NYSE:DRI

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Executive Summary

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Darden Restaurants's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DRI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

DRI

4.9%

US Hospitality

2.7%

US Market


1 Year Return

-33.9%

DRI

-23.6%

US Hospitality

9.1%

US Market

Return vs Industry: DRI underperformed the US Hospitality industry which returned -22.9% over the past year.

Return vs Market: DRI underperformed the US Market which returned 8.4% over the past year.


Shareholder returns

DRIIndustryMarket
7 Day1.6%4.9%2.7%
30 Day4.2%6.1%4.5%
90 Day-21.2%-18.5%2.3%
1 Year-32.4%-33.9%-21.8%-23.6%11.5%9.1%
3 Year-9.0%-15.8%-19.7%-25.0%30.6%22.0%
5 Year52.6%18.5%2.4%-8.8%57.2%39.5%

Price Volatility Vs. Market

How volatile is Darden Restaurants's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Darden Restaurants undervalued compared to its fair value and its price relative to the market?

14.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DRI ($76.86) is trading above our estimate of fair value ($67.42)

Significantly Below Fair Value: DRI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DRI is good value based on its PE Ratio (14.7x) compared to the Hospitality industry average (17.1x).

PE vs Market: DRI is good value based on its PE Ratio (14.7x) compared to the US market (16x).


Price to Earnings Growth Ratio

PEG Ratio: DRI is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: DRI is overvalued based on its PB Ratio (4x) compared to the US Hospitality industry average (1.6x).


Next Steps

Future Growth

How is Darden Restaurants forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

34.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRI's forecast earnings growth (34.5% per year) is above the savings rate (2.2%).

Earnings vs Market: DRI's earnings (34.5% per year) are forecast to grow faster than the US market (21.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DRI's revenue (4.7% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: DRI's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DRI's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has Darden Restaurants performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRI has high quality earnings.

Growing Profit Margin: DRI's current net profit margins (7.3%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: DRI's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: DRI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DRI had negative earnings growth (-6.7%) over the past year, making it difficult to compare to the Hospitality industry average (-12.2%).


Return on Equity

High ROE: DRI's Return on Equity (27.3%) is considered high.


Next Steps

Financial Health

How is Darden Restaurants's financial position?


Financial Position Analysis

Short Term Liabilities: DRI's short term assets ($686.0M) do not cover its short term liabilities ($1.7B).

Long Term Liabilities: DRI's short term assets ($686.0M) do not cover its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: DRI's debt to equity ratio (39.7%) is considered satisfactory.

Reducing Debt: DRI's debt to equity ratio has reduced from 65.7% to 39.7% over the past 5 years.

Debt Coverage: DRI's debt is well covered by operating cash flow (136.5%).

Interest Coverage: DRI's interest payments on its debt are well covered by EBIT (15x coverage).


Balance Sheet


Next Steps

Dividend

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

2.72%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DRI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DRI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DRI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DRI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DRI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DRI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Gene Lee (57yo)

5.17yrs

Tenure

US$10,710,578

Compensation

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 Inte ...


CEO Compensation Analysis

Compensation vs Market: Gene's total compensation ($USD10.71M) is about average for companies of similar size in the US market ($USD11.71M).

Compensation vs Earnings: Gene's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eugene Lee
President5.17yrsUS$10.71m0.14% $13.6m
Ricardo Cardenas
Senior VP & CFO4.17yrsUS$3.43m0.017% $1.7m
David George
Executive VP & COO2.33yrsUS$3.99m0.050% $5.0m
Todd Burrowes
President of Longhorn Steakhouse4.83yrsUS$2.80m0.019% $1.9m
Daniel Kiernan
President of Olive Garden2.33yrsUS$2.28m0.0033% $330.4k
Kyle Holmes
Managing Partnerno datano datano data
Jon Norem
Managing Partnerno datano datano data
John Rucker
Managing Partnerno datano datano data
Christopher Chang
Senior VP & Chief Information Officer 4.08yrsno datano data
Kevin Kalicak
Vice President of Investor Relations & Corporate Analysis5.42yrsno datano data

4.2yrs

Average Tenure

57yo

Average Age

Experienced Management: DRI's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eugene Lee
President5.17yrsUS$10.71m0.14% $13.6m
Margaret Atkins
Independent Director5.58yrsUS$237.53k0.0024% $239.6k
James Fogarty
Independent Director6.33yrsUS$242.53k0.014% $1.4m
Nana Mensah
Independent Director3.5yrsUS$232.53kno data
Charles Sonsteby
Independent Chairman of the Board4.08yrsUS$323.75k0.017% $1.7m
Cynthia Jamison
Independent Director6.33yrsUS$257.38k0.0030% $295.5k
Timothy Wilmott
Independent Director1.67yrsUS$200.43k0.013% $1.3m
William Simon
Independent Director5.58yrsUS$245.03k0.0087% $872.5k

5.4yrs

Average Tenure

60yo

Average Age

Experienced Board: DRI's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DRI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

Company Information

Darden Restaurants, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Darden Restaurants, Inc.
  • Ticker: DRI
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$9.983b
  • Shares outstanding: 129.88m
  • Website: https://www.darden.com

Number of Employees


Location

  • Darden Restaurants, Inc.
  • 1000 Darden Center Drive
  • Orlando
  • Florida
  • 32837
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRINYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1995
DDNDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1995
0I77LSE (London Stock Exchange)YesCommon StockGBUSDMay 1995
D1RI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of November 24, 2019, it owned and operated approximately 1,799 restaurants, which included 867 under the Olive Garden, 518 under the LongHorn Steakhouse, 166 under the Cheddar's Scratch Kitchen, 79 under the Yard House, 59 under The Capital Grille, 45 under the Seasons 52, 42 under the Bahama Breeze, and 23 under the Eddie V’s Prime Seafood brands. Darden Restaurants, Inc. was founded in 1968 and is based in Orlando, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 02:34
End of Day Share Price2020/05/29 00:00
Earnings2020/02/23
Annual Earnings2019/05/26


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.