Darden Restaurants, Inc.
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,…
What to know about DRI
Darden Restaurants, Inc. is a large Consumer Cyclical company with a mixed financial profile. It scores well on risk and dividends, but health is worth keeping an eye on.
Should you consider DRI?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Darden Restaurants, Inc. is a large-cap Consumer Cyclical company with a mixed overall financial profile — it is in the lower half of its Consumer Cyclical peers (36 of 54).
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Profitability is roughly average for the S&P 500 — not a standout in either direction.
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Valuation is in the middle of the pack — neither obviously cheap nor stretched.
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Growth has been slower than most peers. That's not necessarily a dealbreaker, but it means the investment case rests more on current earnings than future expansion.
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There is a small dividend (0.03%), but income-focused investors will likely find better yields elsewhere in the market.
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Risk is relatively low — the stock tends to be less volatile than the broader market, which typically means a smoother ride during uncertain periods.
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Analyst sentiment is cautious and short interest is relatively elevated — meaning some professional investors are actively betting the price will fall. Worth understanding why.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Consumer Cyclical sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how DRI compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 22.49 | Above avg |
| Forward P/E | 18.76 | Average |
| PEG Ratio | 1.83 | Average |
| Price to Sales | 1.92 | Above avg |
| Price to Book | 11.64 | Below avg |
| EV/EBITDA | 15.86 | Average |
| Earnings Yield | 4.45% | Above avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 21.51% | Below avg |
| Operating Margin | 13.15% | Average |
| Net Profit Margin | 8.66% | Average |
| Return on Equity | 51.54% | Top 25% |
| Return on Invested Capital | 7.26% | Above avg |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 5.90% | Average |
| Revenue Growth (3Y CAGR) | 7.84% | Above avg |
| EPS Growth (YoY) | -3.30% | Below avg |
| Free Cash Flow Growth | 4.37% | Average |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 0.39 | Below avg |
| Debt to Equity | 3.88 | Below avg |
| Interest Coverage | 7.65 | Above avg |
| Altman Z-Score | 2.62 | Average |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 2.87% | Above avg |
| Payout Ratio | 62.17% | Below avg |
| Dividend Growth (5Y) | -2.76% | Top 25% |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 4.07% | Average |
| OCF to Sales | 13.59% | Average |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 0.59 | Top 25% |
| Volatility (30-Day) | 24.74% | Above avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 6.59% | Below avg |
| Avg. Analyst Rating | 1.90 | Above avg |
| Target Upside % | 5.99% | Below avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 24.45B | Average |
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