DARDEN RESTAURANTS INC (DRI) Fundamental Analysis & Valuation

NYSE:DRI • US2371941053

Current stock price

201.06 USD
-1.28 (-0.63%)
At close:
201.06 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.
  • In the past year DRI had a positive cash flow from operations.
  • DRI had positive earnings in each of the past 5 years.
  • 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

  • The Return On Assets of DRI (8.58%) is better than 78.57% of its industry peers.
  • 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.
  • Looking at the Return On Invested Capital, with a value of 12.31%, DRI is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for DRI is in line with the industry average of 10.55%.
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's Profit Margin of 8.66% is fine compared to the rest of the industry. DRI outperforms 73.02% of its industry peers.
  • DRI's Profit Margin has declined in the last couple of years.
  • DRI has a Operating Margin of 11.57%. This is in the better half of the industry: DRI outperforms 60.32% of its industry peers.
  • In the last couple of years the Operating Margin of DRI has grown nicely.
  • The Gross Margin of DRI (21.63%) is worse than 85.71% of its industry peers.
  • 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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3

2. DRI Health Analysis

2.1 Basic Checks

  • DRI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for DRI has been reduced compared to 1 year ago.
  • Compared to 5 years ago, DRI has less shares outstanding
  • The debt/assets ratio for DRI is higher compared to a year ago.
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

  • An Altman-Z score of 2.49 indicates that DRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.49, DRI is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
  • DRI has a debt to FCF ratio of 4.18. This is a neutral value as DRI would need 4.18 years to pay back of all of its debts.
  • DRI has a better Debt to FCF ratio (4.18) than 76.19% of its industry peers.
  • DRI has a Debt/Equity ratio of 1.97. This is a high value indicating a heavy dependency on external financing.
  • DRI has a Debt to Equity ratio (1.97) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.97
Debt/FCF 4.18
Altman-Z 2.49
ROIC/WACC1.46
WACC8.41%
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

  • DRI has a Current Ratio of 0.39. This is a bad value and indicates that DRI is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of DRI (0.39) is worse than 86.51% of its industry peers.
  • DRI has a Quick Ratio of 0.39. This is a bad value and indicates that DRI is not financially healthy enough and could expect problems in meeting its short term obligations.
  • DRI has a Quick ratio of 0.25. This is amonst the worse of the industry: DRI underperforms 90.48% of its industry peers.
Industry RankSector Rank
Current Ratio 0.39
Quick Ratio 0.25
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.
  • The Earnings Per Share has been growing by 24.78% on average over the past years. This is a very strong growth
  • Looking at the last year, DRI shows a quite strong growth in Revenue. The Revenue has grown by 8.51% in the last year.
  • The Revenue has been growing by 9.12% on average over the past years. This is quite good.
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

  • DRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.63% yearly.
  • The Revenue is expected to grow by 5.77% on average over the next years.
EPS Next Y12.18%
EPS Next 2Y9.51%
EPS Next 3Y9.62%
EPS Next 5Y8.63%
Revenue Next Year9.58%
Revenue Next 2Y6.61%
Revenue Next 3Y6.38%
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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4

4. DRI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.15, which indicates a rather expensive current valuation of DRI.
  • DRI's Price/Earnings ratio is a bit cheaper when compared to the industry. DRI is cheaper than 65.87% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, DRI is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 17.54, which indicates a rather expensive current valuation of DRI.
  • Based on the Price/Forward Earnings ratio, DRI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.24. DRI is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.15
Fwd PE 17.54
DRI Price Earnings VS Forward Price EarningsDRI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • DRI's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, DRI is valued a bit cheaper than 61.90% of the companies in the same industry.
Industry RankSector Rank
P/FCF 23.16
EV/EBITDA 13.22
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

  • DRI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • DRI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)0.81
EPS Next 2Y9.51%
EPS Next 3Y9.62%

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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 3.05%, 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 1.04. 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 1.81.
Industry RankSector Rank
Dividend Yield 3.05%

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.
  • The dividend of DRI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.99%
EPS Next 2Y9.51%
EPS Next 3Y9.62%
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 (4/24/2026, 8:04:00 PM)

After market: 201.06 0 (0%)

201.06

-1.28 (-0.63%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)03-19
Earnings (Next)06-18
Inst Owners100.48%
Inst Owner Change-0.01%
Ins Owners0.25%
Ins Owner Change-4.76%
Market Cap23.03B
Revenue(TTM)12.76B
Net Income(TTM)1.11B
Analysts77.78
Price Target228.77 (13.78%)
Short Float %4.54%
Short Ratio3.56
Dividend
Industry RankSector Rank
Dividend Yield 3.05%
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)1.6%
PT rev (3m)2.56%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)1.34%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.42%
Valuation
Industry RankSector Rank
PE 20.15
Fwd PE 17.54
P/S 1.8
P/FCF 23.16
P/OCF 13.27
P/B 10.95
P/tB N/A
EV/EBITDA 13.22
EPS(TTM)9.98
EY4.96%
EPS(NY)11.47
Fwd EY5.7%
FCF(TTM)8.68
FCFY4.32%
OCF(TTM)15.15
OCFY7.53%
SpS111.44
BVpS18.37
TBVpS-7.86
PEG (NY)1.65
PEG (5Y)0.81
Graham Number64.2245 (-68.06%)
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 7.79%
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-Score8
Asset Turnover0.99
Health
Industry RankSector Rank
Debt/Equity 1.97
Debt/FCF 4.18
Debt/EBITDA 2.04
Cap/Depr 134.74%
Cap/Sales 5.8%
Interest Coverage 7.87
Cash Conversion 85.6%
Profit Quality 89.92%
Current Ratio 0.39
Quick Ratio 0.25
Altman-Z 2.49
F-Score8
WACC8.41%
ROIC/WACC1.46
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 Y12.18%
EPS Next 2Y9.51%
EPS Next 3Y9.62%
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 2Y6.61%
Revenue Next 3Y6.38%
Revenue Next 5Y5.77%
EBIT growth 1Y7.24%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year48.04%
EBIT Next 3Y18.47%
EBIT Next 5Y11.74%
FCF growth 1Y4.17%
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 4 / 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 20.15 and the Price/Book (PB) ratio is 10.95.


Can you provide the financial health for DRI stock?

The financial health rating of DARDEN RESTAURANTS INC (DRI) is 3 / 10.