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

$206.74-1.34(-0.01%)Pre-market

Market Cap

$23.65B

P/E

19.6x

P/S

1.8x

P/B

10.7x

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: 78/100

Strongest: Profitability (22/25); weakest: Balance Sheet & Red Flags (16/25).

Profitability22/25

Growth19/25

Balance Sheet & Red Flags16/25

Cash & Earnings Quality21/25

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 · 19.6x5y range 16.5x – 24.2x

Currently near its 20-quarter median.

P/S · 1.8x5y range 1.5x – 2.5x

Currently near its 20-quarter median.

P/B · 10.7x5y range 7.1x – 11.9x

Currently near its 20-quarter median.

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 $23.65B

Metrics at a Glance

as of May 2026

Revenue & Profit

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

TTM Revenue: $13.21B
Q. Revenue: $3.72B
TTM EBITDA: $2.14B
TTM Op. Income: $1.58B
Q. Op. Income: $516.80M
TTM Net Income: $1.21B
Q. Net Income: $404.90M
EPS: $3.539
Shares Out.: $114.40M

$13.21B in TTM revenue grew 9.4% YoY, reaching $3.72B last quarter. TTM EBITDA of $2.14B and TTM operating income of $1.58B show growth is flowing through to the bottom line. TTM net income of $1.21B 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: 22.1%
EBITDA Margin: 17.8%
Op. Margin: 13.9%
Net Margin: 10.9%

Op. margin of 13.9% is up 2.2% YoY — cost efficiency is improving. Net margin at 10.9% and gross margin of 22.1% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

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

P/E Ratio: 19.6x
P/S Ratio: 1.8x
P/B Ratio: 10.7x

At 19.6x P/E, the stock trades within typical market levels. P/S of 1.8x and P/B of 10.7x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 14% — an improving trend.

Assets & Liabilities

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

Total Assets: $12.86B
Cash: $219.50M
Long-Term Debt: $1.64B
Book Value: $2.21B
D/E Ratio: 0.7
Debt/EBITDA: 2.5

With $12.86B in assets and $1.64B in long-term debt, D/E is 0.7and book value is $2.21B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

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

Op. Cash Flow: $572.10M
TTM Free Cash Flow: $1.12B
FCF Margin: 8.5%
FCF / Net Income: 0.9

TTM FCF of $1.12B on $572.10M in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.