NYSE: DRI · Restaurants
Darden Restaurants
Darden Restaurants is a full-service restaurant company. At May 31, 2026 it owned and operated 2,202 U.S. restaurants under brands including Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris, Cheddar's Scratch Kitchen, The Capital Grille and Chuy's, and another 167 restaurants were franchised. Fiscal 2026 sales rose 9.4% to $13.2 billion and net earnings were $1.21 billion. Darden bought Chuy's in October 2024 for $649 million and in 2026 closed about half of its Bahama Breeze restaurants. In Q1 fiscal 2027 sales rose 5.1%, and Darden reaffirmed its fiscal 2027 outlook for diluted EPS from continuing operations of $11.10–11.35.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: July 24, 2026
Built on10-K FY2026 · filed 2026-07-2410-Q (quarter ended 2026-08-30) · filed 2026-10-02
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 12.9%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 12.0%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +25.4 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 0.7x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.54x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 21.6x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.61
Higher than 73% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 30% of 311 non-financial companies
Latest fiscal year (FY2026)
Higher than 91% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 30% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 51% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-08-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$224.21close on 2026-11-04
Market cap$25.58B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 21.6x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 11.6x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 12.6x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 4.4%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 2.7%
At FY2026 year-end: 19.6x
Earnings: trailing 12 months to 2026-08-30
At FY2026 year-end: 10.5x
Book value at FY2026 year-end
At FY2026 year-end: 11.5x
EBITDA for FY2026
At FY2026 year-end: 4.8%
Free cash flow for FY2026
Dividends per share for FY2026
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Aug 30, 2026.
- Revenue$3.04B → $3.2B (vs. a year earlier)↑ +5.1%$3.04B → $3.2B (vs. a year earlier)
- Operating margin11.1% → 10.0% (vs. a year earlier)↓ −1.2 pts11.1% → 10.0% (vs. a year earlier)
- Net income$258M → $233M (vs. a year earlier)↓ −9.5%$258M → $233M (vs. a year earlier)
- Diluted EPS$2.19 → $2.04 (vs. a year earlier)↓ −6.8%$2.19 → $2.04 (vs. a year earlier)
- Cash$220M → $221M (vs. previous quarter-end)→ +0.5%$220M → $221M (vs. previous quarter-end)
- Long-term debt$1.64B → $1.64B (vs. previous quarter-end)→ −0.1%$1.64B → $1.64B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Sep 24, 2026.
Management outlook → Reaffirmed
Reaffirmed its full-year outlook for fiscal 2027. Source sentence
The Company reaffirmed all aspects of its full year financial outlook for fiscal 2027, culminating in diluted net earnings per share from continuing operations of $11.10 to $11.35.
Key changes
Same-restaurant sales up 3.1%. Source sentence
Blended same-restaurant sales 1 for the quarter increased 3.1% on a fiscal calendar basis and increased 3.2% on a comparable calendar basis.
