Darden Restaurants Inc (DRI) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Darden Restaurants Inc stock (DRI) is currently trading at $201.66. Darden Restaurants Inc PE ratio is 21.23. Darden Restaurants Inc PS ratio (Price-to-Sales) is 1.84. Analyst consensus price target for DRI is $226.04. WallStSmart rates DRI as Underperform.
- DRI PE ratio analysis and historical PE chart
- DRI PS ratio (Price-to-Sales) history and trend
- DRI intrinsic value — DCF, Graham Number, EPV models
- DRI stock price prediction 2025 2026 2027 2028 2029 2030
- DRI fair value vs current price
- DRI insider transactions and insider buying
- Is DRI undervalued or overvalued?
- Darden Restaurants Inc financial analysis — revenue, earnings, cash flow
- DRI Piotroski F-Score and Altman Z-Score
- DRI analyst price target and Smart Rating
Darden Restaurants Inc
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DRI Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Darden Restaurants Inc (DRI)
DRI trades 229% above its Graham fair value of $64.60, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Darden Restaurants Inc (DRI) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, price/sales. Concerns around price/book and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Darden Restaurants Inc (DRI) Key Strengths (4)
Every $100 of shareholder equity generates $52 in profit
100.00% of shares held by major funds and institutions
Large-cap company with substantial market presence
Paying $1.84 for every $1 of annual revenue
Supporting Valuation Data
Darden Restaurants Inc (DRI) Areas to Watch (6)
Earnings declining -3.30%, profits shrinking
Very expensive at 11.2x book value
Thin operating margins with cost pressures present
Modest revenue growth at 5.90%
Thin profit margins with limited profitability
Growth is fairly priced, not cheap, not expensive
Darden Restaurants Inc (DRI) Detailed Analysis Report
Overall Assessment
This company scores 55/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.3/10) while 6 fall into concern territory (avg 3.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Institutional Own., Market Cap. Valuation metrics including Price/Sales (1.84) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 51.50%.
The Bear Case
The primary concerns are EPS Growth, Price/Book, Operating Margin. Some valuation metrics including PEG Ratio (1.81), Price/Book (11.24) suggest expensive pricing. Growth concerns include Revenue Growth at 5.90%, EPS Growth at -3.30%, which may limit upside. Profitability pressure is visible in Operating Margin at 13.10%, Profit Margin at 8.66%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 51.50% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 5.90% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, Institutional Own.) and negatives (EPS Growth, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
DRI Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
DRI's Price-to-Sales ratio of 1.84x trades 86% above its historical average of 0.99x (96th percentile), historically expensive. The current valuation is 7% below its historical high of 1.98x set in Mar 2026, and 474% above its historical low of 0.32x in Nov 2008.
WallStSmart Analysis Synopsis
Data-driven financial summary for Darden Restaurants Inc (DRI) · CONSUMER CYCLICAL › RESTAURANTS
The Big Picture
Darden Restaurants Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 12.8B with 6% growth year-over-year. Profit margins are thin at 8.7%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 51.5% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 606M in free cash flow and 611M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Darden Restaurants Inc push profit margins above 15% as the business scales?
Sector dynamics: monitor RESTAURANTS industry trends, competitive moves, and regulatory changes that could impact Darden Restaurants Inc.
Bottom Line
Darden Restaurants Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(19 last 3 months)
| Insider | Type | Shares |
|---|---|---|
SONSTEBY, CHARLES M Director | Sell | -3,123 |
| Insider | Type | Shares |
|---|---|---|
CONNELLY, SUSAN M. SVP, Chief Comm & PA Officer | Sell | -2,635 |
| Insider | Type | Shares |
|---|---|---|
MARTIN, MELVIN JOHN Group President | Sell | -1,200 |
| Insider | Type | Shares |
|---|---|---|
MADONNA, JOHN W. SVP, Corporate Controller | Sell | -486 |
| Insider | Type | Shares |
|---|---|---|
VENNAM, RAJESH SVP, CFO | Sell | -500 |
Data sourced from SEC Form 4 filings
Last updated: 2:28:58 PM
About Darden Restaurants Inc(DRI)
NYSE
CONSUMER CYCLICAL
RESTAURANTS
USA
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando.