DARDEN RESTAURANTS INC (DRI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DRI - US2371941053 - Common Stock
184.665 USD
+2.38 (+1.31%)
Taking everything into account, DRI scores 5 out of 10 in our fundamental rating. DRI was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. DRI has an excellent profitability rating, but there are some minor concerns on its financial health. DRI has a correct valuation and a medium 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.
In the past 5 years DRI has always been profitable.
In the past 5 years DRI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.62%, DRI is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
DRI has a Return On Equity of 49.43%. This is amongst the best in the industry. DRI outperforms 90.91% of its industry peers.
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 above the industry average of 10.42%.
| 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 68.94% 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 11.63%, DRI is in the better half of the industry, outperforming 62.88% of the companies in the same industry.
In the last couple of years the Operating Margin of DRI has grown nicely.
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.
Compared to 1 year ago, DRI has less shares outstanding
The number of shares outstanding for DRI has been reduced compared to 5 years ago.
The debt/assets ratio for DRI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.40 indicates that DRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
DRI has a better Altman-Z score (2.40) than 65.15% of its industry peers.
The Debt to FCF ratio of DRI is 3.68, which is a good value as it means it would take DRI, 3.68 years of fcf income to pay off all of its debts.
DRI's Debt to FCF ratio of 3.68 is fine compared to the rest of the industry. DRI outperforms 79.55% 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.
Looking at the Debt to Equity ratio, with a value of 1.76, DRI is in line with its industry, outperforming 52.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.43
WACC8.4%
2.3 Liquidity
A Current Ratio of 0.40 indicates that DRI may have some problems paying its short term obligations.
DRI has a Current ratio of 0.40. This is amonst the worse of the industry: DRI underperforms 82.58% of its industry peers.
DRI has a Quick 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.
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
DRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.38%, 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 8.30% 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)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.
The Revenue is expected to grow by 5.58% on average over the next years.
EPS Next Y12.15%
EPS Next 2Y9.67%
EPS Next 3Y9.62%
EPS Next 5Y8.68%
Revenue Next Year8.3%
Revenue Next 2Y6.01%
Revenue Next 3Y5.83%
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
DRI is valuated rather expensively with a Price/Earnings ratio of 18.88.
73.48% of the companies in the same industry are more expensive than DRI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DRI to the average of the S&P500 Index (26.56), we can say DRI is valued slightly cheaper.
DRI is valuated correctly with a Price/Forward Earnings ratio of 16.06.
72.73% of the companies in the same industry are more expensive than DRI, based on the Price/Forward Earnings ratio.
DRI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 16.06 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DRI indicates a somewhat cheap valuation: DRI is cheaper than 70.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.11 | ||
| EV/EBITDA | 12.59 |
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)1.55
PEG (5Y)0.76
EPS Next 2Y9.67%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
DRI has a Yearly Dividend Yield of 3.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.48, DRI pays a better dividend. On top of this DRI pays more dividend than 88.64% 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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
DRI pays out 60.69% 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.
DP60.69%
EPS Next 2Y9.67%
EPS Next 3Y9.62%
NYSE:DRI (12/15/2025, 12:44:02 PM)
184.665
+2.38 (+1.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners94.67%
Inst Owner Change-3.58%
Ins Owners0.28%
Ins Owner Change8.92%
Market Cap21.48B
Revenue(TTM)12.36B
Net Income(TTM)1.10B
Analysts77.3
Price Target224.8 (21.73%)
Short Float %3.31%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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)-0.64%
PT rev (3m)-5.15%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-4.46%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 16.06 | ||
| P/S | 1.74 | ||
| P/FCF | 20.11 | ||
| P/OCF | 12.15 | ||
| P/B | 9.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.59 |
EPS(TTM)9.78
EY5.3%
EPS(NY)11.5
Fwd EY6.23%
FCF(TTM)9.18
FCFY4.97%
OCF(TTM)15.2
OCFY8.23%
SpS106.31
BVpS19.14
TBVpS-6.7
PEG (NY)1.55
PEG (5Y)0.76
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 | 2.4 |
F-Score6
WACC8.4%
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)10.38%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%12.57%
EPS Next Y12.15%
EPS Next 2Y9.67%
EPS Next 3Y9.62%
EPS Next 5Y8.68%
Revenue 1Y (TTM)8.3%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%10.44%
Revenue Next Year8.3%
Revenue Next 2Y6.01%
Revenue Next 3Y5.83%
Revenue Next 5Y5.58%
EBIT growth 1Y5.74%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year48.37%
EBIT Next 3Y18.01%
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 18.88 and the Price/Book (PB) ratio is 9.65.
How financially healthy is DARDEN RESTAURANTS INC?
The financial health rating of DARDEN RESTAURANTS INC (DRI) is 4 / 10.