DARDEN RESTAURANTS, INC. vs Texas Roadhouse, Inc., two Restaurants stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Two established casual-dining operators here, both high-return, priced with a notable gap. Darden, the Olive Garden parent, returns 52.55% on equity, keeps 8.66% of revenue, pays a 2.62% dividend, and trades at 22.64 times earnings. Texas Roadhouse, the steakhouse chain, returns 27.58% on equity, keeps 7% of sales, pays 1.38%, and trades at 31.36 times. Their balance sheets differ, Darden at 1.16 debt-to-equity and Texas Roadhouse nearly debt-free at 0.03. On cash they split too: Darden shows a negative 5.43% free cash flow yield from heavy spending while Texas Roadhouse generates a positive 2.77%. Darden is larger at $24.7B versus $13.0B.
Comparison updated 2026-07-11.
| Metric | DRI | TXRH |
|---|---|---|
| Price | $204.32 | $189.48 |
| Market cap | $23.7B | $12.5B |
| Sector | Restaurants | Restaurants |
| Stage | Mature | Mature |
| Implied growth (priced in) | +1.7% | +19.2% |
| P/E | 21.7 | 30.2 |
| P/B | 11.25 | 8.14 |
| P/S | 1.85 | 2.07 |
| EV/EBITDA | 12.9 | 17.6 |
| Revenue growth | +8.6% | +10.4% |
| Gross margin | 21.0% | — |
| Operating margin | 12.2% | 9.0% |
| Net margin | 8.7% | 7.0% |
| Return on equity | 52.5% | 27.6% |
| Return on assets | 8.6% | 11.9% |
| Return on invested capital | 27.8% | 26.2% |
| FCF yield | -5.7% | 2.9% |
| Dividend yield | 2.7% | 1.4% |
| Debt / equity | 1.16 | 0.03 |
| Current ratio | 0.39 | 0.46 |
| Altman Z (solvency) | 2.24 | 5.97 |
| Piotroski F (quality) | 5 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.