DARDEN RESTAURANTS INC (DRI) Stock Fundamental Analysis
USA - NYSE:DRI - US2371941053 - Common Stock
170.35 USD
-0.69 (-0.4%)
Overall DRI gets a fundamental rating of 5 out of 10. We evaluated DRI against 132 industry peers in the Hotels, Restaurants & Leisure industry. DRI scores excellent on profitability, but there are some minor concerns on its financial health. DRI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
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.
DRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DRI (8.62%) is better than 81.06% of its industry peers.
With an excellent Return On Equity value of 49.43%, DRI belongs to the best of the industry, outperforming 90.15% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.01%, DRI is doing good in the industry, outperforming 77.27% 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 10.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 49.43% | ||
| ROIC | 12.01% |
ROA(3y)9%
ROA(5y)8.46%
ROE(3y)45.28%
ROE(5y)40.31%
ROIC(3y)12.45%
ROIC(5y)11.32%
1.3 Margins
With a decent Profit Margin value of 8.90%, DRI is doing good in the industry, outperforming 70.45% of the companies in the same industry.
In the last couple of years the Profit Margin of DRI has declined.
The Operating Margin of DRI (11.63%) is better than 62.88% of its industry peers.
DRI's Operating Margin has improved in the last couple of years.
DRI has a Gross Margin of 21.86%. This is amonst the worse of the industry: DRI underperforms 85.61% of its industry peers.
DRI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.63% | ||
| PM (TTM) | 8.9% | ||
| GM | 21.86% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DRI is creating some value.
The number of shares outstanding for DRI has been reduced compared to 1 year ago.
The number of shares outstanding for DRI has been reduced compared to 5 years ago.
DRI has a worse debt/assets ratio than last year.
2.2 Solvency
DRI has an Altman-Z score of 2.33. 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.
DRI has a better Altman-Z score (2.33) than 65.91% of its industry peers.
DRI has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as DRI would need 3.68 years to pay back of all of its debts.
DRI's Debt to FCF ratio of 3.68 is fine compared to the rest of the industry. DRI outperforms 78.79% of its industry peers.
DRI has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.76, DRI perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.47
WACC8.17%
2.3 Liquidity
DRI has a Current Ratio of 0.40. 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 Current ratio of 0.40. This is amonst the worse of the industry: DRI underperforms 83.33% of its industry peers.
A Quick Ratio of 0.27 indicates that DRI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.27, DRI is doing worse than 88.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.38% over the past year.
DRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.78% yearly.
Looking at the last year, DRI shows a quite strong growth in Revenue. The Revenue has grown by 8.30% in the last year.
DRI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.12% yearly.
EPS 1Y (TTM)10.38%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%12.57%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%10.44%
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 8.68% yearly.
DRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.58% yearly.
EPS Next Y12.19%
EPS Next 2Y9.71%
EPS Next 3Y9.68%
EPS Next 5Y8.68%
Revenue Next Year8.27%
Revenue Next 2Y5.99%
Revenue Next 3Y5.81%
Revenue Next 5Y5.58%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.42, the valuation of DRI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DRI indicates a somewhat cheap valuation: DRI is cheaper than 70.45% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.46, DRI is valued a bit cheaper.
DRI is valuated correctly with a Price/Forward Earnings ratio of 14.80.
Based on the Price/Forward Earnings ratio, DRI is valued a bit cheaper than the industry average as 71.21% of the companies are valued more expensively.
DRI is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 14.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DRI.
Based on the Price/Free Cash Flow ratio, DRI is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.56 | ||
| EV/EBITDA | 11.92 |
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)1.43
PEG (5Y)0.7
EPS Next 2Y9.71%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
DRI has a Yearly Dividend Yield of 3.31%. Purely for dividend investing, there may be better candidates out there.
DRI's Dividend Yield is rather good when compared to the industry average which is at 4.57. DRI pays more dividend than 86.36% of the companies in the same industry.
DRI's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
On average, the dividend of DRI grows each year by 16.99%, which is quite nice.
DRI has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of DRI decreased recently.
Dividend Growth(5Y)16.99%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DRI pays out 60.69% of its income as dividend. This is not a sustainable payout ratio.
