DRI Stock Analysis: Darden Restaurants | NYSE
Restaurants | NYSE, USA | Market Cap: 24.483m USD | 12M Return: 6.5% | US2371941053 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 208M
EPS Trend: 97.7%
Qual. Beats: 0
Rev. Trend: 99.1%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Darden Restaurants, Inc. is a large-cap, multi-brand operator of full-service restaurants headquartered in Orlando, Florida, and founded in 1938. The company runs well-known casual dining and upscale concepts in the U.S. and Canada, including Olive Garden, LongHorn Steakhouse, Cheddars Scratch Kitchen, Chuys, Yard House, Ruths Chris Steak House, The Capital Grille, Seasons 52, Eddie Vs Prime Seafood, and Bahama Breeze. The full-service restaurant segment is generally characterized by sit-down table service, higher average guest checks than quick-service peers, and sensitivity to discretionary consumer spending, making brand portfolio diversification a common strategy among large operators like Darden.
- Olive Garden and LongHorn same-restaurant sales lift consolidated revenue
- Beef and labor cost inflation pressures restaurant-level margins
- Ruths Chris and Chuys acquisitions expand premium dining revenue mix
| Net Income: 1.21b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.47 > 1.0 |
| NWC/Revenue: -15.61% < 20% (prev -10.85%; Δ -4.77% < -1%) |
| CFO/TA 0.14 > 3% & CFO 1.85b > Net Income 1.21b |
| Net Debt (9.79b) to EBITDA (2.34b): 4.19 < 3 |
| Current Ratio: 0.31 > 1.5 & < 3 |
| Outstanding Shares: last quarter (115.2m) vs 12m ago -2.29% < -2% |
| Gross Margin: 69.43% > 18% (prev 21.88%; Δ 47.55% > 0.5%) |
| Asset Turnover: 103.8% > 50% (prev 95.95%; Δ 7.88% > 0%) |
| Interest Coverage Ratio: 9.15 > 6 (EBIT TTM 1.78b / Interest Expense TTM 194.2m) |
| A: -0.16 (Total Current Assets 942.9m - Total Current Liabilities 3.01b) / Total Assets 12.9b |
| B: -0.01 (Retained Earnings -108.4m / Total Assets 12.9b) |
| C: 0.14 (EBIT TTM 1.78b / Avg Total Assets 12.7b) |
| D: 0.21 (Book Value of Equity 2.21b / Total Liabilities 10.7b) |
| Altman-Z'' = 0.08 = B |
| DSRI: 1.27 (Receivables 129.9m/93.8m, Revenue 13.2b/12.1b) |
| GMI: 0.32 (GM 21.88% / 69.43%) |
| AQI: 0.42 (AQ_t 0.27 / AQ_t-1 0.64) |
| SGI: 1.09 (Revenue 13.2b / 12.1b) |
| TATA: -0.05 (NI 1.21b - CFO 1.85b) / TA 12.9b) |
| Beneish M = -3.71 (Cap -4..+1) = AAA |
As of September 05, 2026, the stock is trading at USD 216.88 with a total of 620,063 shares traded. Over the past week, the price has changed by +0.58%, over one month by +6.02%, over three months by +13.01% and over the past year by +6.46%.
Current recommended Stop Loss: 202.10 (which is 6.8% or 2.5 ATR below the current price).
Darden Restaurants has received a consensus analysts rating of 3.90. Therefore, it is recommended to buy DRI.
- StrongBuy: 14
- Buy: 4
- Hold: 11
- Sell: 0
- StrongSell: 2
| Analysts Target Price | 230.7 | 6.4% |
P/E Trailing = 20.247
P/E Forward = 18.7266
P/S = 1.8532
P/B = 10.8594
P/EG = 1.8847
Revenue TTM = 13.2b USD
EBIT TTM = 1.78b USD
EBITDA TTM = 2.34b USD
Long Term Debt = 1.67b USD (from longTermDebt, last quarter)
Short Term Debt = 693.6m USD (from shortTermDebt, last quarter)
Debt = 10.0b USD (from shortLongTermDebtTotal, last quarter) + Leases 3.96b
Net Debt = 9.79b USD (calculated: Debt 10.0b - CCE 219.5m)
Enterprise Value = 34.3b USD (24.5b + Debt 10.0b - CCE 219.5m)
Interest Coverage Ratio = 9.15 (Ebit TTM 1.78b / Interest Expense TTM 194.2m)
EV/FCF = 30.63x (Enterprise Value 34.3b / FCF TTM 1.12b)
FCF Yield = 3.27% (FCF TTM 1.12b / Enterprise Value 34.3b)
FCF Margin = 8.47% (FCF TTM 1.12b / Revenue TTM 13.2b)
Net Margin = 9.13% (Net Income TTM 1.21b / Revenue TTM 13.2b)
Gross Margin = 69.43% ((Revenue TTM 13.2b - Cost of Revenue TTM 4.04b) / Revenue TTM)
Gross Margin QoQ = none% (prev 17.97%)
Tobins Q-Ratio = 2.66 (Enterprise Value 34.3b / Total Assets 12.9b)
Interest Expense / Debt = 1.94% (Interest Expense 194.2m / Debt 10.0b)
Taxrate = 12.60% (174.9m / 1.39b)
NOPAT = 1.55b (EBIT 1.78b * (1 - 12.60%))
Current Ratio = 0.31 (Total Current Assets 942.9m / Total Current Liabilities 3.01b)
Debt / Equity = 4.54 (Debt 10.0b / totalStockholderEquity, last quarter 2.21b)
Debt / EBITDA = 4.19 (Net Debt 9.79b / EBITDA 2.34b)
Debt / FCF = 8.75 (Net Debt 9.79b / FCF TTM 1.12b)
Total Stockholder Equity = 2.15b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.48% (Net Income 1.21b / Total Assets 12.9b)
RoE = 56.01% (Net Income TTM 1.21b / Total Stockholder Equity 2.15b)
RoCE = 46.42% (EBIT 1.78b / Capital Employed (Equity 2.15b + L.T.Debt 1.67b))
RoIC = 15.03% (NOPAT 1.55b / Invested Capital 10.3b)
WACC = 5.63% (E(24.5b)/V(34.5b) * Re(7.24%) + D(10.0b)/V(34.5b) * Rd(1.94%) * (1-Tc(0.13)))
Discount Rate = 7.24% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -97.72 | Cagr: -1.94%
[DCF] Terminal Value 76.44% ; FCFF base≈1.09b ; Y1≈1.16b ; Y5≈1.40b
[DCF] Fair Price = 103.1 (EV 21.5b - Net Debt 9.79b = Equity 11.7b / Shares 113.5m; r=8.35% [WACC [floored]]; 5y FCF grow 8.02% → 2.50% )
EPS Correlation: 97.68 | EPS CAGR: 8.20% | SUE: 0.81 | # QB: 0
Revenue Correlation: 99.06 | Revenue CAGR: 7.21% | SUE: -0.29 | # QB: 0
EPS current Quarter (2026-08-31): EPS=2.05 | Chg30d=+0.02% | Revisions=-52% | Analysts=26
EPS next Quarter (2026-11-30): EPS=2.29 | Chg30d=-0.07% | Revisions=-32% | Analysts=26
EPS current Year (2027-05-31): EPS=11.27 | Chg30d=-0.00% | Revisions=-61% | GrowthEPS=+5.9% | GrowthRev=+3.6%
EPS next Year (2028-05-31): EPS=12.39 | Chg30d=+0.02% | Revisions=-56% | GrowthEPS=+9.9% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: -56% (up=16, down=61)