DRI vs MCD

For growth investors, Darden Restaurants, Inc.

(DRI) is the stronger pick with 6. 0% revenue growth year-over-year, versus 1. 7% for McDonald's Corporation (MCD). Darden Restaurants, Inc. (DRI) offers the better valuation at 22. 1x trailing P/E (18. 4x forward), making it the more compelling value choice. Analysts rate Darden Restaurants, Inc. (DRI) a "Buy" — based on 59 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Darden Restaurants, Inc.

(DRI) is the cheapest at 22. 1x versus McDonald's Corporation at 24. 9x. On forward P/E, Darden Restaurants, Inc. is actually cheaper at 18. 4x.

Over the past 5 years, Darden Restaurants, Inc.

(DRI) delivered a total return of +56. 5%, compared to +34. 4% for McDonald's Corporation (MCD). Over 10 years, the gap is even starker: DRI returned +274. 0% versus MCD's +158. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), McDonald's Corporation (MCD) is the lower-risk stock at 0.

11β versus Darden Restaurants, Inc. 's 0. 55β — meaning DRI is approximately 393% more volatile than MCD relative to the S&P 500.

By revenue growth (latest reported year), Darden Restaurants, Inc.

(DRI) is pulling ahead at 6. 0% versus 1. 7% for McDonald's Corporation (MCD). On earnings-per-share growth, the picture is similar: Darden Restaurants, Inc. grew EPS 4. 1% year-over-year, compared to -1. 5% for McDonald's Corporation. Over a 3-year CAGR, DRI leads at 7. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

McDonald's Corporation (MCD) is the more profitable company, earning 31.

7% net margin versus 8. 7% for Darden Restaurants, Inc. — meaning it keeps 31. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MCD leads at 45. 2% versus 11. 3% for DRI. At the gross margin level — before operating expenses — MCD leads at 56. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Darden Restaurants, Inc.

(DRI) trades at 18. 4x forward P/E versus 21. 5x for McDonald's Corporation — 3. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MCD: 24. 0% to $352. 25.

All stocks in this comparison pay dividends.

Darden Restaurants, Inc. (DRI) offers the highest yield at 2. 8%, versus 2. 4% for McDonald's Corporation (MCD).

For long-horizon retirement investors, McDonald's Corporation (MCD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

11), 2. 4% yield, +158. 5% 10Y return). Both have compounded well over 10 years (MCD: +158. 5%, DRI: +274. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.