DARDEN RESTAURANTS INC (DRI) Fundamental Analysis & Valuation

NYSE:DRI • US2371941053

Current stock price

192.39 USD
-3.95 (-2.01%)
At close:
192.39 USD
0 (0%)
After Hours:

This DRI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. DRI Profitability Analysis

1.1 Basic Checks

  • In the past year DRI was profitable.
  • DRI had a positive operating cash flow in the past year.
  • In the past 5 years DRI has always been profitable.
  • In the past 5 years DRI always reported a positive cash flow from operatings.
DRI Yearly Net Income VS EBIT VS OCF VS FCFDRI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

1.2 Ratios

  • With a decent Return On Assets value of 8.58%, DRI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
  • DRI has a Return On Equity of 52.55%. This is amongst the best in the industry. DRI outperforms 92.06% of its industry peers.
  • With a decent Return On Invested Capital value of 12.31%, DRI is doing good in the industry, outperforming 77.78% of the companies in the same industry.
  • DRI had an Average Return On Invested Capital over the past 3 years of 12.45%. This is in line with the industry average of 10.56%.
Industry RankSector Rank
ROA 8.58%
ROE 52.55%
ROIC 12.31%
ROA(3y)9%
ROA(5y)8.46%
ROE(3y)45.28%
ROE(5y)40.31%
ROIC(3y)12.45%
ROIC(5y)11.32%
DRI Yearly ROA, ROE, ROICDRI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

1.3 Margins

  • DRI has a Profit Margin of 8.66%. This is in the better half of the industry: DRI outperforms 73.02% of its industry peers.
  • In the last couple of years the Profit Margin of DRI has declined.
  • The Operating Margin of DRI (11.57%) is better than 60.32% of its industry peers.
  • DRI's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 21.63%, DRI is doing worse than 85.71% of the companies in the same industry.
  • DRI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 11.57%
PM (TTM) 8.66%
GM 21.63%
OM growth 3Y-1.01%
OM growth 5Y15.81%
PM growth 3Y-4.23%
PM growth 5YN/A
GM growth 3Y1.84%
GM growth 5Y3.94%
DRI Yearly Profit, Operating, Gross MarginsDRI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20

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5

2. DRI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DRI is still creating some value.
  • Compared to 1 year ago, DRI has less shares outstanding
  • DRI has less shares outstanding than it did 5 years ago.
  • DRI has a worse debt/assets ratio than last year.
DRI Yearly Shares OutstandingDRI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
DRI Yearly Total Debt VS Total AssetsDRI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • DRI has an Altman-Z score of 2.45. This is not the best score and indicates that DRI is in the grey zone with still only limited risk for bankruptcy at the moment.
  • The Altman-Z score of DRI (2.45) is better than 64.29% of its industry peers.
  • The Debt to FCF ratio of DRI is 2.44, which is a good value as it means it would take DRI, 2.44 years of fcf income to pay off all of its debts.
  • DRI has a better Debt to FCF ratio (2.44) than 82.54% of its industry peers.
  • DRI has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.16, DRI is in line with its industry, outperforming 55.56% of the companies in the same industry.
  • Even though the debt/equity ratio score it not favorable for DRI, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 1.16
Debt/FCF 2.44
Altman-Z 2.45
ROIC/WACC1.47
WACC8.39%
DRI Yearly LT Debt VS Equity VS FCFDRI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 0.39 indicates that DRI may have some problems paying its short term obligations.
  • The Current ratio of DRI (0.39) is worse than 86.51% of its industry peers.
  • A Quick Ratio of 0.26 indicates that DRI may have some problems paying its short term obligations.
  • DRI's Quick ratio of 0.26 is on the low side compared to the rest of the industry. DRI is outperformed by 90.48% of its industry peers.
Industry RankSector Rank
Current Ratio 0.39
Quick Ratio 0.26
DRI Yearly Current Assets VS Current LiabilitesDRI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. DRI Growth Analysis

