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Darden Restaurants

DB:DDN
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DDN
DB
$15B
Market Cap
  1. Home
  2. DE
  3. Consumer Services
Company description

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. The last earnings update was 76 days ago. More info.


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DDN Share Price and Events
7 Day Returns
-1.8%
DB:DDN
0.1%
DE Hospitality
0.3%
DE Market
1 Year Returns
31.2%
DB:DDN
-52.1%
DE Hospitality
-11.7%
DE Market
DDN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Darden Restaurants (DDN) -1.8% -1.6% 8.3% 31.2% 76.9% 201.2%
DE Hospitality 0.1% -9.9% -9.2% -52.1% -28.9% -25.1%
DE Market 0.3% -2.3% -1.1% -11.7% 12.2% 6.1%
1 Year Return vs Industry and Market
  • DDN outperformed the Hospitality industry which returned -52.1% over the past year.
  • DDN outperformed the Market in Germany which returned -11.7% over the past year.
Price Volatility
DDN
Industry
5yr Volatility vs Market

DDN Value

 Is Darden Restaurants undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Darden Restaurants to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Darden Restaurants.

DB:DDN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:DDN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.92 (1 + (1- 21%) (6.3%))
0.977
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.977 * 5.96%)
6.05%

Discounted Cash Flow Calculation for DB:DDN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Darden Restaurants is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:DDN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.05%)
2019 748.05 Analyst x4 705.36
2020 771.44 Analyst x5 685.91
2021 771.30 Analyst x2 646.65
2022 800.20 Analyst x1 632.60
2023 862.80 Analyst x1 643.16
2024 927.60 Analyst x1 652.01
2025 969.29 Est @ 4.49% 642.44
2026 1,000.45 Est @ 3.21% 625.25
2027 1,023.65 Est @ 2.32% 603.24
2028 1,040.96 Est @ 1.69% 578.44
Present value of next 10 years cash flows $6,415.07
DB:DDN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,040.96 × (1 + 0.23%) ÷ (6.05% – 0.23%)
$17,915.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $17,915.29 ÷ (1 + 6.05%)10
$9,955.12
DB:DDN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,415.07 + $9,955.12
$16,370.18
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,370.18 / 122.98
$133.12
DB:DDN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:DDN represents 0.88118x of NYSE:DRI
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88118x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 133.12 x 0.88118
€117.30
Value per share (EUR) From above. €117.30
Current discount Discount to share price of €105.46
= -1 x (€105.46 - €117.30) / €117.30
10.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Darden Restaurants is available for.
Intrinsic value
10%
Share price is €105.46 vs Future cash flow value of €117.3
Current Discount Checks
For Darden Restaurants to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Darden Restaurants's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Darden Restaurants's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Darden Restaurants's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Darden Restaurants's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:DDN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-24) in USD $5.54
NYSE:DRI Share Price ** NYSE (2019-06-17) in USD $119.68
Germany Hospitality Industry PE Ratio Median Figure of 10 Publicly-Listed Hospitality Companies 18.98x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.7x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Darden Restaurants.

DB:DDN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DRI Share Price ÷ EPS (both in USD)

= 119.68 ÷ 5.54

21.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Darden Restaurants is overvalued based on earnings compared to the DE Hospitality industry average.
  • Darden Restaurants is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Darden Restaurants's expected growth come at a high price?
Raw Data
DB:DDN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
7.9%per year
Germany Hospitality Industry PEG Ratio Median Figure of 5 Publicly-Listed Hospitality Companies 1.31x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

DB:DDN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.59x ÷ 7.9%

2.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Darden Restaurants is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Darden Restaurants's assets?
Raw Data
DB:DDN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-24) in USD $18.83
NYSE:DRI Share Price * NYSE (2019-06-17) in USD $119.68
Germany Hospitality Industry PB Ratio Median Figure of 13 Publicly-Listed Hospitality Companies 2.06x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.76x
DB:DDN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DRI Share Price ÷ Book Value per Share (both in USD)

= 119.68 ÷ 18.83

6.36x

* Primary Listing of Darden Restaurants.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Darden Restaurants is overvalued based on assets compared to the DE Hospitality industry average.
X
Value checks
We assess Darden Restaurants's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Darden Restaurants has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DDN Future Performance

