Latest Ratios: P/E Ratio 21.9x · EV/EBITDA 14.6x · ROE 53.4%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $25.9B | $23.5B | $25.4B | $17.8B | $19.5B | $16.3B | $18.9B | $9.4B | $14.6B | $11.0B | $11.2B |
| Enterprise Value | $32.0B | $29.6B | $31.4B | $23.1B | $23.9B | $20.7B | $23.4B | $14.7B | $15.1B | $11.8B | $11.9B |
| P/E Ratio → | 21.90 | 19.63 | 24.18 | 17.34 | 19.84 | 17.06 | 30.03 | — | 20.44 | 18.48 | 23.40 |
| P/S Ratio | 1.94 | 1.78 | 2.10 | 1.57 | 1.86 | 1.69 | 2.62 | 1.21 | 1.71 | 1.36 | 1.56 |
| P/B Ratio | 11.81 | 10.64 | 10.97 | 7.95 | 8.85 | 7.40 | 6.71 | 4.05 | 6.10 | 5.02 | 5.33 |
| P/FCF | 24.53 | 20.99 | 24.50 | 18.13 | 20.47 | 18.97 | 20.41 | 43.40 | 18.61 | 18.75 | 19.17 |
| P/OCF | 13.99 | 12.68 | 14.86 | 11.06 | 12.60 | 12.94 | 15.81 | 13.26 | 11.58 | 11.00 | 12.45 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.24 | 2.60 | 2.02 | 2.28 | 2.15 | 3.25 | 1.88 | 1.77 | 1.46 | 1.66 |
| EV / EBITDA | 14.61 | 13.65 | 16.69 | 13.00 | 15.04 | 13.54 | 23.43 | 36.35 | 12.88 | 10.92 | 12.53 |
| EV / EBIT | 19.94 | 18.67 | 22.96 | 17.49 | 19.77 | 17.80 | 36.50 | — | 18.01 | 15.36 | 17.54 |
| EV / FCF | — | 26.45 | 30.29 | 23.45 | 25.12 | 24.18 | 25.32 | 67.54 | 19.22 | 20.08 | 20.38 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 21.7% | 21.7% | 21.9% | 21.4% | 20.1% | 20.7% | 20.8% | 18.0% | 21.7% | 21.6% | 21.9% |
| Operating Margin | 12.2% | 12.2% | 11.3% | 11.5% | 11.5% | 12.1% | 9.0% | 0.6% | 9.8% | 9.5% | 9.4% |
| Net Profit Margin | 9.1% | 9.1% | 8.7% | 9.0% | 9.4% | 9.9% | 8.7% | -0.7% | 8.4% | 7.4% | 6.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 53.4% | 53.4% | 46.1% | 46.2% | 44.6% | 38.0% | 24.5% | -2.2% | 31.1% | 27.7% | 23.6% |
| ROA | 9.5% | 9.5% | 8.8% | 9.5% | 9.6% | 9.2% | 6.1% | -0.7% | 12.6% | 11.1% | 9.7% |
| ROIC | 14.5% | 14.5% | 13.0% | 14.0% | 13.6% | 12.4% | 6.5% | 0.7% | 21.4% | 19.9% | 20.6% |
| ROCE | 15.9% | 15.9% | 14.0% | 15.1% | 14.5% | 13.6% | 7.6% | 0.8% | 19.6% | 19.0% | 18.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.87 | 2.87 | 2.70 | 2.42 | 2.18 | 2.22 | 2.05 | 2.58 | 0.39 | 0.42 | 0.45 |
| Debt / EBITDA | 2.92 | 2.92 | 3.32 | 3.06 | 3.02 | 3.19 | 5.76 | 14.88 | 0.80 | 0.86 | 0.99 |
| Net Debt / Equity | — | 2.77 | 2.59 | 2.33 | 2.01 | 2.03 | 1.62 | 2.25 | 0.20 | 0.36 | 0.33 |
| Net Debt / EBITDA | 2.82 | 2.82 | 3.19 | 2.95 | 2.78 | 2.92 | 4.55 | 12.99 | 0.40 | 0.72 | 0.74 |
| Debt / FCF | — | 5.46 | 5.79 | 5.32 | 4.65 | 5.21 | 4.91 | 24.14 | 0.60 | 1.33 | 1.20 |
| Interest Coverage | 8.16 | 8.16 | 7.57 | 9.43 | 14.21 | 15.90 | 9.72 | -1.59 | 15.49 | 4.74 | 16.36 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.31 | 0.31 | 0.42 | 0.38 | 0.51 | 0.64 | 1.01 | 0.61 | 0.61 | 0.40 | 0.46 |
| Quick Ratio | 0.21 | 0.21 | 0.28 | 0.24 | 0.37 | 0.49 | 0.91 | 0.50 | 0.46 | 0.25 | 0.32 |
| Cash Ratio | 0.07 | 0.07 | 0.11 | 0.09 | 0.19 | 0.23 | 0.66 | 0.43 | 0.31 | 0.11 | 0.18 |
| Asset Turnover | — | 1.03 | 0.96 | 1.01 | 1.02 | 0.95 | 0.68 | 0.78 | 1.44 | 1.48 | 1.35 |
| Inventory Turnover | 31.71 | 31.71 | 30.28 | 30.83 | 29.10 | 28.22 | 29.89 | 30.93 | 32.13 | 30.86 | 31.31 |
