DRI vs. SBUX, CMG, YUM, DPZ, TXRH, EAT, CAKE, WEN, PZZA, and CBRL
Should you be buying Darden Restaurants stock or one of its competitors? The main competitors of Darden Restaurants include Starbucks (SBUX), Chipotle Mexican Grill (CMG), Yum! Brands (YUM), Domino's Pizza (DPZ), Texas Roadhouse (TXRH), Brinker International (EAT), Cheesecake Factory (CAKE), Wendy's (WEN), Papa Johns International (PZZA), and Cracker Barrel Old Country Store (CBRL). These companies are all part of the "restaurants" industry.
Darden Restaurants vs.
Starbucks (NASDAQ:SBUX) and Darden Restaurants (NYSE:DRI) 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 profitability, community ranking, earnings, analyst recommendations, risk, valuation, dividends, media sentiment and institutional ownership.
Starbucks has a net margin of 9.73% compared to Darden Restaurants' net margin of 9.01%. Darden Restaurants' return on equity of 50.12% beat Starbucks' return on equity.
Starbucks received 940 more outperform votes than Darden Restaurants when rated by MarketBeat users. Likewise, 76.04% of users gave Starbucks an outperform vote while only 66.46% of users gave Darden Restaurants an outperform vote.
In the previous week, Starbucks had 27 more articles in the media than Darden Restaurants. MarketBeat recorded 46 mentions for Starbucks and 19 mentions for Darden Restaurants. Darden Restaurants' average media sentiment score of 1.19 beat Starbucks' score of 0.89 indicating that Darden Restaurants is being referred to more favorably in the news media.
Starbucks currently has a consensus target price of $97.92, indicating a potential upside of 8.00%. Darden Restaurants has a consensus target price of $201.77, indicating a potential downside of 8.18%. Given Starbucks' higher probable upside, equities research analysts clearly believe Starbucks is more favorable than Darden Restaurants.
Starbucks has higher revenue and earnings than Darden Restaurants. Darden Restaurants is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
Starbucks has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Darden Restaurants has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
72.3% of Starbucks shares are owned by institutional investors. Comparatively, 93.6% of Darden Restaurants shares are owned by institutional investors. 0.1% of Starbucks shares are owned by company insiders. Comparatively, 0.6% of Darden Restaurants shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.7%. Darden Restaurants pays an annual dividend of $5.60 per share and has a dividend yield of 2.5%. Starbucks pays out 88.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Darden Restaurants pays out 63.1% of its earnings in the form of a dividend. Starbucks has raised its dividend for 15 consecutive years and Darden Restaurants has raised its dividend for 4 consecutive years. Starbucks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Starbucks beats Darden Restaurants on 13 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.
New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
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
This page (NYSE:DRI) was last updated on 6/10/2025 by MarketBeat.com Staff
Buy DRI Stock Free DRI Stock Alerts