3.1 Past

  • DRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.13%, which is quite good.
  • Measured over the past years, DRI shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.78% on average per year.
  • The Revenue has grown by 8.51% in the past year. This is quite good.
  • Measured over the past years, DRI shows a quite strong growth in Revenue. The Revenue has been growing by 9.12% on average per year.
EPS 1Y (TTM)8.13%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%5.36%
Revenue 1Y (TTM)8.51%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%5.93%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.63% on average over the next years. This is quite good.
  • Based on estimates for the next years, DRI will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y11.8%
EPS Next 2Y9.71%
EPS Next 3Y9.63%
EPS Next 5Y8.63%
Revenue Next Year9.58%
Revenue Next 2Y6.6%
Revenue Next 3Y6.36%
Revenue Next 5Y5.77%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
DRI Yearly Revenue VS EstimatesDRI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
DRI Yearly EPS VS EstimatesDRI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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5

4. DRI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.28 indicates a rather expensive valuation of DRI.
  • DRI's Price/Earnings ratio is a bit cheaper when compared to the industry. DRI is cheaper than 67.46% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.78. DRI is valued slightly cheaper when compared to this.
  • DRI is valuated correctly with a Price/Forward Earnings ratio of 16.72.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of DRI indicates a somewhat cheap valuation: DRI is cheaper than 65.87% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of DRI to the average of the S&P500 Index (23.54), we can say DRI is valued slightly cheaper.
Industry RankSector Rank
PE 19.28
Fwd PE 16.72
DRI Price Earnings VS Forward Price EarningsDRI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • DRI's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 62.70% of the companies in the same industry are more expensive than DRI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 22.21
EV/EBITDA 12.09
DRI Per share dataDRI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80 100

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of DRI may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)0.78
EPS Next 2Y9.71%
EPS Next 3Y9.63%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. DRI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.06%, DRI has a reasonable but not impressive dividend return.
  • DRI's Dividend Yield is rather good when compared to the industry average which is at 1.09. DRI pays more dividend than 87.30% of the companies in the same industry.
  • DRI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 3.06%

5.2 History

  • On average, the dividend of DRI grows each year by 16.99%, which is quite nice.
  • DRI has paid a dividend for at least 10 years, which is a reliable track record.
  • DRI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.99%
Div Incr Years2
Div Non Decr Years2
DRI Yearly Dividends per shareDRI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4 5

5.3 Sustainability

  • 61.99% of the earnings are spent on dividend by DRI. This is not a sustainable payout ratio.
  • DRI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.99%
EPS Next 2Y9.71%
EPS Next 3Y9.63%
DRI Yearly Income VS Free CF VS DividendDRI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B
DRI Dividend Payout.DRI Dividend Payout, showing the Payout Ratio.DRI Dividend Payout.PayoutRetained Earnings

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DRI Fundamentals: All Metrics, Ratios and Statistics

DARDEN RESTAURANTS INC

NYSE:DRI (4/10/2026, 8:17:52 PM)

After market: 192.39 0 (0%)

