(DRI) Darden Restaurants - Overview
Sector: Consumer Cyclical | Industry: Restaurants | Exchange: NYSE (USA) | Market Cap: 22.594m USD | Total Return: 2.9% in 12m
Avg Turnover: 180M
EPS Trend: 98.4%
Qual. Beats: 0
Rev. Trend: 99.3%
Qual. Beats: 0
Warnings
Altman Z'' 0.10 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Darden Restaurants, Inc. (DRI) is a Florida-based company that owns and operates a diverse portfolio of full-service restaurant brands across the United States and Canada. Its primary holdings include Olive Garden and LongHorn Steakhouse, alongside specialty and fine-dining chains such as Ruths Chris Steak House and The Capital Grille.
The company operates within the casual and fine-dining segments of the restaurant industry, a sector characterized by high sensitivity to consumer discretionary spending and labor cost fluctuations. Darden utilizes a centralized platform model to manage supply chain logistics and data analytics across its multiple brands to achieve economies of scale.
Reviewing historical valuation trends on ValueRay can provide further context on the companys market positioning.
- Olive Garden same-store sales growth dictates overall quarterly revenue performance
- Elevated labor and food commodity costs compress consolidated operating margins
- Ruths Chris integration expands exposure to high-margin fine dining segment
- Declining consumer discretionary spending reduces traffic across casual dining brands
- Strategic acquisition of Chuys increases market share in Mexican restaurant category
| Net Income: 1.11b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 3.95 > 1.0 |
| NWC/Revenue: -12.46% < 20% (prev -11.92%; Δ -0.53% < -1%) |
| CFO/TA 0.13 > 3% & CFO 1.74b > Net Income 1.11b |
| Net Debt (9.70b) to EBITDA (1.98b): 4.89 < 3 |
| Current Ratio: 0.39 > 1.5 & < 3 |
| Outstanding Shares: last quarter (116.7m) vs 12m ago -1.10% < -2% |
| Gross Margin: 44.03% > 18% (prev 0.22%; Δ 4.38k% > 0.5%) |
| Asset Turnover: 100.3% > 50% (prev 93.64%; Δ 6.66% > 0%) |
| Interest Coverage Ratio: 7.57 > 6 (EBITDA TTM 1.98b / Interest Expense TTM 189.4m) |
| A: -0.12 (Total Current Assets 1.02b - Total Current Liabilities 2.61b) / Total Assets 12.9b |
| B: -0.02 (Retained Earnings -217.4m / Total Assets 12.9b) |
| C: 0.11 (EBIT TTM 1.43b / Avg Total Assets 12.7b) |
| D: 0.20 (Book Value of Equity 2.10b / Total Liabilities 10.8b) |
| Altman-Z'' = 0.10 = B |
| DSRI: 1.51 (Receivables 107.7m/65.6m, Revenue 12.8b/11.8b) |
| GMI: 0.49 (GM 44.03% / 21.55%) |
| AQI: 0.99 (AQ_t 0.26 / AQ_t-1 0.27) |
| SGI: 1.09 (Revenue 12.8b / 11.8b) |
| TATA: -0.05 (NI 1.11b - CFO 1.74b) / TA 12.9b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 197.07 with a total of 925,758 shares traded.
Over the past week, the price has changed by +3.89%,
over one month by +1.89%,
over three months by -4.29% and
over the past year by +2.87%.
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 | 225.3 | 14.3% |
P/E Forward = 16.835
P/S = 1.7702
P/B = 10.546
P/EG = 1.6948
Revenue TTM = 12.8b USD
EBIT TTM = 1.43b USD
EBITDA TTM = 1.98b USD
Long Term Debt = 2.14b USD (from longTermDebt, last quarter)
Short Term Debt = 290.0m USD (from shortTermDebt, last quarter)
Debt = 9.94b USD (from shortLongTermDebtTotal, last quarter) + Leases 3.75b
Net Debt = 9.70b USD (calculated: Debt 9.94b - CCE 240.4m)
Enterprise Value = 32.3b USD (22.6b + Debt 9.94b - CCE 240.4m)
Interest Coverage Ratio = 7.57 (Ebit TTM 1.43b / Interest Expense TTM 189.4m)
EV/FCF = 20.63x (Enterprise Value 32.3b / FCF TTM 1.57b)
FCF Yield = 4.85% (FCF TTM 1.57b / Enterprise Value 32.3b)
FCF Margin = 12.26% (FCF TTM 1.57b / Revenue TTM 12.8b)
Net Margin = 8.66% (Net Income TTM 1.11b / Revenue TTM 12.8b)
Gross Margin = 44.03% ((Revenue TTM 12.8b - Cost of Revenue TTM 7.14b) / Revenue TTM)
Gross Margin QoQ = 17.97% (prev 68.93%)
Tobins Q-Ratio = 2.51 (Enterprise Value 32.3b / Total Assets 12.9b)
Interest Expense / Debt = 1.91% (Interest Expense 189.4m / Debt 9.94b)
Taxrate = 12.95% (46.2m / 356.8m)
NOPAT = 1.25b (EBIT 1.43b * (1 - 12.95%))
Current Ratio = 0.39 (Total Current Assets 1.02b / Total Current Liabilities 2.61b)
Debt / Equity = 4.72 (Debt 9.94b / totalStockholderEquity, last quarter 2.10b)
Debt / EBITDA = 4.89 (Net Debt 9.70b / EBITDA 1.98b)
Debt / FCF = 6.20 (Net Debt 9.70b / FCF TTM 1.57b)
Total Stockholder Equity = 2.18b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.69% (Net Income 1.11b / Total Assets 12.9b)
RoE = 46.11% (Net Income TTM 1.11b / Total Stockholder Equity 2.40b)
RoCE = 31.60% (EBIT 1.43b / Capital Employed (Equity 2.40b + L.T.Debt 2.14b))
RoIC = 11.88% (NOPAT 1.25b / Invested Capital 10.5b)
WACC = 6.11% (E(22.6b)/V(32.5b) * Re(8.07%) + D(9.94b)/V(32.5b) * Rd(1.91%) * (1-Tc(0.13)))
Discount Rate = 8.07% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -1.52%
[DCF] Terminal Value 77.97% ; FCFF base≈1.35b ; Y1≈1.55b ; Y5≈2.28b
[DCF] Fair Price = 214.7 (EV 34.3b - Net Debt 9.70b = Equity 24.6b / Shares 114.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 98.35 | EPS CAGR: 7.89% | SUE: 0.27 | # QB: 0
Revenue Correlation: 99.32 | Revenue CAGR: 7.02% | SUE: 0.43 | # QB: 0
EPS next Quarter (2026-08-31): EPS=2.11 | Chg30d=-0.07% | Revisions=-27% | Analysts=22
EPS current Year (2026-05-31): EPS=10.62 | Chg30d=+0.01% | Revisions=+73% | GrowthEPS=+11.2% | GrowthRev=+9.5%
EPS next Year (2027-05-31): EPS=11.37 | Chg30d=+0.00% | Revisions=-14% | GrowthEPS=+7.1% | GrowthRev=+3.7%
[Analyst] Revisions Ratio: +73%