Darden Restaurants, Inc. (DRI) 10-Year Financial Performance & Capital Metrics

DRI • • Industrial / General

Consumer CyclicalRestaurantsCasual DiningFamily & Diner Casual

AboutDarden 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.Show more

Revenue $12.08B +6.0%
EBITDA $1.88B +5.9%
Net Income $1.05B +2.1%
EPS (Diluted) 8.86 +4.1%
Gross Margin 21.88% +2.4%
EBITDA Margin 15.55% -0.1%
Operating Margin 11.28% -2.2%
Net Margin 8.69% -3.7%
ROE 46.1% -0.3%
ROIC 12.95% -7.3%
Debt/Equity 2.70 +11.4%
Interest Coverage 7.55 -19.7%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 45.7%
✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 2.6%

✗Weaknesses

✗High debt to equity ratio of 2.7x
✗Expensive at 11.0x book value

Price & Volume

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Growth Metrics

Revenue CAGR

10Y5.97%

5Y9.12%

3Y7.84%

TTM8.3%

Profit (Net Income) CAGR

10Y3.99%

5Y-

3Y3.28%

TTM5.75%

EPS CAGR

10Y4.94%

5Y-

3Y6.23%

TTM7.61%

ROCE

10Y Avg13.76%

5Y Avg12.96%

3Y Avg14.52%

Latest13.99%

Peer Comparison

Family & Diner Casual

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
BJRIBJ's Restaurants, Inc.	961.63M	45.50	65	1.81%	1.99%	7.12%	2.56%	1.35
FWRGFirst Watch Restaurant Group, Inc.	1.02B	16.72	55.73	13.95%	0.24%	0.44%		1.36
DRIDarden Restaurants, Inc.	24.68B	214.33	24.19	6.03%	8.9%	49.43%	4.19%	2.70
EATBrinker International, Inc.	7.41B	166.71	20.04	21.95%	7.94%	129.14%	5.59%	4.57
CAKEThe Cheesecake Factory Incorporated	3.03B	60.75	18.98	4.13%	4.33%	39.63%	3.57%	4.30
CBRLCracker Barrel Old Country Store, Inc.	819.44M	36.70	17.82	0.37%	1.33%	10.05%	7.35%	2.44
DENNDenny's Corporation	322.38M	6.26	15.27	-2.5%	3.53%		0.28%
BDLFlanigan's Enterprises, Inc.	59.59M	32.06	11.83	8.99%	2.45%	6.36%	7.85%	0.60

Profit & Loss

	May 2016	May 2017	May 2018	May 2019	May 2020	May 2021	May 2022	May 2023	May 2024	May 2025
Sales/Revenue+	6.93B	7.17B	8.08B	8.51B	7.81B	7.2B	9.63B	10.49B	11.39B	12.08B
Revenue Growth %	0.03%	0.03%	0.13%	0.05%	-0.08%	-0.08%	0.34%	0.09%	0.09%	0.06%
Cost of Goods Sold+	5.39B	5.6B	6.33B	6.66B	6.4B	5.7B	7.63B	8.38B	8.96B	9.43B
COGS % of Revenue	0.78%	0.78%	0.78%	0.78%	0.82%	0.79%	0.79%	0.8%	0.79%	0.78%
Gross Profit+	1.54B	1.57B	1.75B	1.85B	1.41B	1.49B	2B	2.11B	2.43B	2.64B
Gross Margin %	0.22%	0.22%	0.22%	0.22%	0.18%	0.21%	0.21%	0.2%	0.21%	0.22%
Gross Profit Growth %	0.08%	0.02%	0.11%	0.06%	-0.24%	0.06%	0.34%	0.06%	0.15%	0.09%
Operating Expenses+	918.9M	891.9M	978.6M	1.02B	1.36B	844.8M	832.8M	907.5M	1.12B	1.28B
OpEx % of Revenue	0.13%	0.12%	0.12%	0.12%	0.17%	0.12%	0.09%	0.09%	0.1%	0.11%
Selling, General & Admin	622.9M	627.4M	662.1M	660.8M	614.4M	487.3M	466.4M	504.4M	623.7M	690.2M
SG&A % of Revenue	0.09%	0.09%	0.08%	0.08%	0.08%	0.07%	0.05%	0.05%	0.05%	0.06%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	296M	264.5M	316.5M	355.7M	746.1M	357.5M	366.4M	403.1M	496.6M	590.1M
Operating Income+	622.2M	677.5M	766.8M	832.5M	47.9M	648.7M	1.16B	1.2B	1.31B	1.36B
Operating Margin %	0.09%	0.09%	0.09%	0.1%	0.01%	0.09%	0.12%	0.11%	0.12%	0.11%
Operating Income Growth %	0.69%	0.09%	0.13%	0.09%	-0.94%	12.54%	0.79%	0.03%	0.09%	0.04%
EBITDA+	912.4M	950.4M	1.08B	1.17B	403.8M	999.6M	1.53B	1.59B	1.77B	1.88B
EBITDA Margin %	0.13%	0.13%	0.13%	0.14%	0.05%	0.14%	0.16%	0.15%	0.16%	0.16%
EBITDA Growth %	0.33%	0.04%	0.14%	0.08%	-0.65%	1.48%	0.53%	0.04%	0.12%	0.06%
D&A (Non-Cash Add-back)	290.2M	272.9M	313.1M	336.7M	355.9M	350.9M	368.4M	387.8M	459.9M	516.1M
EBIT	623.3M	678.8M	767.6M	836.3M	-98.8M	641.7M	1.16B	1.21B	1.32B	1.37B
Net Interest Income+	-30M	-40.2M	-58.8M	-50.1M	-57.2M	-64.3M	-71.3M	-77.3M	-135.3M	-177M
Interest Income	1.1M	1.3M	800K	3.8M	4.9M	1.7M	1.9M	7.8M	4.5M	3.4M
Interest Expense	173.6M	41.5M	161.9M	54M	62.2M	66M	73.2M	85.1M	139.8M	180.4M
Other Income/Expense	-172.5M	-40.2M	-161.1M	-50.2M	-208.9M	-72.2M	-68.7M	-81.3M	-138.7M	-175.1M
Pretax Income+	449.7M	637.3M	605.7M	782.3M	-161M	576.5M	1.09B	1.12B	1.18B	1.19B
Pretax Margin %	0.06%	0.09%	0.07%	0.09%	-0.02%	0.08%	0.11%	0.11%	0.1%	0.1%
Income Tax+	90M	154.8M	1.9M	63.7M	-111.8M	-55.9M	138.8M	137M	145M	136.2M
Effective Tax Rate %	0.83%	0.75%	0.98%	0.91%	0.33%	1.09%	0.87%	0.88%	0.87%	0.88%
Net Income+	375M	479.1M	596M	713.4M	-52.4M	629.3M	952.8M	981.9M	1.03B	1.05B
Net Margin %	0.05%	0.07%	0.07%	0.08%	-0.01%	0.09%	0.1%	0.09%	0.09%	0.09%
Net Income Growth %	-0.47%	0.28%	0.24%	0.2%	-1.07%	13.01%	0.51%	0.03%	0.05%	0.02%
Net Income (Continuing)	359.7M	482.5M	603.8M	718.6M	-49.2M	632.4M	954.7M	983.5M	1.03B	1.05B
Discontinued Operations	15.3M	-3.4M	-7.8M	-5.2M	-3.2M	-3.1M	-1.9M	-1.6M	-2.9M	-1.4M
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	2.90	3.80	4.73	5.69	-0.40	4.77	7.39	7.99	8.51	8.86
EPS Growth %	-0.47%	0.31%	0.24%	0.2%	-1.07%	12.93%	0.55%	0.08%	0.07%	0.04%
EPS (Basic)	2.94	3.85	4.81	5.78	-0.40	4.83	7.46	8.06	8.57	8.93
Diluted Shares Outstanding	129.3M	126M	126M	125.4M	122.7M	131.8M	129M	122.9M	120.8M	118.4M
Basic Shares Outstanding	127.4M	124.3M	124M	123.5M	122.7M	130.4M	127.8M	121.9M	119.9M	117.5M
Dividend Payout Ratio	0.72%	0.58%	0.53%	0.52%	-	0.32%	0.59%	0.6%	0.61%	0.63%

