Darden Restaurants Inc (DRI)

Consumer Discretionary · Restaurants · US stock · S&P 500 component

$217.56 ▲ +3.04 (1.42%)

At close 22 Oct 2026 · USD · Volume 816,759

Compare with MCD

Interactive chart Research report Forecast ranges Pro workspace SEC filings Historical data

Fair valueFair

$237 +8.7% to fair value

$118fair band $201–$287$355

Day's range

$214.01 – $217.87

52-week range

$169.00 – $229.76

About Darden Restaurants Inc

Darden Restaurants owns and operates full-service restaurant brands in the United States and Canada, with Olive Garden and LongHorn Steakhouse among its best known. It earns money by selling meals and drinks to dine-in and takeout guests, and it also licenses some brands abroad. Food, labour and occupancy costs are its main expenses, so traffic, menu pricing and cost control shape results.

The company reported trailing revenue of $13.4 billion and three-year growth of 8.0% a year. Profitability figures show an operating margin of 11.7% and a return on invested capital of 31%. Its net debt to EBITDA ratio stands at 1.1 times. The dividend yield is 2.9%. Its X-Ray Score is 54 out of 100.

Price chart

Interactive chart Historical data & CSV

52-wk range $169.00 – $229.76Volume 816,759Daily, split-adjusted

Vitals

Market cap$24.9B

52-week range$169.00 – $229.76

Volume (last day)816,759

P/E (TTM)21.3

EBIT / EV yield5.7%

Free-cash-flow yield–

Dividend yield2.9%

Revenue (TTM)$13.4B

Net income (TTM)$1.2B

Operating margin11.7%

Return on capital30.6%

Debt incl. leases$2.6B

Cash & securities$221M

Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.

Fair value estimate

$237middle half of models $215 – $246

Fair +8.7% to fair value

Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.

Price $218

Undervalued < $201Fair $201 – $287Overvalued > $287

P/E multiple

$214

P/B multiple

$185

P/S multiple

$241

EV/EBITDA multiple

$230

EV/EBIT multiple

$218

EV/revenue multiple

$241

10-year DCF, EBITDA exit

$246

5-year DCF, EBITDA exit

$245

10-year DCF, revenue exit

$248

5-year DCF, revenue exit

$247

10-year DCF, growth exit

$206

5-year DCF, growth exit

$198

Dividend discount, stable

$355

Dividend discount, multi-stage · not used

$695

Earnings power value

$237

Growth the price implies

7.2%/yr

A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.

What this means

Weak business, fairly priced

The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.

Before you invest · decision checklist

I understand how this company makes money Business quality is average or better 46 The price is not above fair value $237 fair value Debt looks manageable 1.1× EBITDA Revenue has been growing 8.0% a year Profits are backed by cash There are no red flags none raised I know what share of my savings this would be

Ticked boxes are filled in from our data; the rest are yours to answer.

The five-lens scan

Every score explained in one sentence, ranked against Consumer Discretionary peers. Open a lens to see the numbers behind it.

Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data

Valuation Fair

55/100

Priced about in line with its sector.

See the numbers →

EBIT / EV yield5.7%

Fair value vs price1.1×

Growth Fair

68/100

Growing at a typical pace for its sector.

See the numbers →

Revenue growth (3y)8.0%

EPS growth (3y)9.1%

Growth consistency100%

Profitability Fair

53/100

Returns on capital are typical for its sector.

See the numbers →

Return on invested capital30.6%

Operating margin11.7%

Gross profitability20.5%

Financial health Weak

38/100

Balance sheet is more stretched than most peers.

See the numbers →

Piotroski F-Score5 / 9

Net debt / EBITDA1.1×

Interest coverNo interest cost

Dividends Fair

54/100

Dividend is typical for its sector.

See the numbers →

Dividend yield2.9%

Dividend growth5.5%

Quarterly results: last 6 quarters

+10.6%

May '25

+10.4%

Aug '25

+7.3%

Nov '25

+5.9%

Feb '26

+13.7%

May '26

+5.1%

Aug '26

Revenue against the same quarter a year earlier. Latest quarter revenue $3.2B, diluted EPS $2.04.

Compare with peers

CMG Chipotle Mexican Grill...64 DPZ Dominos Pizza Inc64 MCD Mcdonalds Corp53 YUM Yum Brands Inc48

Other Restaurants companies by X-Ray Score.

SWOT analysis: Darden Restaurants Inc

Strengthsinside the company

Return on invested capital is 30.6%, against a median of 33.2% for industry peers.
Operating profit covers interest 50x, so debt costs are a small drag.

Weaknessesinside the company

Operating margin of 11.7% is thin against 19.7% for industry peers.

