Darden Restaurants, Inc. (DRI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+16.9%

$260.45

vs $222.86 price

Levered DCF

$246.43

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.52

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	19.3×	23.99×	17.22×	20.01×	16.9×	29.65×	-195.78×	20.78×
P/B	10.45×	10.89×	7.89×	8.93×	7.33×	6.64×	4.12×	6.2×
P/S	1.75×	2.08×	1.55×	1.87×	1.67×	2.6×	1.23×	1.74×
EV / EBITDA	13.6×	16.56×	12.89×	15.08×	13.43×	23.39×	57.78×	13.05×
Gross margin	21.7%	21.9%	21.4%	20.1%	20.7%	20.8%	18.0%	21.7%
Operating margin	12.2%	11.3%	11.5%	11.5%	12.1%	9.0%	0.6%	9.8%
Net margin	9.1%	8.7%	9.0%	9.4%	9.9%	8.7%	-0.7%	8.4%
Current ratio	0.31×	0.42×	0.38×	0.51×	0.64×	1.01×	0.61×	0.61×
Debt / equity	2.87×	2.7×	2.42×	2.18×	2.22×	2.05×	2.58×	0.39×
Interest coverage	8.27×	7.55×	9.4×	14.12×	15.88×	9.83×	0.77×	15.42×
Dividend yield	3.0%	2.6%	3.6%	3.0%	3.5%	1.1%	3.4%	2.5%
Payout ratio	57.4%	62.7%	61.2%	60.1%	59.1%	32.2%	-615.1%	52.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	54.7%	45.4%	45.8%	44.6%	43.3%	22.4%	-2.2%	29.8%
Return on invested capital	13.0%	11.4%	12.1%	12.4%	12.0%	7.2%	0.2%	17.3%
Return on assets	9.4%	8.3%	9.1%	9.6%	9.4%	5.9%	-0.5%	12.1%
Free cash flow yield	4.8%	4.1%	5.6%	4.8%	5.3%	5.0%	2.3%	5.3%
Earnings yield	5.2%	4.2%	5.8%	5.0%	5.9%	3.4%	-0.5%	4.8%
Enterprise value	$29.2B	$31.2B	$22.9B	$24.1B	$20.6B	$23.2B	$14.9B	$15.3B
Net debt / EBITDA	2.85×	3.18×	2.94×	2.77×	2.91×	4.58×	20.41×	0.4×
Cash conversion cycle (days)	0	-2	-2	-3	-2	-4	-0	-3