Darden Restaurants, Inc.

Valuation Analysis

About the Company

Darden Restaurants, Inc., together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. The company operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Chuy's, Yard House, Ruth's Chris Steak House, The Capital Grille, Seasons 52, Eddie V's Prime Seafood, Bahama Breeze, The Capital Burger, Darden and Darden Restaurants brand names. Darden Restaurants, Inc. was founded in 1938 and is based in Orlando, Florida.

Darden Restaurants, Inc. Stock at a Glance

Darden Restaurants, Inc. (DRI) is currently trading at $211.47 with a market capitalization of $24.2B. The trailing P/E ratio stands at 22.26x, with a forward P/E of 18.59x. The 52-week range spans from $169.00 to $228.27; the current price is 7.4% below the yearly high. Year-over-year revenue growth stands at +5.9%. The net profit margin stands at 8.66%.

💰 Dividend

Darden Restaurants, Inc. pays an annual dividend of $6.00 per share, representing a yield of 2.84%. The payout ratio stands at 62.17%.

📊 Analyst Rating

26 analysts rate Darden Restaurants, Inc. (DRI) on consensus: Buy. The average price target is $226.23, implying +6.98% from the current price. Analyst price targets range from $156.00 to $276.00.

Darden Restaurants, Inc.: The Investment Case in Detail

Darden Restaurants, Inc. (DRI) operates in the Consumer Cyclical — specifically Restaurants — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Return on equity of 51.54% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

The debt-to-equity ratio of 387.68% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

What to Watch Next

• The forward P/E of 18.59x is meaningfully below the trailing 22.26x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (6.59%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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