Darden Restaurants
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Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. The last earnings update was 76 days ago. More info.
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DRI Share Price and Events
7 Day Returns
1 Year Returns
DRI Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Darden Restaurants (DRI) | -0.6% | -1.3% | 7.2% | 25.4% | 74.7% | 147.7% |
| US Hospitality | 1.4% | -0.3% | 0.7% | -11% | 39.9% | 20.1% |
| US Market | 0.3% | 0.4% | 0.6% | 0.7% | 37.2% | 37.4% |
1 Year Return vs Industry and Market
- DRI outperformed the Hospitality industry which returned -11% over the past year.
- DRI outperformed the Market in United States of America which returned 0.7% over the past year.
DRI Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Darden Restaurants
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Darden Restaurants.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 24 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.6% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Hospitality Unlevered Beta | Simply Wall St/ S&P Global | 0.92 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.92 (1 + (1- 21%) (6.37%)) |
0.977 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.98 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.977 * 5.96%) |
8.56% |
Discounted Cash Flow Calculation for NYSE:DRI using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Darden Restaurants is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.56%) |
|
|---|---|---|---|
| 2019 | 748.05 | Analyst x4 | 689.09 |
| 2020 | 771.44 | Analyst x5 | 654.63 |
| 2021 | 771.30 | Analyst x2 | 602.93 |
| 2022 | 800.20 | Analyst x1 | 576.22 |
| 2023 | 862.80 | Analyst x1 | 572.33 |
| 2024 | 927.60 | Analyst x1 | 566.82 |
| 2025 | 976.26 | Est @ 5.25% | 549.53 |
| 2026 | 1,020.10 | Est @ 4.49% | 528.95 |
| 2027 | 1,060.52 | Est @ 3.96% | 506.57 |
| 2028 | 1,098.62 | Est @ 3.59% | 483.41 |
| Present value of next 10 years cash flows | $5,730.46 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $1,098.62 × (1 + 2.73%) ÷ (8.56% – 2.73%) |
$19,372.48 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $19,372.48 ÷ (1 + 8.56%)10 |
$8,524.19 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $5,730.46 + $8,524.19 |
$14,254.65 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $14,254.65 / 122.98 |
$115.91 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $115.91 |
| Current discount | Discount to share price of
$118.31
= -1 x ($118.31 - $115.91) / $115.91 |
-2.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Darden Restaurants is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Darden Restaurants's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Darden Restaurants's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-02-24) in USD | $5.54 |
| NYSE:DRI Share Price ** | NYSE (2019-06-17) in USD | $118.31 |
| United States of America Hospitality Industry PE Ratio | Median Figure of 74 Publicly-Listed Hospitality Companies | 22.39x |
| United States of America Market PE Ratio | Median Figure of 3,093 Publicly-Listed Companies | 17.68x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Darden Restaurants.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:DRI Share Price ÷ EPS (both in USD) = 118.31 ÷ 5.54 |
21.34x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Darden Restaurants is good value based on earnings compared to the US Hospitality industry average.
- Darden Restaurants is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Darden Restaurants's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 21.34x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts |
7.9%per year |
| United States of America Hospitality Industry PEG Ratio | Median Figure of 55 Publicly-Listed Hospitality Companies | 1.94x |
| United States of America Market PEG Ratio | Median Figure of 2,125 Publicly-Listed Companies | 1.52x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 21.34x ÷ 7.9% |
2.7x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Darden Restaurants is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Darden Restaurants's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-02-24) in USD | $18.83 |
| NYSE:DRI Share Price * | NYSE (2019-06-17) in USD | $118.31 |
| United States of America Hospitality Industry PB Ratio | Median Figure of 112 Publicly-Listed Hospitality Companies | 2.25x |
| United States of America Market PB Ratio | Median Figure of 5,245 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:DRI Share Price ÷ Book Value per Share (both in USD) = 118.31 ÷ 18.83 |
6.28x |
* Primary Listing of Darden Restaurants.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Darden Restaurants is overvalued based on assets compared to the US Hospitality industry average.
