Darden Restaurants (DRI) Stock Analysis
This is a peer-relative look at Darden Restaurants (DRI): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Services peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | DRI |
|---|---|
| Name | Darden Restaurants, Inc. |
| Country/Region | United States |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Services |
| GICS Industry | Hotels, Restaurants & Leisure |
| GICS Sub-Industry | Restaurants |
| Market Capitalization | 25.61 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | May 9, 1995 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: DRI | Industry group median |
|---|---|---|
| Total Return (1Y) | 33.36% | 2.96% |
| Total Return (3Y, Annualized) | 19.59% | 9.94% |
| Total Return (5Y, Annualized) | 11.78% | 1.66% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: DRI | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 27.88% | 42.89% |
| Beta (5Y) | 0.63 | 1.05 |
| Max Drawdown (5Y) | -26.96% | -59.81% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: DRI | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 1.04 | -0.04 |
| Sortino Ratio (1Y) | 1.57 | -0.08 |
Profitability
ROE (TTM)
Darden Restaurants (DRI) posts ROE of 55.43%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
DRI
Consumer Services industry group
55.43%
Group distribution
- Max
- 76.75%
- DRI
- 55.43%
- Q3
- 34.07%
- Median
- 15.90%
- Q1
- 3.23%
- Min
- -40.61%
Largest peers
- DRI
- 55.43%
- RCL
- 41.29%
- ABNB
- 35.79%
- MCD
- --
- SBUX
- --
- BKNG
- --
- MAR
- --
Net Margin (TTM)
Darden Restaurants (DRI) keeps 8.85% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
DRI
Consumer Services industry group
8.85%
Group distribution
- Max
- 25.52%
- Q3
- 12.95%
- DRI
- 8.85%
- Median
- 6.63%
- Q1
- 1.46%
- Min
- -14.36%
Largest peers
- MAR
- 35.00%
- MCD
- 32.38%
- BKNG
- 25.52%
- RCL
- 23.79%
- ABNB
- 23.02%
- DRI
- 8.85%
- SBUX
- 6.67%
Operating Margin (TTM)
Darden Restaurants (DRI) turns 9.86% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
DRI
Consumer Services industry group
9.86%
Group distribution
- Max
- 49.05%
- Q3
- 24.35%
- Median
- 14.23%
- DRI
- 9.86%
- Q1
- 5.67%
- Min
- -16.47%
Largest peers
- MAR
- 66.18%
- MCD
- 48.29%
- ABNB
- 41.51%
- BKNG
- 38.69%
- RCL
- 33.61%
- SBUX
- 12.76%
- DRI
- 9.86%
Profitability Metrics
| Metric | Current stock: DRI | Industry group median |
|---|---|---|
| ROE (TTM) | 55.43% | 15.90% |
| ROA (TTM) | 7.65% | 5.29% |
| Net Margin (TTM) | 8.85% | 6.63% |
| Operating Margin (TTM) | 9.86% | 14.23% |
| Gross Margin (TTM) | 21.66% | 44.51% |
Growth
Revenue Growth
Darden Restaurants (DRI) grew revenue 9.39%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Darden Restaurants (DRI) grew earnings per share 17.16%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: DRI | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 9.39% | 6.55% |
| Revenue Growth (3Y CAGR) | 8.00% | 10.51% |
| EPS Growth (YoY) | 17.16% | 10.50% |
| EPS Growth (3Y CAGR) | 9.11% | 14.33% |
Financial Strength
Current Ratio (MRQ)
Darden Restaurants (DRI) has current ratio of 0.30, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
DRI
Consumer Services industry group
0.30
Group distribution
- Max
- 3.41
- Q3
- 1.85
- Median
- 1.06
- Q1
- 0.72
- DRI
- 0.30
- Min
- 0.22
Largest peers
- ABNB
- 1.73
- BKNG
- 1.12
- SBUX
- 0.76
- MAR
- 0.53
- DRI
- 0.30
- RCL
- 0.22
- MCD
- --
Debt / Equity (MRQ)
Darden Restaurants (DRI) has debt-to-equity ratio of 4.15, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.