| Days Sales Outstanding | — | 3.59 | 2.83 | 2.53 | 2.79 | 2.73 | 3.46 | 2.33 | 3.79 | 3.78 | 3.86 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 3.0% | 2.6% | 3.5% | 3.0% | 3.5% | 1.1% | 3.4% | 2.5% | 2.8% | 2.5% |
| Payout Ratio | 57.4% | 57.4% | 62.7% | 61.2% | 60.1% | 59.1% | 32.2% | — | 52.0% | 52.6% | 58.3% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.6% | 5.1% | 4.1% | 5.8% | 5.0% | 5.9% | 3.3% | — | 4.9% | 5.4% | 4.3% |
| FCF Yield | 4.1% | 4.8% | 4.1% | 5.5% | 4.9% | 5.3% | 4.9% | 2.3% | 5.4% | 5.3% | 5.2% |
| Buyback Yield | 2.6% | 2.9% | 1.6% | 2.5% | 2.4% | 6.6% | 0.2% | 3.5% | 1.4% | 2.1% | 2.1% |
| Total Shareholder Yield | 5.2% | 5.8% | 4.2% | 6.1% | 5.4% | 10.1% | 1.3% | 6.9% | 4.0% | 5.0% | 4.5% |
| Shares Outstanding | — | $115M | $118M | $121M | $123M | $129M | $132M | $123M | $125M | $126M | $126M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DRI stock.
Darden Restaurants, Inc.'s current P/E ratio is 21.9x. The historical average is 17.8x. This places it at the 82th percentile of its historical range.
Darden Restaurants, Inc.'s current EV/EBITDA is 14.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.3x.
Darden Restaurants, Inc.'s return on equity (ROE) is 53.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.2%.
Based on historical data, Darden Restaurants, Inc. is trading at a P/E of 21.9x. This is at the 82th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Darden Restaurants, Inc.'s current dividend yield is 2.66% with a payout ratio of 57.4%.
Darden Restaurants, Inc. has 21.7% gross margin and 12.2% operating margin. Operating margin between 10-20% is typical for established companies.
Darden Restaurants, Inc.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Elevated leverage and thin liquidity buffer
Metrics are mathematically derived from official filings.
Premium Multiple With Priced-In Growth
With DRI trading at a trailing P/E of 19.28 and EV/EBITDA of 13.42 per current market data, the premium to Brinker's 12.26 and Bloomin's 7.90 EV/EBITDA appears defensible on portfolio breadth, yet the 1.14 PEG suggests the market already underwrites continued mid-single-digit growth.
The 13.42x EV/EBITDA sits below Texas Roadhouse's 16.94x but well above Bloomin's 7.90x and Cheesecake Factory's distressed-looking 29.34x, implying investors are paying for scale and diversification rather than outright growth leadership. Notably, the trailing P/E of 19.28 only modestly exceeds the forward P/E of 18.85, which suggests consensus earnings are not expected to compress meaningfully — an assumption that may prove generous given the revenue deceleration to 5.1% in 2027Q1. At 10.45x book, the multiple also prices in substantial intangible franchise value that is not visible in the reported balance sheet.
Operating Margin Slips on Check-Led Growth
As reported in DRI's quarterly ratio table, operating margin declined to 10.0% in 2027Q1 from 13.4% in 2024Q4, while net margin compressed to 7.3% from 10.9% in 2026Q4, suggesting the pricing-led earnings tailwind is fading faster than cost inflation is being absorbed.
