DARDEN RESTAURANTS INC (DRI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DRI • US2371941053
212.065 USD
+6.57 (+3.2%)
Last: Feb 4, 2026, 03:01 PM
DRI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. DRI scores excellent on profitability, but there are 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.
- DRI had a positive operating cash flow in the past year.
- DRI had positive earnings in each of the past 5 years.
- Each year in the past 5 years DRI had a positive operating cash flow.
1.2 Ratios
- DRI has a better Return On Assets (8.67%) than 79.55% of its industry peers.
- DRI's Return On Equity of 53.94% is amongst the best of the industry. DRI outperforms 91.67% of its industry peers.
- With a decent Return On Invested Capital value of 12.02%, 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 above the industry average of 10.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.67% | ||
| ROE | 53.94% | ||
| ROIC | 12.02% |
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 8.92%, DRI is doing good in the industry, outperforming 70.45% of the companies in the same industry.
- DRI's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 11.64%, DRI is in the better half of the industry, outperforming 62.88% of the companies in the same industry.
- DRI's Operating Margin has improved in the last couple of years.
- The Gross Margin of DRI (21.63%) is worse than 84.09% of its industry peers.
- In the last couple of years the Gross Margin of DRI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.64% | ||
| PM (TTM) | 8.92% | ||
| 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%
2. Health
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.
- 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 2.49. 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 (2.49) is better than 67.42% of its industry peers.
- DRI has a debt to FCF ratio of 4.42. This is a neutral value as DRI would need 4.42 years to pay back of all of its debts.
- DRI's Debt to FCF ratio of 4.42 is fine compared to the rest of the industry. DRI outperforms 77.27% of its industry peers.
- DRI has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
- DRI has a Debt to Equity ratio of 2.05. This is comparable to the rest of the industry: DRI outperforms 50.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.43
WACC8.41%
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.
- DRI has a Current ratio of 0.39. This is amonst the worse of the industry: DRI underperforms 81.06% of its industry peers.
- A Quick Ratio of 0.26 indicates that DRI may have some problems paying its short term obligations.
- DRI has a worse Quick ratio (0.26) than 87.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.62% 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.
- The Revenue has grown by 8.61% in the past year. This is quite good.
- 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)8.62%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%2.46%
Revenue 1Y (TTM)8.61%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%7.34%
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 8.73% yearly.
- Based on estimates for the next years, DRI will show a small growth in Revenue. The Revenue will grow by 5.76% on average per year.
EPS Next Y11.75%
EPS Next 2Y9.67%
EPS Next 3Y9.65%
EPS Next 5Y8.73%
Revenue Next Year9.12%
Revenue Next 2Y6.53%
Revenue Next 3Y6.18%
Revenue Next 5Y5.76%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 21.57 indicates a rather expensive valuation of DRI.
- Based on the Price/Earnings ratio, DRI is valued a bit cheaper than the industry average as 67.42% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.18. DRI is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 18.44, the valuation of DRI can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DRI indicates a somewhat cheap valuation: DRI is cheaper than 67.42% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.51. DRI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 18.44 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DRI is on the same level as its industry peers.
- 65.15% of the companies in the same industry are more expensive than DRI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.51 | ||
| EV/EBITDA | 13.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- DRI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)0.87
EPS Next 2Y9.67%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
- DRI has a Yearly Dividend Yield of 2.96%.
- Compared to an average industry Dividend Yield of 1.25, DRI pays a better dividend. On top of this DRI pays more dividend than 85.61% of the companies listed in the same industry.
- DRI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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.
- DRI has decreased its dividend recently.
Dividend Growth(5Y)16.99%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 60.33% 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.
DP60.33%
EPS Next 2Y9.67%
EPS Next 3Y9.65%
NYSE:DRI (2/4/2026, 3:01:03 PM)
212.065
+6.57 (+3.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)12-18 2025-12-18/bmo
Earnings (Next)03-18 2026-03-18/bmo
Inst Owners94.95%
Inst Owner Change-1%
Ins Owners0.27%
Ins Owner Change-4.38%
Market Cap24.67B
Revenue(TTM)12.58B
Net Income(TTM)1.12B
Analysts77.3
Price Target223.07 (5.19%)
Short Float %5.7%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend5.58
Dividend Growth(5Y)16.99%
DP60.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-09 2026-01-09 (1.5)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.3%
Min EPS beat(2)-2.55%
Max EPS beat(2)-2.05%
EPS beat(4)0
Avg EPS beat(4)-1.53%
Min EPS beat(4)-2.55%
Max EPS beat(4)-0.66%
EPS beat(8)1
Avg EPS beat(8)-1.59%
EPS beat(12)5
Avg EPS beat(12)-0.23%
EPS beat(16)7
Avg EPS beat(16)-0.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)4
Avg Revenue beat(16)-1.03%
PT rev (1m)-0.32%
PT rev (3m)-1.4%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 18.44 | ||
| P/S | 1.96 | ||
| P/FCF | 25.51 | ||
| P/OCF | 14.51 | ||
| P/B | 11.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.73 |
EPS(TTM)9.83
EY4.64%
EPS(NY)11.5
Fwd EY5.42%
FCF(TTM)8.31
FCFY3.92%
OCF(TTM)14.61
OCFY6.89%
SpS108.13
BVpS17.89
TBVpS-7.95
PEG (NY)1.84
PEG (5Y)0.87
Graham Number62.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.67% | ||
| ROE | 53.94% | ||
| ROCE | 14.23% | ||
| ROIC | 12.02% | ||
| ROICexc | 12.28% | ||
| ROICexgc | 17.2% | ||
| OM | 11.64% | ||
| PM (TTM) | 8.92% | ||
| GM | 21.63% | ||
| FCFM | 7.69% |
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 Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 4.42 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 135.69% | ||
| Cap/Sales | 5.83% | ||
| Interest Coverage | 7.92 | ||
| Cash Conversion | 84.82% | ||
| Profit Quality | 86.17% | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 2.49 |
F-Score8
WACC8.41%
ROIC/WACC1.43
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)8.62%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%2.46%
EPS Next Y11.75%
EPS Next 2Y9.67%
EPS Next 3Y9.65%
EPS Next 5Y8.73%
Revenue 1Y (TTM)8.61%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%7.34%
Revenue Next Year9.12%
Revenue Next 2Y6.53%
Revenue Next 3Y6.18%
Revenue Next 5Y5.76%
EBIT growth 1Y8.14%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year47.9%
EBIT Next 3Y17.98%
EBIT Next 5Y12.44%
FCF growth 1Y8.15%
FCF growth 3Y6.34%
FCF growth 5Y35.25%
OCF growth 1Y11.89%
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.
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.
How profitable is DARDEN RESTAURANTS INC (DRI) stock?
DARDEN RESTAURANTS INC (DRI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for DRI stock?
The Price/Earnings (PE) ratio for DARDEN RESTAURANTS INC (DRI) is 21.57 and the Price/Book (PB) ratio is 11.86.
Is the dividend of DARDEN RESTAURANTS INC sustainable?
The dividend rating of DARDEN RESTAURANTS INC (DRI) is 5 / 10 and the dividend payout ratio is 60.33%.