Opportunitiesvaluation and setting

Price momentum is strong on the weekly and monthly signals (trends can reverse).

Threatsvaluation and setting

No specific threat is flagged by our checks; general market and interest-rate risk still applies.

Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.

Compare DRI with peers and sector

Medians of 5 Restaurants peers and of 46 Consumer Discretionary stocks in our universe. Largest peers (X-Ray Score): MCD 53, SBUX 31, YUM 48, CMG 64, DPZ 64.

Metric	DRI	Peers	Sector
X-Ray Score (out of 100)	54	53	50
Valuation	55	50	48
Growth	68	55	50
Profitability	53	66	52
Financial health	38	36	50
Dividends	54	58	51

Sector leaders: highest X-Ray Score in Consumer Discretionary

DRI ranks #15 of 47 in Consumer Discretionary and #3 of 6 in Restaurants by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.

Company	X-Ray Score
#1 DECK Deckers Outdoor Corp	85
#2 LULU lululemon athletica inc.	76
#3 BKNG Booking Holdings Inc.	70
#4 LVS Las Vegas Sands Corp	64
#5 CMG Chipotle Mexican Grill Inc	64
…
#15 DRI Darden Restaurants Inc (this stock)	54

Metric	DRI	Peers	Sector
P/E ratio	21.1x	20.4x	20.8x
PEG ratio	2.31	1.52	1.81
Price / book	12.0x	–	6.9x
Price / sales	1.9x	3.0x	2.2x
EV / EBITDA	12.8x	16.5x	15.1x
Price / free cash flow	–	23.1x	22.9x
Dividend yield	2.9%	2.4%	1.9%
Gap to our fair value	+8.7%	+3.5%	+3.5%

Metric	DRI	Peers	Sector
Price change, 1 month	+2.7%	+6.9%	+4.8%
Price change, 3 months	+13.1%	−1.4%	−0.0%
Price change, 6 months	+10.7%	−12.1%	−3.3%
Price change, 1 year	+19.8%	−16.4%	−8.2%

Metric	DRI	Peers	Sector
Market value	$24.9B	$42.8B	$42.3B
Revenue (last 12 months)	$13.4B	$12.4B	$18.2B
EBITDA (last 12 months)	$2.1B	$2.9B	$2.9B
Net income (last 12 months)	$1.2B	$2.0B	$1.7B
Free cash flow (last 12 months)	–	$1.7B	$1.7B

Metric	DRI	Peers	Sector
Revenue growth, last year	+9.4%	+5.0%	+4.9%
Revenue growth, 3 years a year	+8.0%	+5.1%	+6.4%
EPS growth, 3 years a year	+9.1%	+11.9%	+2.7%
Free cash flow growth, 3 years a year	–	+12.6%	+12.1%
Dividend growth	+5.5%	+7.0%	+6.7%

Metric	DRI	Peers	Sector
Gross margin	20.3%	–	42.8%
EBITDA margin	16.0%	21.5%	19.3%
Operating margin	11.7%	19.7%	15.0%
Net margin	8.8%	12.0%	11.4%
Return on invested capital	30.6%	33.2%	24.2%
Return on equity	57.2%	–	34.5%

Metric	DRI	Peers	Sector
Net debt / EBITDA	1.1x	4.2x	2.1x
Interest cover	50.0x	7.9x	22.4x
Current ratio	0.3x	0.7x	1.1x
Piotroski F-score (0 to 9)	5	6	6

Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.

Factor ratings for DRI

Each factor is rated by where DRI stands among the 47 Consumer Discretionary stocks in our universe.

Rating against the sector

Goodthe top third of these stocks

Averagethe middle third of these stocks

Badthe bottom third of these stocks

"Beats" is the share of those stocks it is ahead of.

Against its own history

The last columns set today's figure against the company's own median of its last five financial years:

▲ Betterbetter than its usual level

▼ Worseworse than its usual level

≈ In linewithin its usual range

For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.

In total: 4 Good · 8 Average · 5 Bad of 17 Growth: 1 · 2 · 0 Profitability: 1 · 2 · 2 Financial strength: 1 · 1 · 2 Valuation: 0 · 3 · 1 Efficiency: 1 · 0 · 0