Balance Sheet

	May 2016	May 2017	May 2018	May 2019	May 2020	May 2021	May 2022	May 2023	May 2024	May 2025
Total Current Assets+	820.3M	587.9M	553.6M	892.6M	1.1B	1.87B	1.18B	997.7M	822.8M	937.7M
Cash & Short-Term Investments	274.8M	233.1M	146.9M	457.3M	763.3M	1.21B	420.6M	367.8M	194.8M	240M
Cash Only	274.8M	233.1M	146.9M	457.3M	763.3M	1.21B	420.6M	367.8M	194.8M	240M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	64M	75.9M	83.7M	88.3M	49.8M	68.2M	72M	80.2M	79.1M	93.8M
Days Sales Outstanding	3.37	3.86	3.78	3.79	2.33	3.46	2.73	2.79	2.53	2.83
Inventory	175.4M	178.9M	205.3M	207.3M	206.9M	190.8M	270.6M	287.9M	290.5M	311.6M
Days Inventory Outstanding	11.87	11.66	11.83	11.36	11.8	12.21	12.94	12.54	11.84	12.06
Other Current Assets	260M	93.8M	101.8M	98.1M	63M	60.2M	141.4M	154.5M	136.7M	156.7M
Total Non-Current Assets+	3.76B	4.7B	4.92B	5B	8.84B	8.79B	8.96B	9.24B	10.5B	11.65B
Property, Plant & Equipment	2.04B	2.27B	2.43B	2.55B	6.73B	6.65B	6.82B	7.1B	7.61B	8.27B
Fixed Asset Turnover	3.40x	3.16x	3.33x	3.33x	1.16x	1.08x	1.41x	1.48x	1.50x	1.46x
Goodwill	872.3M	1.2B	1.18B	1.18B	1.04B	1.04B	1.04B	1.04B	1.39B	1.66B
Intangible Assets	574.6M	950.2M	950.8M	950.8M	805.9M	806.3M	806.3M	806.3M	1.24B	1.35B
Long-Term Investments	0	-211.8M	-114M	-156.9M	-56.1M	-221.6M	72.8M	-142.2M	1.24B	0
Other Non-Current Assets	273.8M	280.2M	351.7M	313.1M	275.3M	295.7M	-1.32B	301.1M	-984.2M	371.6M
Total Assets+	4.58B	5.29B	5.47B	5.89B	9.95B	10.66B	10.14B	10.24B	11.32B	12.59B
Asset Turnover	1.51x	1.35x	1.48x	1.44x	0.78x	0.68x	0.95x	1.02x	1.01x	0.96x
Asset Growth %	-0.24%	0.15%	0.03%	0.08%	0.69%	0.07%	-0.05%	0.01%	0.11%	0.11%
Total Current Liabilities+	1.19B	1.29B	1.38B	1.47B	1.79B	1.85B	1.85B	1.94B	2.19B	2.25B
Accounts Payable	241.9M	249.5M	277M	332.6M	249.4M	304.5M	366.9M	426.2M	399.5M	439.6M
Days Payables Outstanding	16.37	16.26	15.96	18.22	14.23	19.49	17.54	18.57	16.28	17.01
Short-Term Debt	0	0	0	0	270M	0	0	0	138.6M	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	161.2M	181.1M	173.7M	386.6M	147.9M	279.8M	409.4M	443.7M	527.9M	752.4M
Current Ratio	0.69x	0.46x	0.40x	0.61x	0.61x	1.01x	0.64x	0.51x	0.38x	0.42x
Quick Ratio	0.54x	0.32x	0.25x	0.46x	0.50x	0.91x	0.49x	0.37x	0.24x	0.28x
Cash Conversion Cycle	-1.13	-0.74	-0.35	-3.08	-0.1	-3.82	-1.87	-3.23	-1.91	-2.12
Total Non-Current Liabilities+	1.44B	1.9B	1.89B	2.03B	5.82B	5.99B	6.09B	6.1B	6.89B	8.03B
Long-Term Debt	440M	936.6M	926.5M	927.7M	928.8M	929.8M	929M	930.3M	1.37B	2.17B
Capital Lease Obligations	0	0	0	0	4.64B	4.64B	3.76B	3.67B	3.7B	3.82B
Deferred Tax Liabilities	255.2M	145.6M	0	156.9M	56.1M	0	201.1M	142.2M	0	278.8M
Other Non-Current Liabilities	748.3M	819.2M	963.8M	941.5M	192.5M	421.1M	1.2B	1.36B	1.81B	1.76B
Total Liabilities	2.63B	3.19B	3.27B	3.5B	7.61B	7.84B	7.94B	8.04B	9.08B	10.28B
Total Debt+	440M	936.6M	926.5M	930.6M	6.01B	5.76B	4.89B	4.79B	5.43B	6.23B
Net Debt	165.2M	703.5M	779.6M	473.3M	5.25B	4.54B	4.47B	4.43B	5.23B	5.99B
Debt / Equity	0.23x	0.45x	0.42x	0.39x	2.58x	2.05x	2.22x	2.18x	2.42x	2.70x
Debt / EBITDA	0.48x	0.99x	0.86x	0.80x	14.88x	5.76x	3.19x	3.02x	3.06x	3.32x
Net Debt / EBITDA	0.18x	0.74x	0.72x	0.40x	12.99x	4.55x	2.92x	2.78x	2.95x	3.19x
