A Business at a Glance
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DARDEN RESTAURANTS INC
DRI
$23.3B
Mkt Cap
$196.31
+1.13%
DARDEN RESTAURANTS INC (DRI) has a current P/E ratio of 20.6, compared to its historical median P/E of 17.6. The stock is currently considered Fair based on its historical valuation range.
DARDEN RESTAURANTS INC (DRI) has a 5-year average return on invested capital (ROIC) of 31.9%. This indicates strong capital allocation and a potential competitive advantage.
DARDEN RESTAURANTS INC (DRI) has a market capitalization of $22.9B. It is classified as a large-cap stock.
Yes, DARDEN RESTAURANTS INC (DRI) pays a dividend with a trailing twelve-month yield of 2.99%. The company also returns capital through share buybacks, with a buyback yield of 2.56%.
Based on historical P/E analysis, DARDEN RESTAURANTS INC (DRI) appears fair. The current P/E of 20.6 is 17% above its historical median of 17.6. The estimated fair value CAGR (P/E method) is 25.8%.
DARDEN RESTAURANTS INC (DRI) operates in the Retail-Eating Places industry, within the Consumer Cyclical sector.
DARDEN RESTAURANTS INC (DRI) reported annual revenue of $12.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
Darden Restaurants operates a diversified portfolio of full-service restaurant brands across North America, with 2,159 company-owned and operated locations as of May 2025, plus 154 franchised and 4 contractually managed restaurants. The company's brands span multiple dining segments: Olive Garden (Italian casual dining), LongHorn Steakhouse and Ruth's Chris (steakhouse), Cheddar's Scratch Kitchen (casual American), Chuy's (Mexican/Tex-Mex), Yard House (American casual with extensive beer selection), fine dining concepts (The Capital Grille, Eddie V's Prime Seafood), Seasons 52 (fresh grill and wine bar), Bahama Breeze (Caribbean-inspired), and The Capital Burger. Revenue is generated primarily through food and beverage sales, with average check sizes ranging from approximately $19 at Cheddar's to $123 at Eddie V's, and alcoholic beverages contributing between 4.7% (Olive Garden) and 30% (Yard House) of segment sales. The company operates a capital-intensive model requiring ongoing investment in new restaurant development and maintenance, with distribution concentrated in the United States and Canada, supplemented by franchise operations in Latin America, Asia, and the Caribbean. Darden's competitive advantages include its scale enabling sophisticated digital marketing and data analytics across brands, operational technology platforms that improve restaurant management, a proven track record of brand acquisitions and integration, and a diversified portfolio that has shifted toward more balanced growth, with Olive Garden declining from 50% of sales in fiscal 2019 to 42% by fiscal 2026.
【Portfolio diversification driving growth】 Management expects new restaurant growth to remain within the 3%-4% range over time, with Olive Garden trending toward the lower end, LongHorn toward the higher end, and smaller brands growing at or above that range as they expand their footprint. The company anticipates pricing to approximate total inflation of approximately 3% in fiscal 2027, with beef inflation expected in the mid- to high-single digits in the first quarter before moderating to low-single digits for the full year, and seafood inflation expected in the high-single digits in the front half before normalizing. Management plans to invest approximately $25 million in marketing year-over-year while achieving cost savings, and expects to convert 11 Bahama Breeze locations to other Darden brands during fiscal 2027 as part of strategic alternatives exploration. The company remains focused on maintaining pricing discipline, investing in guest experience through menu innovation and operational improvements, and balancing growth investments with shareholder returns while preserving financial flexibility and maintaining an investment-grade credit profile.
