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Darden Restaurants

NYSE:DRI
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DRI
NYSE
$15B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. The last earnings update was 3 days ago. More info.


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DRI Share Price and Events
7 Day Returns
1.3%
NYSE:DRI
0%
US Hospitality
2.2%
US Market
1 Year Returns
11.4%
NYSE:DRI
-9.9%
US Hospitality
3.8%
US Market
DRI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Darden Restaurants (DRI) 1.3% 0.9% 2.1% 11.4% 81.4% 159.8%
US Hospitality 0% 3.3% 1.6% -9.9% 45.7% 18.4%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • DRI outperformed the Hospitality industry which returned -9.9% over the past year.
  • DRI outperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
DRI
Industry
5yr Volatility vs Market

DRI Value

 Is Darden Restaurants undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Darden Restaurants.

NYSE:DRI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 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.

Calculation of Discount Rate/ Cost of Equity for NYSE:DRI
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))
= 0.924 (1 + (1- 21%) (6.22%))
0.979
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% + (0.979 * 5.96%)
8.57%

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.

NYSE:DRI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.57%)
2019 739.84 Analyst x5 681.46
2020 767.38 Analyst x6 651.05
2021 779.65 Analyst x4 609.25
2022 800.20 Analyst x1 575.97
2023 862.80 Analyst x1 572.02
2024 927.60 Analyst x1 566.45
2025 974.22 Est @ 5.03% 547.97
2026 1,016.48 Est @ 4.34% 526.62
2027 1,055.67 Est @ 3.86% 503.76
2028 1,092.80 Est @ 3.52% 480.33
Present value of next 10 years cash flows $5,714.85
NYSE:DRI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,092.80 × (1 + 2.73%) ÷ (8.57% – 2.73%)
$19,230.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $19,230.94 ÷ (1 + 8.57%)10
$8,452.71
NYSE:DRI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,714.85 + $8,452.71
$14,167.57
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,167.57 / 122.98
$115.21
NYSE:DRI Discount to Share Price
Calculation Result
Value per share (USD) From above. $115.21
Current discount Discount to share price of $121.23
= -1 x ($121.23 - $115.21) / $115.21
-5.2%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:DRI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-26) in USD $5.82
NYSE:DRI Share Price ** NYSE (2019-06-21) in USD $121.23
United States of America Hospitality Industry PE Ratio Median Figure of 74 Publicly-Listed Hospitality Companies 22.7x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Darden Restaurants.

NYSE:DRI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DRI Share Price ÷ EPS (both in USD)

= 121.23 ÷ 5.82

20.83x

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?
Raw Data
NYSE:DRI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
6.8%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 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:DRI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.83x ÷ 6.8%

3.05x

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?
Raw Data
NYSE:DRI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-26) in USD $19.44
NYSE:DRI Share Price * NYSE (2019-06-21) in USD $121.23
United States of America Hospitality Industry PB Ratio Median Figure of 112 Publicly-Listed Hospitality Companies 2.19x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NYSE:DRI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DRI Share Price ÷ Book Value per Share (both in USD)

= 121.23 ÷ 19.44

6.24x

* 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.
X
Value checks
We assess Darden Restaurants's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. 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

 How is Darden Restaurants expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

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!
Annual Growth Rate
6.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Darden Restaurants expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:DRI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:DRI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts 6.8%
NYSE:DRI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 4.5%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 16.6%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
Raw Data
NYSE:DRI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 weeks ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:DRI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-05-31
2023-05-31
2022-05-31 9,762 1,371 887 4
2021-05-31 9,321 1,296 837 18
2020-05-31 9,056 1,256 792 22
2019-05-31 8,525 1,219 722 24
NYSE:DRI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-26 8,510 1,259 719
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Darden Restaurants's earnings are expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).
  • Darden Restaurants's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:DRI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 weeks ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from Darden Restaurants Company Filings, last reported 4 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DRI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-05-31
2023-05-31
2022-05-31 7.35 7.42 7.26 3.00
2021-05-31 6.85 7.30 6.40 14.00
2020-05-31 6.40 6.59 6.15 17.00
2019-05-31 5.76 5.81 5.73 6.00
NYSE:DRI Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-26 5.82
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

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Darden Restaurants is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Darden Restaurants's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Darden Restaurants's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (19.1% vs 29.9%)
  • Darden Restaurants's earnings growth has exceeded the US Hospitality industry average in the past year (19.1% vs 1%).
Earnings and Revenue History
Darden Restaurants's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Darden Restaurants Company Filings, last reported 4 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DRI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-26 8,510.40 718.60 660.80
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).
X
Past performance checks
We assess Darden Restaurants's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Darden Restaurants's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x 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.
Raw Data

All data from Darden Restaurants Company Filings, last reported 4 weeks ago.

NYSE:DRI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-26 2,392.60 927.70 457.30
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 (38.8%) 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 (126% vs 38.8% today).
  • Debt is well covered by operating cash flow (135.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 17x coverage).
X
Financial health checks
We assess Darden Restaurants's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Darden Restaurants has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.9%
Current annual income from Darden Restaurants dividends. Estimated to be 3.12% next year.
If you bought $2,000 of Darden Restaurants shares you are expected to receive $58 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Darden Restaurants's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Darden Restaurants's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Upcoming dividend payment

Purchase Darden Restaurants before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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.
Raw Data
NYSE:DRI Annualized Past and Future Dividends
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 22 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 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
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.

NYSE:DRI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-05-31
2023-05-31
2022-05-31 4.31 2.00
2021-05-31 3.88 8.00
2020-05-31 3.55 8.00
2019-05-31 3.02 11.00
NYSE:DRI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-20 3.520 2.935
2018-12-12 3.000 2.673
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

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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Darden Restaurants's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Darden Restaurants's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gene Lee
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 increased by more than 20% in the past year whilst earnings grew less 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:

3.7
Average Tenure
56
Average Age
  • The tenure for the Darden Restaurants management team is about average.
Management Team

Gene Lee

TITLE
President
COMPENSATION
$16M
AGE
56
TENURE
4.3 yrs

Rick Cardenas

TITLE
Senior VP & CFO
COMPENSATION
$3M
AGE
50
TENURE
3.3 yrs

Dave George

TITLE
Executive VP & COO
COMPENSATION
$3M
AGE
62
TENURE
1.4 yrs

Matt Broad

TITLE
Senior VP
COMPENSATION
$2M
AGE
58
TENURE
3.7 yrs

Todd Burrowes

TITLE
President of Longhorn Steakhouse
COMPENSATION
$2M
AGE
55
TENURE
3.9 yrs

Kyle Holmes

TITLE
Managing Partner

Jon Norem

TITLE
Managing Partner

John Rucker

TITLE
Managing Partner

Chris Chang

TITLE
Senior VP & Chief Information Officer
TENURE
3.2 yrs

Kevin Kalicak

TITLE
Vice President of Investor Relations & Corporate Analysis
TENURE
4.5 yrs
Board of Directors Tenure

Average tenure and age of the Darden Restaurants board of directors in years:

4.5
Average Tenure
59
Average Age
  • The tenure for the Darden Restaurants board of directors is about average.
Board of Directors

Chuck Sonsteby

TITLE
Chairman of the Board
COMPENSATION
$257K
AGE
64
TENURE
3.2 yrs

Gene Lee

TITLE
President
COMPENSATION
$16M
AGE
56
TENURE
4.3 yrs

Bill Simon

TITLE
Director
COMPENSATION
$230K
AGE
59
TENURE
4.7 yrs

Cindie Jamison

TITLE
Director
COMPENSATION
$253K
AGE
58
TENURE
5.4 yrs

Jim Fogarty

TITLE
Director
COMPENSATION
$239K
AGE
50
TENURE
5.4 yrs

Margaret Atkins

TITLE
Director
COMPENSATION
$234K
AGE
61
TENURE
4.7 yrs

Nana Mensah

TITLE
Director
COMPENSATION
$229K
AGE
65
TENURE
2.6 yrs

Tim Wilmott

TITLE
Director
AGE
59
TENURE
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
X
Management checks
We assess Darden Restaurants's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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) Insiders Have Been Selling

So we'll take a look at whether insiders have been buying or selling shares in Darden Restaurants, Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Darden Restaurants Darden Restaurants Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the , Douglas Milanes, sold US$243k worth of shares at a price of US$111 per share. … Recent insider selling makes us a little nervous, in light of the broader picture of Darden Restaurants insider transactions.

Simply Wall St -

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 -

Estimating 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 -

Looking 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 -

Read 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 -

Why 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 -

A 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 -

Do 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 -

Darden 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 -

If 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 -

DRI 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
$14,908,356,476
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
Staff numbers
185,000
Darden Restaurants employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 23:37
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/21
Last earnings filing: 2019/06/20
Last earnings reported: 2019/05/26
Last annual earnings reported: 2019/05/26


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.