Diluted EPS $2.05, up 4.1%. Source sentence
Reported diluted net earnings per share from continuing operations were $2.05, an increase of 4.1% from last year's adjusted diluted net earnings per share from continuing operations 2
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- DARDEN RESTAURANTS INC
- Headquarters
- ORLANDO, FL
- Incorporated in
- Florida
- Fiscal year end
- 05/30
- Exchange & ticker
- NYSE: DRI
- Industry
- Restaurants
- CIK
- 940944
- Website
- https://www.darden.com/ ↗
Workforce (as of FY2026 year-end)
Employees
209,931
Source: Form 10-K (FY2026) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q2 FY2027
Quarter end: November 2026. In past years, Q2 results were released 19–25 days after quarter end (Dec 18, 2025; Dec 19, 2024; Dec 15, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around May 30.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 19–26 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q1 FY2027 | Aug 30, 2026 | Sep 24, 2026 (+25 days) | Oct 2, 2026 10-Q (+33 days) |
| Q4 FY2026 | May 31, 2026 | Jun 25, 2026 (+25 days) | Jul 24, 2026 10-K (+54 days) |
| Q3 FY2026 | Feb 22, 2026 | Mar 19, 2026 (+25 days) | Mar 27, 2026 10-Q (+33 days) |
| Q2 FY2026 | Nov 23, 2025 | Dec 18, 2025 (+25 days) | Dec 30, 2025 10-Q (+37 days) |
| Q1 FY2026 | Aug 24, 2025 | Sep 18, 2025 (+25 days) | Sep 26, 2025 10-Q (+33 days) |
| Q4 FY2025 | May 25, 2025 | Jun 20, 2025 (+26 days) | Jul 18, 2025 10-K (+54 days) |
| Q3 FY2025 | Feb 23, 2025 | Mar 20, 2025 (+25 days) | Apr 1, 2025 10-Q (+37 days) |
| Q2 FY2025 | Nov 24, 2024 | Dec 19, 2024 (+25 days) | Jan 2, 2025 10-Q (+39 days) |
| Q1 FY2025 | Aug 25, 2024 | Sep 19, 2024 (+25 days) | Sep 27, 2024 10-Q (+33 days) |
| Q4 FY2024 | May 26, 2024 | Jun 20, 2024 (+25 days) | Jul 19, 2024 10-K (+54 days) |
| Q3 FY2024 | Feb 25, 2024 | Mar 21, 2024 (+25 days) | Apr 2, 2024 10-Q (+37 days) |
| Q2 FY2024 | Nov 26, 2023 | Dec 15, 2023 (+19 days) | Jan 3, 2024 10-Q (+38 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Olive Garden
Olive Garden
Examples: 949 owned and operated restaurants
LongHorn Steakhouse
LongHorn Steakhouse
Examples: 618 restaurants
Fine Dining
Ruth's Chris, The Capital Grille, Eddie V's
Examples: 83 / 74 / 31 restaurants
Other Business
Cheddar's, Chuy's, Yard House, Seasons 52, Bahama Breeze, The Capital Burger
Examples: 184 / 110 / 93 / 44 / 13 / 3 restaurants
Owned and operated restaurant counts are at May 31, 2026, from the FY2026 Form 10-K.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Olive Garden
U.S. full-service Italian dining
U.S. share
Largest operator
Company-disclosedWorldwide share
—
Not disclosedRuth's Chris Steak House
Fine dining steakhouse brands worldwide
U.S. share
—
Not disclosedWorldwide share
One of the largest
Company-disclosed
Sources:
07
Recent strategic focusSite analysis
Recent developments.
Q1 FY2027
Sales $3.2B (+5.1%); blended same-restaurant sales +3.1%; diluted EPS from continuing operations $2.05.
Source: Q1 FY2027 earnings release
Capital returns
Quarterly dividend of $1.62; $222.3M of share repurchases in Q1 FY2027.
Source: Q1 FY2027 earnings release
Bahama Breeze
About half the restaurants closed around April 5, 2026; the rest are to be converted to other Darden brands.
Source: Form 10-K (FY2026)
Capex ÷ D&A (FY2026)
1.31x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$734M ÷ $561M = 1.31x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$1.31B
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $255M in FY2021 to $734M in FY2026
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-24
08
Key figures at a glanceFrom SEC data
FY2021–FY2026, 6 years.
