DARDEN RESTAURANTS INC (DRI) Stock Fundamental Analysis

NYSE:DRI • US2371941053

213.85 USD
-0.98 (-0.46%)
At close: Feb 27, 2026
213.85 USD
0 (0%)
After Hours: 2/27/2026, 7:57:15 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall DRI gets a fundamental rating of 5 out of 10. We evaluated DRI against 126 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of DRI while its profitability can be described as average. DRI has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

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.
  • DRI had a positive operating cash flow in each of the past 5 years.
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 Return On Assets of 8.67%. This is in the better half of the industry: DRI outperforms 79.37% of its industry peers.
  • With an excellent Return On Equity value of 53.94%, DRI belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 12.02%, DRI is doing good in the industry, outperforming 75.40% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DRI is in line with the industry average of 10.67%.
Industry RankSector 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%
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

  • The Profit Margin of DRI (8.92%) is better than 70.63% of its industry peers.
  • In the last couple of years the Profit Margin of DRI has declined.
  • DRI's Operating Margin of 11.64% is fine compared to the rest of the industry. DRI outperforms 61.11% 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 86.51% of its industry peers.
  • In the last couple of years the Gross Margin of DRI has grown nicely.
Industry RankSector 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%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

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.
  • 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

  • DRI has an Altman-Z score of 2.54. 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 Altman-Z score of 2.54. This is in the better half of the industry: DRI outperforms 67.46% of its industry peers.
  • The Debt to FCF ratio of DRI is 4.42, which is a neutral value as it means it would take DRI, 4.42 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of DRI (4.42) is better than 76.19% 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.
  • The Debt to Equity ratio of DRI (2.05) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 2.05
Debt/FCF 4.42
Altman-Z 2.54
ROIC/WACC1.47
WACC8.18%
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 84.92% of its industry peers.
  • A Quick Ratio of 0.26 indicates that DRI may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.26, DRI is doing worse than 90.48% of the companies in the same industry.
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. Growth

3.1 Past

  • DRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.62%, which is quite good.
  • DRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.78% yearly.
  • DRI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.61%.
  • 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 8.63% yearly.
  • The Revenue is expected to grow by 5.77% on average over the next years.
EPS Next Y11.82%
EPS Next 2Y9.73%
EPS Next 3Y9.63%
EPS Next 5Y8.63%
Revenue Next Year9.12%
Revenue Next 2Y6.53%
Revenue Next 3Y6.18%
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.
  • 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

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 21.75, DRI is valued on the expensive side.
  • Based on the Price/Earnings ratio, DRI is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of DRI to the average of the S&P500 Index (27.10), we can say DRI is valued inline with the index average.
  • The Price/Forward Earnings ratio is 18.58, which indicates a rather expensive current valuation of DRI.
  • 61.90% of the companies in the same industry are more expensive than DRI, based on the Price/Forward Earnings ratio.
  • DRI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 21.75
Fwd PE 18.58
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 a bit cheaper when compared to the industry. DRI is cheaper than 61.11% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.46
EV/EBITDA 14.15
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DRI does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of DRI may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)0.88
EPS Next 2Y9.73%
EPS Next 3Y9.63%

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

5

5. Dividend

5.1 Amount

  • DRI has a Yearly Dividend Yield of 2.77%.
  • Compared to an average industry Dividend Yield of 1.09, DRI pays a better dividend. On top of this DRI pays more dividend than 85.71% 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 1.80.
Industry RankSector Rank
Dividend Yield 2.77%

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.
  • DRI has decreased its dividend recently.
Dividend Growth(5Y)16.99%
Div Incr Years1
Div Non Decr Years1
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

  • DRI pays out 60.33% of its income as dividend. 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 2Y9.73%
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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Find the best dividend stocksShow peers with best dividend

DARDEN RESTAURANTS INC

NYSE:DRI (2/27/2026, 7:57:15 PM)

After market: 213.85 0 (0%)

213.85

-0.98 (-0.46%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)12-18
Earnings (Next)03-19
Inst Owners94.95%
Inst Owner Change3.7%
Ins Owners0.27%
Ins Owner Change-4.37%
Market Cap24.62B
Revenue(TTM)12.58B
Net Income(TTM)1.12B
Analysts77.3
Price Target224.83 (5.13%)
Short Float %5.26%
Short Ratio3.67
Dividend
Industry RankSector Rank
Dividend Yield 2.77%
Yearly Dividend5.58
Dividend Growth(5Y)16.99%
DP60.33%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-09
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)0.79%
PT rev (3m)-0.17%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.78%
Valuation
Industry RankSector Rank
PE 21.75
Fwd PE 18.58
P/S 1.96
P/FCF 25.46
P/OCF 14.49
P/B 11.84
P/tB N/A
EV/EBITDA 14.15
EPS(TTM)9.83
EY4.6%
EPS(NY)11.51
Fwd EY5.38%
FCF(TTM)8.4
FCFY3.93%
OCF(TTM)14.76
OCFY6.9%
SpS109.23
BVpS18.07
TBVpS-8.03
PEG (NY)1.84
PEG (5Y)0.88
Graham Number63.22
Profitability
Industry RankSector 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 RankSector 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 2.54
F-Score8
WACC8.18%
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)8.62%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%2.46%
EPS Next Y11.82%
EPS Next 2Y9.73%
EPS Next 3Y9.63%
EPS Next 5Y8.63%
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 5Y5.77%
EBIT growth 1Y8.14%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year47.9%
EBIT Next 3Y17.98%
EBIT Next 5Y11.74%
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 6 / 10.


Can you provide the PE and PB ratios for DRI stock?

The Price/Earnings (PE) ratio for DARDEN RESTAURANTS INC (DRI) is 21.75 and the Price/Book (PB) ratio is 11.84.


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%.