Darden Restaurants, Inc. (DRI) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Restaurants
EV/EBITDA
↓
15.52
-4% vs avg
5yr avg: 16.21
30Y Low5.6·High36.3
P/FCF
↑
22.39
+10% vs avg
5yr avg: 20.26
30Y Low3.0·High47.3
P/B Ratio
↑
10.03
↑+21% vs avg
5yr avg: 8.27
30Y Low1.1·High10.5
ROE
↑
46.1%
↓+16% vs avg
5yr avg: 39.9%
30Y Low-8%·High46%
Debt/EBITDA
↓
3.32
↓-10% vs avg
5yr avg: 3.67
30Y Low0.5·High14.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
DRI Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Darden Restaurants, Inc. trades at 22.1x earnings, roughly in line with its 5-year average of 21.5x, sitting at the 79th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 19.6x, the stock trades at a premium of 13%. On a free-cash-flow basis, the stock trades at 22.4x P/FCF, 10% above the 5-year average of 20.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $23.2B | $24.2B | $17.8B | $19.5B | $16.3B | $18.9B | $9.4B | $14.6B | $11.0B | $11.2B | $8.8B |
| Enterprise Value | $29.2B | $30.1B | $23.1B | $23.9B | $20.7B | $23.4B | $14.7B | $15.1B | $11.8B | $11.9B | $8.9B |
| P/E Ratio → | 22.09 | 23.03 | 17.34 | 19.84 | 17.06 | 30.03 | — | 20.44 | 18.48 | 23.40 | 23.39 |
| P/S Ratio | 1.92 | 2.00 | 1.57 | 1.86 | 1.69 | 2.62 | 1.21 | 1.71 | 1.36 | 1.56 | 1.26 |
| P/B Ratio | 10.03 | 10.45 | 7.95 | 8.85 | 7.40 | 6.71 | 4.05 | 6.10 | 5.02 | 5.33 | 4.49 |
| P/FCF | 22.39 | 23.34 | 18.13 | 20.47 | 18.97 | 20.41 | 43.40 | 18.61 | 18.75 | 19.17 | 15.95 |
| P/OCF | 13.57 | 14.15 | 11.06 | 12.60 | 12.94 | 15.81 | 13.26 | 11.58 | 11.00 | 12.45 | 11.27 |
P/E links to full P/E history page with 30-year chart
DRI EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Darden Restaurants, Inc.'s enterprise value stands at 15.5x EBITDA, roughly in line with its 5-year average of 16.2x. The Consumer Cyclical sector median is 11.4x, placing the stock at a 37% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.50 | 2.02 | 2.28 | 2.15 | 3.25 | 1.88 | 1.77 | 1.46 | 1.66 | 1.29 |
| EV / EBITDA | 15.52 | 16.05 | 13.00 | 15.04 | 13.54 | 23.43 | 36.35 | 12.88 | 10.92 | 12.53 | 9.79 |
| EV / EBIT | 21.41 | 22.07 | 17.49 | 19.77 | 17.80 | 36.50 | — | 18.01 | 15.36 | 17.54 | 14.34 |
| EV / FCF | — | 29.12 | 23.45 | 25.12 | 24.18 | 25.32 | 67.54 | 19.22 | 20.08 | 20.38 | 16.26 |
DRI Profitability
Margins and return-on-capital ratios measuring operating efficiency
Darden Restaurants, Inc. earns an operating margin of 11.3%, above the Consumer Cyclical sector average of 2.9%. Return on equity of 46.1% is exceptionally high — well above the sector median of 5.6%. ROIC of 13.0% represents solid returns on invested capital versus a sector median of 5.8%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 21.9% | 21.9% | 21.4% | 20.1% | 20.7% | 20.8% | 18.0% | 21.7% | 21.6% | 21.9% | 22.2% |