Interest Coverage	3.58x	16.33x	4.74x	15.42x	0.77x	9.83x	15.88x	14.12x	9.40x	7.55x
Total Equity+	1.95B	2.1B	2.19B	2.39B	2.33B	2.81B	2.2B	2.2B	2.24B	2.31B
Equity Growth %	-0.16%	0.08%	0.04%	0.09%	-0.03%	0.21%	-0.22%	0%	0.02%	0.03%
Book Value per Share	15.10	16.68	17.42	19.08	19.00	21.34	17.04	17.91	18.56	19.52
Total Shareholders' Equity	1.95B	2.1B	2.19B	2.39B	2.33B	2.81B	2.2B	2.2B	2.24B	2.31B
Common Stock	1.5B	1.61B	1.63B	1.69B	2.21B	2.29B	2.23B	2.23B	2.25B	2.3B
Retained Earnings	547.5M	560.1M	657.6M	806.6M	143.5M	522.3M	-25.9M	-32.5M	-35.5M	-16.1M
Treasury Stock	-7.8M	-7.8M	-7.8M	0	0	0	0	0	0	0
Accumulated OCI	-87M	-62.9M	-85.2M	-98.2M	-17.6M	4.2M	-1.9M	3.2M	25.6M	31.8M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	May 2016	May 2017	May 2018	May 2019	May 2020	May 2021	May 2022	May 2023	May 2024	May 2025
Cash from Operations+	778M	899.9M	1B	1.26B	711.3M	1.19B	1.26B	1.55B	1.61B	1.71B
Operating CF Margin %	0.11%	0.13%	0.12%	0.15%	0.09%	0.17%	0.13%	0.15%	0.14%	0.14%
Operating CF Growth %	-0.73%	0.16%	0.11%	0.26%	-0.44%	0.68%	0.05%	0.23%	0.04%	0.06%
Net Income	359.7M	482.5M	603.8M	718.6M	-49.2M	632.4M	954.7M	983.5M	1.03B	1.05B
Depreciation & Amortization	290.2M	272.9M	313.1M	336.7M	355.9M	350.9M	368.4M	387.8M	459.9M	516.1M
Stock-Based Compensation	37.3M	40.7M	42.8M	59.8M	53M	72.4M	60.5M	67.5M	68.5M	79.1M
Deferred Taxes	-10.8M	-22.9M	-20.6M	47.5M	-133.6M	169.2M	-23.7M	-133.4M	-3.2M	5M
Other Non-Cash Items	-31.6M	4.6M	104.3M	-57.9M	663.2M	-162.1M	13.2M	55.5M	-15.8M	49.2M
Working Capital Changes	133.2M	122.1M	-42.1M	154.7M	-178M	131.2M	-117M	184.7M	72M	6.6M
Change in Receivables	14M	-6.5M	-7.2M	2.1M	-191.1M	326.1M	-3.9M	-8.2M	9.3M	-13.2M
Change in Inventory	-11.8M	5M	-26.6M	-2.1M	-13.9M	16.1M	-79.8M	-17.3M	5.6M	-20.5M
Change in Payables	45.6M	-9M	12.6M	55M	-68.5M	48.9M	43.2M	40.9M	-11.3M	26.6M
Cash from Investing+	81.7M	-1.07B	-450.9M	-462.6M	-544M	-263.7M	-389M	-568.4M	-1.32B	-1.28B
Capital Expenditures	-228.3M	-315.5M	-414M	-475.8M	-494M	-269.1M	-399.1M	-593.8M	-601.2M	-667.1M
CapEx % of Revenue	0.03%	0.04%	0.05%	0.06%	0.06%	0.04%	0.04%	0.06%	0.05%	0.06%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	308.2M	6.3M	3.5M	-8.3M	5.8M	0	0	0	-22.3M	2.5M
Cash from Financing+	-1.12B	129.2M	-636.6M	-486.4M	138.7M	-478.9M	-1.61B	-1.03B	-483.4M	-385.8M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-268.2M	-279.1M	-313.5M	-370.8M	-322.3M	-202.6M	-563M	-589.8M	-628.4M	-658.5M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	333.1M	23.6M	-12.5M	100K	600K	0	-2.7M	-200K	-11.6M	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	549.7M	584.4M	587.3M	783.6M	217.3M	924.9M	857M	951.8M	983.6M	1.04B
FCF Margin %	0.08%	0.08%	0.07%	0.09%	0.03%	0.13%	0.09%	0.09%	0.09%	0.09%
FCF Growth %	-0.79%	0.06%	0%	0.33%	-0.72%	3.26%	-0.07%	0.11%	0.03%	0.05%
FCF per Share	4.25	4.64	4.66	6.25	1.77	7.02	6.64	7.74	8.14	8.74
FCF Conversion (FCF/Net Income)	2.07x	1.88x	1.68x	1.77x	-13.57x	1.90x	1.32x	1.57x	1.57x	1.63x
Interest Paid	0	0	0	0	57.6M	62.5M	65M	82.4M	135.1M	171.9M
Taxes Paid	0	0	0	0	300K	62.5M	102.6M	47.4M	136.3M	148.5M

