(DRI) Darden Restaurants - Overview
Stock: Italian, Steakhouse, Seafood, Casual, Fine
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.00% |
| Yield on Cost 5y | 5.33% |
| Yield CAGR 5y | 13.87% |
| Payout Consistency | 95.8% |
| Payout Ratio | 60.0% |
| Risk 5d forecast | |
|---|---|
| Volatility | 25.5% |
| Relative Tail Risk | -13.4% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.38 |
| Alpha | 0.39 |
| Character TTM | |
|---|---|
| Beta | 0.577 |
| Beta Downside | 0.656 |
| Drawdowns 3y | |
|---|---|
| Max DD | 23.92% |
| CAGR/Max DD | 0.74 |
Description: DRI Darden Restaurants December 19, 2025
Darden Restaurants, Inc. (NYSE: DRI) is a publicly traded, U.S.-based operator of full-service dining concepts, including Olive Garden, LongHorn Steakhouse, Yard House, and several upscale brands such as Ruth’s Chris Steak House and The Capital Grille. Founded in 1938 and headquartered in Orlando, Florida, the company runs over 1,800 locations across the United States and Canada.
Key performance indicators that analysts watch include comparable-store sales growth (often termed “same-store sales”), which has averaged roughly 3-4% YoY pre-COVID and is a primary driver of revenue trends, and the average check size, which varies widely between the casual (≈ $30) and upscale (≈ $80) segments. Operating margin is another critical metric; Darden typically reports a diluted EBIT margin in the high-single-digit range, reflecting the mix of labor-intensive casual dining and higher-margin steakhouse operations.
Sector-level drivers that materially affect Darden’s outlook are discretionary consumer spending, which is sensitive to macro-economic variables such as employment rates and real disposable income, and food-cost inflation, especially the price of beef and dairy. The company’s “Digital-First” initiative-expanding online ordering, delivery partnerships, and loyalty data capture-has been credited with offsetting foot-traffic volatility, but its incremental contribution to top-line growth remains an open question pending more granular reporting.
For a deeper, data-rich analysis of Darden’s valuation assumptions and scenario modeling, a quick look at ValueRay’s DRI page can help you surface the most relevant metrics and peer comparisons.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 1.12b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 2.23 > 1.0 |
| NWC/Revenue: -12.78% < 20% (prev -13.14%; Δ 0.36% < -1%) |
| CFO/TA 0.13 > 3% & CFO 1.70b > Net Income 1.12b |
| Net Debt (6.18b) to EBITDA (1.95b): 3.17 < 3 |
| Current Ratio: 0.39 > 1.5 & < 3 |
| Outstanding Shares: last quarter (116.7m) vs 12m ago -1.35% < -2% |
| Gross Margin: 45.49% > 18% (prev 0.21%; Δ 4528 % > 0.5%) |
| Asset Turnover: 98.80% > 50% (prev 92.49%; Δ 6.31% > 0%) |
| Interest Coverage Ratio: 7.59 > 6 (EBITDA TTM 1.95b / Interest Expense TTM 186.2m) |
Altman Z'' 0.07
| A: -0.12 (Total Current Assets 1.04b - Total Current Liabilities 2.65b) / Total Assets 12.94b |
| B: -0.02 (Retained Earnings -235.7m / Total Assets 12.94b) |
| C: 0.11 (EBIT TTM 1.41b / Avg Total Assets 12.73b) |
| D: 0.19 (Book Value of Equity 2.08b / Total Liabilities 10.86b) |
| Altman-Z'' Score: 0.07 = B |
Beneish M -3.10
| DSRI: 1.49 (Receivables 126.1m/77.8m, Revenue 12.58b/11.58b) |
| GMI: 0.47 (GM 45.49% / 21.40%) |
| AQI: 0.97 (AQ_t 0.26 / AQ_t-1 0.27) |
| SGI: 1.09 (Revenue 12.58b / 11.58b) |
| TATA: -0.04 (NI 1.12b - CFO 1.70b) / TA 12.94b) |
| Beneish M-Score: -3.10 (Cap -4..+1) = AA |
What is the price of DRI shares?