| Operating Margin | 11.3% | 11.3% | 11.5% | 11.5% | 12.1% | 9.0% | 0.6% | 9.8% | 9.5% | 9.4% | 9.0% |
| Net Profit Margin | 8.7% | 8.7% | 9.0% | 9.4% | 9.9% | 8.7% | -0.7% | 8.4% | 7.4% | 6.7% | 5.4% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 46.1% | 46.1% | 46.2% | 44.6% | 38.0% | 24.5% | -2.2% | 31.1% | 27.7% | 23.6% | 17.5% |
| ROA | 8.8% | 8.8% | 9.5% | 9.6% | 9.2% | 6.1% | -0.7% | 12.6% | 11.1% | 9.7% | 7.1% |
| ROIC | 13.0% | 13.0% | 14.0% | 13.6% | 12.4% | 6.5% | 0.7% | 21.4% | 19.9% | 20.6% | 17.3% |
| ROCE | 14.0% | 14.0% | 15.1% | 14.5% | 13.6% | 7.6% | 0.8% | 19.6% | 19.0% | 18.3% | 15.2% |
DRI Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Darden Restaurants, Inc. carries a Debt/EBITDA ratio of 3.3x, which is moderately leveraged (25% below the sector average of 4.4x). Net debt stands at $6.0B ($6.2B total debt minus $240M cash). Interest coverage of 7.6x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.70 | 2.70 | 2.42 | 2.18 | 2.22 | 2.05 | 2.58 | 0.39 | 0.42 | 0.45 | 0.23 |
| Debt / EBITDA | 3.32 | 3.32 | 3.06 | 3.02 | 3.19 | 5.76 | 14.88 | 0.80 | 0.86 | 0.99 | 0.48 |
| Net Debt / Equity | — | 2.59 | 2.33 | 2.01 | 2.03 | 1.62 | 2.25 | 0.20 | 0.36 | 0.33 | 0.08 |
| Net Debt / EBITDA | 3.19 | 3.19 | 2.95 | 2.78 | 2.92 | 4.55 | 12.99 | 0.40 | 0.72 | 0.74 | 0.18 |
| Debt / FCF | — | 5.79 | 5.32 | 4.65 | 5.21 | 4.91 | 24.14 | 0.60 | 1.33 | 1.20 | 0.30 |
| Interest Coverage | 7.55 | 7.55 | 9.40 | 14.12 | 15.88 | 9.83 | 0.77 | 15.42 | 4.74 | 16.33 | 3.58 |
DRI Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.42x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 0.51x to 0.42x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.42 | 0.42 | 0.38 | 0.51 | 0.64 | 1.01 | 0.61 | 0.61 | 0.40 | 0.46 | 0.69 |
| Quick Ratio | 0.28 | 0.28 | 0.24 | 0.37 | 0.49 | 0.91 | 0.50 | 0.46 | 0.25 | 0.32 | 0.54 |
| Cash Ratio | 0.11 | 0.11 | 0.09 | 0.19 | 0.23 | 0.66 | 0.43 | 0.31 | 0.11 | 0.18 | 0.23 |
| Asset Turnover | — | 0.96 | 1.01 | 1.02 | 0.95 | 0.68 | 0.78 | 1.44 | 1.48 | 1.35 | 1.51 |
| Inventory Turnover | 30.28 | 30.28 | 30.83 | 29.10 | 28.22 | 29.89 | 30.93 | 32.13 | 30.86 | 31.31 | 30.74 |
| Days Sales Outstanding | — | 2.83 | 2.53 | 2.79 | 2.73 | 3.46 | 2.33 | 3.79 | 3.78 | 3.86 | 3.37 |
DRI Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Darden Restaurants, Inc. returns 4.6% to shareholders annually — split between a 2.8% dividend yield and 1.8% buyback yield. A payout ratio of 62.7% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 4.5% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.8% | 2.7% | 3.5% | 3.0% | 3.5% | 1.1% | 3.4% | 2.5% | 2.8% | 2.5% | 3.1% |
| Payout Ratio | 62.7% | 62.7% | 61.2% | 60.1% | 59.1% | 32.2% | — | 52.0% | 52.6% | 58.3% | 71.5% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.5% | 4.3% | 5.8% | 5.0% | 5.9% | 3.3% | — | 4.9% | 5.4% | 4.3% | 4.3% |
| FCF Yield | 4.5% | 4.3% | 5.5% | 4.9% | 5.3% | 4.9% | 2.3% | 5.4% | 5.3% | 5.2% | 6.3% |
| Buyback Yield | 1.8% | 1.7% | 2.5% | 2.4% | 6.6% | 0.2% | 3.5% | 1.4% | 2.1% | 2.1% | 2.1% |
| Total Shareholder Yield | 4.6% | 4.5% | 6.1% | 5.4% | 10.1% | 1.3% | 6.9% | 4.0% | 5.0% | 4.5% | 5.2% |
| Shares Outstanding | — | $118M | $121M | $123M | $129M | $132M | $123M | $125M | $126M | $126M | $129M |
Peer Comparison
Compare DRI with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 DRIYou | $23B | 22.1 | 15.5 | 22.4 | 21.9% | 11.3% | 46.1% | 13.0% | 3.3 |
 EAT | $6B | 17.7 | 11.1 | 15.3 | 18.2% | 9.5% | 186.7% | 19.1% | 2.4 |
 TXRH | $11B | 24.7 | 16.1 | 26.5 | 17.6% | 9.6% | 34.3% | 20.4% | 1.2 |
 BLMN | $692M | 128.7 | 10.9 | 7.2 | 8.9% | 4.1% | 2.3% | 4.3% | 9.0 |
 DENN | $322M | 15.2 | 12.1 | 350.6 | 73.4% | 10.0% | — | 9.7% | 6.8 |
 CAKE | $3B | 19.7 | 21.2 | 19.5 | 78.3% | 5.0% | 33.7% | 4.7% | 11.7 |
 CBRL | $687M | 14.9 | 9.3 | 11.4 | 33.0% | 1.6% | 10.3% | 2.6% | 5.9 |
 BJRI | $842M | 18.5 | 10.7 | 20.6 | 74.7% | 3.3% | 13.3% | 4.1% | 4.0 |
 MCD | $202B | 24.9 | 18.3 | 30.3 | 56.8% | 45.2% | — | 19.3% | 3.8 |
 YUM | $43B | 28.1 | 19.9 | 26.3 | 46.2% | 30.8% | — | 48.1% | 4.4 |
 CMG | $43B | 28.7 | 21.9 | 29.4 | 25.4% | 16.9% | 47.4% | 15.3% | 4.1 |
| Consumer Cyclical Median | — | 19.6 | 11.4 | 15.0 | 36.9% | 2.9% | 5.6% | 5.8% | 4.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Full DRI Stock Analysis
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Start ComparisonDRI — Frequently Asked Questions
Quick answers to the most common questions about buying DRI stock.
What is Darden Restaurants, Inc.'s P/E ratio?
Darden Restaurants, Inc.'s current P/E ratio is 22.1x. The historical average is 17.9x. This places it at the 79th percentile of its historical range.
What is Darden Restaurants, Inc.'s EV/EBITDA?
Darden Restaurants, Inc.'s current EV/EBITDA is 15.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.0x.
What is Darden Restaurants, Inc.'s ROE?
Darden Restaurants, Inc.'s return on equity (ROE) is 46.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 22.6%.
Is DRI stock overvalued?
Based on historical data, Darden Restaurants, Inc. is trading at a P/E of 22.1x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Darden Restaurants, Inc.'s dividend yield?
Darden Restaurants, Inc.'s current dividend yield is 2.84% with a payout ratio of 62.7%.
What are Darden Restaurants, Inc.'s profit margins?
Darden Restaurants, Inc. has 21.9% gross margin and 11.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Darden Restaurants, Inc. have?
Darden Restaurants, Inc.'s Debt/EBITDA ratio is 3.3x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.