DRI vs. YUM, DPZ, TXRH, WEN, EAT, CAKE, BLMN, PZZA, CBRL, and JACK
Should you be buying Darden Restaurants stock or one of its competitors? The main competitors of Darden Restaurants include Yum! Brands (YUM), Domino's Pizza (DPZ), Texas Roadhouse (TXRH), Wendy's (WEN), Brinker International (EAT), Cheesecake Factory (CAKE), Bloomin' Brands (BLMN), Papa John's International (PZZA), Cracker Barrel Old Country Store (CBRL), and Jack in the Box (JACK). These companies are all part of the "restaurants" industry.
Yum! Brands (NYSE:YUM) and Darden Restaurants (NYSE:DRI) are both large-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, community ranking, valuation, earnings, risk, dividends, institutional ownership, media sentiment and profitability.
82.4% of Yum! Brands shares are owned by institutional investors. Comparatively, 93.6% of Darden Restaurants shares are owned by institutional investors. 0.3% of Yum! Brands shares are owned by company insiders. Comparatively, 0.9% of Darden Restaurants shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Yum! Brands has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Darden Restaurants has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.
Yum! Brands presently has a consensus target price of $143.80, indicating a potential upside of 2.74%. Darden Restaurants has a consensus target price of $177.90, indicating a potential upside of 19.77%. Given Yum! Brands' stronger consensus rating and higher probable upside, analysts plainly believe Darden Restaurants is more favorable than Yum! Brands.
Darden Restaurants received 58 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 66.61% of users gave Darden Restaurants an outperform vote while only 65.26% of users gave Yum! Brands an outperform vote.
Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 1.9%. Darden Restaurants pays an annual dividend of $5.24 per share and has a dividend yield of 3.5%. Yum! Brands pays out 47.5% of its earnings in the form of a dividend. Darden Restaurants pays out 61.4% 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. Yum! Brands has raised its dividend for 7 consecutive years and Darden Restaurants has raised its dividend for 3 consecutive years.
In the previous week, Yum! Brands had 4 more articles in the media than Darden Restaurants. MarketBeat recorded 12 mentions for Yum! Brands and 8 mentions for Darden Restaurants. Darden Restaurants' average media sentiment score of 1.12 beat Yum! Brands' score of 1.04 indicating that Yum! Brands is being referred to more favorably in the media.
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.
Yum! Brands has higher earnings, but lower revenue 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 Darden Restaurants News Delivered to You Automatically
Sign up to receive the latest news and ratings for DRI and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding DRI 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.
Darden Restaurants Competitors List
Related Companies and Tools
