DARDEN RESTAURANTS INC (DRI) Fundamental Analysis & Valuation

NYSE:DRI • US2371941053

Current stock price

194.76 USD
-5.8 (-2.89%)
At close:
194.76 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

  • DRI had positive earnings in the past year.
  • DRI had a positive operating cash flow in the past year.
  • In the past 5 years DRI has always been profitable.
  • Each year in the past 5 years DRI had a positive operating cash flow.
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

  • DRI has a better Return On Assets (8.58%) than 78.57% of its industry peers.
  • With an excellent Return On Equity value of 52.55%, DRI belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
  • 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.
  • 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 10.92%.
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.
  • 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.
  • The Gross Margin of DRI (21.63%) is worse than 85.71% of its industry peers.
  • In the last couple of years the Gross Margin of DRI has grown nicely.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. DRI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DRI is creating some value.
  • Compared to 1 year ago, DRI has less shares outstanding
  • DRI has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, DRI has a worse debt to assets ratio.
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 2.47 indicates that DRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • DRI has a Altman-Z score of 2.47. This is in the better half of the industry: DRI outperforms 64.29% of its industry peers.
  • 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.
  • With a decent Debt to FCF ratio value of 4.18, DRI is doing good in the industry, outperforming 74.60% of the companies in the same industry.
  • DRI has a Debt/Equity ratio of 1.97. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.97, DRI is in line with its industry, outperforming 46.03% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.97
Debt/FCF 4.18
Altman-Z 2.47
ROIC/WACC1.46
WACC8.46%
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.
  • DRI has a worse Current ratio (0.39) than 87.30% of its industry peers.
  • A Quick Ratio of 0.25 indicates that DRI may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.25, DRI is doing worse than 90.48% of the companies in the same industry.
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

More info and screens

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

5

3. DRI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.13% over the past year.
  • 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

  • DRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.98% yearly.
  • The Revenue is expected to grow by 6.09% on average over the next years.
EPS Next Y12.18%
EPS Next 2Y9.51%
EPS Next 3Y9.62%
EPS Next 5Y9.98%
Revenue Next Year9.58%
Revenue Next 2Y6.61%
Revenue Next 3Y6.38%
Revenue Next 5Y6.09%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

More info and screens

Find the best growth stocksShow best growing peers

4

4. DRI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.52, the valuation of DRI can be described as rather expensive.
  • Based on the Price/Earnings ratio, DRI is valued a bit cheaper than 65.87% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.64, DRI is valued a bit cheaper.
  • DRI is valuated correctly with a Price/Forward Earnings ratio of 16.99.
  • 62.70% of the companies in the same industry are more expensive than DRI, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, DRI is valued a bit cheaper.
Industry RankSector Rank
PE 19.52
Fwd PE 16.99
DRI Price Earnings VS Forward Price EarningsDRI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • DRI's Enterprise Value to EBITDA ratio is in line with the industry average.
  • DRI's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 22.44
EV/EBITDA 13.12
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)1.6
PEG (5Y)0.79
EPS Next 2Y9.51%
EPS Next 3Y9.62%

More info and screens

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

5

5. DRI Dividend Analysis

5.1 Amount

  • DRI has a Yearly Dividend Yield of 2.99%.
  • DRI's Dividend Yield is rather good when compared to the industry average which is at 1.05. DRI pays more dividend than 86.51% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, DRI pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.99%

5.2 History

  • The dividend of DRI is nicely growing with an annual growth rate of 16.99%!
  • DRI has been paying a dividend for at least 10 years, so it has a reliable track record.
  • The dividend of DRI decreased 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 2Y9.51%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

DRI Fundamentals: All Metrics, Ratios and Statistics

DARDEN RESTAURANTS INC

NYSE:DRI (5/1/2026, 8:22:17 PM)

After market: 194.76 0 (0%)

194.76

-5.8 (-2.89%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Industry Strength28.57
Industry Growth42.24
Earnings (Last)03-19
Earnings (Next)06-18
Inst Owners100.48%
Inst Owner Change-0.02%
Ins Owners0.25%
Ins Owner Change-5.32%
Market Cap22.31B
Revenue(TTM)12.76B
Net Income(TTM)1.11B
Analysts77.78
Price Target228.39 (17.27%)
Short Float %4.52%
Short Ratio3.64
Dividend
Industry RankSector Rank
Dividend Yield 2.99%
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)0.11%
EPS NQ rev (3m)1.34%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.42%
Valuation
Industry RankSector Rank
PE 19.52
Fwd PE 16.99
P/S 1.75
P/FCF 22.44
P/OCF 12.86
P/B 10.6
P/tB N/A
EV/EBITDA 13.12
EPS(TTM)9.98
EY5.12%
EPS(NY)11.47
Fwd EY5.89%
FCF(TTM)8.68
FCFY4.46%
OCF(TTM)15.15
OCFY7.78%
SpS111.44
BVpS18.37
TBVpS-7.86
PEG (NY)1.6
PEG (5Y)0.79
Graham Number64.2245 (-67.02%)
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 2.47
F-Score8
WACC8.46%
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 5Y9.98%
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 5Y6.09%
EBIT growth 1Y7.24%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year48.04%
EBIT Next 3Y18.47%
EBIT Next 5Y11.27%
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 19.52 and the Price/Book (PB) ratio is 10.6.


Can you provide the financial health for DRI stock?

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