192.39

-3.95 (-2.01%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)03-19
Earnings (Next)06-18
Inst Owners100.48%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change-5.88%
Market Cap22.04B
Revenue(TTM)12.76B
Net Income(TTM)1.11B
Analysts77.78
Price Target228.77 (18.91%)
Short Float %5.01%
Short Ratio3.88
Dividend
Industry RankSector Rank
Dividend Yield 3.06%
Yearly Dividend5.58
Dividend Growth(5Y)16.99%
DP61.99%
Div Incr Years2
Div Non Decr Years2
Ex-Date04-10
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.43%
Min EPS beat(2)-2.05%
Max EPS beat(2)-0.8%
EPS beat(4)0
Avg EPS beat(4)-1.52%
Min EPS beat(4)-2.55%
Max EPS beat(4)-0.66%
EPS beat(8)1
Avg EPS beat(8)-1.55%
EPS beat(12)4
Avg EPS beat(12)-0.55%
EPS beat(16)7
Avg EPS beat(16)0%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-0.82%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-1.26%
Revenue beat(12)1
Avg Revenue beat(12)-1.28%
Revenue beat(16)4
Avg Revenue beat(16)-0.85%
PT rev (1m)1.67%
PT rev (3m)2.31%
EPS NQ rev (1m)1.25%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE 19.28
Fwd PE 16.72
P/S 1.74
P/FCF 22.21
P/OCF 12.77
P/B 10.53
P/tB N/A
EV/EBITDA 12.09
EPS(TTM)9.98
EY5.19%
EPS(NY)11.51
Fwd EY5.98%
FCF(TTM)8.66
FCFY4.5%
OCF(TTM)15.07
OCFY7.83%
SpS110.85
BVpS18.27
TBVpS-7.82
PEG (NY)1.63
PEG (5Y)0.78
Graham Number64.06
Profitability
Industry RankSector Rank
ROA 8.58%
ROE 52.55%
ROCE 14.37%
ROIC 12.31%
ROICexc 12.6%
ROICexgc 17.76%
OM 11.57%
PM (TTM) 8.66%
GM 21.63%
FCFM 7.82%
ROA(3y)9%
ROA(5y)8.46%
ROE(3y)45.28%
ROE(5y)40.31%
ROIC(3y)12.45%
ROIC(5y)11.32%
ROICexc(3y)12.83%
ROICexc(5y)11.9%
ROICexgc(3y)17.84%
ROICexgc(5y)16.28%
ROCE(3y)14.18%
ROCE(5y)12.88%
ROICexgc growth 3Y1.15%
ROICexgc growth 5Y21.42%
ROICexc growth 3Y-1.77%
ROICexc growth 5Y19.57%
OM growth 3Y-1.01%
OM growth 5Y15.81%
PM growth 3Y-4.23%
PM growth 5YN/A
GM growth 3Y1.84%
GM growth 5Y3.94%
F-Score9
Asset Turnover0.99
Health
Industry RankSector Rank
Debt/Equity 1.16
Debt/FCF 2.44
Debt/EBITDA 1.2
Cap/Depr 134.14%
Cap/Sales 5.78%
Interest Coverage 250
Cash Conversion 85.6%
Profit Quality 90.22%
Current Ratio 0.39
Quick Ratio 0.26
Altman-Z 2.45
F-Score9
WACC8.39%
ROIC/WACC1.47
Cap/Depr(3y)140.02%
Cap/Depr(5y)121.27%
Cap/Sales(3y)5.58%
Cap/Sales(5y)4.94%
Profit Quality(3y)96.8%
Profit Quality(5y)105.36%
High Growth Momentum
Growth
EPS 1Y (TTM)8.13%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%5.36%
EPS Next Y11.8%
EPS Next 2Y9.71%
EPS Next 3Y9.63%
EPS Next 5Y8.63%
Revenue 1Y (TTM)8.51%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%5.93%
Revenue Next Year9.58%
Revenue Next 2Y6.6%
Revenue Next 3Y6.36%
Revenue Next 5Y5.77%
EBIT growth 1Y7.24%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year47.83%
EBIT Next 3Y17.98%
EBIT Next 5Y11.74%
FCF growth 1Y4.52%
FCF growth 3Y6.34%
FCF growth 5Y35.25%
OCF growth 1Y8.64%
OCF growth 3Y10.58%
OCF growth 5Y19.02%

DARDEN RESTAURANTS INC / DRI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for DARDEN RESTAURANTS INC?

ChartMill assigns a fundamental rating of 5 / 10 to DRI.


Can you provide the valuation status for DARDEN RESTAURANTS INC?

ChartMill assigns a valuation rating of 5 / 10 to DARDEN RESTAURANTS INC (DRI). This can be considered as Fairly Valued.


What is the profitability of DRI stock?

DARDEN RESTAURANTS INC (DRI) has a profitability rating of 6 / 10.


What are the PE and PB ratios of DARDEN RESTAURANTS INC (DRI) stock?

The Price/Earnings (PE) ratio for DARDEN RESTAURANTS INC (DRI) is 19.28 and the Price/Book (PB) ratio is 10.53.


Can you provide the financial health for DRI stock?

The financial health rating of DARDEN RESTAURANTS INC (DRI) is 5 / 10.