Darden Restaurants Inc (DRI) is fairly valued and Yum Brands Inc (YUM) is slightly overvalued.
Against our estimates of intrinsic value, DRI trades at the wider discount: a margin of safety of +3%, against -8% for YUM.
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 7.7% (average of 3 methods) values the shares at $129.33; the price of $139.71 is 8% above that value, and 81% of that value comes from beyond year five.
Leak Score 65/100 on 8 of 12 signals
| Metric | DRI | YUM |
|---|---|---|
| Verdict | Fairly valued | Slightly overvalued |
| Price | $213.54 | $139.71 |
| Intrinsic value | $219.43 | $129.33 |
| Margin of safety | +3% | -8% |
| Leak Score | 59/100 (9/12) | 65/100 (8/12) |
| Market cap | $24.2B | $38.1B |
| Revenue growth, 5 years | 12.9% | 7.8% |
| Operating margin | 12.2% | 32.4% |
| Net margin | 9.1% | 25.4% |
| Return on equity | 53.7% | — |
| Debt to equity | 3.63 | — |
| P/E | 20.6x | 17.6x |
| Forward P/E | 17.2x | 19.3x |
| P/B | 11.0x | — |
| Dividend yield | 3.1% | 2.1% |