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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

Company profile fields for Darden Restaurants (DRI)
Profile ItemDRI
NameDarden Restaurants, Inc.
Country/RegionUnited States
GICS SectorConsumer Discretionary
GICS Industry GroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
GICS Sub-IndustryRestaurants
Market Capitalization25.61 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMay 9, 1995
Security TypeCommon Stock

Price Performance

Cumulative Growth

DRI
GSPC
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Darden Restaurants (DRI) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Darden Restaurants (DRI) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Darden Restaurants (DRI) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Darden Restaurants (DRI) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: DRIIndustry 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

DRI
GSPC
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Darden Restaurants (DRI) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Darden Restaurants (DRI) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Darden Restaurants (DRI) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: DRIIndustry group median
Volatility (1Y, Annualized)27.88%42.89%
Beta (5Y)0.631.05
Max Drawdown (5Y)-26.96%-59.81%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. DRI is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Darden Restaurants (DRI) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: DRIIndustry 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
--
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Where Darden Restaurants (DRI) stands on ROE within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Darden Restaurants (DRI) stands on net margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Darden Restaurants (DRI) stands on operating margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Darden Restaurants (DRI) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: DRIIndustry 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.

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Darden Restaurants (DRI): Revenue Growth across different time periods, set against Consumer Services industry-group medians.

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.

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Darden Restaurants (DRI): EPS Growth across different time periods, set against Consumer Services industry-group medians.

Growth Metrics

Darden Restaurants (DRI) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: DRIIndustry 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
--
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Where Darden Restaurants (DRI) stands on current ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

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
--
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Where Darden Restaurants (DRI) stands on debt-to-equity ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Darden Restaurants (DRI) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: DRIIndustry group median
Current Ratio (MRQ)0.301.06
Debt / Equity (MRQ)4.151.29
Net Debt / EBITDA3.913.12

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%
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Where Darden Restaurants (DRI) stands on dividend yield within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where Darden Restaurants (DRI) stands on payout ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Darden Restaurants (DRI) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: DRIIndustry 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
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Where Darden Restaurants (DRI) stands on P/E ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Darden Restaurants (DRI) stands on P/S ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

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
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Where Darden Restaurants (DRI) stands on P/B ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Darden Restaurants (DRI) metric values compared with Consumer Services industry-group medians
MetricCurrent stock: DRIIndustry group median
P/E Ratio (TTM)21.9821.88
P/S Ratio (TTM)1.921.54
P/B Ratio (MRQ)12.402.37
Free Cash Flow Yield (TTM)3.10%4.54%