Key Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Return on Equity (ROE)	17.5%	23.64%	27.74%	31.1%	-2.22%	24.47%	38.03%	44.63%	46.25%	46.1%
Return on Invested Capital (ROIC)	17.34%	20.65%	19.9%	21.38%	0.69%	6.52%	12.43%	13.56%	13.98%	12.95%
Gross Margin	22.23%	21.89%	21.6%	21.73%	18.04%	20.75%	20.72%	20.11%	21.37%	21.88%
Net Margin	5.41%	6.68%	7.38%	8.38%	-0.67%	8.74%	9.89%	9.36%	9.02%	8.69%
Debt / Equity	0.23x	0.45x	0.42x	0.39x	2.58x	2.05x	2.22x	2.18x	2.42x	2.70x
Interest Coverage	3.58x	16.33x	4.74x	15.42x	0.77x	9.83x	15.88x	14.12x	9.40x	7.55x
FCF Conversion	2.07x	1.88x	1.68x	1.77x	-13.57x	1.90x	1.32x	1.57x	1.57x	1.63x
Revenue Growth	2.51%	3.41%	12.69%	5.33%	-8.27%	-7.82%	33.82%	8.91%	8.6%	6.03%

Revenue by Segment

	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Olive Garden	3.84B	3.94B	4.08B	-	-	3.59B	4.5B	-	5.07B	5.21B
Olive Garden Growth	-	2.61%	3.65%	-	-	-	25.34%	-	-	2.88%
LongHorn Steakhouse	1.59B	1.62B	1.7B	-	-	1.81B	2.37B	-	2.81B	3.03B
LongHorn Steakhouse Growth	-	2.17%	4.99%	-	-	-	31.15%	-	-	7.81%
Fine Dining	514.1M	535.6M	574.4M	-	-	446.9M	776.2M	830.8M	1.29B	1.3B
Fine Dining Growth	-	4.18%	7.24%	-	-	-	73.69%	7.03%	55.45%	1.03%
Others	993.1M	1.07B	1.72B	-	-	1.35B	1.98B	2.17B	-	-
Others Growth	-	8.13%	60.18%	-	-	-	46.84%	9.68%	-	-
Gift Card	-	-	-	729.7M	642.9M	-	-	-	-	-
Gift Card Growth	-	-	-	-	-11.90%	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Darden Restaurants, Inc. (DRI) has a price-to-earnings (P/E) ratio of 24.2x. This is roughly in line with market averages.

Growth & Financials

Darden Restaurants, Inc. (DRI) reported $12.36B in revenue for fiscal year 2025. This represents a 132% increase from $5.33B in 2012.

Darden Restaurants, Inc. (DRI) grew revenue by 6.0% over the past year. This is steady growth.

Yes, Darden Restaurants, Inc. (DRI) is profitable, generating $1.10B in net income for fiscal year 2025 (8.7% net margin).

Dividend & Returns

Yes, Darden Restaurants, Inc. (DRI) pays a dividend with a yield of 2.59%. This makes it attractive for income-focused investors.

Darden Restaurants, Inc. (DRI) has a return on equity (ROE) of 46.1%. This is excellent, indicating efficient use of shareholder capital.

Darden Restaurants, Inc. (DRI) generated $1.26B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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