Darden Restaurants
Market Cap
US$16.3b
Last Updated
2021/01/21 23:17 UTC
Data Sources
Company Financials +
Executive Summary
Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. More Details
Rewards
Risk Analysis
Snowflake Analysis
High 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: DRI's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
1.5%
DRI
0.4%
US Hospitality
1.4%
US Market
1 Year Return
6.2%
DRI
-7.0%
US Hospitality
22.6%
US Market
Return vs Industry: DRI exceeded the US Hospitality industry which returned -7.4% over the past year.
Return vs Market: DRI underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| DRI | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 0.4% | 1.4% |
| 30 Day | 4.4% | 5.2% | 4.9% |
| 90 Day | 25.6% | 20.8% | 14.6% |
| 1 Year | 6.9%6.2% | -5.9%-7.0% | 25.4%22.6% |
| 3 Year | 36.0%27.7% | -4.1%-9.9% | 46.8%37.0% |
| 5 Year | 123.8%97.5% | 64.3%47.7% | 132.0%106.1% |
Long-Term 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
4 weeks ago | Simply Wall St
Have Darden Restaurants, Inc. (NYSE:DRI) Insiders Been Selling Their Stock?1 month ago | Simply Wall St
Here's Why Darden Restaurants (NYSE:DRI) Has A Meaningful Debt Burden2 months ago | Simply Wall St
What Type Of Shareholders Own The Most Number of Darden Restaurants, Inc. (NYSE:DRI) Shares?Valuation
Is Darden Restaurants undervalued compared to its fair value and its price relative to the market?
6.63x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: DRI ($124.96) is trading above our estimate of fair value ($102.06)
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 (6.6x) compared to the US Hospitality industry average (3.2x).
Next Steps
Future Growth
How is Darden Restaurants forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
33.0%
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%).
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 (13.5% per year) is forecast to grow faster than the US market (10.5% per year).
High Growth Revenue: DRI's revenue (13.5% 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 high in 3 years time (31.6%)
Next Steps
Past Performance
How has Darden Restaurants performed over the past 5 years?
-7.3%
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, and losses have increased over the past 5 years at a rate of 7.3% 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 (-56.1%).
Return on Equity
High ROE: DRI has a negative Return on Equity (-4.57%), 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 ($1.1B) do not cover its short term liabilities ($1.5B).
Long Term Liabilities: DRI's short term assets ($1.1B) do not cover its long term liabilities ($5.9B).
Debt to Equity History and Analysis
Debt Level: DRI's debt to equity ratio (37.9%) is considered satisfactory.
Reducing Debt: DRI's debt to equity ratio has reduced from 56.3% to 37.9% over the past 5 years.
Debt Coverage: DRI's debt is well covered by operating cash flow (75.3%).
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?
1.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DRI's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: DRI's dividend (1.18%) is low compared to the top 25% of dividend payers in the US market (3.86%).
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 (45.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.4yrs
Average management tenure
CEO
Gene Lee (58 yo)
5.92yrs
Tenure
US$8,688,707
Compensation
Mr. Eugene I. Lee, Jr., also known as Gene, serves as Chairman at Darden Restaurants, Inc. since January 4, 2021. He has been the Chief Executive Officer of Darden Restaurants, Inc. since February 23, 2015...
CEO Compensation Analysis
Compensation vs Market: Gene's total compensation ($USD8.69M) is about average for companies of similar size in the US market ($USD10.55M).
Compensation vs Earnings: Gene's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 5.92yrs | US$8.69m | 0.18% $ 28.6m | |
| President & COO | no data | US$3.20m | 0.028% $ 4.5m | |
| President of Longhorn Steakhouse | 5.5yrs | US$2.72m | 0.026% $ 4.2m | |
| President of Olive Garden | 3yrs | US$2.17m | 0.0061% $ 998.3k | |
| Managing Partner | no data | no data | no data | |
| Managing Partner | no data | no data | no data | |
| Managing Partner | no data | no data | no data | |
| Senior VP | no data | no data | 0.00069% $ 112.4k | |
| Senior VP & Chief Information Officer | 4.75yrs | no data | no data | |
| Vice President of Investor Relations & Corporate Analysis | 6.08yrs | no data | no data | |
| Senior VP | 5.25yrs | US$1.71m | 0.012% $ 1.9m | |
| Senior VP and Chief Communications & Public Affairs Officer | 5.42yrs | no data | 0.0039% $ 628.6k |
5.4yrs
Average Tenure
57yo
Average Age
Experienced Management: DRI's management team is seasoned and experienced (5.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 5.92yrs | US$8.69m | 0.18% $ 28.6m | |
| Independent Director | 6.25yrs | US$252.36k | 0.0024% $ 389.2k | |
| Independent Director | 7yrs | US$255.48k | 0.014% $ 2.2m | |
| Independent Director | 4.17yrs | US$250.79k | 0.00014% $ 22.8k | |
| Lead Independent Director | no data | US$331.24k | 0.017% $ 2.8m | |
| Independent Director | 7yrs | US$271.88k | 0.0029% $ 478.8k | |
| Independent Director | 2.33yrs | US$247.67k | 0.013% $ 2.1m | |
| Independent Director | 6.25yrs | US$260.95k | 0.0096% $ 1.6m |
6.3yrs
Average Tenure
61yo
Average Age
Experienced Board: DRI's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DRI insiders have only sold shares 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 7.3%.
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$16.286b
- Shares outstanding: 130.33m
- Website: https://www.darden.com
Number of Employees
Location
- Darden Restaurants, Inc.
- 1000 Darden Center Drive
- Orlando
- Florida
- 32837
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DRI | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 1995 |
| DDN | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 1995 |
| 0I77 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | May 1995 |
| D1RI34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:17 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/11/29 |
| Annual Earnings | 2020/05/31 |
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.