Darden Restaurants, Inc. (DRI) vs Texas Roadhouse, Inc. (TXRH)

Darden Restaurants, Inc. and Texas Roadhouse, Inc. are both Restaurants companies. Darden Restaurants, Inc. is the larger, with a market value of $23.5B against $10.6B — 2.2× the size. Darden Restaurants, Inc. trades at the lower P/E: 19.1× against 25.5×. Texas Roadhouse, Inc. grew revenue faster over the last twelve months: 9.89% against 9.39%. Darden Restaurants, Inc. has the higher net margin (9.13% vs 6.63%) and the higher return on invested capital (27.3% vs 21.1%). Both pay a dividend; Darden Restaurants, Inc. yields more (3.15% vs 1.62%). Across the 23 metrics below, Darden Restaurants, Inc. leads on 13 and Texas Roadhouse, Inc. on 10.

Valuation

Metric DRI TXRH Restaurants median
P/E 19.08 25.50 22.14
P/S 1.75 1.68 0.91
P/B 10.45 6.64 2.01
Price to free cash flow 20.27 23.96 19.41
EV/EBITDA 11.68 14.70 11.48
EV/Sales 1.90 1.66 1.20
Earnings yield 5.24% 3.92% 2.30%
Free cash flow yield 4.93% 4.17% 3.92%

Profitability

Metric DRI TXRH Restaurants median
Gross margin 21.67% 15.69% 38.77%
Operating margin 11.98% 7.75% 4.30%
Net margin 9.13% 6.63% 1.85%
Free cash flow margin 8.62% 7.02% 3.12%
Return on equity 53.41% 27.13% 3.07%
Return on assets 9.48% 11.93% 1.50%
Return on invested capital 27.28% 21.14% 3.14%

Growth

Metric DRI TXRH Restaurants median
Revenue growth (TTM) 9.39% 9.89% 5.16%
EPS growth (last fiscal year) 17.16% (5.72%) —
Revenue growth, 5-year CAGR 12.92% 19.64% 10.57%
Net income growth, 5-year CAGR 13.91% 66.97% 0.00%

Health

Metric DRI TXRH Restaurants median
Debt to equity 0.74 0.03 0.10
Current ratio 0.31 0.46 0.81
Net debt to EBITDA 0.66 (0.20) 0.43

Dividend

Metric DRI TXRH Restaurants median
Dividend yield 3.15% 1.62% 2.32%
Payout ratio 0.61 0.47 0.00

Size

Metric DRI TXRH Restaurants median
Market cap 23.53b 10.60b 482.66m

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