Revenue (FY2026)
$13.21B
As reported in the 10-K
Revenue CAGR (5 years)
+12.9%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($13,211M ÷ $7,196M) ^ (1÷5) − 1 = 12.9%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2026)
12.0%▲favorable
+3.0pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$1,583M ÷ $13,211M × 100 = 12.0%
ROE (FY2026)
53.4%▲favorable
6-year average: 41.8%
As reported in the 10-K
P/B (FY2026 end)
10.54x
formulafiscal year-end closing price ÷ book value per share
e.g.$203.91 ÷ $19.35 = 10.54x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2026 end)
11.5x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($23,266M + $1,638M − $220M) ÷ ($1,583M + $561M) = 11.5x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +12.9% a year over 5 years (strong growth)
From $7.2B in FY2021 to $13.21B in FY2026. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 9.0% → 12.0%
How much operating profit is left per $100 of revenue. It moved +3.0 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 17.2% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 41.8% over 6 years (latest: 53.4%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- Recipe Unlimited
07 · what it does
Key activities
- Restaurant operations across 11 brands
06 · what it draws on
Key resources
- Food and beverage
- About 210,000 team members
02 · why customers buy
Value propositions
- A portfolio of restaurant brands (Olive Garden, LongHorn and others) that share Darden's scale, insights and technology.
04 · how it keeps them
Customer relationships
- The guest experience, supported by team member engagement and retention.
03 · how it reaches them
Channels
- Company-owned restaurants, mobile apps and online ordering; franchised restaurants.
01 · who it serves
Customer segments
- Dine-in, carryout and delivery guests
09 · where money goes
Cost structure
FY2026, share of revenue ($13.21B)
- Selling, general & administrative3.9%
- Other operating costs (incl. cost of goods sold)84.1%
Operating profit left: 12.0% of revenue. Depreciation & amortization (inside the costs above): $561M. Capital spending: $734M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Restaurant sales $13.21B (FY2026)
- Franchise royalties and fees
Value propositions, channels and customer relationships: Form 10-K (FY2026)
Darden owns and operates most of its restaurants and supports its brands with shared scale. It also earns royalties from 167 franchised restaurants in the U.S. and abroad.
01 what it draws on
Inputs & resources
- Food and beverage
- About 210,000 team members
02 what it does
Activities
- Restaurant operations across 11 brands
03 who it serves
Customers
- Dine-in, carryout and delivery guests
04 how money comes in
How it earns
- Restaurant sales $13.21B (FY2026)
- Franchise royalties and fees
How the business makes money
- The CEO credits Darden's scale and other competitive advantages (Q1 FY2027).
- Darden says it does not rely on any major customers.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Darden must comply with many legal requirements for restaurants.
Approvals & licenses
Restaurant regulation
Non-compliance could bring monetary liabilities and sanctions.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2026)
Revenue by segment (FY2026)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Olive Garden
5,594.8 (42%)profit 1,257.9 · margin 22.5%
LongHorn Steakhouse
3,423 (26%)profit 635.1 · margin 18.6%
Fine Dining
1,375.7 (10%)profit 243.1 · margin 17.7%
Other Business
2,817.4 (21%)profit 446.9 · margin 15.9%
Source: Form 10-K (FY2026) — Note 6, segment information Segment profit is sales minus food and beverage, restaurant labor, restaurant expenses and marketing. Fine Dining = Ruth's Chris, The Capital Grille, Eddie V's. Other Business = Yard House, Cheddar's, Chuy's, Seasons 52, Bahama Breeze, The Capital Burger and franchise fees.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Licensing agreement
Recipe Unlimited
Bought Darden's eight Olive Garden restaurants in Canada (July 2025). It now operates them, and any new ones, as a franchisee paying royalties.
Source: Form 10-K (FY2026)
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Restaurant guests; franchisees pay royalties.
Named by the company
Darden does not rely on any major customers.
Suppliers
Food and beverage suppliers.
Named by the company
The 10-K doesn't name suppliers.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K describes competition with national and regional chains and local restaurants but names none.
Competitors named in the 10-K
No competitor is named in the 10-K.
Peer group the company chose
FY2026 executive compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
18 restaurant, retail and hospitality companies with similar financial characteristics; unchanged from fiscal 2025.
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Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
M&A historySite analysisShow
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Darden grows partly by buying restaurant brands.
Cash spent on acquisitions, FY2021–FY2026: $1.31B
2024-10-11
Chuy's Holdings
$649.1M total consideration (all cash)
Restaurant brand; 110 restaurants at May 31, 2026.
- Stated purpose (company)
- Not stated.
