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DRI

Darden Restaurants NYSE:DRI Stock Report

Last Price

US$131.91

Market Cap

US$16.2b

7D

6.7%

1Y

-7.1%

Updated

13 Aug, 2022

Data

Company Financials +
DRI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance6/6
Financial Health3/6
Dividends4/6

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

Summary of all time highs, changes and price drops for Darden Restaurants
Historical stock prices
Current Share PriceUS$131.91
52 Week HighUS$164.28
52 Week LowUS$110.96
Beta1.31
1 Month Change13.56%
3 Month Change3.00%
1 Year Change-7.10%
3 Year Change12.65%
5 Year Change57.05%
Change since IPO1,929.39%

Recent News & Updates

Aug 09
Here's Why We Think Darden Restaurants (NYSE:DRI) Is Well Worth Watching

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...

Jul 27
Is Now The Time To Look At Buying Darden Restaurants, Inc. (NYSE:DRI)?

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

DRIUS HospitalityUS Market
7D6.7%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

Is DRI's price volatile compared to industry and market?
DRI volatility
DRI Average Weekly Movement5.3%
Hospitality Industry Average Movement8.6%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
1968178,956Rick Cardenashttps://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

How do Darden Restaurants's earnings and revenue compare to its market cap?
DRI fundamental statistics
Market CapUS$16.17b
Earnings (TTM)US$954.70m
Revenue (TTM)US$9.63b

16.9x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DRI income statement (TTM)
RevenueUS$9.63b
Cost of RevenueUS$7.64b
Gross ProfitUS$2.00b
Other ExpensesUS$1.04b
EarningsUS$954.70m

Last Reported Earnings

May 29, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.79
Gross Margin20.72%
Net Profit Margin9.91%
Debt/Equity Ratio42.3%

How did DRI perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

59%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation 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.

DRI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.2x
Enterprise Value/EBITDA14.4x
PEG Ratio3.2x

Price to Earnings Ratio vs Peers

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

DRI PE Ratio vs 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.
CompanyPEEstimated GrowthMarket Cap
Peer Average35.7x
DPZ Domino's Pizza
31.5x11.3%US$14.8b
YUMC Yum China Holdings
26.5x27.4%US$20.2b
QSR Restaurant Brands International
22.6x4.9%US$27.2b
ARMK Aramark
62.4x30.9%US$9.6b
DRI Darden Restaurants
16.9x5.3%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.

DRI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.9x
Fair PE Ratio30.6x

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

2/6

Future 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

6/6

Past 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

3/6

Financial 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

4/6

Dividend 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.


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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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/13 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/05/29
Annual Earnings2022/05/29


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.