1.23%
5.09%
22.60%
34.11%
20.67%
40.27%
68.50%
AI Spotlight on DRI
Company Description
Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada.As of May 29, 2022, it owned and operated 1,867 restaurants, which included 884 under the Olive Garden brand, 546 under the LongHorn Steakhouse brand name, 172 under the Cheddar's Scratch Kitchen brand, 85 under the Yard House brand name, 62 under The Capital Grille brand, 45 under the Seasons 52 brand name, 42 under the Bahama Breeze brand, 28 under the Eddie V's Prime Seafood brand name, and 3 under the Capital Burger brand; and franchised 60 restaurants comprising 35 under the Olive Garden brand, 18 under the LongHorn Steakhouse brand name, 4 under the Cheddar's Scratch Kitchen brand, 2 under The Capital Grille brand name, and 1 under the Bahama Breeze brand.Darden Restaurants, Inc.was founded in 1968 and is based in Orlando, Florida.
Market Data
| Last Price | 196.19 |
| Change Percentage | 1.23% |
| Open | 194.6 |
| Previous Close | 193.8 |
| Market Cap ( Millions) | 22983 |
| Volume | 769631 |
| Year High | 196.65 |
| Year Low | 135.87 |
| M A 50 | 177.44 |
| M A 200 | 159.56 |
Financial Ratios
| FCF Yield | 5.93% |
| Dividend Yield | 2.81% |
| ROE | 48.31% |
| Debt / Equity | 305.95% |
| Net Debt / EBIDTA | 334.81% |
| Price To Book | 11.13 |
| Price Earnings Ratio | 22.1 |
| Price To FCF | 16.86 |
| Price To sales | 1.98 |
| EV / EBITDA | 15.92 |
News
- Jan -07 - Shake Shack, Darden, Yum! 'Top Picks' for 2025 Says Oppenheimer
- Dec -30 - 4 Strong Stock Charts For 2025 (Technical Analysis)
- Dec -27 - DRI Stock Hits 52-Week High: Should You Buy Now or Wait for a Dip?
- Dec -24 - Darden Restaurants: The Jewel Of FSRs Seems To Shine Brighter Now
- Dec -21 - Darden Restaurants: Improved Outlook, But Valuation Don't Look Cheap (Rating Upgrade To Hold)
- Dec -20 - Darden Restaurants: More Dollars On The Plate (Rating Upgrade)
- Dec -20 - Darden Restaurants' Diversified Portfolio And Uber Delivery Partnership Offer Confidence In Overcoming Fine Dining Challenges: Analysts
- Dec -19 - S&P 500 Gains and Losses Today: Darden Restaurants Stock Sizzles After Sales Beat
- Dec -19 - Darden Restaurants: What A Quarter
- Dec -19 - Darden Restaurant Sales Grow Despite Fine Dining Pullback
- Dec -19 - Darden Restaurants: Solid Q2 Results Reflected In Valuation (Downgrade)
- Dec -19 - Darden Restaurants Cooked Up an 18% Gain With Sizzling 2025 Guidance
- Dec -19 - Darden Restaurants, Inc. (DRI) Q2 2025 Earnings Call Transcript
- Dec -19 - Darden Stock Surges as LongHorn Steakhouse Strength Powers Sales Growth
- Dec -19 - Darden's Q2 Earnings Underperform Estimates, Revenues Top
- Dec -19 - Darden Restaurants (DRI) Reports Q2 Earnings: What Key Metrics Have to Say
- Dec -19 - Earnings Movers: ACN A.I. Wins, DRI Beat & Raise, LEN Struggles
- Dec -19 - Darden Restaurants (DRI) Q2 Earnings Miss Estimates
- Dec -19 - LongHorn Steakhouse leads sales gains for Darden while fine dining retreats
- Dec -19 - Darden Restaurants' sales rise 6%, fueled by Olive Garden and LongHorn Steakhouse
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Olive Garden
Expected Growth : 4.5 %
What the company do ?
Olive Garden is a casual dining restaurant chain from Darden Restaurants, Inc., serving Italian-American cuisine with a focus on pasta, breadsticks, and salads.
Why we expect these perspectives ?
Olive Garden's 4.5% growth is driven by increased off-premise sales, successful menu innovation, and effective marketing campaigns. Additionally, the brand's focus on convenience, value, and customer experience has resonated with consumers, leading to increased traffic and sales. Furthermore, Darden's efforts to optimize labor costs and improve operational efficiency have also contributed to the segment's growth.
