Is Darden Restaurants (NYSE:DRI) A Risky Investment?
Jan 20
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U.S. Restaurants Industry Analysis
UpdatedJan 20, 2025
DataAggregated Company Financials
Companies65
- 7D1.8%
- 3M1.7%
- 1Y28.3%
- YTDn/a
In the last week, the Restaurants industry is up 1.8%, with Starbucks up 3.1%. This means that the industry has gained 28% over the past year. As for the next few years, earnings are expected to grow by 24% per annum.
Industry Valuation and Performance
Has the U.S. Restaurants Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 20 Jan 2025 | US$294.5b | US$107.6b | US$5.9b | 26.1x | 49.7x | 2.7x |
| Wed, 18 Dec 2024 | US$311.6b | US$108.1b | US$5.9b | 25x | 52.8x | 2.9x |
| Fri, 15 Nov 2024 | US$303.9b | US$108.2b | US$5.9b | 25.9x | 51.3x | 2.8x |
| Sun, 13 Oct 2024 | US$285.0b | US$108.9b | US$5.6b | 26.8x | 51x | 2.6x |
| Tue, 10 Sep 2024 | US$255.7b | US$109.3b | US$5.6b | 23.5x | 45.5x | 2.3x |
| Thu, 08 Aug 2024 | US$249.1b | US$107.9b | US$5.6b | 20.8x | 44.1x | 2.3x |
| Sat, 06 Jul 2024 | US$258.5b | US$108.1b | US$6.0b | 20.8x | 43.4x | 2.4x |
| Mon, 03 Jun 2024 | US$264.1b | US$107.9b | US$6.0b | 23.9x | 44.1x | 2.4x |
| Wed, 01 May 2024 | US$272.6b | US$108.1b | US$6.1b | 19.2x | 45x | 2.5x |
| Fri, 29 Mar 2024 | US$276.5b | US$107.7b | US$6.0b | 19.1x | 46.2x | 2.6x |
| Sun, 25 Feb 2024 | US$256.1b | US$106.7b | US$5.8b | 20x | 43.9x | 2.4x |
| Tue, 23 Jan 2024 | US$232.6b | US$105.7b | US$5.0b | 19.7x | 46.7x | 2.2x |
| Thu, 21 Dec 2023 | US$236.7b | US$105.7b | US$5.0b | 20.6x | 47.5x | 2.2x |
| Sat, 18 Nov 2023 | US$224.1b | US$105.4b | US$5.0b | 20x | 45x | 2.1x |
| Mon, 16 Oct 2023 | US$201.5b | US$104.8b | US$4.7b | 17x | 42.8x | 1.9x |
| Wed, 13 Sep 2023 | US$219.8b | US$104.5b | US$4.7b | 18.4x | 46.7x | 2.1x |
| Fri, 11 Aug 2023 | US$228.0b | US$104.8b | US$4.5b | 20.1x | 50.6x | 2.2x |
| Sun, 09 Jul 2023 | US$231.1b | US$101.3b | US$3.4b | 20.9x | 68.3x | 2.3x |
| Tue, 06 Jun 2023 | US$219.8b | US$100.3b | US$3.4b | 20x | 64.6x | 2.2x |
| Thu, 04 May 2023 | US$214.7b | US$98.0b | US$3.2b | 20.9x | 66.7x | 2.2x |
| Sat, 01 Apr 2023 | US$205.4b | US$96.7b | US$2.8b | 22.1x | 73.3x | 2.1x |
| Mon, 27 Feb 2023 | US$171.9b | US$89.1b | US$4.0b | 20.4x | 42.8x | 1.9x |
| Wed, 25 Jan 2023 | US$176.4b | US$87.9b | US$4.3b | 19.9x | 41.3x | 2x |
| Fri, 23 Dec 2022 | US$163.0b | US$87.8b | US$4.3b | 18.5x | 38.2x | 1.9x |
| Sun, 20 Nov 2022 | US$167.4b | US$87.0b | US$4.3b | 19.6x | 38.9x | 1.9x |
| Tue, 18 Oct 2022 | US$147.1b | US$84.8b | US$3.9b | 17.4x | 38x | 1.7x |
| Thu, 15 Sep 2022 | US$165.1b | US$84.6b | US$4.0b | 17.3x | 41.7x | 2x |
| Sat, 13 Aug 2022 | US$165.7b | US$84.4b | US$4.0b | 17.4x | 41x | 2x |
| Mon, 11 Jul 2022 | US$142.8b | US$82.0b | US$4.4b | 14.3x | 32.3x | 1.7x |
| Wed, 08 Jun 2022 | US$147.8b | US$81.6b | US$4.4b | 16.1x | 33.2x | 1.8x |
| Fri, 06 May 2022 | US$148.4b | US$79.2b | US$4.3b | 17x | 34.2x | 1.9x |
| Sun, 03 Apr 2022 | US$165.5b | US$78.9b | US$4.5b | 19x | 36.5x | 2.1x |
| Tue, 01 Mar 2022 | US$170.0b | US$77.5b | US$3.3b | 21.3x | 51.8x | 2.2x |
| Thu, 27 Jan 2022 | US$156.1b | US$74.6b | US$2.6b | 21.7x | 61x | 2.1x |
Price to Earnings Ratio
61x
Current Industry PE
- Investors are optimistic on the American Restaurants industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 49.7x which is higher than its 3-year average PE of 46.7x.
- The 3-year average PS ratio of 2.2x is lower than the industry's current PS ratio of 2.7x.
Past Earnings Growth
- The earnings for companies in the Restaurants industry have grown 32% per year over the last three years.
- Revenues for these companies have grown 13% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Comparison
How does U.S. Restaurants compare with similar industries?
| US Market | 3.25% | |
| Consumer Discretionary | 4.22% | |
| Hospitality | 2.91% | |
| Restaurants | 1.75% | |
| Hotels, Resorts and Cruise Lines | 4.92% | |
| Leisure Facilities | 2.24% | |
| Casinos and Gaming | 1.36% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| DASH DoorDash | US$174.48 | 3.6% +US$2.5b | 66.7% | PS7.1x | |
| SBUX Starbucks | US$95.13 | 1.7% +US$1.8b | 2.2% | PE28.7x | |
| CMG Chipotle Mexican Grill | US$57.52 | 2.2% +US$1.7b | 23.7% | PE52.8x | |
| CAVA CAVA Group | US$118.23 | 6.5% +US$825.0m | 147.0% | PE252x | |
| DPZ Domino's Pizza | US$427.35 | 4.2% +US$594.3m | -0.2% | PE25.8x |
