| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 2/6 |
| Past Performance | 6/6 |
| Financial Health | 3/6 |
| Dividends | 4/6 |
DRI Stock Overview
Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada.
Darden Restaurants Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$131.91 |
| 52 Week High | US$164.28 |
| 52 Week Low | US$110.96 |
| Beta | 1.31 |
| 1 Month Change | 13.56% |
| 3 Month Change | 3.00% |
| 1 Year Change | -7.10% |
| 3 Year Change | 12.65% |
| 5 Year Change | 57.05% |
| Change since IPO | 1,929.39% |
Recent News & Updates
Here's Why We Think Darden Restaurants (NYSE:DRI) Is Well Worth Watching
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...
Is Now The Time To Look At Buying Darden Restaurants, Inc. (NYSE:DRI)?
Darden Restaurants, Inc. ( NYSE:DRI ) received a lot of attention from a substantial price movement on the NYSE over...
Shareholder Returns
| DRI | US Hospitality | US Market | |
|---|---|---|---|
| 7D | 6.7% | 5.8% | 3.2% |
| 1Y | -7.1% | -15.1% | -10.2% |
Return vs Industry: DRI exceeded the US Hospitality industry which returned -15.1% over the past year.
Return vs Market: DRI exceeded the US Market which returned -10.1% over the past year.
Price Volatility
| DRI volatility | |
|---|---|
| DRI Average Weekly Movement | 5.3% |
| Hospitality Industry Average Movement | 8.6% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: DRI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: DRI's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1968 | 178,956 | Rick Cardenas | https://www.darden.com |
Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 29, 2022, it owned and operated 1,867 restaurants, which included 884 under the Olive Garden brand, 546 under the LongHorn Steakhouse brand name, 172 under the Cheddar's Scratch Kitchen brand, 85 under the Yard House brand name, 62 under The Capital Grille brand, 45 under the Seasons 52 brand name, 42 under the Bahama Breeze brand, 28 under the Eddie V’s Prime Seafood brand name, and 3 under the Capital Burger brand; and franchised 60 restaurants comprising 35 under the Olive Garden brand, 18 under the LongHorn Steakhouse brand name, 4 under the Cheddar's Scratch Kitchen brand, 2 under The Capital Grille brand name, and 1 under the Bahama Breeze brand Darden Restaurants, Inc. was founded in 1968 and is based in Orlando, Florida.
Darden Restaurants Fundamentals Summary
| DRI fundamental statistics | |
|---|---|
| Market Cap | US$16.17b |
| Earnings (TTM) | US$954.70m |
| Revenue (TTM) | US$9.63b |
16.9x
P/E Ratio1.7x
P/S RatioIs DRI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| DRI income statement (TTM) | |
|---|---|
| Revenue | US$9.63b |
| Cost of Revenue | US$7.64b |
| Gross Profit | US$2.00b |
| Other Expenses | US$1.04b |
| Earnings | US$954.70m |
Last Reported Earnings
May 29, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 7.79 |
| Gross Margin | 20.72% |
| Net Profit Margin | 9.91% |
| Debt/Equity Ratio | 42.3% |
How did DRI perform over the long term?
See historical performance and comparisonDividends
3.7%
Current Dividend Yield59%
Payout RatioValuation
Is DRI undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for DRI?
Other financial metrics that can be useful for relative valuation.
| What is DRI's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$16.17b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.2x |
| Enterprise Value/EBITDA | 14.4x |
| PEG Ratio | 3.2x |
Price to Earnings Ratio vs Peers
How does DRI's PE Ratio compare to its peers?
| DRI PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 35.7x | ||
DPZ Domino's Pizza | 31.5x | 11.3% | US$14.8b |
YUMC Yum China Holdings | 26.5x | 27.4% | US$20.2b |
QSR Restaurant Brands International | 22.6x | 4.9% | US$27.2b |
ARMK Aramark | 62.4x | 30.9% | US$9.6b |
DRI Darden Restaurants | 16.9x | 5.3% | US$16.2b |
Price-To-Earnings vs Peers: DRI is good value based on its Price-To-Earnings Ratio (16.9x) compared to the peer average (35.7x).
Price to Earnings Ratio vs Industry
How does DRI's PE Ratio compare vs other companies in the US Hospitality Industry?