| Metric | Target | Period |
|---|---|---|
| Total sales | $13.6 billion–$13.75 billion | FY2027 |
| Same-restaurant sales growth | 2.5%–3.5% | FY2027 |
| Gross new restaurant openings | 75–80 | FY2027 |
| Bahama Breeze conversions | 11 | FY2027 |
| Capital spending | approximately $875 million | FY2027 |
| Total inflation | approximately 3% | FY2027 |
| Commodities inflation | approximately 3% | FY2027 |
| Labor inflation | approximately 3.5% | FY2027 |
Total sales (FY2027): “we expect total sales of $13.6 billion-$13.75 billion”
Same-restaurant sales growth (FY2027): “driven by same-restaurant sales growth of 2.5%-3.5%”
Gross new restaurant openings (FY2027): “75-80 gross new restaurant openings”
Bahama Breeze conversions (FY2027): “11 Bahama Breeze conversions during the year”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 12.8B | 12.1B | 11.4B | 10.5B | 9.6B | 7.2B |
| Net Income | 1.1B | 1.0B | 1.0B | 982M | 953M | 629M |
| EPS | $9.44 | $8.86 | $8.51 | $7.99 | $7.39 | $4.77 |
| Free Cash Flow | 1.0B | 1.1B | 1.0B | 988M | 888M | 939M |
| ROIC | 29.6% | 20.5% | 36.9% | 39.0% | 38.9% | 24.5% |
| Gross Margin | 20.2% | 20.5% | 20.1% | 19.0% | 19.7% | 19.5% |
| Debt/Equity | 1.16 | 2.68 | 0.66 | 0.41 | 0.42 | 0.33 |
| Dividends/Share | $5.87 | $5.60 | $5.24 | $4.84 | $4.40 | $1.55 |
| Operating Income | 1.4B | 1.4B | 1.3B | 1.2B | 1.2B | 649M |
| Operating Margin | 11.4% | 11.3% | 11.5% | 11.5% | 12.1% | 9.0% |
| ROE | 52.5% | 46.1% | 46.2% | 44.6% | 38.0% | 24.5% |
| Shares Outstanding | 117M | 118M | 121M | 123M | 129M | 132M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 6.3B | 6.8B | 6.9B | 7.2B | 8.1B | 8.5B | 7.8B | 7.2B | 9.6B | 10.5B | 11.4B | 12.1B | 12.8B |
| Gross Margin | 16.6% | 17.4% | 18.8% | 18.5% | 18.5% | 18.7% | 15.0% | 19.5% | 19.7% | 19.0% | 20.1% | 20.5% | 20.2% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 664M | 430M | 385M | 388M | 410M | 406M | 376M | 396M | 373M | 386M | 479M | 520M | 508M |
| EBIT | 309M | 368M | 622M | 678M | 767M | 833M | 48M | 649M | 1.2B | 1.2B | 1.3B | 1.4B | 1.4B |
| Op. Margin | 4.9% | 5.4% | 9.0% | 9.4% | 9.5% | 9.8% | 0.6% | 9.0% | 12.1% | 11.5% | 11.5% | 11.3% | 11.4% |
| Net Income | 286M | 710M | 375M | 479M | 596M | 713M | -52M | 629M | 953M | 982M | 1.0B | 1.0B | 1.1B |
| Net Margin | 4.6% | 10.5% | 5.4% | 6.7% | 7.4% | 8.4% | -0.7% | 8.7% | 9.9% | 9.4% | 9.0% | 8.7% | 8.7% |
| Non-Recurring | 30M | 95M | 400K | 5.2M | -4.1M | -3.6M | 167M | -2.6M | -2.1M | 8.4M | 9.4M | 45M | 45M |
| Returns on Capital | |||||||||||||
| ROIC | 6.6% | 9.2% | 18.6% | 20.8% | 26.5% | 26.2% | 1.7% | 24.5% | 38.9% | 39.0% | 36.9% | 20.5% | 29.6% |
| ROE | 13.6% | 31.6% | 17.5% | 23.6% | 27.7% | 31.1% | -2.2% | 24.5% | 38.0% | 44.6% | 46.2% | 46.1% | 52.5% |
| ROA | 4.1% | 10.9% | 7.1% | 9.7% | 11.1% | 12.6% | -0.7% | 6.1% | 9.2% | 9.6% | 9.5% | 8.8% | 8.6% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 555M | 874M | 820M | 916M | 1.0B | 1.3B | 717M | 1.2B | 1.3B | 1.6B | 1.6B | 1.7B | 1.7B |
| Free Cash Flow | 141M | 578M | 592M | 623M | 624M | 816M | 258M | 939M | 888M | 988M | 1.0B | 1.1B | 1.0B |
| Owner Earnings | 212M | 501M | 493M | 603M | 664M | 871M | 309M | 770M | 836M | 1.1B | 1.1B | 1.1B | 1.1B |
| CapEx | 415M | 297M | 228M | 293M | 396M | 452M | 460M | 255M | 377M | 565M | 601M | 645M | 713M |
| Maint. CapEx | 304M | 319M | 290M | 273M | 313M | 337M | 356M | 351M | 368M | 388M | 460M | 516M | 550M |
| Growth CapEx | 110M | 0 | 0 | 20M | 83M | 115M | 104M | 0 | 8.5M | 177M | 141M | 128M | 163M |
| D&A | 304M | 319M | 290M | 273M | 313M | 337M | 356M | 351M | 368M | 388M | 460M | 516M | 550M |
| CapEx/OCF | 74.7% | 33.9% | 27.8% | 32.0% | 38.8% | 35.7% | 64.1% | 21.4% | 29.8% | 36.4% | 37.1% | 37.8% | 41.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 288M | 279M | 268M | 279M | 314M | 371M | 322M | 203M | 563M | 590M | 628M | 659M | 685M |
| Dividend Yield | 7.0% | 6.0% | 4.5% | 4.0% | 3.6% | 3.3% | 3.0% | 1.6% | 3.6% | 3.9% | 3.5% | 3.3% | 3.0% |
| Share Buybacks | 500K | 502M | 185M | 230M | 235M | 208M | 330M | 45M | 1.1B | 459M | 454M | 418M | 585M |
| Buyback Yield | 0.0% | 9.1% | 2.8% | 2.7% | 2.6% | 1.7% | 4.0% | 0.3% | 7.5% | 2.5% | 2.7% | 1.7% | 2.6% |
| Stock-Based Comp | 39M | 54M | 37M | 41M | 43M | 60M | 53M | 72M | 61M | 68M | 69M | 79M | 81M |
| Debt Repayment | 0 | 1.1B | 1.1B | 0 | 408M | 0 | 0 | 270M | 0 | 0 | 600M | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 2.6B | 931M | 165M | 704M | 780M | 470M | 441M | -278M | 497M | 531M | 1.3B | 5.9B | 2.2B |
| Cash & Equiv. | 98M | 536M | 275M | 233M | 147M | 457M | 763M | 1.2B | 421M | 368M | 195M | 240M | 240M |
| Long-Term Debt | 2.5B | 1.5B | 440M | 937M | 927M | 928M | 929M | 930M | 901M | 885M | 1.4B | 2.1B | 2.1B |
| Debt/Equity | 1.25 | 0.63 | 0.23 | 0.45 | 0.42 | 0.39 | 0.52 | 0.33 | 0.42 | 0.41 | 0.66 | 2.68 | 1.16 |
| Interest Coverage | 2.3 | 2.0 | 3.8 | 19.7 | 5.0 | 18.8 | 1.0 | 13.7 | 28.4 | 23.9 | 24.2 | 20.1 | 20.1 |
| Equity | 2.2B | 2.3B | 2.0B | 2.1B | 2.2B | 2.4B | 2.3B | 2.8B | 2.2B | 2.2B | 2.2B | 2.3B | 2.1B |
| Total Assets | 7.1B | 6.0B | 4.6B | 5.3B | 5.5B | 5.9B | 9.9B | 10.7B | 10.1B | 10.2B | 11.3B | 12.6B | 12.9B |
| Total Liabilities | 4.9B | 3.7B | 2.6B | 3.2B | 3.3B | 3.5B | 7.6B | 7.8B | 7.9B | 8.0B | 9.1B | 10.3B | 10.8B |
| Intangibles | 9.2M | 7.8M | 23M | 20M | 57M | 50M | 17M | 15M | 13M | 11M | 16M | 14M | 14M |
| Retained Earnings | 996M | 1.0B | 548M | 560M | 658M | 807M | 144M | 522M | -26M | -33M | -36M | -16M | -217M |
| Working Capital | 357M | -140M | -367M | -701M | -831M | -582M | -691M | 23M | -668M | -940M | -1.4B | -1.3B | -1.6B |
| Current Assets | 2.0B | 1.1B | 820M | 588M | 554M | 893M | 1.1B | 1.9B | 1.2B | 998M | 823M | 938M | 1.0B |
| Current Liabilities | 1.6B | 1.2B | 1.2B | 1.3B | 1.4B | 1.5B | 1.8B | 1.8B | 1.8B | 1.9B | 2.2B | 2.2B | 2.6B |
| Per Share Data | |||||||||||||
| EPS | 2.15 | 5.47 | 2.90 | 3.80 | 4.73 | 5.69 | -0.43 | 4.77 | 7.39 | 7.99 | 8.51 | 8.86 | 9.44 |
| Owner EPS | 1.59 | 3.86 | 3.81 | 4.78 | 5.27 | 6.95 | 2.53 | 5.84 | 6.48 | 8.93 | 9.05 | 9.39 | 9.49 |
| Book Value | 16.20 | 17.99 | 15.10 | 16.67 | 17.42 | 19.08 | 19.13 | 21.32 | 17.05 | 17.91 | 18.57 | 19.51 | 18.03 |
| Cash Flow/Share | 4.17 | 6.74 | 6.34 | 7.27 | 8.09 | 10.11 | 5.89 | 9.05 | 9.81 | 12.64 | 13.43 | 14.41 | 14.19 |
| Dividends/Share | 2.20 | 2.20 | 2.10 | 2.24 | 2.52 | 3.00 | 2.64 | 1.55 | 4.40 | 4.84 | 5.24 | 5.60 | 5.87 |
| Shares Out. | 133.1M | 129.7M | 129.3M | 126.1M | 126.0M | 125.4M | 121.9M | 131.9M | 128.9M | 122.9M | 120.8M | 118.5M | 116.7M |
| Valuation | |||||||||||||
| P/E Ratio | 14.7 | 7.8 | 17.6 | 18.1 | 14.9 | 17.2 | N/A | 25.7 | 15.0 | 18.5 | 16.5 | 23.6 | 20.8 |
| P/FCF | 29.9 | 9.6 | 11.1 | 13.9 | 14.3 | 15.0 | 31.8 | 17.2 | 16.1 | 18.3 | 16.6 | 23.3 | 22.3 |
| EV/EBIT | 22.0 | 17.5 | 10.9 | 13.5 | 12.4 | 14.7 | 164.1 | 22.6 | 12.4 | 15.2 | 13.7 | 19.4 | 17.3 |
| Price/Book | N/A | N/A | N/A | 4.1 | 4.1 | 5.1 | 3.5 | 5.7 | 6.5 | 8.2 | 7.6 | 10.7 | 10.9 |
| Price/Sales | 0.7 | 0.7 | 0.9 | 1.0 | 1.1 | 1.3 | 1.4 | 1.7 | 1.6 | 1.5 | 1.6 | 1.6 | 1.8 |
| FCF Yield | 3.3% | 10.5% | 9.0% | 7.2% | 7.0% | 6.7% | 3.1% | 5.8% | 6.2% | 5.5% | 6.0% | 4.3% | 4.5% |
