Darden Restaurants, Inc. (DRI) vs McDonald's Corporation (MCD)

Darden Restaurants, Inc. and McDonald's Corporation are both Restaurants companies. McDonald's Corporation is the larger, with a market value of $171.6B against $24.3B — 7.1× the size. McDonald's Corporation trades at the lower P/E: 19.7× against 21.0×. Darden Restaurants, Inc. grew revenue faster over the last twelve months: 8.10% against 6.30%. McDonald's Corporation has the higher net margin (31.7% vs 8.85%) and the lower return on invested capital (21.1% vs 28.0%). Both pay a dividend; McDonald's Corporation yields more (3.06% vs 2.88%). Across the 22 metrics below, McDonald's Corporation leads on 12 and Darden Restaurants, Inc. on 10.

Valuation

Metric DRI MCD Restaurants median
P/E 20.98 19.74 24.26
P/S 1.84 6.22 0.92
P/B 11.88 n/m 2.01
Price to free cash flow 23.13 21.72 20.49
EV/EBITDA 12.19 14.14 11.76
EV/Sales 1.95 7.69 1.24
Earnings yield 4.77% 5.07% 2.07%
Free cash flow yield 4.32% 4.60% 3.58%

Profitability

Metric DRI MCD Restaurants median
Gross margin 21.66% 57.38% 38.77%
Operating margin 11.69% 46.22% 4.30%
Net margin 8.85% 31.72% 1.85%
Free cash flow margin 7.95% 28.63% 3.12%
Return on equity 55.07% (464.67%) 3.72%
Return on assets 9.10% 14.71% 1.50%
Return on invested capital 28.04% 21.05% 3.14%

Growth

Metric DRI MCD Restaurants median
Revenue growth (TTM) 8.10% 6.30% 5.66%
EPS growth (last fiscal year) 17.16% 4.92% (7.75%)
Revenue growth, 5-year CAGR 12.92% 6.96% 10.57%
Net income growth, 5-year CAGR 13.91% 12.60% 0.00%

Health

Metric DRI MCD Restaurants median
Debt to equity 0.79 (38.97) 0.10
Current ratio 0.30 1.08 0.77
Net debt to EBITDA 0.66 2.69 0.43

Dividend

Metric DRI MCD Restaurants median
Dividend yield 2.88% 3.06% 1.97%
Payout ratio 0.61 0.60 0.42

Size

Metric DRI MCD Restaurants median
Market cap 24.25b 171.60b 493.91m

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