Price-To-Earnings vs Industry: DRI is good value based on its Price-To-Earnings Ratio (16.9x) compared to the US Hospitality industry average (18.4x)
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 16.9x |
| Fair PE Ratio | 30.6x |
Price-To-Earnings vs Fair Ratio: DRI is good value based on its Price-To-Earnings Ratio (16.9x) compared to the estimated Fair Price-To-Earnings Ratio (30.6x).
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 ($131.91) is trading below our estimate of fair value ($173.88)
Significantly Below Fair Value: DRI is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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Future Growth
How is Darden Restaurants forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
5.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DRI's forecast earnings growth (5.3% per year) is above the savings rate (1.9%).
Earnings vs Market: DRI's earnings (5.3% per year) are forecast to grow slower than the US market (14.4% per year).
High Growth Earnings: DRI's earnings are forecast to grow, but not significantly.
Revenue vs Market: DRI's revenue (5% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: DRI's revenue (5% 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 very high in 3 years time (49.4%).
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Past Performance
How has Darden Restaurants performed over the past 5 years?
Past Performance Score
6/6Past Performance Score 6/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
2.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DRI has high quality earnings.
Growing Profit Margin: DRI's current net profit margins (9.9%) are higher than last year (8.7%).
Past Earnings Growth Analysis
Earnings Trend: DRI's earnings have grown by 2.9% per year over the past 5 years.
Accelerating Growth: DRI's earnings growth over the past year (53.2%) exceeds its 5-year average (2.9% per year).
Earnings vs Industry: DRI earnings growth over the past year (53.2%) exceeded the Hospitality industry 51%.
Return on Equity
High ROE: DRI's Return on Equity (43.4%) is considered outstanding.
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Financial Health
How is Darden Restaurants's financial position?
Financial Health Score
3/6Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: DRI's short term assets ($1.2B) do not cover its short term liabilities ($1.8B).
Long Term Liabilities: DRI's short term assets ($1.2B) do not cover its long term liabilities ($6.1B).
Debt to Equity History and Analysis
Debt Level: DRI's net debt to equity ratio (23.1%) is considered satisfactory.
Reducing Debt: DRI's debt to equity ratio has increased from 39.3% to 42.3% over the past 5 years.
Debt Coverage: DRI's debt is well covered by operating cash flow (135.2%).
Interest Coverage: DRI's interest payments on its debt are well covered by EBIT (16.9x coverage).
Balance Sheet
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Dividend
What is Darden Restaurants's current dividend yield, its reliability and sustainability?
Dividend Score
4/6Dividend Score 4/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
3.67%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DRI's dividend (3.67%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: DRI's dividend (3.67%) is low compared to the top 25% of dividend payers in the US market (3.96%).
Stability and Growth of Payments
Stable Dividend: DRI's dividend payments have been volatile in the past 10 years.
Growing Dividend: DRI's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (58.9%), DRI's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (69.5%), DRI's dividend payments are covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
6.8yrs
Average management tenure
CEO
Rick Cardenas (54 yo)
1.58yrs
Tenure
US$4,709,282
Compensation
Mr. Ricardo Cardenas, also known as Rick, serves as President at Darden Restaurants, Inc. since January 4, 2021 and its Chief Executive Officer and Director since May 30, 2022 and served as its Chief Opera...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD4.71M) is below average for companies of similar size in the US market ($USD12.88M).
Compensation vs Earnings: Rick's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: DRI's management team is seasoned and experienced (6.8 years average tenure).
Board Members
Experienced Board: DRI's board of directors are considered experienced (7.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DRI insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Darden Restaurants, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Darden Restaurants, Inc.
- Ticker: DRI
- Exchange: NYSE
- Founded: 1968
- Industry: Restaurants
- Sector: Consumer Services
- Implied Market Cap: US$16.169b
- Shares outstanding: 122.58m
- Website: https://www.darden.com
Number of Employees
Location
- Darden Restaurants, Inc.
- 1000 Darden Center Drive
- Orlando
- Florida
- 32837
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/13 00:00 |
| End of Day Share Price | 2022/08/12 00:00 |
| Earnings | 2022/05/29 |
| Annual Earnings | 2022/05/29 |
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.