DRI
Consumer Services industry group
4.15
Group distribution
- Max
- 6.12
- DRI
- 4.15
- Q3
- 2.93
- Median
- 1.29
- Q1
- 0.37
- Min
- 0.01
Largest peers
- DRI
- 4.15
- RCL
- 1.94
- ABNB
- 0.27
- MCD
- --
- SBUX
- --
- BKNG
- --
- MAR
- --
Financial Strength Metrics
| Metric | Current stock: DRI | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.30 | 1.06 |
| Debt / Equity (MRQ) | 4.15 | 1.29 |
| Net Debt / EBITDA | 3.91 | 3.12 |
Dividends
Dividend Yield (TTM)
Darden Restaurants (DRI) has dividend yield of 2.68%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.
DRI
Consumer Services industry group
2.68%
Group distribution
- Max
- 4.10%
- DRI
- 2.68%
- Q3
- 1.82%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- DRI
- 2.68%
- MCD
- 2.68%
- SBUX
- 2.35%
- RCL
- 1.70%
- BKNG
- 0.98%
- MAR
- 0.67%
- ABNB
- 0.00%
Dividend Payout Ratio (TTM)
Darden Restaurants (DRI) has payout ratio of 59.42%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
DRI
Consumer Services industry group
59.42%
Group distribution
- Max
- 89.80%
- DRI
- 59.42%
- Q3
- 36.83%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- SBUX
- 142.77%
- DRI
- 59.42%
- MCD
- 58.86%
- RCL
- 32.54%
- MAR
- 27.92%
- BKNG
- 17.84%
- ABNB
- 0.00%
Dividend Metrics
| Metric | Current stock: DRI | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.68% | 0.00% |
| Dividend Payout Ratio (TTM) | 59.42% | 0.00% |
Valuation
P/E Ratio (TTM)
Darden Restaurants (DRI) trades at P/E ratio of 21.98, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
DRI
Consumer Services industry group
21.98
Group distribution
- Max
- 71.70
- Q3
- 37.12
- DRI
- 21.98
- Median
- 21.88
- Q1
- 13.00
- Min
- 5.72
Largest peers
- SBUX
- 47.70
- MAR
- 41.52
- ABNB
- 35.65
- DRI
- 21.98
- MCD
- 21.88
- RCL
- 19.36
- BKNG
- 17.43
P/S Ratio (TTM)
Darden Restaurants (DRI) trades at 1.92 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
DRI
Consumer Services industry group
1.92
Group distribution
- Max
- 6.40
- Q3
- 3.01
- DRI
- 1.92
- Median
- 1.54
- Q1
- 0.74
- Min
- 0.08
Largest peers
- MAR
- 14.15
- ABNB
- 8.14
- MCD
- 7.02
- RCL
- 4.57
- BKNG
- 4.25
- SBUX
- 3.17
- DRI
- 1.92
P/B Ratio (MRQ)
Darden Restaurants (DRI) trades at 12.40 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
DRI
Consumer Services industry group
12.40
Group distribution
- DRI
- 12.40
- Max
- 12.02
- Q3
- 5.58
- Median
- 2.37
- Q1
- 1.09
- Min
- -4.51
Largest peers
- DRI
- 12.40
- ABNB
- 12.02
- RCL
- 7.47
- BKNG
- -11.52
- SBUX
- -15.67
- MAR
- -21.17
- MCD
- -191.23
Valuation Metrics
| Metric | Current stock: DRI | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 21.98 | 21.88 |
| P/S Ratio (TTM) | 1.92 | 1.54 |
| P/B Ratio (MRQ) | 12.40 | 2.37 |
| Free Cash Flow Yield (TTM) | 3.10% | 4.54% |