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. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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

0.6%

DRI

2.2%

US Hospitality

-0.8%

US Market


1 Year Return

-11.4%

DRI

-14.3%

US Hospitality

18.0%

US Market

Return vs Industry: DRI exceeded the US Hospitality industry which returned -16% over the past year.

Return vs Market: DRI underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

DRIIndustryMarket
7 Day0.6%2.2%-0.8%
30 Day10.6%4.7%6.8%
90 Day26.6%18.2%8.9%
1 Year-10.5%-11.4%-12.9%-14.3%20.7%18.0%
3 Year27.6%19.4%-7.9%-13.7%41.5%32.1%
5 Year104.5%60.8%17.9%5.5%84.6%63.8%

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?

5.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DRI ($99.82) is trading above our estimate of fair value ($84.32)

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


Price To Earnings Ratio

PE vs Industry: DRI is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.

PE vs Market: DRI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DRI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DRI is overvalued based on its PB Ratio (5.5x) compared to the US Hospitality industry average (2.3x).


Next Steps

Future Growth

How is Darden Restaurants forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: DRI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DRI's is expected to become profitable in the next 3 years.

Revenue vs Market: DRI's revenue (8.9% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: DRI's revenue (8.9% 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 high in 3 years time (30.6%)


Next Steps

Past Performance

How has Darden Restaurants performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRI is currently unprofitable.

Growing Profit Margin: DRI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DRI is unprofitable, but has reduced losses over the past 5 years at a rate of 1% per year.

Accelerating Growth: Unable to compare DRI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DRI is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-49.7%).


Return on Equity

High ROE: DRI has a negative Return on Equity (-7.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is Darden Restaurants's financial position?


Financial Position Analysis

Short Term Liabilities: DRI's short term assets ($971.0M) do not cover its short term liabilities ($1.5B).

Long Term Liabilities: DRI's short term assets ($971.0M) do not cover its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: DRI's debt to equity ratio (39.1%) is considered satisfactory.

Reducing Debt: DRI's debt to equity ratio has reduced from 59.9% to 39.1% over the past 5 years.

Debt Coverage: DRI's debt is well covered by operating cash flow (71.8%).

Interest Coverage: DRI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DRI's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: DRI's dividend (1.2%) is low compared to the top 25% of dividend payers in the US market (4.67%).


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.


Current Payout to Shareholders

Dividend Coverage: DRI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: DRI's dividends in 3 years are forecast to be well covered by earnings (48.8% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Gene Lee (58 yo)

5.67yrs

Tenure

US$8,688,707

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 ($USD8.69M) is about average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eugene Lee
President5.67yrsUS$8.69m0.18%
$ 23.1m
Ricardo Cardenas
Senior VP & CFO4.58yrsUS$3.20m0.028%
$ 3.6m
Todd Burrowes
President of Longhorn Steakhouse5.25yrsUS$2.72m0.026%
$ 3.3m
Daniel Kiernan
President of Olive Garden2.75yrsUS$2.17m0.0061%
$ 795.7k
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 4.5yrsno datano data
Kevin Kalicak
Vice President of Investor Relations & Corporate Analysis5.83yrsno datano data
Matthew Broad
Senior VP5yrsUS$1.71m0.012%
$ 1.5m
Susan Connelly
Senior VP and Chief Communications & Public Affairs Officer5.17yrsno data0.0039%
$ 501.5k
Sarah King
Senior VP & Chief Human Resources Officer3.58yrsno data0.0064%
$ 826.8k

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: DRI's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eugene Lee
President5.67yrsUS$8.69m0.18%
$ 23.1m
Margaret Atkins
Independent Director6yrsUS$252.36k0.0024%
$ 309.7k
James Fogarty
Independent Director6.75yrsUS$255.48k0.014%
$ 1.8m
Nana Mensah
Independent Director3.92yrsUS$250.79k0.00091%
$ 117.9k
Charles Sonsteby
Independent Chairman of the Board4.5yrsUS$331.24k0.017%
$ 2.2m
Cynthia Jamison
Independent Director6.75yrsUS$271.88k0.0029%
$ 382.3k
Timothy Wilmott
Independent Director2.08yrsUS$247.67k0.013%
$ 1.7m
William Simon
Independent Director6yrsUS$260.95k0.0096%
$ 1.2m

5.8yrs

Average Tenure

61yo

Average Age

Experienced Board: DRI's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 6.2%.


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$12.959b
  • Shares outstanding: 130.20m
  • 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 May 31, 2020, it owned and operated approximately 1,804 restaurants, wh ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 23:50
End of Day Share Price2020/10/23 00:00
Earnings2020/08/30
Annual Earnings2020/05/31


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.