Factor	DRI	Rating	Sector median	Own 5-year median	Against own history
Growth
Revenue growth, 3 years a year	+8.0%	Average beats 61%	+6.5%	–	–
Revenue growth, last year	+9.4%	Good beats 75%	+4.9%	+8.9%	≈ In line
EPS growth, 3 years a year	+9.1%	Average beats 60%	+4.0%	–	–
Profitability
Gross margin	20.3%	Bad beats 15%	42.5%	20.1%	≈ In line
Operating margin	11.7%	Bad beats 32%	14.9%	11.5%	≈ In line
Net margin	8.8%	Average beats 36%	11.4%	9.1%	≈ In line
Return on invested capital	30.6%	Average beats 63%	24.6%	–	–
Return on equity	57.2%	Good beats 79%	35.3%	45.4%	▲ Better
Financial strength
Net debt / EBITDA	1.1x	Average beats 63%	1.8x	0.7x	▼ Worse
Interest cover	50.0x	Good beats 76%	25.3x	14.1x	▲ Better
Current ratio	0.30	Bad beats 8%	1.10	0.42	▼ Worse
Piotroski F-score	5 / 9	Bad beats 24%	6 / 9	–	–
Valuation
P/E ratio	21.1x	Average beats 50%	21.1x	19.7x	≈ In line
Price / book	12.0x	Bad beats 29%	7.2x	9.0x	▼ Worse
Price / sales	1.9x	Average beats 59%	2.1x	1.8x	≈ In line
EV / EBITDA	12.8x	Average beats 63%	15.0x	12.4x	≈ In line
Efficiency
Days sales outstanding	3 days	Good beats 96%	14 days	3 days	≈ In line

These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.

Fundamentals checklist

● 2 Good · ● 6 Average · ● 5 Bad

Cash quality

Risk models

Altman Z''Bad

Piotroski F-ScoreBad

Growth

EPS growth (3y)Average

Revenue growth (3y)Average

Growth consistencyGood

Balance sheet

Current ratioBad

Net debt / EBITDAAverage

Interest coverGood

Valuation

Fair value vs priceAverage

EBIT / EV yieldAverage

Profitability

Return on invested capitalAverage

Operating marginBad

Gross profitabilityBad

Each check is graded against the company's sector, not a fixed number. Checklist score 49/100.

Financials

	FY22	FY23	FY24	FY25	FY26
Revenue	$9.6B	$10.5B	$11.4B	$12.1B	$13.2B
Operating income	$1.2B	$1.2B	$1.3B	$1.4B	$1.6B
Net income	$953M	$982M	$1.0B	$1.0B	$1.2B
Operating cash flow	–	–	–	–	–
Operating margin	12.1%	11.5%	11.5%	11.3%	12.0%
Free cash flow	–	–	–	–	–
Diluted EPS	$7.39	$7.99	$8.51	$8.86	$10.38

Fiscal years, from SEC filings.

Technical summary

Daily

Strongly bullish

12 bullish · 1 neutral · 3 bearish

Weekly

Strongly bullish

11 bullish · 1 neutral · 0 bearish

Monthly

Strongly bullish

7 bullish · 1 neutral · 0 bearish

Moving averages (daily)

SMA 10	210.8	Bullish
EMA 10	212.0	Bullish
SMA 20	204.0	Bullish
EMA 20	208.8	Bullish
SMA 50	209.9	Bullish
EMA 50	207.5	Bullish
SMA 100	206.2	Bullish
EMA 100	205.6	Bullish
SMA 200	202.3	Bullish
EMA 200	201.4	Bullish

Oscillators (daily)

RSI (14)	62.68	Neutral
MACD (12, 26)	2.79	Bullish
Momentum (12)	7.97	Bullish
Stochastic %K (14)	94.22	Bearish
Williams %R (14)	-5.78	Bearish
CCI (20)	111.6	Bearish

Pivot points (classic, last session)

211.2

212.6

215.1

Pivot

216.5

219.0

220.3

222.8

Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.

Dividends

Paid, last 12 months

6.24 USD

Yield on today's price

2.87%

Frequency

Quarterly

Next ex-dividend date

Not announced

Ex-dividend date	Amount per share
9 Oct 2026	1.6200
10 Jul 2026	1.6200
10 Apr 2026	1.5000
9 Jan 2026	1.5000
10 Oct 2025	1.5000
10 Jul 2025	1.5000
10 Apr 2025	1.4000
10 Jan 2025	1.4000
10 Oct 2024	1.4000
10 Jul 2024	1.4000
9 Apr 2024	1.3100
9 Jan 2024	1.3100

Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.

ETFs that hold DRI

ETF	Share of the fund
WTV WisdomTree U.S. Quality Shareholder Yi...	0.72%
IWP iShares Russell Mid-Cap Growth	0.64%
SCHD Schwab U.S. Dividend Equity	0.59%
XLY Consumer Discretionary Select Sector S...	0.59%
CGBL Capital Group Core Balanced	0.43%
FDIS Fidelity MSCI Consumer Discretionary I...	0.41%
VOE Vanguard Mid-Cap Value	0.41%
VCR Vanguard Consumer Discretionary	0.39%

The eight funds with the largest weight in DRI among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.