Darden Restaurants, Inc. (DRI) vs Brinker International, Inc. (EAT)

Darden Restaurants, Inc. and Brinker International, Inc. are both Restaurants companies. Darden Restaurants, Inc. is the larger, with a market value of $23.5B against $8.6B — 2.7× the size. Brinker International, Inc. trades at the lower P/E: 18.5× against 19.1×. Darden Restaurants, Inc. grew revenue faster over the last twelve months: 9.39% against 7.86%. Darden Restaurants, Inc. has the higher net margin (9.13% vs 8.39%) and the lower return on invested capital (27.3% vs 51.4%). Across the 22 metrics below, Brinker International, Inc. leads on 15 and Darden Restaurants, Inc. on 7.

Valuation

Metric DRI EAT Restaurants median
P/E 19.08 18.48 22.14
P/S 1.75 1.55 0.91
P/B 10.45 20.32 2.01
Price to free cash flow 20.27 16.16 19.41
EV/EBITDA 11.68 11.27 11.48
EV/Sales 1.90 1.63 1.20
Earnings yield 5.24% 5.41% 2.30%
Free cash flow yield 4.93% 6.19% 3.92%

Profitability

Metric DRI EAT Restaurants median
Gross margin 21.67% 18.65% 38.77%
Operating margin 11.98% 10.67% 4.30%
Net margin 9.13% 8.39% 1.85%
Free cash flow margin 8.62% 9.61% 3.12%
Return on equity 53.41% 119.57% 3.07%
Return on assets 9.48% 17.73% 1.50%
Return on invested capital 27.28% 51.43% 3.14%

Growth

Metric DRI EAT Restaurants median
Revenue growth (TTM) 9.39% 7.86% 5.16%
EPS growth (last fiscal year) 17.16% 30.65% —
Revenue growth, 5-year CAGR 12.92% 11.71% 10.57%
Net income growth, 5-year CAGR 13.91% 29.91% 0.00%

Health

Metric DRI EAT Restaurants median
Debt to equity 0.74 0.95 0.10
Current ratio 0.31 0.45 0.81
Net debt to EBITDA 0.66 0.37 0.43

Dividend

Metric DRI EAT Restaurants median
Dividend yield 3.15% — 2.32%
Payout ratio 0.61 0.00 0.00

Size

Metric DRI EAT Restaurants median
Market cap 23.53b 8.63b 482.66m

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