DRI Stock Analysis: Darden Restaurants | NYSE
Restaurants | NYSE, USA | Market Cap: 22.414m USD | 12M Return: 6.8% | US2371941053 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 267M
EPS Trend: 97.6%
Qual. Beats: 0
Rev. Trend: 99.1%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 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 multi-brand operator of full-service restaurants in the United States and Canada, headquartered in Orlando, Florida, and founded in 1938. The company runs a diverse portfolio that includes Olive Garden, LongHorn Steakhouse, Cheddars Scratch Kitchen, Chuys, Yard House, Ruths Chris Steak House, The Capital Grille, Seasons 52, Eddie Vs Prime Seafood, Bahama Breeze, and The Capital Burger, among others.
As a large-cap stock in the Consumer Discretionary sector (GICS Restaurants sub-industry), Darden follows a multi-concept full-service dining model in which each brand targets a distinct cuisine, price point, or customer demographic. This portfolio approach allows the company to spread operating risk across concepts while sharing back-office functions such as supply chain, real estate, and procurement across its restaurant base.
- Olive Garden same-restaurant sales growth fuels revenue beats
- LongHorn Steakhouse traffic gains outpace casual dining peers
- Beef and commodity inflation pressure restaurant level margins
| Net Income: 1.18b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.90 > 1.0 |
| NWC/Revenue: -16.80% < 20% (prev -11.44%; Δ -5.37% < -1%) |
| CFO/TA 0.14 > 3% & CFO 1.79b > Net Income 1.18b |
| Net Debt (10.4b) to EBITDA (2.12b): 4.88 < 3 |
| Current Ratio: 0.30 > 1.5 & < 3 |
| Outstanding Shares: last quarter (114.4m) vs 12m ago -2.72% < -2% |
| Gross Margin: 69.37% > 18% (prev 33.93%; Δ 35.44% > 0.5%) |
| Asset Turnover: 102.9% > 50% (prev 96.90%; Δ 5.97% > 0%) |
| Interest Coverage Ratio: 8.05 > 6 (EBIT TTM 1.56b / Interest Expense TTM 194.2m) |
| A: -0.17 (Total Current Assets 953.1m - Total Current Liabilities 3.20b) / Total Assets 13.2b |
| B: -0.02 (Retained Earnings -259.5m / Total Assets 13.2b) |
| C: 0.12 (EBIT TTM 1.56b / Avg Total Assets 13.0b) |
| D: 0.19 (Book Value of Equity 2.07b / Total Liabilities 11.2b) |
| Altman-Z'' = -0.17 = B |
| DSRI: 1.16 (Receivables 118.0m/94.1m, Revenue 13.4b/12.4b) |
| GMI: 0.49 (GM 33.93% / 69.37%) |
| AQI: 0.40 (AQ_t 0.26 / AQ_t-1 0.64) |
| SGI: 1.08 (Revenue 13.4b / 12.4b) |
| TATA: -0.05 (NI 1.18b - CFO 1.79b) / TA 13.2b) |
| Beneish M = -3.66 (Cap -4..+1) = AAA |
As of October 05, 2026, the stock is trading at USD 200.33 with a total of 1,095,673 shares traded. Over the past week, the price has changed by +0.29%, over one month by -8.95%, over three months by -1.16% and over the past year by +6.82%.
Current recommended Stop Loss: 187.70 (which is 6.3% or 2.3 ATR below the current price).
Darden Restaurants has received a consensus analysts rating of 4.15. Therefore, it is recommended to buy DRI.