Source: Form 10-K (FY2026)
15
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-24
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-24
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-24
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-24
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ | FY202610-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 7,196 | 9,630 | 10,488 | 11,390 | 12,077 | 13,211 |
| Operating income | 649 | 1,162 | 1,202 | 1,314 | 1,362 | 1,583 |
| Pretax income | 577 | 1,094 | 1,121 | 1,176 | 1,187 | 1,389 |
| Net income (attributable) | 629 | 953 | 982 | 1,028 | 1,050 | 1,207 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 33.8% | 8.9% | 8.6% | 6.0% | 9.4% |
| Operating margincalcoperating income ÷ revenue × 100 | 9.0% | 12.1% | 11.5% | 11.5% | 11.3% | 12.0% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 8.7% | 9.9% | 9.4% | 9.0% | 8.7% | 9.1% |
| Balance sheet ($M) | ||||||
| Total assets | 10,656 | 10,136 | 10,242 | 11,323 | 12,587 | 12,862 |
| Total equity | 2,813 | 2,198 | 2,202 | 2,243 | 2,311 | 2,208 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 930 | 901 | 885 | 1,457 | 2,129 | 1,638 |
| Equity ratio | 26.4% | 21.7% | 21.5% | 19.8% | 18.4% | 17.2% |
| ROE | 22.4% | 38.0% | 44.6% | 46.2% | 46.1% | 53.4% |
| Cash flow ($M) | ||||||
| Operating CF | 1,194 | 1,265 | 1,553 | 1,622 | 1,707 | 1,853 |
| Investing CF | -264 | -389 | -568 | -1,325 | -1,278 | -711 |
| Financing CF | -479 | -1,610 | -1,033 | -483 | -386 | -1,164 |
| Free cash flowcalccash flow from operations − capital expenditures | 939 | 888 | 988 | 1,021 | 1,062 | 1,119 |
| Cash and equivalents | 1,215 | 421 | 368 | 195 | 240 | 220 |
| Per share & other | ||||||
| EPS ($) | 4.77 | 7.39 | 7.99 | 8.51 | 8.86 | 10.38 |
| BVPS ($) | 21.51 | 17.74 | 18.18 | 18.86 | 19.75 | 19.35 |
| Dividend per share ($) | 1.55 | 4.40 | 4.84 | 5.24 | 5.60 | 6.00 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 32.5% | 59.5% | 60.6% | 61.6% | 63.2% | 57.8% |
| P/E (x) | 30.0 | 17.1 | 20.2 | 17.3 | 23.0 | 19.6 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 18.5 | 10.5 | 12.6 | 10.6 | 13.7 | 11.5 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 6.66 | 7.10 | 8.87 | 7.83 | 10.33 | 10.54 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-08-30 | $3.2B+5.1% | $319M-5.9% | $233M-9.5% | $2.04 |
| 2026-05-31 † | $3.72B+13.7% | $517M+35.0% | $405M+33.2% | — |
| 2026-02-22 | $3.35B+5.9% | $406M-2.8% | $307M-5.1% | $2.65 |
| 2025-11-23 | $3.1B+7.3% | $320M+9.7% | $237M+10.3% | $2.03 |
| 2025-08-24 | $3.04B | $339M | $258M | $2.19 |
| 2025-05-25 † | $3.27B | $383M | $304M | — |
| 2025-02-23 | $3.16B | $418M | $323M | $2.74 |
| 2024-11-24 | $2.89B | $292M | $215M | $1.82 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
16
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2026)
33.6%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$1,583M × (1 − 12%) ÷ $4,143M × 100 = 33.6%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
8.21%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $23.27B ÷ ($23.27B + $1.64B) = 93.4%
e.g.Debt weight: $1.64B ÷ ($23.27B + $1.64B) = 6.6%
e.g.WACC: 8.3% × 93.4% + 7.7% × (1 − 12%) × 6.6% = 8.21%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 6.8%–10.0% and ROIC − WACC runs +23.6 to +26.8 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 8.21% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.61 (price-derived adjusted beta, but correlation with the market is low (R² 0.05), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 8.30%
- Cost of debt
- 7.72%
- Tax rate
- 12% (effective rate, FY2024–FY2026)
- Capital structure (equity : debt)
- 93% : 7%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 8.21%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.61 (price-derived adjusted beta. Raw β 0.42, R² 0.05, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.417 + 0.33 = 0.610