DRI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.69%
EPS Next 2Y9.71%
EPS Next 3Y9.68%
NYSE:DRI (11/19/2025, 2:57:56 PM)
170.35
-0.69 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.22%
Inst Owner Change-3.84%
Ins Owners0.28%
Ins Owner Change11.9%
Market Cap19.81B
Revenue(TTM)12.36B
Net Income(TTM)1.10B
Analysts76.84
Price Target226.24 (32.81%)
Short Float %2.95%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Yearly Dividend5.58
Dividend Growth(5Y)16.99%
DP60.69%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.61%
Min EPS beat(2)-2.55%
Max EPS beat(2)-0.66%
EPS beat(4)0
Avg EPS beat(4)-1.12%
Min EPS beat(4)-2.55%
Max EPS beat(4)-0.42%
EPS beat(8)2
Avg EPS beat(8)-0.71%
EPS beat(12)6
Avg EPS beat(12)0.34%
EPS beat(16)8
Avg EPS beat(16)-0.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.68%
Revenue beat(4)0
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)-0.68%
Revenue beat(8)0
Avg Revenue beat(8)-1.7%
Revenue beat(12)2
Avg Revenue beat(12)-1.05%
Revenue beat(16)4
Avg Revenue beat(16)-0.97%
PT rev (1m)-0.56%
PT rev (3m)-4.64%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-4.46%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 14.8 | ||
| P/S | 1.6 | ||
| P/FCF | 18.56 | ||
| P/OCF | 11.21 | ||
| P/B | 8.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.92 |
EPS(TTM)9.78
EY5.74%
EPS(NY)11.51
Fwd EY6.76%
FCF(TTM)9.18
FCFY5.39%
OCF(TTM)15.2
OCFY8.92%
SpS106.31
BVpS19.14
TBVpS-6.7
PEG (NY)1.43
PEG (5Y)0.7
Graham Number64.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 49.43% | ||
| ROCE | 13.81% | ||
| ROIC | 12.01% | ||
| ROICexc | 12.25% | ||
| ROICexgc | 17.27% | ||
| OM | 11.63% | ||
| PM (TTM) | 8.9% | ||
| GM | 21.86% | ||
| FCFM | 8.64% |
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-Score6
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 132.15% | ||
| Cap/Sales | 5.66% | ||
| Interest Coverage | 8.46 | ||
| Cash Conversion | 89.82% | ||
| Profit Quality | 97.06% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 2.33 |
F-Score6
WACC8.17%
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)10.38%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%12.57%
EPS Next Y12.19%
EPS Next 2Y9.71%
EPS Next 3Y9.68%
EPS Next 5Y8.68%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%10.44%
Revenue Next Year8.27%
Revenue Next 2Y5.99%
Revenue Next 3Y5.81%
Revenue Next 5Y5.58%
EBIT growth 1Y5.74%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year48.65%
EBIT Next 3Y17.93%
EBIT Next 5Y12.43%
FCF growth 1Y39.47%
FCF growth 3Y6.34%
FCF growth 5Y35.25%
OCF growth 1Y27.42%
OCF growth 3Y10.58%
OCF growth 5Y19.02%
DARDEN RESTAURANTS INC / DRI FAQ
Can you provide the ChartMill fundamental rating for DARDEN RESTAURANTS INC?
ChartMill assigns a fundamental rating of 5 / 10 to DRI.
What is the valuation status of DARDEN RESTAURANTS INC (DRI) stock?
ChartMill assigns a valuation rating of 5 / 10 to DARDEN RESTAURANTS INC (DRI). This can be considered as Fairly Valued.
Can you provide the profitability details for DARDEN RESTAURANTS INC?
DARDEN RESTAURANTS INC (DRI) has a profitability rating of 7 / 10.
What is the valuation of DARDEN RESTAURANTS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DARDEN RESTAURANTS INC (DRI) is 17.42 and the Price/Book (PB) ratio is 8.9.
How financially healthy is DARDEN RESTAURANTS INC?
The financial health rating of DARDEN RESTAURANTS INC (DRI) is 4 / 10.