Value checks
We assess Darden Restaurants's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check) Darden Restaurants has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
DRI Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Darden Restaurants's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Darden Restaurants's earnings growth is positive but not above the United States of America market average.
- Darden Restaurants's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:DRI Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts | 7.9% |
| NYSE:DRI Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts | 4.5% |
| United States of America Hospitality Industry Earnings Growth Rate | Market Cap Weighted Average | 16.5% |
| United States of America Hospitality Industry Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.8% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 24 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2024-05-31 | 10,553 | 1 | ||
| 2023-05-31 | 10,121 | 1 | ||
| 2022-05-31 | 9,777 | 1,400 | 874 | 2 |
| 2021-05-31 | 9,420 | 1,339 | 854 | 13 |
| 2020-05-31 | 9,093 | 1,264 | 801 | 24 |
| 2019-05-31 | 8,525 | 1,222 | 722 | 24 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-02-24 | 8,415 | 1,175 | 685 |
| 2018-11-25 | 8,297 | 1,123 | 679 |
| 2018-08-26 | 8,205 | 1,033 | 651 |
| 2018-05-27 | 8,080 | 1,001 | 604 |
| 2018-02-25 | 7,881 | 946 | 554 |
| 2017-11-26 | 7,631 | 922 | 502 |
| 2017-08-27 | 7,392 | 907 | 493 |
| 2017-05-28 | 7,170 | 898 | 483 |
| 2017-02-26 | 7,026 | 902 | 498 |
| 2016-11-27 | 6,995 | 903 | 439 |
| 2016-08-28 | 6,961 | 835 | 390 |
| 2016-05-29 | 6,934 | 778 | 360 |
| 2016-02-28 | 7,022 | 696 | 337 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 24 Analyst Estimates (S&P Global) | See Below |
All data from Darden Restaurants Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2024-05-31 | ||||
| 2023-05-31 | ||||
| 2022-05-31 | 7.01 | 7.01 | 7.01 | 1.00 |
| 2021-05-31 | 6.98 | 7.49 | 6.65 | 8.00 |
| 2020-05-31 | 6.46 | 6.82 | 6.15 | 16.00 |
| 2019-05-31 | 5.76 | 5.81 | 5.73 | 6.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-02-24 | 5.54 |
| 2018-11-25 | 5.48 |
| 2018-08-26 | 5.27 |
| 2018-05-27 | 4.87 |
| 2018-02-25 | 4.45 |
| 2017-11-26 | 4.03 |
| 2017-08-27 | 3.96 |
| 2017-05-28 | 3.88 |
| 2017-02-26 | 3.99 |
| 2016-11-27 | 3.50 |
| 2016-08-28 | 3.07 |
| 2016-05-29 | 2.82 |
| 2016-02-28 | 2.65 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Darden Restaurants's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Darden Restaurants has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
DRI Past Performance
How has Darden Restaurants performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Darden Restaurants has delivered over 20% year on year earnings growth in the past 5 years.
- Darden Restaurants's 1-year earnings growth is less than its 5-year average (23.9% vs 32%)
- Darden Restaurants's earnings growth has exceeded the US Hospitality industry average in the past year (23.9% vs 1%).
Earnings and Revenue History
All data from Darden Restaurants Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-02-24 | 8,415.40 | 685.30 | 642.00 | |
| 2018-11-25 | 8,297.30 | 678.70 | 645.80 | |
| 2018-08-26 | 8,205.40 | 651.40 | 649.70 | |
| 2018-05-27 | 8,080.10 | 603.80 | 642.70 | |
| 2018-02-25 | 7,880.60 | 553.80 | 687.60 | |
| 2017-11-26 | 7,630.90 | 501.60 | 660.40 | |
| 2017-08-27 | 7,391.90 | 492.70 | 640.00 | |
| 2017-05-28 | 7,170.20 | 482.50 | 627.40 | |
| 2017-02-26 | 7,025.80 | 497.50 | 583.90 | |
| 2016-11-27 | 6,994.60 | 439.40 | 588.00 | |
| 2016-08-28 | 6,960.90 | 389.80 | 611.60 | |
| 2016-05-29 | 6,933.50 | 359.70 | 622.90 | |
| 2016-02-28 | 7,021.60 | 337.40 | 644.00 | |
| 2015-11-29 | 6,905.00 | 357.60 | 635.20 | |
| 2015-08-30 | 6,855.20 | 296.70 | 638.40 | |
| 2015-05-31 | 6,764.00 | 196.40 | 673.50 | |
| 2015-02-22 | 6,535.80 | 126.60 | 625.30 | |
| 2014-11-23 | 6,423.40 | 84.80 | 642.20 | |
| 2014-08-24 | 6,349.90 | 121.70 | 641.60 | |
| 2014-05-25 | 6,285.60 | 183.20 | 647.30 | |
| 2014-02-23 | 4,303.50 | 92.90 | 473.70 | |
| 2013-11-24 | 4,943.20 | 140.80 | 519.60 | |
| 2013-08-25 | 5,417.70 | 168.50 | 572.80 | |
| 2013-05-26 | 5,921.00 | 237.30 | 625.20 | |
| 2013-02-24 | 8,318.50 | 430.80 | 812.10 | |
| 2012-11-25 | 8,220.10 | 460.50 | 810.30 | |
| 2012-08-26 | 8,091.50 | 480.70 | 781.70 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Darden Restaurants has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Darden Restaurants used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.
- Darden Restaurants has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Darden Restaurants's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Darden Restaurants has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
DRI Health
How is Darden Restaurants's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Darden Restaurants's finances.
The net worth of a company is the difference between its assets and liabilities.
- Darden Restaurants's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Darden Restaurants's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Darden Restaurants Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-02-24 | 2,315.70 | 927.40 | 302.90 |
| 2018-11-25 | 2,250.30 | 972.10 | 139.70 |
| 2018-08-26 | 2,275.20 | 926.80 | 151.80 |
| 2018-05-27 | 2,194.80 | 926.50 | 146.90 |
| 2018-02-25 | 2,124.90 | 977.00 | 146.80 |
| 2017-11-26 | 1,976.10 | 1,089.10 | 114.70 |
| 2017-08-27 | 2,058.70 | 936.60 | 146.80 |
| 2017-05-28 | 2,101.70 | 936.60 | 233.10 |
| 2017-02-26 | 1,972.80 | 440.70 | 391.40 |
| 2016-11-27 | 1,853.40 | 440.50 | 116.80 |
| 2016-08-28 | 1,801.30 | 440.20 | 114.70 |
| 2016-05-29 | 1,952.00 | 440.00 | 274.80 |
| 2016-02-28 | 1,918.20 | 447.70 | 215.80 |
| 2015-11-29 | 1,989.80 | 1,198.90 | 857.60 |
| 2015-08-30 | 2,424.10 | 1,506.50 | 690.10 |
| 2015-05-31 | 2,333.50 | 1,467.30 | 535.90 |
| 2015-02-22 | 2,237.80 | 1,526.80 | 436.20 |
| 2014-11-23 | 2,105.50 | 1,556.60 | 157.50 |
| 2014-08-24 | 2,127.90 | 1,637.20 | 413.70 |
| 2014-05-25 | 2,156.90 | 2,740.30 | 98.30 |
| 2014-02-23 | 2,121.70 | 2,730.10 | 127.00 |
| 2013-11-24 | 2,059.20 | 2,874.60 | 84.60 |
| 2013-08-25 | 2,071.50 | 2,760.10 | 108.90 |
| 2013-05-26 | 2,059.50 | 2,715.10 | 88.20 |
| 2013-02-24 | 1,950.30 | 2,772.30 | 103.90 |
| 2012-11-25 | 1,863.40 | 2,933.00 | 61.40 |
| 2012-08-26 | 1,860.00 | 2,154.10 | 51.50 |
- Darden Restaurants's level of debt (40%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (128.6% vs 40% today).
- Debt is well covered by operating cash flow (126.7%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 16.7x coverage).
Financial health checks
We assess Darden Restaurants's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Darden Restaurants has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
DRI Dividends
What is Darden Restaurants's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Darden Restaurants
shares you are expected to receive
$51
in your first year as a dividend.
Dividend Amount
- Darden Restaurants's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
- Darden Restaurants's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 24 Analyst Estimates (S&P Global) | See Below |
| United States of America Hospitality Industry Average Dividend Yield | Market Cap Weighted Average of 47 Stocks | 2.8% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2011 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2024-05-31 | ||
| 2023-05-31 | ||
| 2022-05-31 | 3.99 | 1.00 |
| 2021-05-31 | 3.81 | 6.00 |
| 2020-05-31 | 3.36 | 11.00 |
| 2019-05-31 | 3.02 | 11.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-12-12 | 3.000 | 2.676 |
| 2018-09-20 | 3.000 | 2.752 |
| 2018-07-20 | 3.000 | 2.652 |
| 2018-06-21 | 3.000 | 2.738 |
| 2017-12-14 | 2.520 | 2.729 |
| 2017-09-21 | 2.520 | 3.067 |
| 2017-03-22 | 2.240 | 2.619 |
| 2016-07-25 | 2.240 | 3.282 |
| 2016-06-30 | 2.240 | 3.583 |
| 2016-04-06 | 2.000 | 3.062 |
| 2016-04-05 | 2.000 | 3.082 |
| 2015-09-17 | 2.200 | 3.519 |
| 2015-06-18 | 2.200 | 3.097 |
| 2015-03-30 | 2.200 | 3.353 |
| 2015-03-20 | 2.200 | 3.201 |
| 2014-09-15 | 2.200 | 3.887 |
| 2014-06-20 | 2.200 | 4.736 |
| 2014-03-21 | 2.200 | 4.409 |
| 2013-12-19 | 2.200 | 4.370 |
| 2013-09-20 | 2.200 | 4.330 |
| 2013-03-22 | 2.000 | 3.980 |
| 2013-01-02 | 2.000 | 4.302 |
| 2012-12-20 | 2.000 | 4.450 |
| 2012-06-22 | 2.000 | 3.846 |
| 2012-03-23 | 1.720 | 3.393 |
| 2011-12-16 | 1.720 | 3.589 |
| 2011-09-28 | 1.720 | 3.768 |
| 2011-06-30 | 1.720 | 3.567 |
| 2011-03-24 | 1.280 | 2.646 |
| 2010-12-20 | 1.280 | 2.713 |
| 2010-06-23 | 1.280 | 2.909 |
| 2010-03-23 | 1.000 | 2.251 |
| 2009-12-17 | 1.000 | 2.625 |
| 2009-09-29 | 1.000 | 3.098 |
| 2009-06-23 | 1.000 | 2.983 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Darden Restaurants's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.9x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
Income/ dividend checks
We assess Darden Restaurants's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Darden Restaurants afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Darden Restaurants has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
DRI Management
CEO
| COMPENSATION | $15,770,151 |
| AGE | 56 |
| TENURE AS CEO | 4.3 years |
CEO Bio
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 Interim Chief Executive Officer of Darden Restaurants Inc from October 14, 2014 to February 2015. He served as the Chief Operating Officer of Darden Restaurants from September 18, 2013 to October 14, 2014. He served as the President of Specialty Restaurant Group for Darden Restaurants Inc. from October 1, 2007 to September 2013. Mr. Lee served as the President of RARE Hospitality International Inc. from January 2001 to October 2007, Chief Operating Officer from January 1999 to October 2007 and Executive Vice President from January 1999 to January 2001. Prior to that, he served as an Executive Vice President of Operations at LongHorn Steakhouse Division from October 1997 to January 1999. He served as an Executive Vice President of Operations - Bugaboo Creek Steak House Division at Rare Hospitality International Inc., from January 1997 to October 1997. He served in various positions with Uno Restaurant Corporation, an operator of restaurants, including Senior Vice President - Operations. Mr. Lee has been an Independent Director of Advance Auto Parts Inc., since November 20, 2015 and Darden Restaurants, Inc. since February 23, 2015. He has experience as the chief executive officer of a national group of chain restaurants. In addition, he has experience in marketing, real estate and change management. He served as a Director of RARE Hospitality International Inc. since 2001. He holds an MBA from Suffolk University in Boston.
CEO Compensation
- Gene's compensation has been consistent with company performance over the past year, both up more than 20%.
- Gene's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Darden Restaurants management team in years:
- The tenure for the Darden Restaurants management team is about average.
Management Team
Gene Lee
President
$16M
56
4.3 yrs
Rick Cardenas
Senior VP & CFO
$3M
50
3.3 yrs
Dave George
Executive VP & COO
$3M
62
1.4 yrs
Matt Broad
Senior VP
$2M
58
3.7 yrs
Todd Burrowes
President of Longhorn Steakhouse
$2M
55
3.9 yrs
Kyle Holmes
Managing Partner
Jon Norem
Managing Partner
John Rucker
Managing Partner
Chris Chang
Senior VP & Chief Information Officer
3.2 yrs
Kevin Kalicak
Vice President of Investor Relations & Corporate Analysis
4.5 yrs
Board of Directors Tenure
Average tenure and age of the Darden Restaurants board of directors in years:
- The tenure for the Darden Restaurants board of directors is about average.
Board of Directors
Chuck Sonsteby
Chairman of the Board
$257K
64
3.2 yrs
Gene Lee
President
$16M
56
4.3 yrs
Bill Simon
Director
$230K
59
4.7 yrs
Cindie Jamison
Director
$253K
58
5.4 yrs
Jim Fogarty
Director
$239K
50
5.4 yrs
Margaret Atkins
Director
$234K
61
4.7 yrs
Nana Mensah
Director
$229K
65
2.6 yrs
Tim Wilmott
Director
59
0.8 yrs
Who owns this company?
Recent Insider Trading
- Darden Restaurants insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 27. Mar 19 | Sell | John Madonna | Individual | 25. Mar 19 | 25. Mar 19 | -330 | $118.76 | $-39,191 | ||
| 01. Feb 19 | Sell | William Simon | Individual | 01. Feb 19 | 01. Feb 19 | -1,565 | $104.90 | $-164,169 | ||
| 25. Jul 18 | Sell | Douglas Milanes | Individual | 23. Jul 18 | 23. Jul 18 | -2,186 | $111.06 | $-242,778 | ||
| 26. Jun 18 | Sell | John Madonna | Individual | 25. Jun 18 | 25. Jun 18 | -700 | $109.21 | $-76,445 | ||
Management checks
We assess Darden Restaurants's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Darden Restaurants has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
DRI News
Simply Wall St News
Darden Restaurants, Inc. (NYSE:DRI): Time For A Financial Health Check
See our latest analysis for Darden Restaurants DRI’s Debt (And Cash Flows) DRI's debt levels have fallen from US$977m to US$927m over the last 12 months , which also accounts for long term debt. … On top of this, DRI has generated US$1.2b in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 127%, meaning that DRI’s operating cash is sufficient to cover its debt. … Next Steps: DRI’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.
Simply Wall St - – Full articleEstimating The Intrinsic Value Of Darden Restaurants, Inc. (NYSE:DRI)
Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $747.55 $784.28 $809.00 $833.21 $857.49 $882.01 $906.88 $932.21 $958.08 $984.53 Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x1 Est @ 2.99% Est @ 2.91% Est @ 2.86% Est @ 2.82% Est @ 2.79% Est @ 2.77% Est @ 2.76% Present Value ($, Millions) Discounted @ 8.51% $688.92 $666.08 $633.20 $601.00 $570.01 $540.32 $511.99 $485.01 $459.38 $435.04 Present Value of 10-year Cash Flow (PVCF)= $5.59b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.5%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$985m × (1 + 2.7%) ÷ (8.5% – 2.7%) = US$17b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$17b ÷ ( 1 + 8.5%)10 = $7.73b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $13.32b.