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.61 × 5.5% = 8.3%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
17
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
4.1%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.2% − 4.1%
Past FCF growth (FY2021–FY2026)
+3.6%
Compound annual rate, 5 years
Past revenue growth (FY2021–FY2026)
+12.9%
Compound annual rate, 5 years
Inputs (FY2026): free cash flow $1.12B (operating CF − capex); enterprise value $27B = market cap $25.58B (latest close, 2026-11-04) + debt $1.64B − cash and short-term investments $220M; r = WACC of 8.2% using this page’s default assumptions (β 0.61, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$27.3B
FCF $1.12B ÷ (8.2% − 4.1%)
Theoretical ÷ actual enterprise value
1.01x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.2% | 7.2% | 8.2% | 9.2% | 10.2% |
|---|---|---|---|---|---|
| 0% | 0.67x | 0.58x | 0.51x | 0.45x | 0.41x |
| 2% | 0.99x | 0.80x | 0.67x | 0.58x | 0.51x |
| 4% | 1.88x | 1.30x | 0.99x | 0.80x | 0.67x |
| 6% | 20.72x | 3.45x | 1.88x | 1.30x | 0.99x |
| 8% | — | — | 20.72x | 3.45x | 1.88x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
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Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.59x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -5.1%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 114%
Most profit comes from core operations.
- ✓
Days sales outstanding: 3 → 3 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-24
Profit bridge (FY2026)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-24
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$1,853M ÷ $1,207M = 1.54x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$1,583M ÷ $1,389M × 100 = 114%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($94M + $130M) ÷ 2 ÷ $13,211M × 365 = 3 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
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Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 98.8%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 1.2%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 74 of 416
- Beta (adjusted)
- 0.61
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 18% of covered companies have more
above 1 = swings more than the market
- 112.7M shares reported by 1,082 13F filers ÷ 114.1M shares outstanding on 2026-05-31. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-08-10 (beneficial ownership table) · Form 10-K cover page (shares outstanding as of 2026-05-31)
20
Strengths & weaknessesSite analysis
Strengths
1. Brand portfolio and scale
2,202 company-owned restaurants across 11 brands; Olive Garden's segment profit margin was 22.5% in fiscal 2026.
Evidence: Form 10-K (FY2026)
2. Sales growth
Same-restaurant sales rose 7.2% at LongHorn and 4.0% at Olive Garden in fiscal 2026.
Evidence: Form 10-K (FY2026)
3. Cash generation
Operating cash flow of $1.85B in fiscal 2026.
Evidence: SEC EDGAR XBRL
Weaknesses
1. Bahama Breeze
After a strategic review, Darden closed about half of the Bahama Breeze restaurants and plans to convert the rest to other brands.
Evidence: Form 10-K (FY2026)
2. Margin pressure in some segments
Segment profit margin fell 70 basis points at LongHorn and 90 basis points in Fine Dining in fiscal 2026.
Evidence: Form 10-K (FY2026)
21
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2026)
19.6x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2026)
2.94%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2026)
58%
Dividends per share ÷ diluted EPS
FCF yield (FY2026)
4.8%
(Operating CF − capex) ÷ market cap
1. Earnings growth
Diluted EPS rose from $7.39 (FY2022) to $10.38 (FY2026).
- What has to hold
- Same-restaurant sales stay positive.
- The other side
- Consumer spending risk.
Evidence: SEC EDGAR XBRL
2. Dividend
Dividend per share rose from $4.40 (FY2022) to $6.00 (FY2026); now $1.62 a quarter.
