Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada.
Established dividend payer with acceptable track record.
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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: DRI matched the US Hospitality industry which returned -11.3% over the past year.
Return vs Market: DRI underperformed the US Market which returned 5.2% over the past year.
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
1 week ago | Simply Wall StIs Darden Restaurants (NYSE:DRI) A Risky Investment?
1 month ago | Simply Wall StIs Darden Restaurants, Inc. (NYSE:DRI) A Smart Pick For Income Investors?
1 month ago | Simply Wall StWant To Invest In Darden Restaurants, Inc. (NYSE:DRI)? Here's How It Performed Lately
Is Darden Restaurants undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DRI ($99.36) is trading below our estimate of fair value ($110)
Significantly Below Fair Value: DRI is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: DRI is good value based on its PE Ratio (19.3x) compared to the Hospitality industry average (21.1x).
PE vs Market: DRI is poor value based on its PE Ratio (19.3x) compared to the US market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: DRI is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: DRI is overvalued based on its PB Ratio (5.3x) compared to the US Hospitality industry average (2x).
How is Darden Restaurants forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DRI's forecast earnings growth (9.3% per year) is above the savings rate (1.7%).
Earnings vs Market: DRI's earnings (9.3% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: DRI's earnings are forecast to grow, but not significantly.
Revenue vs Market: DRI's revenue (3.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: DRI's revenue (3.6% 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 (27.2%)
How has Darden Restaurants performed over the past 5 years?
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 (8.2%).
Past Earnings Growth Analysis
Earnings Trend: DRI's earnings have grown significantly by 25.4% 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 (-7%) over the past year, making it difficult to compare to the Hospitality industry average (-4.1%).
Return on Equity
High ROE: DRI's Return on Equity (27.8%) is considered high.
Return on Assets
Return on Capital Employed
How is Darden Restaurants's financial position?
Financial Position Analysis
Short Term Liabilities: DRI's short term assets ($535.5M) do not cover its short term liabilities ($1.6B).
Long Term Liabilities: DRI's short term assets ($535.5M) do not cover its long term liabilities ($5.9B).
Debt to Equity History and Analysis
Debt Level: DRI's debt to equity ratio (40.8%) is considered high.
Reducing Debt: DRI's debt to equity ratio has reduced from 71.3% to 40.8% over the past 5 years.
Debt Coverage: DRI's debt is well covered by operating cash flow (137%).
Interest Coverage: DRI's interest payments on its debt are well covered by EBIT (15x coverage).
Inventory Level: DRI has a high level of physical assets or inventory.
Debt Coverage by Assets: DRI's debt is not covered by short term assets (assets are 0.6x debt).
What is Darden Restaurants's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: DRI's dividend (3.54%) is higher than the bottom 25% of dividend payers in the US market (1.59%).
High Dividend: DRI's dividend (3.54%) is low compared to the top 25% of dividend payers in the US market (4.09%).
Stability and Growth of Payments
Stable Dividend: DRI's dividends per share have been stable in the past 10 years.
Growing Dividend: DRI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (63.4%), DRI's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DRI's dividends in 3 years are forecast to be covered by earnings (54.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Gene Lee (57yo)
Mr. Eugene I. Lee, Jr., also known as Gene, has been the Chief Executive Officer and President of Darden Restaurants, Inc. since February 23, 2015 and September 2013 respectively. Mr. Lee served as an Inte ...
CEO Compensation Analysis
Compensation vs Market: Gene's total compensation ($USD10.71M) is about average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Gene's compensation has been consistent with company performance over the past year.
|Senior VP & CFO||3.9yrs||US$3.43m||0.016% $2.1m|
|Executive VP & COO||2.1yrs||US$3.99m||0.050% $6.5m|
|President of Longhorn Steakhouse||4.6yrs||US$2.80m||0.019% $2.4m|
|President of Olive Garden||2.1yrs||US$2.28m||0.0035% $459.3k|
|Managing Partner||0yrs||no data||no data|
|Managing Partner||0yrs||no data||no data|
|Managing Partner||0yrs||no data||no data|
|Senior VP & Chief Information Officer||3.8yrs||no data||no data|
|Vice President of Investor Relations & Corporate Analysis||5.2yrs||no data||no data|
Experienced Management: DRI's management team is considered experienced (3.9 years average tenure).
|Independent Director||5.3yrs||US$234.33k||0.0015% $196.5k|
|Independent Director||6.1yrs||US$239.33k||0.011% $1.4m|
|Independent Director||3.3yrs||US$229.33k||no data|
|Chairman of the Board||3.8yrs||US$256.83k||0.0077% $1.0m|
|Independent Director||6.1yrs||US$253.23k||0.00035% $45.5k|
|Independent Director||1.4yrs||US$200.43k||no data|
|Independent Director||5.3yrs||US$229.96k||0.0093% $1.2m|
Experienced Board: DRI's board of directors are considered experienced (5.2 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Darden Restaurants, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Darden Restaurants, Inc.
- Ticker: DRI
- Exchange: NYSE
- Founded: 1968
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$13.010b
- Shares outstanding: 121.51m
- Website: https://www.darden.com
Number of Employees
- Darden Restaurants, Inc.
- 1000 Darden Center Drive
- United States
|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|
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||2020/02/28 00:06|
|End of Day Share Price||2020/02/27 00:00|
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.