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 $33.4B against $23.5B — 1.4× the size. Darden Restaurants, Inc. trades at the lower P/E: 19.1× against 19.2×. Darden Restaurants, Inc. grew revenue faster over the last twelve months: 9.39% against 6.51%. Restaurant Brands International Inc. has the higher net margin (13.1% vs 9.13%) and the lower return on invested capital (9.12% vs 27.3%). Both pay a dividend; Darden Restaurants, Inc. yields more (3.15% vs 2.87%). Across the 23 metrics below, Darden Restaurants, Inc. leads on 14 and Restaurant Brands International Inc. on 9.

Valuation

Metric DRI QSR Restaurants median
P/E 19.08 19.16 22.14
P/S 1.75 2.57 0.91
P/B 10.45 4.62 2.01
Price to free cash flow 20.27 14.74 19.41
EV/EBITDA 11.68 12.71 11.48
EV/Sales 1.90 3.86 1.20
Earnings yield 5.24% 5.22% 2.30%
Free cash flow yield 4.93% 6.78% 3.92%

Profitability

Metric DRI QSR Restaurants median
Gross margin 21.67% 48.45% 38.77%
Operating margin 11.98% 26.92% 4.30%
Net margin 9.13% 13.13% 1.85%
Free cash flow margin 8.62% 17.43% 3.12%
Return on equity 53.41% 24.28% 3.07%
Return on assets 9.48% 5.02% 1.50%
Return on invested capital 27.28% 9.12% 3.14%

Growth

Metric DRI QSR Restaurants median
Revenue growth (TTM) 9.39% 6.51% 5.16%
EPS growth (last fiscal year) 17.16% (26.10%) —
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 0.74 2.51 0.10
Current ratio 0.31 1.01 0.81
Net debt to EBITDA 0.66 4.89 0.43

Dividend

Metric DRI QSR Restaurants median
Dividend yield 3.15% 2.87% 2.32%
Payout ratio 0.61 0.67 0.00

Size

Metric DRI QSR Restaurants median
Market cap 23.53b 33.36b 482.66m

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