 How is Darden Restaurants expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Darden Restaurants expected to grow at an attractive rate?
  • Darden Restaurants's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Darden Restaurants's earnings growth is positive but not above the Germany market average.
  • Darden Restaurants's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:DDN Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:DDN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 7.9%
DB:DDN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 4.5%
Germany Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 18.9%
Germany Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:DDN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:DDN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-05-31 10,553 1
2023-05-31 10,121 1
2022-05-31 9,777 1,400 874 2
2021-05-31 9,420 1,339 854 13
2020-05-31 9,093 1,264 801 24
2019-05-31 8,525 1,222 722 24
DB:DDN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-02-24 8,415 1,175 685
2018-11-25 8,297 1,123 679
2018-08-26 8,205 1,033 651
2018-05-27 8,080 1,001 604
2018-02-25 7,881 946 554
2017-11-26 7,631 922 502
2017-08-27 7,392 907 493
2017-05-28 7,170 898 483
2017-02-26 7,026 902 498
2016-11-27 6,995 903 439
2016-08-28 6,961 835 390
2016-05-29 6,934 778 360
2016-02-28 7,022 696 337

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Darden Restaurants's earnings are expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
  • Darden Restaurants's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:DDN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from Darden Restaurants Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:DDN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-05-31
2023-05-31
2022-05-31 7.01 7.01 7.01 1.00
2021-05-31 6.98 7.49 6.65 8.00
2020-05-31 6.46 6.82 6.15 16.00
2019-05-31 5.76 5.81 5.73 6.00
DB:DDN Past Financials Data
Date (Data in USD Millions) EPS *
2019-02-24 5.54
2018-11-25 5.48
2018-08-26 5.27
2018-05-27 4.87
2018-02-25 4.45
2017-11-26 4.03
2017-08-27 3.96
2017-05-28 3.88
2017-02-26 3.99
2016-11-27 3.50
2016-08-28 3.07
2016-05-29 2.82
2016-02-28 2.65

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Darden Restaurants is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Darden Restaurants's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Darden Restaurants has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DDN Past Performance

  How has Darden Restaurants performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Darden Restaurants's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Darden Restaurants has delivered over 20% year on year earnings growth in the past 5 years.
  • Darden Restaurants's 1-year earnings growth is less than its 5-year average (23.9% vs 32%)
  • Darden Restaurants's earnings growth has exceeded the DE Hospitality industry average in the past year (23.9% vs -2.6%).
Earnings and Revenue History
Darden Restaurants's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Darden Restaurants Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:DDN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-24 8,415.40 685.30 642.00
2018-11-25 8,297.30 678.70 645.80
2018-08-26 8,205.40 651.40 649.70
2018-05-27 8,080.10 603.80 642.70
2018-02-25 7,880.60 553.80 687.60
2017-11-26 7,630.90 501.60 660.40
2017-08-27 7,391.90 492.70 640.00
2017-05-28 7,170.20 482.50 627.40
2017-02-26 7,025.80 497.50 583.90
2016-11-27 6,994.60 439.40 588.00
2016-08-28 6,960.90 389.80 611.60
2016-05-29 6,933.50 359.70 622.90
2016-02-28 7,021.60 337.40 644.00
2015-11-29 6,905.00 357.60 635.20
2015-08-30 6,855.20 296.70 638.40
2015-05-31 6,764.00 196.40 673.50
2015-02-22 6,535.80 126.60 625.30
2014-11-23 6,423.40 84.80 642.20
2014-08-24 6,349.90 121.70 641.60
2014-05-25 6,285.60 183.20 647.30
2014-02-23 4,303.50 92.90 473.70
2013-11-24 4,943.20 140.80 519.60
2013-08-25 5,417.70 168.50 572.80
2013-05-26 5,921.00 237.30 625.20
2013-02-24 8,318.50 430.80 812.10
2012-11-25 8,220.10 460.50 810.30
2012-08-26 8,091.50 480.70 781.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Darden Restaurants has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Darden Restaurants used its assets more efficiently than the DE Hospitality industry average last year based on Return on Assets.
  • Darden Restaurants has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Darden Restaurants's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Darden Restaurants has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DDN Health

 How is Darden Restaurants's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Darden Restaurants's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Darden Restaurants's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Darden Restaurants's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Darden Restaurants's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Darden Restaurants Company Filings, last reported 3 months ago.

