
Grade: B-
YUMC
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.1%
Fair Value
$114.33
Current Price
$209.28
$94.95 premium
Intrinsic value data unavailable for YUMC.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 55 in profit
Earnings expanding 36.0% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 21.4% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 10.8x book value
Negative free cash flow — burning cash
Distress zone — elevated risk
7.8% margin — thin
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 : YUMC
The strongest argument for YUMC centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 12.6% demonstrates continued momentum. PEG of 0.97 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 : YUMC
The primary concerns for YUMC are Profit Margin.
Key Dynamics to Monitor
DRI carries more volatility with a beta of 0.59 — expect wider price swings.
DRI is growing revenue faster at 13.7% — 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 (71/100 vs 67/100) and 12.6% revenue growth. Both earn "Strong Buy" and "Strong 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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