- StrongBuy: 15
- Buy: 2
- Hold: 9
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 234.4 | 17% |
P/E Trailing = 19.3539
P/E Forward = 18.9394
P/S = 1.6769
P/B = 10.9833
P/EG = 1.9045
Revenue TTM = 13.4b USD
EBIT TTM = 1.56b USD
EBITDA TTM = 2.12b USD
Long Term Debt = 1.67b USD (from longTermDebt, last fiscal year)
Short Term Debt = 979.7m USD (from shortTermDebt, last quarter)
Debt = 10.6b USD (from shortLongTermDebtTotal, last quarter) + Leases 3.96b
Net Debt = 10.4b USD (calculated: Debt 10.6b - CCE 220.5m)
Enterprise Value = 32.8b USD (22.4b + Debt 10.6b - CCE 220.5m)
Interest Coverage Ratio = 8.05 (Ebit TTM 1.56b / Interest Expense TTM 194.2m)
EV/FCF = 26.52x (Enterprise Value 32.8b / FCF TTM 1.24b)
FCF Yield = 3.77% (FCF TTM 1.24b / Enterprise Value 32.8b)
FCF Margin = 9.25% (FCF TTM 1.24b / Revenue TTM 13.4b)
Net Margin = 8.85% (Net Income TTM 1.18b / Revenue TTM 13.4b)
Gross Margin = 69.37% ((Revenue TTM 13.4b - Cost of Revenue TTM 4.09b) / Revenue TTM)
Gross Margin QoQ = 69.22% (prev none%)
Tobins Q-Ratio = 2.48 (Enterprise Value 32.8b / Total Assets 13.2b)
Interest Expense / Debt = 1.84% (Interest Expense 194.2m / Debt 10.6b)
Taxrate = 12.74% (173.7m / 1.36b)
NOPAT = 1.36b (EBIT 1.56b * (1 - 12.74%))
Current Ratio = 0.30 (Total Current Assets 953.1m / Total Current Liabilities 3.20b)
Debt / Equity = 5.12 (Debt 10.6b / totalStockholderEquity, last quarter 2.07b)
Debt / EBITDA = 4.88 (Net Debt 10.4b / EBITDA 2.12b)
Debt / FCF = 8.38 (Net Debt 10.4b / FCF TTM 1.24b)
Total Stockholder Equity = 2.12b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.10% (Net Income 1.18b / Total Assets 13.2b)
RoE = 55.90% (Net Income TTM 1.18b / Total Stockholder Equity 2.12b)
RoCE = 41.25% (EBIT 1.56b / Capital Employed (Equity 2.12b + L.T.Debt 1.67b))
RoIC = 12.64% (NOPAT 1.36b / Invested Capital 10.8b)
WACC = 5.53% (E(22.4b)/V(33.0b) * Re(7.38%) + D(10.6b)/V(33.0b) * Rd(1.84%) * (1-Tc(0.13)))
Discount Rate = 7.38% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -97.28 | Cagr: -2.14%
[DCF] Terminal Value 77.93% ; FCFF base≈1.17b ; Y1≈1.34b ; Y5≈1.96b
[DCF] Fair Price = 169.0 (EV 29.6b - Net Debt 10.4b = Equity 19.2b / Shares 113.5m; r=8.35% [WACC [floored]]; 5y FCF grow 14.74% → 2.50% )
EPS Correlation: 97.58 | EPS CAGR: 8.38% | SUE: -0.28 | # QB: 0
Revenue Correlation: 99.06 | Revenue CAGR: 7.42% | SUE: -0.23 | # QB: 0
EPS current Quarter (2026-11-30): EPS=2.25 | Chg30d=-1.37% | Revisions=-40% | Analysts=27
EPS next Quarter (2027-02-28): EPS=3.27 | Chg30d=+0.70% | Revisions=+25% | Analysts=27
EPS current Year (2027-05-31): EPS=11.25 | Chg30d=-0.17% | Revisions=+25% | GrowthEPS=+5.8% | GrowthRev=+3.7%
EPS next Year (2028-05-31): EPS=12.40 | Chg30d=+0.09% | Revisions=+25% | GrowthEPS=+10.2% | GrowthRev=+6.1%
[Analyst] Revisions Ratio: +12% (up=3, down=2)