DB:DDN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-24 2,315.70 927.40 302.90
2018-11-25 2,250.30 972.10 139.70
2018-08-26 2,275.20 926.80 151.80
2018-05-27 2,194.80 926.50 146.90
2018-02-25 2,124.90 977.00 146.80
2017-11-26 1,976.10 1,089.10 114.70
2017-08-27 2,058.70 936.60 146.80
2017-05-28 2,101.70 936.60 233.10
2017-02-26 1,972.80 440.70 391.40
2016-11-27 1,853.40 440.50 116.80
2016-08-28 1,801.30 440.20 114.70
2016-05-29 1,952.00 440.00 274.80
2016-02-28 1,918.20 447.70 215.80
2015-11-29 1,989.80 1,198.90 857.60
2015-08-30 2,424.10 1,506.50 690.10
2015-05-31 2,333.50 1,467.30 535.90
2015-02-22 2,237.80 1,526.80 436.20
2014-11-23 2,105.50 1,556.60 157.50
2014-08-24 2,127.90 1,637.20 413.70
2014-05-25 2,156.90 2,740.30 98.30
2014-02-23 2,121.70 2,730.10 127.00
2013-11-24 2,059.20 2,874.60 84.60
2013-08-25 2,071.50 2,760.10 108.90
2013-05-26 2,059.50 2,715.10 88.20
2013-02-24 1,950.30 2,772.30 103.90
2012-11-25 1,863.40 2,933.00 61.40
2012-08-26 1,860.00 2,154.10 51.50
  • Darden Restaurants's level of debt (40%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (128.6% vs 40% today).
  • Debt is well covered by operating cash flow (126.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.7x coverage).
X
Financial health checks
We assess Darden Restaurants's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Darden Restaurants has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DDN Dividends

 What is Darden Restaurants's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.51%
Current annual income from Darden Restaurants dividends. Estimated to be 2.96% next year.
If you bought €2,000 of Darden Restaurants shares you are expected to receive €50 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Darden Restaurants's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • Darden Restaurants's dividend is below the markets top 25% of dividend payers in Germany (3.91%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:DDN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
Germany Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:DDN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-05-31
2023-05-31
2022-05-31 3.99 1.00
2021-05-31 3.81 6.00
2020-05-31 3.36 11.00
2019-05-31 3.02 11.00
DB:DDN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-12-12 3.000 2.677
2018-09-20 3.000 2.752
2018-07-20 3.000 2.652
2018-06-21 3.000 2.738
2017-12-14 2.520 2.729
2017-09-21 2.520 3.067
2017-03-22 2.240 2.619
2016-07-25 2.240 3.282
2016-06-30 2.240 3.583
2016-04-06 2.000 3.062
2016-04-05 2.000 3.082
2015-09-17 2.200 3.519
2015-06-18 2.200 3.097
2015-03-30 2.200 3.353
2015-03-20 2.200 3.201
2014-09-15 2.200 3.887
2014-06-20 2.200 4.736
2014-03-21 2.200 4.409
2013-12-19 2.200 4.370
2013-09-20 2.200 4.330
2013-03-22 2.000 3.980
2013-01-02 2.000 4.302
2012-12-20 2.000 4.450
2012-06-22 2.000 3.846
2012-03-23 1.720 3.393
2011-12-16 1.720 3.589
2011-09-28 1.720 3.768
2011-06-30 1.720 3.567
2011-03-24 1.280 2.646
2010-12-20 1.280 2.713
2010-06-23 1.280 2.909
2010-03-23 1.000 2.251
2009-12-17 1.000 2.625
2009-09-29 1.000 3.098
2009-06-23 1.000 2.983

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Darden Restaurants's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Darden Restaurants's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Darden Restaurants afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Darden Restaurants has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DDN Management

 What is the CEO of Darden Restaurants's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gene Lee
COMPENSATION $15,770,151
AGE 56
TENURE AS CEO 4.3 years
CEO Bio

Mr. Eugene I. Lee, Jr., also known as Gene, has been the Chief Executive Officer and President of Darden Restaurants, Inc. since February 23, 2015 and September 2013 respectively. Mr. Lee served as an Interim Chief Executive Officer of Darden Restaurants Inc from October 14, 2014 to February 2015. He served as the Chief Operating Officer of Darden Restaurants from September 18, 2013 to October 14, 2014. He served as the President of Specialty Restaurant Group for Darden Restaurants Inc. from October 1, 2007 to September 2013. Mr. Lee served as the President of RARE Hospitality International Inc. from January 2001 to October 2007, Chief Operating Officer from January 1999 to October 2007 and Executive Vice President from January 1999 to January 2001. Prior to that, he served as an Executive Vice President of Operations at LongHorn Steakhouse Division from October 1997 to January 1999. He served as an Executive Vice President of Operations - Bugaboo Creek Steak House Division at Rare Hospitality International Inc., from January 1997 to October 1997. He served in various positions with Uno Restaurant Corporation, an operator of restaurants, including Senior Vice President - Operations. Mr. Lee has been an Independent Director of Advance Auto Parts Inc., since November 20, 2015 and Darden Restaurants, Inc. since February 23, 2015. He has experience as the chief executive officer of a national group of chain restaurants. In addition, he has experience in marketing, real estate and change management. He served as a Director of RARE Hospitality International Inc. since 2001. He holds an MBA from Suffolk University in Boston.

