Darden Restaurants, Inc. (DRI) vs Restaurant Brands International Inc. (QSR)

Darden Restaurants, Inc. and Restaurant Brands International Inc. are both Restaurants companies. Restaurant Brands International Inc. is the larger, with a market value of $33.7B against $24.3B — 1.4× the size. Restaurant Brands International Inc. trades at the lower P/E: 20.0× against 21.0×. Darden Restaurants, Inc. grew revenue faster over the last twelve months: 8.10% against 6.51%. Restaurant Brands International Inc. has the higher net margin (13.1% vs 8.85%) and the lower return on invested capital (9.12% vs 28.0%). Both pay a dividend; Restaurant Brands International Inc. yields more (3.44% vs 2.88%). Across the 23 metrics below, Restaurant Brands International Inc. leads on 12 and Darden Restaurants, Inc. on 11.

Valuation

Metric DRI QSR Restaurants median
P/E 20.98 20.00 24.26
P/S 1.84 2.68 0.92
P/B 11.88 4.83 2.01
Price to free cash flow 23.13 15.40 20.49
EV/EBITDA 12.19 13.08 11.76
EV/Sales 1.95 3.97 1.24
Earnings yield 4.77% 5.00% 2.07%
Free cash flow yield 4.32% 6.50% 3.58%

Profitability

Metric DRI QSR Restaurants median
Gross margin 21.66% 48.45% 38.77%
Operating margin 11.69% 26.92% 4.30%
Net margin 8.85% 13.13% 1.85%
Free cash flow margin 7.95% 17.43% 3.12%
Return on equity 55.07% 24.28% 3.72%
Return on assets 9.10% 5.02% 1.50%
Return on invested capital 28.04% 9.12% 3.14%

Growth

Metric DRI QSR Restaurants median
Revenue growth (TTM) 8.10% 6.51% 5.66%
EPS growth (last fiscal year) 17.16% (26.10%) (7.75%)
Revenue growth, 5-year CAGR 12.92% 13.68% 10.57%
Net income growth, 5-year CAGR 13.91% 9.81% 0.00%

Health

Metric DRI QSR Restaurants median
Debt to equity 0.79 2.51 0.10
Current ratio 0.30 1.01 0.77
Net debt to EBITDA 0.66 4.89 0.43

Dividend

Metric DRI QSR Restaurants median
Dividend yield 2.88% 3.44% 1.97%
Payout ratio 0.61 0.69 0.42

Size

Metric DRI QSR Restaurants median
Market cap 24.25b 33.68b 493.91m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack