Darden Restaurants
Market Cap
US$10.0b
Last Updated
2020/06/01 02:10 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.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and fair value.
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
1.6%
DRI
5.4%
US Hospitality
3.0%
US Market
1 Year Return
-34.0%
DRI
-23.2%
US Hospitality
9.9%
US Market
Return vs Industry: DRI underperformed the US Hospitality industry which returned -24% over the past year.
Return vs Market: DRI underperformed the US Market which returned 9.5% over the past year.
Shareholder returns
| DRI | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | 5.4% | 3.0% |
| 30 Day | 10.0% | 13.8% | 8.2% |
| 90 Day | -19.4% | -17.5% | 0.4% |
| 1 Year | -32.5%-34.0% | -21.4%-23.2% | 12.4%9.9% |
| 3 Year | -9.5%-16.3% | -19.5%-24.8% | 31.0%22.3% |
| 5 Year | 51.3%17.5% | 2.9%-8.2% | 58.1%40.3% |
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 days ago | Simply Wall St
How Much is Darden Restaurants, Inc.'s (NYSE:DRI) CEO Getting Paid?2 weeks ago | Simply Wall St
Was Darden Restaurants, Inc.'s (NYSE:DRI) Earnings Decline Part Of A Broader Industry Downturn?3 weeks ago | Simply Wall St
Is It Worth Buying Darden Restaurants, Inc. (NYSE:DRI) For Its 5.2% Dividend Yield?Valuation
Is Darden Restaurants undervalued compared to its fair value and its price relative to the market?
14.71x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: DRI ($76.86) is trading above our estimate of fair value ($70.6)
Significantly Below Fair Value: DRI is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: DRI is good value based on its PE Ratio (14.7x) compared to the Hospitality industry average (16.4x).
PE vs Market: DRI is good value based on its PE Ratio (14.7x) compared to the US market (15.8x).
Price to Earnings Growth Ratio
PEG Ratio: DRI is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: DRI is overvalued based on its PB Ratio (4x) compared to the US Hospitality industry average (1.6x).
Next Steps
Future Growth
How is Darden Restaurants forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
36.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DRI's forecast earnings growth (36.3% per year) is above the savings rate (2.2%).
Earnings vs Market: DRI's earnings (36.3% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DRI's revenue (3.9% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: DRI's revenue (3.9% 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 low in 3 years time (19.6%).
Next Steps
Past Performance
How has Darden Restaurants performed over the past 5 years?
21.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DRI has high quality earnings.
Growing Profit Margin: DRI's current net profit margins (7.3%) are lower than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: DRI's earnings have grown significantly by 21.5% per year over the past 5 years.
Accelerating Growth: DRI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DRI had negative earnings growth (-6.7%) over the past year, making it difficult to compare to the Hospitality industry average (-13.9%).
Return on Equity
High ROE: DRI's Return on Equity (27.3%) is considered high.
Next Steps
Financial Health
How is Darden Restaurants's financial position?
Financial Position Analysis
Short Term Liabilities: DRI's short term assets ($686.0M) do not cover its short term liabilities ($1.7B).
Long Term Liabilities: DRI's short term assets ($686.0M) do not cover its long term liabilities ($5.9B).
Debt to Equity History and Analysis
Debt Level: DRI's debt to equity ratio (39.7%) is considered satisfactory.
Reducing Debt: DRI's debt to equity ratio has reduced from 65.7% to 39.7% over the past 5 years.
Debt Coverage: DRI's debt is well covered by operating cash flow (136.5%).
Interest Coverage: DRI's interest payments on its debt are well covered by EBIT (15x coverage).
Balance Sheet
Next Steps
Dividend
What is Darden Restaurants's current dividend yield, its reliability and sustainability?
2.22%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate DRI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate DRI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if DRI's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if DRI's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: DRI is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of DRI's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Gene Lee (57yo)
5.33yrs
Tenure
US$10,710,578
Compensation
Mr. Eugene I. Lee, Jr., also known as Gene, has been the Chief Executive Officer and President of Darden Restaurants, Inc. since February 23, 2015 and September 2013 respectively. Mr. Lee served as an Inte ...
CEO Compensation Analysis
Compensation vs Market: Gene's total compensation ($USD10.71M) is about average for companies of similar size in the US market ($USD11.65M).
Compensation vs Earnings: Gene's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.33yrs | US$10.71m | 0.14% $13.6m | |
| Senior VP & CFO | 4.25yrs | US$3.43m | 0.017% $1.7m | |
| Executive VP & COO | 2.42yrs | US$3.99m | 0.050% $5.0m | |
| President of Longhorn Steakhouse | 4.92yrs | US$2.80m | 0.019% $1.9m | |
| President of Olive Garden | 2.42yrs | US$2.28m | 0.0033% $330.4k | |
| 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 & Chief Information Officer | 4.17yrs | no data | no data | |
| Vice President of Investor Relations & Corporate Analysis | 5.5yrs | no data | no data |
4.3yrs
Average Tenure
57yo
Average Age
Experienced Management: DRI's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.33yrs | US$10.71m | 0.14% $13.6m | |
| Independent Director | 5.67yrs | US$237.53k | 0.0024% $239.6k | |
| Independent Director | 6.42yrs | US$242.53k | 0.014% $1.4m | |
| Independent Director | 3.58yrs | US$232.53k | no data | |
| Independent Chairman of the Board | 4.17yrs | US$323.75k | 0.017% $1.7m | |
| Independent Director | 6.42yrs | US$257.38k | 0.0030% $295.5k | |
| Independent Director | 1.75yrs | US$200.43k | 0.013% $1.3m | |
| Independent Director | 5.67yrs | US$245.03k | 0.0087% $872.5k |
5.5yrs
Average Tenure
60yo
Average Age
Experienced Board: DRI's board of directors are considered experienced (5.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DRI 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 5.6%.
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$9.983b
- Shares outstanding: 129.88m
- 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 November 24, 2019, it owned and operated approximately 1,799 restaurants, which included 867 under the Olive Garden, 518 under the LongHorn Steakhouse, 166 under the Cheddar's Scratch Kitchen, 79 under the Yard House, 59 under The Capital Grille, 45 under the Seasons 52, 42 under the Bahama Breeze, and 23 under the Eddie V’s Prime Seafood brands. Darden Restaurants, Inc. was founded in 1968 and is based in Orlando, Florida.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/01 02:10 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/02/23 |
| Annual Earnings | 2019/05/26 |
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.