Darden Restaurants, Inc. DRI
Composite 55/100; the shares have moved about 27% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Balance-sheet strength ranks 38/100 — a moderate mark against it.
Income ranks 76/100 — a strong point in its favour. Quality ranks 69/100 — a moderate point in its favour. Growth ranks 65/100 — a moderate point in its favour.
Balance-sheet strength ranks 38/100 — a moderate mark against it. Valuation ranks 44/100 — a slight mark against it.
What the company does Darden Restaurants (DRI) operates 1,900+ full-service restaurants across 10 brands, including Olive Garden and LongHorn Steakhouse, primarily in the U.S. and Canada. Its portfolio spans casual dining to upscale steakhouses, leveraging a vertically integrated supply chain and scratch-made cooking.
Key financials DRI posts strong profitability metrics: ROE 53.7%, ROA 7.7%, and ROCE 18.0%. Margins include gross 21.7%, operating 14.1%, and net 9.1%. Revenue grew 13.7% and EPS 36.0%, with solid cash generation (FCF yield 3.2%). Leverage is elevated (Debt/Equity 3.65), but interest coverage remains healthy at 9.15x.
Stock health Momentum is mixed: +12.7% over 3 months but only +2.0% over 6 months. The stock is 0.24% below its 52-week high, with RSI at 67.00. Sideravia scores Quality 66.6 and Income 72.9, but Strength is low at 36.9, indicating mixed fundamentals.
Price vs fair value DRI trades at a **discount of 4.40%** to the analyst mean target of 228.54. - Recent insider selling across multiple executives may signal valuation concerns (Motley Fool). - Olive Garden and LongHorn leadership sold shares despite sales growth (Motley Fool). - Analysts describe the stock as "reasonable rather than cheap" after a 77% gain (Simply Wall St).
Looking forward Forward P/E of 18.05 and PEG of 1.51 suggest moderate valuation relative to growth. With a 2.8% dividend yield and payout ratio of 57.4%, income investors may find appeal. Execution risks include labor costs and consumer discretionary exposure.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.