Darden Restaurants Inc

Consumer Discretionary
Restaurants
www.darden.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $23.35B
PE 22
Debt $2.18B
Cash $238.70M
EV $25.29B
FCF $1.06B

Earnings

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Sales & Net Margins

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Earnings	$1.05B
EBIT	$1.37B
ROE	48%
ROA	11%
FCF	$1.06B
Equity	$2.20B
Growth Stability	-9%
PE	22.15
PEG	2.75
PB	10.6
P/FCF	21.96
P/S	1.98
Price/Cash	0.01
Debt/Equity	0.99
Debt/FCF	2.05
Net Margins	8%
Gross Margins	20%
Op. Margins	12%
Earnings CAGR	9%
Sales Growth YoY	6%
Sales Growth QoQ	9%
Sales CAGR	6%
FCF CAGR	7%
Equity CAGR	1%
Earnings Stability	0.68
Earnings Growth YoY	3%
Earnings Growth QoQ	50%
Earnings CAGR 5Y	8%

Sales CAGR 5Y	13%
FCF CAGR 5Y	28%
Equity CAGR 5Y	-4%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	4%
Equity CAGR 3Y	1%
Market Cap	$23.35B
Revenue	$11.76B
Dividend Yield	3%
Payout Ratio	62%
Assets	$12.56B
Total Debt	$2.18B
Cash	$238.70M
Shares Outstanding	117.2M
EV	25.29B
Earnings Score	85%
Moat Score	93%
Safety Score	61%
Final Score	80%
Working Capital	-1.4B
Current Ratio	0.39
Gross Profit	$2.37B
Shares Growth 3y	-2%
Equity Growth QoQ	6%
Equity Growth YoY	1%

Assets & ROA

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Stockholders Equity & ROE

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Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $9.6 billion in fiscal 2022 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of eight restaurant chains: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Eddie V's, and Bahama Breeze. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly.

SEC Filings

Direct access to Darden Restaurants Inc (DRI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Feb 23
2024
- 10-Q Nov 24
- 10-Q Aug 25
- 10-K May 26
- 10-Q Feb 25
2023
- 10-Q Nov 26
- 10-Q Aug 27
- 10-K May 28
- 10-Q Feb 26

Sector Comparison

How does Darden Restaurants Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Darden Restaurants Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 9%

Stability 68%

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Darden Restaurants Inc Discounted Cash Flow

Fully customizable DCF calculator online for Darden Restaurants Inc.

Years

Calculation mode

= $17B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.1B	$1.1B	$1.2B	$1.3B	$1.4B	$1.5B	$1.6B	$1.7B	$1.8B	$2B	$2.1B	$21B
DCF		$1B	$1B	$982M	$957M	$932M	$907M	$884M	$861M	$838M	$816M	$8.2B
Value	$17B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Net Margins	10%	5%	7%	7%	8%	-1%	9%	10%	9%	9%	8%
ROA	-	14%	12%	14%	14%	0%	6%	11%	12%	12%	11%
ROE	-	19%	23%	27%	30%	-2%	22%	43%	45%	46%	48%

Net Margins (8.47%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Debt over FCF	-	0.76	1.52	1.51	1.15	4.7	1	1.06	0.95	1.5	2.05
Debt over Equity	0.64	0.23	0.45	0.43	0.39	0.52	0.33	0.43	0.43	0.68	0.99
Growth Stability	-	-	-	100%	100%	-9%	100%	100%	100%	100%	-9%

Neutral Debt/FCF ratio (2.05)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.99)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-9%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	CAGR 5Y
Revenue YoY growth	-	3%	3%	13%	5%	-8%	-8%	34%	9%	9%	13%
Earnings YoY growth	-	-47%	28%	24%	20%	-107%	-1K%	51%	3%	5%	8%
Equity YoY growth	-	-16%	8%	4%	9%	-3%	21%	-22%	0%	2%	-4%
FCF YoY growth	-	2%	6%	-0%	31%	-68%	265%	-5%	11%	3%	28%