Simply Wall St - – Full articleLooking At Darden Restaurants, Inc. (NYSE:DRI) From All Angles
NYSE:DRI Historical Dividend Yield, May 16th 2019 Next Steps: For Darden Restaurants, there are three essential aspects you should look at: Future Outlook: What are well-informed industry analysts predicting for DRI’s future growth? … Take a look at our free research report of analyst consensus for DRI’s outlook. … The intrinsic value infographic in our free research report helps visualize whether DRI is currently mispriced by the market.
Simply Wall St - – Full articleRead This Before You Buy Darden Restaurants, Inc. (NYSE:DRI) Because Of Its P/E Ratio
Looking at earnings over the last twelve months, Darden Restaurants has a P/E ratio of 21.55. … How Do I Calculate Darden Restaurants's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhy Darden Restaurants, Inc. (NYSE:DRI) Is A Buy When Markets Go Down
Today I want to bring to light the market's darling - Darden Restaurants, Inc.. … Looking at its size, financial health and track record, I believe there's an opportunity with Darden Restaurants during these volatile times. … Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada
Simply Wall St - – Full articleA Close Look At Darden Restaurants, Inc.’s (NYSE:DRI) 20% ROCE
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.
Simply Wall St - – Full articleDo Darden Restaurants's (NYSE:DRI) Earnings Warrant Your Attention?
How Quickly Is Darden Restaurants Increasing Earnings Per Share. … One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. … You can take a look at the company's revenue and earnings growth trend, in the chart below.
Simply Wall St - – Full articleDarden Restaurants, Inc. (NYSE:DRI) Delivered A Better ROE Than Its Industry
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Darden Restaurants has a return on equity of 30% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIf You Had Bought Darden Restaurants (NYSE:DRI) Stock Five Years Ago, You Could Pocket A 132% Gain Today
One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Over half a decade, Darden Restaurants managed to grow its earnings per share at 51% a year. … This EPS growth is higher than the 18% average annual increase in the share price.
Simply Wall St - – Full articleHave Insiders Been Selling Darden Restaurants, Inc. (NYSE:DRI) Shares?
So we'll take a look at whether insiders have been buying or selling shares in Darden Restaurants, Inc. … Darden Restaurants Insider Transactions Over The Last Year. … In total, Darden Restaurants insiders sold more than they bought over the last year
Simply Wall St - – Full articleDRI Company Info
Description
Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 27, 2018, it owned and operated approximately 1,746 restaurants under the Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Bahama Breeze, Seasons 52, and Eddie V’s brands. The company was founded in 1968 and is based in Orlando, Florida.
Details
| Name: | Darden Restaurants, Inc. |
| DRI | |
| Exchange: | NYSE |
| Founded: | 1968 |
| $14,549,267,134 | |
| 122,975,802 | |
| Website: | http://www.darden.com |
| Address: |
Darden Restaurants, Inc. 1000 Darden Center Drive, Orlando, Florida, 32837, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | DRI | Common Stock | New York Stock Exchange | US | USD | 09. May 1995 | |
| DB | DDN | Common Stock | Deutsche Boerse AG | DE | EUR | 09. May 1995 | |
| LSE | 0I77 | Common Stock | London Stock Exchange | GB | USD | 09. May 1995 |
Number of employees
Current staff
Industry
| Restaurants | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/17 23:36 |
| End of day share price update: | 2019/06/17 00:00 |
| Last estimates confirmation: | 2019/06/17 |
| Last earnings filing: | 2019/04/02 |
| Last earnings reported: | 2019/02/24 |
| Last annual earnings reported: | 2018/05/27 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