CEO Compensation
  • Gene's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Gene's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Darden Restaurants management team in years:

3.7
Average Tenure
56
Average Age
  • The tenure for the Darden Restaurants management team is about average.
Management Team

Gene Lee

TITLE
President
COMPENSATION
$16M
AGE
56
TENURE
4.3 yrs

Rick Cardenas

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
50
TENURE
3.3 yrs

Dave George

TITLE
Executive VP & COO
COMPENSATION
$3M
AGE
62
TENURE
1.4 yrs

Matt Broad

TITLE
Senior VP
COMPENSATION
$2M
AGE
58
TENURE
3.7 yrs

Todd Burrowes

TITLE
President of Longhorn Steakhouse
COMPENSATION
$2M
AGE
55
TENURE
3.9 yrs

Kyle Holmes

TITLE
Managing Partner

Jon Norem

TITLE
Managing Partner

John Rucker

TITLE
Managing Partner

Chris Chang

TITLE
Senior VP & Chief Information Officer
TENURE
3.2 yrs

Kevin Kalicak

TITLE
Vice President of Investor Relations & Corporate Analysis
TENURE
4.5 yrs
Board of Directors Tenure

Average tenure and age of the Darden Restaurants board of directors in years:

4.5
Average Tenure
59
Average Age
  • The tenure for the Darden Restaurants board of directors is about average.
Board of Directors

Chuck Sonsteby

TITLE
Chairman of the Board
COMPENSATION
$257K
AGE
64
TENURE
3.2 yrs

Gene Lee

TITLE
President
COMPENSATION
$16M
AGE
56
TENURE
4.3 yrs

Bill Simon

TITLE
Director
COMPENSATION
$230K
AGE
59
TENURE
4.7 yrs

Cindie Jamison

TITLE
Director
COMPENSATION
$253K
AGE
58
TENURE
5.4 yrs

Jim Fogarty

TITLE
Director
COMPENSATION
$239K
AGE
50
TENURE
5.4 yrs

Margaret Atkins

TITLE
Director
COMPENSATION
$234K
AGE
61
TENURE
4.7 yrs

Nana Mensah

TITLE
Director
COMPENSATION
$229K
AGE
65
TENURE
2.6 yrs

Tim Wilmott

TITLE
Director
AGE
59
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Darden Restaurants insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
27. Mar 19 Sell John Madonna Individual 25. Mar 19 25. Mar 19 -330 €104.97 €-34,641
01. Feb 19 Sell William Simon Individual 01. Feb 19 01. Feb 19 -1,565 €91.36 €-142,974
25. Jul 18 Sell Douglas Milanes Individual 23. Jul 18 23. Jul 18 -2,186 €94.90 €-207,454
26. Jun 18 Sell John Madonna Individual 25. Jun 18 25. Jun 18 -700 €93.37 €-65,360
X
Management checks
We assess Darden Restaurants's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Darden Restaurants has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DDN News

Simply Wall St News

DDN Company Info

Description

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 27, 2018, it owned and operated approximately 1,746 restaurants under the Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Bahama Breeze, Seasons 52, and Eddie V’s brands. The company was founded in 1968 and is based in Orlando, Florida.

Details
Name: Darden Restaurants, Inc.
DDN
Exchange: DB
Founded: 1968
$13,101,735,694
122,975,802
Website: http://www.darden.com
Address: Darden Restaurants, Inc.
1000 Darden Center Drive,
Orlando,
Florida, 32837,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE DRI Common Stock New York Stock Exchange US USD 09. May 1995
DB DDN Common Stock Deutsche Boerse AG DE EUR 09. May 1995
LSE 0I77 Common Stock London Stock Exchange GB USD 09. May 1995
Number of employees
Current staff
Staff numbers
180,000
Darden Restaurants employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 21:24
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/04/02
Last earnings reported: 2019/02/24
Last annual earnings reported: 2018/05/27


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.