Over the past week, the price has changed by +8.49%, over one month by +8.81%, over three months by +22.74% and over the past year by +11.15%.
Is DRI a buy, sell or hold?
- StrongBuy: 14
- Buy: 4
- Hold: 11
- Sell: 0
- StrongSell: 2
What are the forecasts/targets for the DRI price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 222.4 | 2.8% |
| Analysts Target Price | 222.4 | 2.8% |
| ValueRay Target Price | 249.4 | 15.3% |
DRI Fundamental Data Overview February 07, 2026
P/E Forward = 18.622
P/S = 2.0002
P/B = 11.7453
P/EG = 1.9093
Revenue TTM = 12.58b USD
EBIT TTM = 1.41b USD
EBITDA TTM = 1.95b USD
Long Term Debt = 2.14b USD (from longTermDebt, last quarter)
Short Term Debt = 438.0m USD (from shortTermDebt, last quarter)
Debt = 6.41b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 6.18b USD (from netDebt column, last quarter)
Enterprise Value = 31.34b USD (25.16b + Debt 6.41b - CCE 224.1m)
Interest Coverage Ratio = 7.59 (Ebit TTM 1.41b / Interest Expense TTM 186.2m)
EV/FCF = 23.06x (Enterprise Value 31.34b / FCF TTM 1.36b)
FCF Yield = 4.34% (FCF TTM 1.36b / Enterprise Value 31.34b)
FCF Margin = 10.81% (FCF TTM 1.36b / Revenue TTM 12.58b)
Net Margin = 8.92% (Net Income TTM 1.12b / Revenue TTM 12.58b)
Gross Margin = 45.49% ((Revenue TTM 12.58b - Cost of Revenue TTM 6.86b) / Revenue TTM)
Gross Margin QoQ = 68.93% (prev 69.48%)
Tobins Q-Ratio = 2.42 (Enterprise Value 31.34b / Total Assets 12.94b)
Interest Expense / Debt = 0.75% (Interest Expense 48.0m / Debt 6.41b)
Taxrate = 12.85% (35.0m / 272.4m)
NOPAT = 1.23b (EBIT 1.41b * (1 - 12.85%))
Current Ratio = 0.39 (Total Current Assets 1.04b / Total Current Liabilities 2.65b)
Debt / Equity = 3.08 (Debt 6.41b / totalStockholderEquity, last quarter 2.08b)
Debt / EBITDA = 3.17 (Net Debt 6.18b / EBITDA 1.95b)
Debt / FCF = 4.55 (Net Debt 6.18b / FCF TTM 1.36b)
Total Stockholder Equity = 2.21b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.82% (Net Income 1.12b / Total Assets 12.94b)
RoE = 50.89% (Net Income TTM 1.12b / Total Stockholder Equity 2.21b)
RoCE = 32.51% (EBIT 1.41b / Capital Employed (Equity 2.21b + L.T.Debt 2.14b))
RoIC = 27.32% (NOPAT 1.23b / Invested Capital 4.51b)
WACC = 6.54% (E(25.16b)/V(31.56b) * Re(8.04%) + D(6.41b)/V(31.56b) * Rd(0.75%) * (1-Tc(0.13)))
Discount Rate = 8.04% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.71%
[DCF Debug] Terminal Value 84.37% ; FCFF base≈1.23b ; Y1≈1.30b ; Y5≈1.55b
Fair Price DCF = 274.8 (EV 37.82b - Net Debt 6.18b = Equity 31.64b / Shares 115.1m; r=6.54% [WACC]; 5y FCF grow 6.60% → 2.90% )
EPS Correlation: 36.76 | EPS CAGR: 2.02% | SUE: -0.36 | # QB: 0
Revenue Correlation: 89.63 | Revenue CAGR: 6.51% | SUE: 0.91 | # QB: 1
EPS current Year (2026-05-31): EPS=10.59 | Chg30d=+0.011 | Revisions Net=+0 | Growth EPS=+10.9% | Growth Revenue=+9.0%
EPS next Year (2027-05-31): EPS=11.40 | Chg30d=+0.014 | Revisions Net=+2 | Growth EPS=+7.6% | Growth Revenue=+4.0%