Darden Restaurants, Inc. (DRI) Valuation — DCF, Graham & Comparables

Darden Restaurants, Inc. (DRI) — Price $230.61 (closing price, November 4, 2026) — Consumer Cyclical — Restaurants — NYSE

Latest reported results:

Valuation dashboard for Darden Restaurants, Inc. (DRI) with P/E 22.52, P/B 12.86, EV/EBITDA 14.9 and dividend yield 2.66%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Consumer Cyclical companies.

Darden Restaurants, Inc., through its various subsidiaries, focuses on the ownership and operation of full-service dining establishments across both the United States and Canada. As of May 29, 2022, the company's extensive portfolio comprised 1,867 directly managed restaurants.

Where would it trade at its usual multiples?

Versus its usual multiples: fairly priced · Current P/E 22.5× · Multiples range: $188.11 · $225.28.

At the decade median (22.0×) $225 (-2%); at its sector median (18.4×) $188 (-18%). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

Analysis Summary

Darden Restaurants, Inc. reported revenue of $13.21B in the most recent fiscal year, growing at a 5-year CAGR of 12.9%. Net income reached $1.21B, with a 13.9% 5-year CAGR.

Trailing-twelve-month margins: gross margin 33.3%, operating margin 12.1%, net margin 8.8%.

At $230.61 (closing price, November 4, 2026), DRI trades at a P/E of 22.52 and an ROE of 55.90%. Market capitalisation stands at $26.1B, placing it among large-cap names.

Balance sheet quality for DRI: debt-to-equity ratio of 3.20, current ratio of 0.30 over the last 12 months. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio22.52
Price / Book12.86
EV / EBITDA14.9
Dividend Yield2.66%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
DRIDarden Restaurants, Inc.$26.1B22.5212.8655.9%
TXRHTexas Roadhouse, Inc.$12.9B31.438.4027.6%
CAKEThe Cheesecake Factory Incorporated$5.7B27.349.4041.8%
CAVACAVA Group, Inc.$7.2B113.738.387.9%
EATBrinker International, Inc.$9.2B19.4423.21123.0%

Price

Price$230.61 (closing price, November 4, 2026)
Market Cap$26.1B
ExchangeNYSE
CountryUS

Profitability

Return on Equity55.90%
Return on Invested Capital12.87%
Return on Assets8.94%
Gross Margin33.33%
Operating Margin12.14%
Net Margin8.85%

Related companies: TXRH · CAKE · CAVA · EAT

Explore sector: Consumer Cyclical · Restaurants

More sections of DRI: Overview · Financials · Estimates · Technical · Ownership

Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method · Companies that pass the Lynch method · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks