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Darden Restaurants, Inc. (DRI) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Darden Restaurants, Inc.

DRIMarket cap $23BPrice $203.2

Country🇺🇸United States

SectorConsumer

IndustryHotels & Leisure

Owns and operates Olive Garden, LongHorn Steakhouse, and other casual dining chains, serving over 400 million meals a year. It's the largest full-service restaurant company in the U.S., feeding America one breadstick at a time.

In Bastion Portfolios?

52W Return+10%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+8%6

Revenue Forecast

Rev CAGR (1y)+4%4

Rev CAGR (3y)+5%4

Rev CAGR (5y)+5%4

Earnings Forecast

EPS Growth Y+1+8%6

EPS Growth Y+2+8%6

EPS Growth Y+3+8%6

Quality

Margins

EBIT Margin12%5

Net Income Margin9%5

Free Cash Flow Margin8%5

Debt

Net Debt/EBITDA3.23

Efficiency

ROE55%10

ROA9%8

Earnings Stability1010

GEAR+AVERAGE67

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)175

P/E Ratio (Forward 3y)155

P/BV11.11

EV Multiples

EV/EBITDA Fwd144

EV/EBIT Fwd184

Yield

Free Cash Flow Yield4.6%6

Dividend Yield3.2%7

Momentum

Short term

1 month return-6%4

3 month return+0%6

YTD return+13%7

Mid term

Price vs 52wHigh88%7

1 year return+9%6

Long term

3 year return+62%6

5 year return+53%6

Risk Shield

Price Risk

Beta0.57

Volatility27%8

Free Cash Flow

Free Cash Flow Margin8%5

Free Cash Flow Yield4.6%6

Quality

ROCE16%8

Earnings Stability1010

Net Debt/EBITDA3.23

02Growth

Is it actually growing, and how fast?

DRIDarden Restaurants

Revenue FY26$13.2B

GROWTH RATING↗

AVERAGE36 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+8%6

Revenue, next 1Y+4%4

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+5%4

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+8%6

EPS growth, FY28E+8%6

EPS growth, FY29E+8%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 8%/yr vs revenue 5%/yr).

WATCH

A mid-pack grower, ahead of 36% of companies worldwide.

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 8%/yr over the last 3 years and is set to keep growing around 5%/yr.

Over five years revenue is set to grow 5%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE55 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return+0%6

YTD return+13%7

MID & LONG-TERM▾SCORE

% of 52-week high88%7

1-year return+9%6

3-year return+62%6

5-year return+53%6

MOMENTUM ASSESSMENT

STRENGTHS

It's up 9% over the past year, but 12% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming so far this year (+13%).

WATCH

Average long-term results. Multi-year returns are middling (+62% over three years and +53% over five), roughly average for the market.

Returns sit at the market level over the past month (-6%) and over three months (+0%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on Darden Restaurants. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

DRIDarden Restaurants

Revenue FY26$13.2B

GROWTH RATING↗

AVERAGE36 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+8%6

Revenue, next 1Y+4%4

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+5%4

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+8%6

EPS growth, FY28E+8%6

EPS growth, FY29E+8%6

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow in step with sales (EPS about 8%/yr vs revenue 5%/yr).

WATCH

A mid-pack grower, ahead of 36% of companies worldwide.

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 8%/yr over the last 3 years and is set to keep growing around 5%/yr.

Over five years revenue is set to grow 5%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE55 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-6%4

3-month return+0%6

YTD return+13%7

MID & LONG-TERM▾SCORE

% of 52-week high88%7

1-year return+9%6

3-year return+62%6

5-year return+53%6

MOMENTUM ASSESSMENT

STRENGTHS

It's up 9% over the past year, but 12% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming so far this year (+13%).

WATCH

Average long-term results. Multi-year returns are middling (+62% over three years and +53% over five), roughly average for the market.

Returns sit at the market level over the past month (-6%) and over three months (+0%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on Darden Restaurants. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community