Segment n°2 -> LongHorn Steakhouse
Expected Growth : 4.2 %
What the company do ?
LongHorn Steakhouse is a casual dining restaurant chain from Darden Restaurants, Inc., serving high-quality steaks, chicken, and seafood in a rustic, Western-themed atmosphere.
Why we expect these perspectives ?
LongHorn Steakhouse's 4.2% growth is driven by effective menu engineering, increased focus on off-premise sales, and targeted marketing efforts. Additionally, the brand's emphasis on quality, value, and convenience resonates with customers, leading to increased traffic and sales. Furthermore, Darden's operational efficiencies and cost savings initiatives have also contributed to the segment's growth.
Segment n°3 -> Other
Expected Growth : 3.8 %
What the company do ?
Other from Darden Restaurants, Inc. refers to non-restaurant business, including real estate investments and other miscellaneous operations.
Why we expect these perspectives ?
Darden Restaurants' 3.8% growth in 'Other' segment is driven by increased sales from its smaller brands, including The Capital Grille, Bahama Breeze, and Eddie V's, as well as growth in its catering and delivery services. Additionally, menu price increases and effective cost management have contributed to the segment's growth.
Segment n°4 -> Fine Dining
Expected Growth : 3.5 %
What the company do ?
Fine Dining from Darden Restaurants, Inc. offers upscale, sophisticated dining experiences at The Capital Grille and Eddie V's Prime Seafood.
Why we expect these perspectives ?
Fine Dining from Darden Restaurants, Inc. achieves 3.5% growth driven by increasing demand for upscale experiences, effective menu engineering, and strategic pricing. Additionally, investments in digital marketing and loyalty programs enhance customer engagement, while operational efficiencies and cost savings initiatives support profitability.
Darden Restaurants, Inc. Products
| Product Range | What is it ? |
|---|---|
| Olive Garden | Casual dining restaurant chain serving Italian-American cuisine |
| LongHorn Steakhouse | Casual dining restaurant chain serving steak and American cuisine |
| Cheddar's Scratch Kitchen | Casual dining restaurant chain serving classic American comfort food |
| Yard House | Upscale casual dining restaurant chain serving American cuisine and craft beer |
| The Capital Grille | Upscale steakhouse restaurant chain serving dry-aged steaks and fine wines |
| Bahama Breeze | Island-inspired restaurant chain serving Caribbean-inspired cuisine |
| Seasons 52 | Upscale casual dining restaurant chain serving seasonal American cuisine |
Darden Restaurants, Inc.'s Porter Forces
Threat Of Substitutes
Darden Restaurants, Inc. faces moderate threat from substitutes, as customers have various dining options available. However, the company's strong brand recognition and loyalty programs help mitigate this threat.
Bargaining Power Of Customers
Darden Restaurants, Inc. faces high bargaining power from customers, as they have numerous dining options and can easily switch to competitors. The company must focus on providing excellent customer service and quality food to retain customers.
Bargaining Power Of Suppliers
Darden Restaurants, Inc. has a low bargaining power of suppliers, as it is a large company with significant purchasing power. This allows the company to negotiate better prices and terms with its suppliers.
Threat Of New Entrants
Darden Restaurants, Inc. faces a low threat of new entrants, as the restaurant industry has high barriers to entry, including significant capital requirements and regulatory hurdles.
Intensity Of Rivalry
Darden Restaurants, Inc. operates in a highly competitive industry, with many established players and new entrants vying for market share. The company must focus on differentiating itself through its brands and customer experience to maintain its market position.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 68.55% |
| Debt Cost | 3.95% |
| Equity Weight | 31.45% |
| Equity Cost | 10.28% |
| WACC | 5.94% |
| Leverage | 218.00% |
Darden Restaurants, Inc. : Quality Control
Darden Restaurants, Inc. passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| WING | Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name. Its restaurants offer classic wings, boneless wings, and tenders that are cooked-to-order, and hand-sauced-and-tossed in … |
| EAT | Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. The company operates in two … |
| WEN | The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company. It operates through three segments: Wendy's U.S., Wendy's International, and Global Real Estate & Development. The company … |
| DPZ | Domino's Pizza, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain. The … |
| TXRH | Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
Texas Roadhouse
A-Score
1-Year Total Return ->
🥈
Wendy's
A-Score
1-Year Total Return ->
🥉
Domino's Pizza
A-Score
1-Year Total Return ->
4
Darden
A-Score
1-Year Total Return ->
5
Wingstop
A-Score
1-Year Total Return ->
6
