DARDEN RESTAURANTS INC (DRI) Fundamental Analysis & Valuation

NYSE:DRI • US2371941053

Current stock price

203.05 USD
-1.37 (-0.67%)
At close:
203.05 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.

7

1. DRI Profitability Analysis

1.1 Basic Checks

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

  • The Return On Assets of DRI (8.67%) is better than 80.95% of its industry peers.
  • Looking at the Return On Equity, with a value of 53.94%, DRI belongs to the top 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 76.19% 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 10.60%.
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 74.60% of its industry peers.
  • DRI's Profit Margin has declined in the last couple of years.
  • DRI's Operating Margin of 11.64% is fine compared to the rest of the industry. DRI outperforms 60.32% of its industry peers.
  • In the last couple of years the Operating Margin of DRI has grown nicely.
  • Looking at the Gross Margin, with a value of 21.63%, DRI is doing worse than 85.71% of the companies in the same industry.
  • DRI's Gross Margin has improved in the last couple of years.
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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3

2. DRI Health Analysis

2.1 Basic Checks

  • DRI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, DRI has less shares outstanding
  • Compared to 5 years ago, DRI has less shares outstanding
  • DRI has a worse debt/assets ratio than last year.
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.
  • Looking at the Altman-Z score, with a value of 2.47, DRI is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
  • 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.
  • DRI's Debt to FCF ratio of 4.42 is fine compared to the rest of the industry. DRI outperforms 75.40% of its industry peers.
  • A Debt/Equity ratio of 2.05 is on the high side and indicates that DRI has dependencies on debt financing.
  • With a Debt to Equity ratio value of 2.05, DRI perfoms like the industry average, outperforming 46.83% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.05
Debt/FCF 4.42
Altman-Z 2.47
ROIC/WACC1.44
WACC8.36%
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.
  • With a Current ratio value of 0.39, DRI is not doing good in the industry: 84.92% of the companies in the same industry are doing better.
  • 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. DRI Growth Analysis

3.1 Past

  • DRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.13%, 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.
  • Looking at the last year, DRI shows a small growth in Revenue. The Revenue has grown by 6.03% 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)8.13%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%5.36%
Revenue 1Y (TTM)6.03%
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 8.63% yearly.
  • The Revenue is expected to grow by 5.77% on average over the next years.
EPS Next Y11.8%
EPS Next 2Y9.71%
EPS Next 3Y9.63%
EPS Next 5Y8.63%
Revenue Next Year9.1%
Revenue Next 2Y6.44%
Revenue Next 3Y6.13%
Revenue Next 5Y5.77%

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.
  • 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.
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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4

4. DRI Valuation Analysis

4.1 Price/Earnings Ratio

  • DRI is valuated rather expensively with a Price/Earnings ratio of 20.35.
  • Based on the Price/Earnings ratio, DRI is valued a bit cheaper than the industry average as 65.08% of the companies are valued more expensively.
  • DRI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.23.
  • Based on the Price/Forward Earnings ratio of 17.65, the valuation of DRI can be described as rather expensive.
  • 64.29% 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 23.28, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.35
Fwd PE 17.65
DRI Price Earnings VS Forward Price EarningsDRI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 60.32% of the companies in the same industry.
Industry RankSector Rank
P/FCF 24.18
EV/EBITDA 13.55
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

  • 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)1.72
PEG (5Y)0.82
EPS Next 2Y9.71%
EPS Next 3Y9.63%

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

5

5. DRI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.94%, DRI has a reasonable but not impressive dividend return.
  • DRI's Dividend Yield is rather good when compared to the industry average which is at 1.12. DRI pays more dividend than 84.92% of the companies in the same industry.
  • DRI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.94%

5.2 History

  • On average, the dividend of DRI grows each year by 16.99%, which is quite nice.
  • DRI has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of DRI decreased 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

  • 60.33% 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.
DP60.33%
EPS Next 2Y9.71%
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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DRI Fundamentals: All Metrics, Ratios and Statistics

DARDEN RESTAURANTS INC

NYSE:DRI (3/20/2026, 8:04:00 PM)

After market: 203.05 0 (0%)

203.05

-1.37 (-0.67%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)03-19
Earnings (Next)N/A
Inst Owners99.7%
Inst Owner Change3.77%
Ins Owners0.25%
Ins Owner Change-4.37%
Market Cap23.38B
Revenue(TTM)12.08B
Net Income(TTM)1.12B
Analysts77.3
Price Target225.17 (10.89%)
Short Float %5.32%
Short Ratio4.09
Dividend
Industry RankSector Rank
Dividend Yield 2.94%
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)0.15%
PT rev (3m)0.17%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-1.86%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
Industry RankSector Rank
PE 20.35
Fwd PE 17.65
P/S 1.86
P/FCF 24.18
P/OCF 13.76
P/B 11.24
P/tB N/A
EV/EBITDA 13.55
EPS(TTM)9.98
EY4.92%
EPS(NY)11.51
Fwd EY5.67%
FCF(TTM)8.4
FCFY4.14%
OCF(TTM)14.76
OCFY7.27%
SpS109.23
BVpS18.07
TBVpS-8.03
PEG (NY)1.72
PEG (5Y)0.82
Graham Number63.7
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 2.47
F-Score8
WACC8.36%
ROIC/WACC1.44
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 Y11.8%
EPS Next 2Y9.71%
EPS Next 3Y9.63%
EPS Next 5Y8.63%
Revenue 1Y (TTM)6.03%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%5.93%
Revenue Next Year9.1%
Revenue Next 2Y6.44%
Revenue Next 3Y6.13%
Revenue Next 5Y5.77%
EBIT growth 1Y8.14%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year47.83%
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 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.


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 20.35 and the Price/Book (PB) ratio is 11.24.


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%.