YUM vs. DRI, TXRH, CMG, QSR, YUMC, WING, FAST, KR, CPNG, and ROST
Should you be buying Yum! Brands stock or one of its competitors? The main competitors of Yum! Brands include Darden Restaurants (DRI), Texas Roadhouse (TXRH), Chipotle Mexican Grill (CMG), Restaurant Brands International (QSR), Yum China (YUMC), Wingstop (WING), Fastenal (FAST), Kroger (KR), Coupang (CPNG), and Ross Stores (ROST). These companies are all part of the "retail/wholesale" sector.
Darden Restaurants (NYSE:DRI) and Yum! Brands (NYSE:YUM) are both large-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, media sentiment, analyst recommendations, institutional ownership, risk, valuation, community ranking and dividends.
Yum! Brands has a net margin of 22.92% compared to Yum! Brands' net margin of 9.24%. Yum! Brands' return on equity of 49.94% beat Darden Restaurants' return on equity.
Darden Restaurants currently has a consensus price target of $178.67, suggesting a potential upside of 17.99%. Yum! Brands has a consensus price target of $143.53, suggesting a potential upside of 1.33%. Given Yum! Brands' stronger consensus rating and higher probable upside, equities analysts clearly believe Darden Restaurants is more favorable than Yum! Brands.
Darden Restaurants has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
93.6% of Darden Restaurants shares are held by institutional investors. Comparatively, 82.4% of Yum! Brands shares are held by institutional investors. 0.9% of Darden Restaurants shares are held by company insiders. Comparatively, 0.3% of Yum! Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Darden Restaurants received 57 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 66.57% of users gave Darden Restaurants an outperform vote while only 65.28% of users gave Yum! Brands an outperform vote.
Darden Restaurants pays an annual dividend of $5.24 per share and has a dividend yield of 3.4%. Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 1.9%. Darden Restaurants pays out 61.4% of its earnings in the form of a dividend. Yum! Brands pays out 47.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Darden Restaurants has raised its dividend for 3 consecutive years and Yum! Brands has raised its dividend for 7 consecutive years.
In the previous week, Yum! Brands had 13 more articles in the media than Darden Restaurants. MarketBeat recorded 28 mentions for Yum! Brands and 15 mentions for Darden Restaurants. Darden Restaurants' average media sentiment score of 0.72 beat Yum! Brands' score of 0.64 indicating that Yum! Brands is being referred to more favorably in the news media.
Yum! Brands has lower revenue, but higher earnings than Darden Restaurants. Darden Restaurants is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.
Summary
Darden Restaurants beats Yum! Brands on 12 of the 21 factors compared between the two stocks.
Get Yum! Brands News Delivered to You Automatically
Sign up to receive the latest news and ratings for YUM and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding YUM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Yum! Brands Competitors List
Related Companies and Tools