The operating margin range of 9.8% to 13.4% over the ten-quarter series appears cyclical rather than structurally impaired, with the trough quarters (2025Q1 and 2024Q4-era readings around 9.8-10.1%) coinciding with lower same-restaurant momentum. Gross margin data of 116.1% in 2026Q4 and 18.0% in 2026Q3 is clearly distorted by classification anomalies, so operating margin is the more reliable read on true earning power. Investors should watch whether the 2027Q1 margin print reflects temporary wage and beef-cost pressure or a more durable erosion in traffic-adjusted pricing elasticity.
Returns Compress as Leverage Amplifies ROE
According to the reported ratio data, DRI's ROIC fell to 2.9% in 2027Q1 versus a 4.5% high in 2026Q4, while ROE dropped from 18.8% to 10.9% in the same span, indicating the equity return is being driven more by the debt stack than by operating efficiency.
ROIC of 2.6-4.5% across the series sits far below Texas Roadhouse's 14.5% and even Brinker's 22.7%, a gap that appears structural rather than cyclical given DRI's ownership of approximately $8.8B of property, plant, and equipment, which depresses asset turns to 0.24-0.29x. The divergence between a modest ROIC and a much higher ROE is a mathematical signature of high financial leverage, not necessarily of superior capital allocation. On a lease-adjusted basis the return on invested capital would likely look even weaker, warranting caution about extrapolating the headline ROE.
Negative Working Capital Masks Fixed-Asset Drag
Based on DRI's ten-quarter ratio series, the cash conversion cycle has oscillated between -11 and +20 days, with supplier payment terms (DPO) running 41 days in 2027Q1 versus DSO of just 4 days, suggesting the cash-generative advantage is structural but dependent on prompt consumer payment.
The near-zero DSO confirms the business is essentially a cash-and-carry operation, meaning the negative CCC is not evidence of operational virtuosity but simply of immediate customer settlement. Asset turnover of 0.24-0.29x, however, is the binding constraint: for a company that owns its real estate, this ratio reflects the capital intensity of 1,900 physical locations rather than poor inventory discipline. The quick ratio of 0.20 in 2027Q1 versus 0.27 in 2026Q1 indicates that working capital management cannot offset the fixed-asset load, so efficiency gains must come from restaurant-level labor productivity and unit economics.
Acquisition Debt Lifts Leverage Metrics Sharply
As disclosed in DRI's reported balance sheet figures, the debt-to-equity ratio stands at 3.20 in 2027Q1 versus 2.42 pre-acquisition in 2024Q4, while debt-to-EBITDA spiked to 24.63 in the same quarter against a 9.62 reading in 2026Q4, suggesting the Ruth's Chris integration has yet to normalize leverage.
Interest coverage of 15.11x in 2026Q4 and 12.67x in 2024Q4 suggests near-term debt service remains comfortable despite the elevated headline ratios, and total debt has in fact deleveraged from $8.0B in 2026Q1 to $6.6B in 2027Q1. The acute 24.63x leverage reading in 2027Q1 appears to reflect a depressed EBITDA base in that quarter rather than a new borrowing event, so investors should look for normalization over the next two quarters. The more meaningful caveat is that these ratios exclude capitalized operating leases, which for an owner-operator of this scale likely represent a material additional claim on cash flows.
Trailing P/E Obscures Lease-Adjusted Economics
The most commonly misapplied ratio for DRI is the trailing P/E of 19.28, since it ignores the capitalized lease obligations embedded in a 1,900-unit owner-operator model and understates true enterprise cost relative to a lease-light peer; EV/EBITDAR or lease-adjusted EV/EBITDA is the more defensible comparator.
Because DRI owns roughly 67% of its balance sheet in property, plant, and equipment, it carries far fewer off-balance-sheet lease claims than a pure lessee, yet the peer set mixes both models — Texas Roadhouse and Cheesecake Factory have materially different lease intensities — making the P/E cross-comparison analytically fragile. A secondary misapplication is the 3.0% dividend yield read as defensive income; with FCF margins swinging between -4.4% and 18.6%, the payout appears to be partially funded from balance-sheet capacity, which may not be sustainable through a full demand downturn. Investors are better served triangulating on lease-adjusted EV/EBITDA, ROIC, and same-restaurant traffic than on headline earnings multiples.