Consumer Discretionary · Restaurants · US stock · price as of 22 Oct 2026
Key indicators
Price
$217.56
52-week range
$169.00 – $229.76
Market cap
$24.9B
P/E (trailing)
21.3×
EV / EBITDA
12.8×
Free-cash-flow yield
–
Dividend yield
2.9%
Revenue (last 12 months)
$13.4B
Revenue growth (3y a year)
8.0%
Operating margin
11.7%
Return on invested capital
30.6%
Net debt / EBITDA
1.1×
Fair value
Fair value (average of valid models)$236.54 middle half of models $215 – $246
Versus priceFair+9% to fair value
P/E multiple
$214.48
P/B multiple
$185.00
P/S multiple
$240.55
EV/EBITDA multiple
$230.03
EV/EBIT multiple
$218.36
EV/revenue multiple
$241.29
10-year DCF, EBITDA exit
$245.94
5-year DCF, EBITDA exit
$244.78
10-year DCF, revenue exit
$248.19
5-year DCF, revenue exit
$247.15
10-year DCF, growth exit
$205.90
5-year DCF, growth exit
$198.14
Dividend discount, stable
$355.16
Earnings power value
$236.60
Model uncertainty
Medium
X-Ray Score
54/ 100 · Medium confidence · ahead of 68% of sector peers
Valuation55
Growth68
Profitability53
Financial health38
Dividends54
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
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%.
StocksXray gives Darden Restaurants Inc an X-Ray Score of 54 out of 100 (medium confidence), ahead of 68% of the S&P 500 stocks in its sector. Its strongest lens is growth (68) and its weakest is financial health (38).
Our fair value (the average of the valid models) is $236.54 (range $215.45 to $245.65). At $217.56 the stock trades 8% below that value, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Darden Restaurants Inc (DRI)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2023
FY2024
FY2025
FY2026
Now
Price
$108.52
$143.92
$136.23
$194.79
$200.64
$217.56
Market cap
$14.0B
$17.7B
$16.5B
$23.1B
$23.3B
$24.9B
P/E
14.7×
18.0×
16.0×
22.0×
19.3×
21.3×
EV / revenue
1.5×
1.7×
1.6×
2.1×
2.0×
2.0×
EV / EBITDA
9.5×
11.5×
10.0×
13.3×
12.2×
12.8×
Price / free cash flow
–
–
–
–
–
–
Free-cash-flow yield
–
–
–
–
–
–
Price / book
6.4×
8.0×
7.3×
10.0×
10.6×
12.0×
Dividend yield
4.05%
3.36%
3.85%
2.87%
2.99%
2.87%
Fundamentals checklist ● 2 Good · ● 6 Average · ● 5 Bad · each check graded against the sector
Risk models
Altman Z score-0.2×Bad
Piotroski F-Score5 of 9Bad
Growth
EPS growth (3y)9.1%Average
Revenue growth (3y)8.0%Average
Growth consistency100%Good
Balance sheet
Current ratio0.3×Bad
Net debt / EBITDA1.1×Average
Interest coverno interest costGood
Valuation
Fair value vs price1.1×Average
EBIT / EV yield5.7%Average
Profitability
Return on invested capital30.6%Average
Operating margin11.7%Bad
Gross profitability20.5%Bad
XStocksXray
Darden Restaurants Inc (DRI)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY23
FY24
FY25
FY26
LTM
Revenue
9,630
10,488
11,390
12,077
13,211
13,367
Gross profit
1,902
1,991
2,290
2,473
2,682
2,711
Operating income
1,162
1,202
1,314
1,362
1,583
1,563
Net income
953
982
1,028
1,050
1,207
1,182
Diluted EPS ($)
7.39
7.99
8.51
8.86
10.38
10.21
Free cash flow
–
–
–
–
–
–
Gross margin
19.7%
19.0%
20.1%
20.5%
20.3%
20.3%
Operating margin
12.1%
11.5%
11.5%
11.3%
12.0%
11.7%
Net margin
9.9%
9.4%
9.0%
8.7%
9.1%
8.8%
Balance sheet
FY22
FY23
FY24
FY25
FY26
LTM
Total assets
10,136
10,242
11,323
12,587
12,862
13,227
Cash
421
368
195
240
220
221
Total debt
901
885
1,457
2,129
3,025
2,616
Equity
2,198
2,202
2,243
2,311
2,208
2,068
Dividend per share ($)
4.40
4.84
5.24
5.60
6.00
6.12
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
