Stock Analysis Report

Executive Summary

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada.

Snowflake Analysis

Established dividend payer with acceptable track record.

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 has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




US Hospitality


US Market

1 Year Return




US Hospitality


US Market

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.

Shareholder returns

7 Day-18.0%-15.7%-10.6%
30 Day-16.7%-15.2%-8.5%
90 Day-16.1%-13.0%-4.6%
1 Year-8.4%-11.0%-9.0%-11.3%7.4%5.2%
3 Year44.0%32.3%11.3%3.9%31.7%23.2%
5 Year105.7%58.4%23.9%10.7%56.4%39.3%

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


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).

Next Steps

Future Growth

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%)

Next Steps

Past Performance

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

Next Steps

Financial Health

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).

Balance Sheet

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).

Next Steps


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).

Next Steps


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.

Leadership Team

Eugene Lee
President5yrsUS$10.71m0.12% $16.2m
Ricardo Cardenas
Senior VP & CFO3.9yrsUS$3.43m0.016% $2.1m
David George
Executive VP & COO2.1yrsUS$3.99m0.050% $6.5m
Todd Burrowes
President of Longhorn Steakhouse4.6yrsUS$2.80m0.019% $2.4m
Daniel Kiernan
President of Olive Garden2.1yrsUS$2.28m0.0035% $459.3k
Kyle Holmes
Managing Partner0yrsno datano data
Jon Norem
Managing Partner0yrsno datano data
John Rucker
Managing Partner0yrsno datano data
Christopher Chang
Senior VP & Chief Information Officer 3.8yrsno datano data
Kevin Kalicak
Vice President of Investor Relations & Corporate Analysis5.2yrsno datano data


Average Tenure


Average Age

Experienced Management: DRI's management team is considered experienced (3.9 years average tenure).

Board Members

Eugene Lee
President5yrsUS$10.71m0.12% $16.2m
Margaret Atkins
Independent Director5.3yrsUS$234.33k0.0015% $196.5k
James Fogarty
Independent Director6.1yrsUS$239.33k0.011% $1.4m
Nana Mensah
Independent Director3.3yrsUS$229.33kno data
Charles Sonsteby
Chairman of the Board 3.8yrsUS$256.83k0.0077% $1.0m
Cynthia Jamison
Independent Director6.1yrsUS$253.23k0.00035% $45.5k
Timothy Wilmott
Independent Director1.4yrsUS$200.43kno data
William Simon
Independent Director5.3yrsUS$229.96k0.0093% $1.2m


Average Tenure


Average Age

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

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$13.010b
  • Shares outstanding: 121.51m
  • Website: https://www.darden.com

Number of Employees


  • Darden Restaurants, Inc.
  • 1000 Darden Center Drive
  • Orlando
  • Florida
  • 32837
  • United States


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


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:06
End of Day Share Price2020/02/27 00:00
Annual Earnings2019/05/26

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.