DRI
Darden Restaurants
$212.00
▼ 0.7%Updated Today 6:01 PM ET
▼ Down 4.2% over the last 12 months
Market Cap
$24.45B
P/E
22.26x
Forward P/E (est.)
20.88x
ROE
50.7%
Revenue Growth
8.5%
EPS Growth
6.6%
Profit Margin
8.7%
FCF Yield
5.4%
Debt / Equity
1.62x
ROIC
25.0%
Interest Coverage
27.14x
Current Ratio
0.39x
Dividend Yield
2.9%
Implied Growth (rev. DCF)
4.5%
Rating Score
55/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what DRI's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. DRI trades near $212.00, above its 50-day average ($199.16) and 200-day average ($195.82). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 59 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. DRI's is $5.63 (~2.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month DRI found buyers near $191.73 (support) and sellers near $215.39 (resistance); its 52-week range is $169.00–$228.27. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Darden Restaurants (DRI) is a large-cap company in the Restaurants industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $24.45B.
In its latest reported year it generated about $12.08B in revenue and $1.05B in net profit.
Our model rates DRI Neutral (55/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
13.8%
Revenue moved from $7.20B in 2021 to $12.08B in 2025, a 13.8% compound annual growth rate. The most recent year grew a steady 8.5% year over year. Slower, mature growth is common for established businesses.
Gross Margin
20.5%
Operating Margin
11.3%
Net Margin
8.7%
ROE
50.7%
Darden Restaurants keeps about 8.7% of each sales dollar as net profit, with a 20.5% gross margin and 11.3% operating margin. Return on equity is 50.7% and return on invested capital about 25.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$2.14B
Net Debt
$1.90B
Net Debt / EBITDA
1.4x
Debt / Equity
1.62x
Leverage: debt-to-equity is 1.6x, and operating profit covers interest about 27.1x, with a current ratio of 0.4x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $2.14B of total debt against $240.40M of cash.
Operating CF
$1.71B
Free Cash Flow
$1.06B
FCF Margin
8.8%
In the latest year Darden Restaurants produced about $1.71B of operating cash flow and $1.06B of free cash flow after capital spending. That is a free-cash-flow yield of about 5.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
22.26x
P/S
2x
P/B
10.55x
EV / EBITDA
13.76x
DRI trades at 22.3x trailing earnings (about 20.9x on estimated forward earnings), 2.0x sales, and 10.5x book value. Reverse-engineering today's price implies the market expects roughly 4.5% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How DRI stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.
In the Consumer Discretionary sector (48 S&P 500 companies), DRI ranks #21 of 48 by our overall rating. It trades at roughly in line versus the sector on earnings (22.3x P/E vs. 23.7x median) with a higher return on equity (50.7% vs. 39.2%) and faster revenue growth (8.5% vs. 6.2%).
P/E vs sector
22.3x
median 23.7x
ROE vs sector
50.7%
median 39.2%
Growth vs sector
8.5%
median 6.2%
Sector rank
#21
of 48 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 48 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$189.81 – $321.22
vs. $212.00 today · expected CAGR -2% – 9%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $13.16B | $14.35B | $15.64B | $17.05B | $18.58B |
| Net income | $1.18B | $1.29B | $1.41B | $1.53B | $1.67B |
| EPS | $10.34 | $11.27 | $12.29 | $13.40 | $14.60 |
| Share price (low) | $134.47 | $146.57 | $159.76 | $174.14 | $189.81 |
| Share price (high) | $227.56 | $248.04 | $270.37 | $294.70 | $321.22 |
| CAGR (low–high) | -37% / 7% | -17% / 8% | -9% / 8% | -5% / 9% | -2% / 9% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for DRI:
- Strong return on equity (50.7%) shows capital is put to work well.
- Healthy free-cash-flow yield (~5.4%) funds buybacks and dividends.
- Pays a 2.9% dividend on top of any price gains.
The case against DRI:
- Elevated leverage (debt/equity 1.6x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 1.6x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Darden Restaurants is a large-cap consumer discretionary business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 22.3x earnings, which our model scores Neutral (55/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.