| Market Cap | 4.2B | 5.5B | 6.6B | 8.7B | 8.9B | 12.2B | 8.2B | 16.2B | 14.3B | 18.1B | 16.9B | 24.8B | 22.9B |
| Avg. Price | 30.94 | 35.91 | 46.17 | 54.88 | 69.95 | 89.64 | 87.82 | 93.24 | 122.60 | 124.43 | 147.10 | 167.12 | 196.31 |
| Year-End Price | 31.56 | 42.55 | 51.04 | 68.73 | 70.67 | 97.61 | 67.19 | 122.52 | 111.16 | 147.42 | 140.22 | 209.01 | 196.31 |
DARDEN RESTAURANTS INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
DARDEN RESTAURANTS INC trades at 20.6x trailing earnings, compared to its 15-year median P/E of 17.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 22.5x vs a median of 16.4x. The company's 5-year average ROIC is 31.9% with a gross margin of 19.8%. Total shareholder yield (dividends + buybacks) is 5.5%. At current prices, the estimated annualized return to fair value is +12.2%.
DARDEN RESTAURANTS INC (DRI) has a net profit margin of 8.7%. This is a modest margin.
DARDEN RESTAURANTS INC (DRI) generated $1.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
DARDEN RESTAURANTS INC (DRI) has a debt-to-equity ratio of 2.68. This indicates higher leverage, which may increase financial risk.
DARDEN RESTAURANTS INC (DRI) reported earnings per share (EPS) of $8.86 in its most recent fiscal year.
DARDEN RESTAURANTS INC (DRI) has a return on equity (ROE) of 46.1%. This indicates the company generates strong returns for shareholders.
DARDEN RESTAURANTS INC (DRI) has a 5-year average gross margin of 19.8%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 18 years of financial data for DARDEN RESTAURANTS INC (DRI), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
DARDEN RESTAURANTS INC (DRI) has a book value per share of $19.51, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects new restaurant growth to remain within the 3%-4% range over time, with Olive Garden trending toward the lower end, LongHorn toward the higher end, and smaller brands growing at or above that range as they expand their footprint. The company anticipates pricing to approximate total inflation of approximately 3% in fiscal 2027, with beef inflation expected in the mid- to high-single digits in the first quarter before moderating to low-single digits for the full year, and seafood inflation expected in the high-single digits in the front half before normalizing. Management plans to invest approximately $25 million in marketing year-over-year while achieving cost savings, and expects to convert 11 Bahama Breeze locations to other Darden brands during fiscal 2027 as part of strategic alternatives exploration. The company remains focused on maintaining pricing discipline, investing in guest experience through menu innovation and operational improvements, and balancing growth investments with shareholder returns while preserving financial flexibility and maintaining an investment-grade credit profile.
Based on recent SEC filings and earnings calls, DARDEN RESTAURANTS INC (DRI) has provided the following forward guidance: Total sales: $13.6 billion–$13.75 billion (FY2027); Same-restaurant sales growth: 2.5%–3.5% (FY2027); Gross new restaurant openings: 75–80 (FY2027); Bahama Breeze conversions: 11 (FY2027); Capital spending: approximately $875 million (FY2027), plus 3 additional metrics.
Capital spending (FY2027): “Capital spending of approximately $875 million”
Total inflation (FY2027): “total inflation of approximately 3%, which includes commodities inflation of approximately 3% and labor inflation of approximately 3.5%”
Commodities inflation (FY2027): “commodities inflation of approximately 3%”
Labor inflation (FY2027): “labor inflation of approximately 3.5%”