Darden Restaurants, Inc.

NYSE:DRI Stock Report

Market Cap: US$18.8b

Darden Restaurants Valuation

Is DRI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DRI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DRI ($183.44) is trading above our estimate of fair value ($172.97)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DRI?

Key metric: As DRI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DRI. This is calculated by dividing DRI's market cap by their current earnings.
What is DRI's PE Ratio?
PE Ratio20.7x
EarningsUS$1.04b
Market CapUS$18.78b

Price to Earnings Ratio vs Peers

How does DRI's PE Ratio compare to its peers?

The above table shows the PE ratio for DRI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.6x
YUMC Yum China Holdings
20.8x8.7%US$18.4b
DPZ Domino's Pizza
25.8x5.9%US$14.9b
QSR Restaurant Brands International
16.7x10.8%US$29.7b
TXRH Texas Roadhouse
31.3x12.5%US$11.9b
DRI Darden Restaurants
20.7x7.9%US$18.8b

Price-To-Earnings vs Peers: DRI is good value based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (23.6x).

Price to Earnings Ratio vs Industry

How does DRI's PE Ratio compare vs other companies in the US Hospitality Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
THRS.F Agility Real Estate
1.7xn/aUS$2.05m
No more companies available in this PE range
DRI 20.7xIndustry Avg. 23.5xNo. of Companies17PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DRI is good value based on its Price-To-Earnings Ratio (20.7x) compared to the US Hospitality industry average (23.5x).

Price to Earnings Ratio vs Fair Ratio

What is DRI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DRI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.7x
Fair PE Ratio24x

Price-To-Earnings vs Fair Ratio: DRI is good value based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DRI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$183.44
US$184.90
+0.8%
9.6%US$209.00US$136.00n/a29
Dec ’25US$176.27
US$181.93
+3.2%
9.2%US$209.00US$136.00n/a28
Nov ’25US$159.65
US$181.93
+14.0%
9.2%US$209.00US$136.00n/a28
Oct ’25US$164.12
US$182.22
+11.0%
9.3%US$209.00US$136.00n/a27
Sep ’25US$158.15
US$170.07
+7.5%
8.9%US$192.00US$124.00n/a28
Aug ’25US$145.35
US$170.07
+17.0%
8.9%US$192.00US$124.00n/a28
Jul ’25US$148.33
US$173.34
+16.9%
6.4%US$192.00US$149.00n/a28
Jun ’25US$150.39
US$176.91
+17.6%
6.6%US$194.00US$149.00n/a28
May ’25US$151.15
US$177.45
+17.4%
6.6%US$194.00US$149.00n/a28
Apr ’25US$167.24
US$177.84
+6.3%
6.6%US$194.00US$149.00n/a27
Mar ’25US$171.29
US$176.57
+3.1%
6.7%US$193.00US$146.00n/a28
Feb ’25US$167.23
US$176.35
+5.5%
6.6%US$193.00US$146.00n/a29
Jan ’25US$164.30
US$174.41
+6.2%
7.0%US$193.00US$146.00n/a29
Dec ’24US$159.91
US$167.36
+4.7%
7.7%US$190.00US$146.00US$176.2729
Nov ’24US$145.66
US$167.36
+14.9%
7.7%US$190.00US$146.00US$159.6529
Oct ’24US$143.22
US$170.88
+19.3%
6.6%US$190.00US$146.00US$164.1228
Sep ’24US$155.56
US$173.41
+11.5%
6.6%US$195.00US$145.00US$158.1527
Aug ’24US$166.38
US$173.41
+4.2%
6.6%US$195.00US$145.00US$145.3527
Jul ’24US$167.08
US$172.88
+3.5%
6.8%US$195.00US$145.00US$148.3325
Jun ’24US$161.73
US$164.80
+1.9%
5.6%US$180.00US$143.00US$150.3925
May ’24US$151.26
US$162.15
+7.2%
5.6%US$175.00US$140.00US$151.1527
Apr ’24US$155.16
US$161.67
+4.2%
6.0%US$175.00US$140.00US$167.2427
Mar ’24US$143.65
US$154.57
+7.6%
7.1%US$175.00US$123.00US$171.2928
Feb ’24US$147.06
US$154.00
+4.7%
7.0%US$175.00US$123.00US$167.2327
Jan ’24US$138.33
US$150.93
+9.1%
6.1%US$167.00US$122.00US$164.3027
Dec ’23US$145.65
US$141.64
-2.8%
6.4%US$156.00US$122.00US$159.9128

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 22:33
End of Day Share Price 2024/12/19 00:00
Earnings2024/08/25
Annual Earnings2024/05/26

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Darden Restaurants, Inc. is covered by 62 analysts. 27 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
David TarantinoBaird
Ishan MajumdarBaptista Research