# Darden Restaurants Inc. (DRI) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Hotels, Restaurants & Leisure. Price $216.88, market value $24.6 billion.

## Valuation
- **P/E (trailing): 20.8×** (5-yr avg 18.2×, 3-yr avg 19.3×). Darden Restaurants Inc. trades at 20.8× trailing earnings, close to its own five-year average of 18.2×. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 17.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.02**. A PEG of 1.02 is in the range usually read as fairly priced for its growth.
- **Price / sales: 1.9×**. Each dollar of revenue is priced at 1.9×.
- **Price / book: 11.2×**. The shares trade at 11.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 12.5×**. Enterprise value is 12.5× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.5%** (5-yr avg 5.5%). Free cash flow equals 4.5% of the market value, in line with its five-year average of 5.5%.
- **Earnings yield: 4.8%**. The inverse of the P/E: 4.8% of the price is earned each year.

## Profitability
- **Gross margin: 20.3%**. Darden Restaurants Inc. keeps 20.3% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 12.0%**. 12.0% of revenue is left after running the business.
- **Net margin: 9.1%**. 9.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 54.7%**. A 54.7% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 28.9%**. Return on all capital, debt included, is 28.9%: comfortably above what that capital costs.
- **Return on assets: 9.4%**. Each dollar of assets produces 9.4% of profit.

## Growth
- **Revenue growth (1 yr): 9.4%** (3-yr 8.0%/yr, 5-yr 12.9%/yr). Revenue grew 9.4% over the last year, against 12.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 17.2%** (3-yr 9.1%/yr, 5-yr 16.8%/yr). Earnings per share rose 17.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 4.2%/yr**. Free cash flow has compounded at 4.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.06**. Debt is 1.06 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.0×**. It would take 1.0 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 0.31** (quick 0.31). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.87**. A Z-score of 2.87 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.99%** ($6.00 per share, trailing). Darden Restaurants Inc. yields 2.99%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 57%** (62% of free cash flow). 57% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 37.5%/yr** (1-yr 7.0%). The dividend has compounded at 37.5% a year over five years, doubling roughly every 2 years at that pace.

## Analyst view
- **Analyst consensus: buy** (25 analysts). 25 analysts cover Darden Restaurants Inc.; the consensus is buy, with an average price target of $230.68 (+6% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 6.5%** (YTD 20.6%, 3-mo 10.4%). The shares are up 6.5% over twelve months including dividends.
- **From 52-week high: -5.6%** (28.3% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.21** (volatility 27%). Beta of 0.21 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DRI · Page: https://foliofundamentals.com/stocks/dri

Not investment advice.