- What has to hold
- Cash flow keeps growing.
- The other side
- Buybacks and acquisitions also compete for cash.
Evidence: SEC EDGAR XBRL; Q1 FY2027 earnings release
The fiscal year ends in late May. Fiscal 2026 had 53 weeks.
22
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2026)
Cash & short-term investments ÷ debt due within a year
0.3x
$220M vs. $694M
Interest coverage (operating income ÷ interest expense)
12.5x
$1.58B vs. $127M
Free cash flow ÷ dividends paid
1.6x
$1.12B vs. $693M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2021–FY2026), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Cash flow
Operating cash flow of $1.85B and capex of $734M in fiscal 2026.
Source: SEC EDGAR XBRL
Debt
Long-term debt of $1.64B plus $694M current portion at May 31, 2026.
Source: Form 10-K (FY2026)
23
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Darden reports only ordinary-course lawsuits and claims from guests, employees and others, plus trademark matters.
Company statement: Darden believes the final disposition of current lawsuits, proceedings and claims will not have a material adverse effect.
Based on Form 10-Q (quarter ended 2026-08-30) — Legal Proceedings, reviewed 2026-10-18. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
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Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Competition & technology shift
Intense competition
- Company disclosure (summarized from the 10-K)
- The 10-K says it competes with national and regional chains and locally owned restaurants on food, price, service, location and more.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 2Demand & macro
Consumer spending
- Company disclosure (summarized from the 10-K)
- The 10-K says restaurants are affected by economic conditions and consumers' discretionary purchasing power.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Labor & workforce
Labor
- Company disclosure (summarized from the 10-K)
- Darden employs about 210,000 team members, most of them hourly. Restaurant labor was $4.18B in fiscal 2026.
- Company’s stated mitigation
- The People Strategy covers hiring, training, rewarding and retaining team members.
- This site’s assessment
- Impact Med / Likelihood Med
25
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (2)
In addition, our ability to offset the effects of inflation through pricing actions may be constrained by competitive dynamics and consumer demand sensitivity, and if menu pricing does not sufficiently offset rising costs or adversely affects guest traffic, our operating margins and results of operation could be adversely affected.
may also increase at any time, thereby further increasing our costs. Read more
In addition, if property and liability insurance becomes less available or more difficult to obtain, we may incur higher premium costs and face increased exposure to uninsured losses.
No longer in the text (3)
The inability to successfully integrate the Chuy’s brand’s operations into our business could harm our ability to achieve the sales growth, cost savings and other benefits we expect to be able to realize from Chuy’s operations.
The integration of the Chuy’s business into our operations is a complex, costly and time-consuming process that may not be successful. Read more
The primary areas of focus for successfully combining the business of Chuy’s with our operations include, among others: retaining and integrating management and other key employees; integrating information, communications and other systems; and managing the growth of the combined company.
Even if we successfully integrate the business of Chuy’s into our operations, there can be no assurance that we will realize the anticipated benefits. Read more
We expect that the acquisition of Chuy’s will result in various benefits for the combined company including, among others, business and growth opportunities and significant synergies from increased efficiency in purchasing, distribution and other restaurant and corporate support. Increased competition and/or deterioration in business conditions may limit or delay our ability to expand this business. As such, we may not be able to realize the synergies, goodwill, business opportunities and growth prospects anticipated in connection with the acquisition of Chuy’s.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Jul 24, 2026 ↗ with the 10-K filed Jul 18, 2025 ↗.
26
What to watch going forwardSite analysis
- Fiscal 2027 outlook: diluted EPS from continuing operations of $11.10–11.35.
- Conversion of the remaining Bahama Breeze restaurants over 12–18 months.
- Olive Garden same-restaurant sales (+1.1% in Q1 FY2027).
27
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 17, 2026 10:07 (SEC EDGAR) · Source 10-K filed: July 24, 2026
Built on10-K FY2026 · filed 2026-07-24
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Darden Restaurants’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.