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.
Where DRI and TXRH diverge most: on fcf yield, DRI reads -3.1% and TXRH reads 2.7%; on debt / equity, DRI reads 1.06 and TXRH reads 0.03. The rest of the comparable metrics sit closer together. On valuation, today's DRI price has a different growth bar priced in than TXRH (+1.5% implied for DRI vs +22.7% for TXRH); the higher figure is the steeper assumption to clear, not a better or worse stock. What DRI's price implies is a bet that sits within the historical range (whole-company basis). What TXRH's price implies is a somewhat stretched bet versus history (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | DRI | TXRH |
|---|---|---|
| Price | $203.87 | $205.41 |
| Market cap | $23.6B | $13.6B |
| Sector | Restaurants | Restaurants |
| Stage | Mature | Mature |
| Implied growth (priced in) | +1.5% | +22.7% |
| P/E | 19.6 | 32.8 |
| P/B | 10.69 | 8.83 |
| P/S | 1.79 | 2.24 |
| EV/EBITDA | 12.0 | 19.1 |
| Revenue growth | +9.3% | +10.4% |
| Gross margin | 22.1% | — |
| Operating margin | 13.9% | 9.0% |
| Net margin | 9.1% | 7.0% |
| Return on equity | 54.7% | 27.6% |
| Return on assets | 9.4% | 11.9% |
| Return on invested capital | 30.5% | 26.2% |
| FCF yield | -3.1% | 2.7% |
| Dividend yield | 2.9% | 1.3% |
| Debt / equity | 1.06 | 0.03 |
| Current ratio | 0.31 | 0.46 |
| Altman Z (solvency) | 2.28 | 6.28 |
| Piotroski F (quality) | 6 / 9 | 6 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
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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.