Darden Restaurants (DRI) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Darden Restaurants

NYSE•Consumer Cyclical•Restaurants

$220.17-0.31(<0.01%)Market closed

Market Cap

$25.31B

P/E

21.4x

P/S

1.9x

P/B

12.2x

Darden Restaurants, Inc., together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. The company operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Chuy's, Yard House, Ruth's Chris Steak House, The Capital Grille, Seasons 52, Eddie V's Prime Seafood, Bahama Breeze, The Capital Burger, Darden and Darden Restaurants brand names. Darden Restaurants, Inc. was founded in 1938 and is based in Orlando, Florida.

How this company scores

GoodMetricSide Score: 68/100

Strongest: Growth (19/25); weakest: Cash & Earnings Quality (16/25).

Profitability17/25

Growth19/25

Balance Sheet & Red Flags16/25

Cash & Earnings Quality16/25

Strengths

High ROEConsistent free cash flowImproving leverageConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 21.4x5y range 18.0x – 22.7x

Currently near its 20-quarter median.

P/S · 1.9x5y range 1.6x – 2.4x

Currently near its 20-quarter median.

P/B · 12.2x5y range 8.1x – 12.2x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $25.31B

Metrics at a Glance

as of August 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $13.37B
Q. Revenue: $3.20B
TTM EBITDA: $2.13B
TTM Op. Income: $1.56B
Q. Op. Income: $319.30M
TTM Net Income: $1.18B
Q. Net Income: $233.40M
EPS: $2.05
Shares Out.: $113.60M

$13.37B in TTM revenue grew 8.1% YoY, reaching $3.20B last quarter. TTM EBITDA of $2.13B and TTM operating income of $1.56B show growth is flowing through to the bottom line. TTM net income of $1.18B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 18.8%
EBITDA Margin: 14.5%
Op. Margin: 10.0%
Net Margin: 7.3%

Op. margin of 10.0% is down 1.2% YoY — costs are rising relative to revenue. Net margin at 7.3% and gross margin of 18.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 10% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 21.4x
P/S Ratio: 1.9x
P/B Ratio: 12.2x

At 21.4x P/E, the stock trades within typical market levels. P/S of 1.9x and P/B of 12.2x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 3% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $13.23B
Cash: $220.50M
Long-Term Debt: $1.64B
Book Value: $2.07B
D/E Ratio: 0.8
Debt/EBITDA: 3.5

With $13.23B in assets and $1.64B in long-term debt, D/E is 0.8and book value is $2.07B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 18% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $279.00M
TTM Free Cash Flow: $1.05B
FCF Margin: 7.9%
FCF / Net Income: 0.9

TTM FCF of $1.05B on $279.00M in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is down 4% — a weakening trend.