Darden Restaurants Inc (DRI) is fairly valued and McDonald's Corp (MCD) is overvalued.
Against our estimates of intrinsic value, DRI trades at the wider discount: a margin of safety of +3%, against -21% for MCD.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $219.43; the price of $213.54 is 3% below that value, and 78% of that value comes from beyond year five.
Leak Score 59/100 on 9 of 12 signals
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $206.94; the price of $250.35 is 21% above that value, and 81% of that value comes from beyond year five.
Leak Score 60/100 on 8 of 12 signals
| Metric | DRI | MCD |
|---|---|---|
| Verdict | Fairly valued | Overvalued |
| Price | $213.54 | $250.35 |
| Intrinsic value | $219.43 | $206.94 |
| Margin of safety | +3% | -21% |
| Leak Score | 59/100 (9/12) | 60/100 (8/12) |
| Market cap | $24.2B | $177.2B |
| Revenue growth, 5 years | 12.9% | 7.0% |
| Operating margin | 12.2% | 45.7% |
| Net margin | 9.1% | 31.7% |
| Return on equity | 53.7% | — |
| Debt to equity | 3.63 | — |
| P/E | 20.6x | 20.3x |
| Forward P/E | 17.2x | 18.0x |
| P/B | 11.0x | — |
| Dividend yield | 3.1% | 3.0% |