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Darden Restaurants, Inc (DRI) Fair Value & Analysis

Consumer Cyclical · US · Market cap $22.4B

DR Darden Restaurants, Inc logo Darden Restaurants, Inc DRI · US
Price$210.94
Fair Value$173.68
Upside-17.7%
Quality70/100
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Healthy Growth
Thin margins · 9.1% net margin
Moderate debt · generates free cash flow
3.05% dividend yield
Mixed vs. peers (7/15)
Wide moat 65/100
Evidence: High Range $115.56 – $249.92 Share as image

Fair value as of: Jul 15, 2026

From 26 valuation models · updated 23 days ago

Fair value updated Jul 15, 2026, revised from $144.51 to $173.68 (+20.2%) since Jun 24, 2026. Share price +4.0% over the past month.

A solid business, but screening 18% overvalued on our models.

What matters now

  • A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • A fairly wide model range ($115.56 to $249.92) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$217.32 $97.08 Fair Value $173.68 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range $97.08 – $217.32 · fair‑value band $115.56 – $249.92 · the $210.94 price screens above the $173.68 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Darden Restaurants, Inc (DRI) currently trades at $210.94, while our model-based Fair Value estimate is $173.68, implying the stock looks roughly 17.7% overvalued today. We read business quality at 70/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Darden Restaurants, Inc generated revenue of $12.8B at a net margin of 8.7%. Revenue grew 5.9% year over year. It earns a return on equity of 51.5%. Net debt stands at $5.8B. Fundamentals as of Jul 15, 2026

Our scenario range runs from $115.56 (bear case) to $249.92 (bull case); at $210.94, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 5% below its 52-week high and 27% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -55% fair-value upside, at -18%, DRI screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $94.27 $144.92 $216.36 80
Residual Income $73.80 $100.65 $969.99 76
Rev-Margin DCF $98.83 $167.96 $245.52 74
All 26 models by family
DCF Models
FCF DCF $91.96 $148.30 $232.39 38
Owner Earnings $83.68 $135.73 $213.41 31
5Y Revenue Exit $98.83 $167.78 $254.88 39
5Y EBITDA Exit $126.17 $218.10 $323.98 41
5Y P/E Exit $112.17 $192.32 $274.99 38
10Y Revenue Exit $91.53 $153.50 $234.76 36
10Y EBITDA Exit $112.61 $188.13 $286.70 37
10Y P/E Exit $103.73 $170.39 $249.88 35
Earnings-Based
Graham-Dodd $71.64 $204.79 $269.96 54
Lynch FV $41.96 $59.95 $77.93 50
PEG = 1.0 $41.96 $59.95 $77.93 46
EPV $100.40 $119.91 $136.98 59
Dividend Discount
Gordon GGM $55.56 $115.51 $183.25 70
DDM Multi-Stage $55.56 $88.58 $121.23 61
Multiples
P/E Multiple $158.03 $210.71 $263.39 63
P/S Multiple $134.33 $179.11 $223.88 58
P/B Multiple $43.37 $57.82 $72.28 55
EV/EBIT $169.89 $232.08 $294.26 53
EV/EBITDA $165.83 $226.67 $287.50 54
EV/Revenue $109.09 $162.98 $216.88 43
Asset-Based
NCAV (Graham) $9.64 $12.91 $19.27 50
Growth DCF
Growth DCF $94.27 $144.92 $216.36 80
Rev-Margin DCF $98.83 $167.96 $245.52 74
Economic Profit
Residual Income $73.80 $100.65 $969.99 76
ROIC Compounder $106.60 $134.98 $165.47 72
Growth Earnings
Growth-Adj P/E $127.59 $182.27 $236.95 68

Widest divergence: Growth Earnings ($182.27) versus Asset-Based ($12.91). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $12.8B
Revenue growth (YoY) +5.9%
Net margin 8.7%
Return on equity 51.5%
Free cash flow $1.1B FY2026
P/E ratio 20.4
More key figures
Operating margin 13.2%
EPS (TTM) $9.50
Dividend yield 3.0%
EPS growth (YoY) -3.3%
Net debt $5.8B FY2026

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 67 · Market factors (momentum, volatility) 63

Profitability 76
Margins and returns on capital today
Quality Growth 73
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Darden Restaurants, Inc., together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada.

Full company description

Darden Restaurants, Inc., together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. The company operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Chuy's, Yard House, Ruth's Chris Steak House, The Capital Grille, Seasons 52, Eddie V's Prime Seafood, Bahama Breeze, The Capital Burger, Darden and Darden Restaurants brand names. Darden Restaurants, Inc. was founded in 1938 and is based in Orlando, Florida.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Darden Restaurants, Inc reported revenue of $13.2B in FY2026 versus $9.6B in FY2022, a compound +8.2%/yr. Reported net income was $1.2B in FY2026, compounding +6.1%/yr from FY2022.

Growth Quality 93/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
$13.2B
Latest YoY
+9.4%
Avg. growth/yr (3Y)
+8.0%
Avg. growth/yr (5Y)
+12.9%
Avg. growth/yr (31Y)
+4.7%
Revenue +8.2%/yr
FY22 $9.6B
FY23 $10.5B
FY24 $11.4B
FY25 $12.1B
FY26 $13.2B
Net income +6.1%/yr
FY22 $953M
FY23 $982M
FY24 $1.0B
FY25 $1.0B
FY26 $1.2B

DRI screens 18% overvalued. Compare with McDonald's Corporation →

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Cite: Fair Value Calculator (2026). "Darden Restaurants, Inc Fair Value". https://www.fairvalue-calculator.com/stock/DRI

Peer Group

Restaurants · 229 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 70 · Top 25%
Fair Value upside −18% · Below median
Return on equity (TTM) 54% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 9% · Top 25%
Operating margin (TTM) 14% · Top 25%
Revenue growth 14% · Top 25%
Dividend yield (TTM) 3.1% · Above median
Debt / equity 0.96× · Higher than 75% of peers

Valuation Multiples vs Restaurants median · lower = cheaper

P/E (TTM) 18.8× · Pricier than median
P/B 10.16× · Pricier than 75% of peers
P/S (TTM) 1.70× · Pricier than 75% of peers
P/FCF 20.0× · Pricier than 75% of peers
EV/EBITDA 11.3× · Pricier than median
PEG 1.76× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 10 · sector 28
FUTURE 69 · sector 21
PAST 100 · sector 16
HEALTH 52 · sector 97
DIVIDEND 61 · sector 58

Insider activity: 44/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Restaurants stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
McDonald's Corporation MCDS C$24.01 C$10.84 -55%
Starbucks Corporation SBUX $105.49 $35.83 -66%
Chipotle Mexican Grill, Inc CMG $34.63 $18.43 -47%
Yum! Brands, Inc YUM $163.54 $59.66 -64%
Restaurant Brands International Inc QSR C$104.19 C$36.37 -65%
Yum China Holdings YUMC $43.90 $55.10 +26%
Texas Roadhouse, Inc TXRH $197.03 $104.89 -47%
Dutch Bros Inc BROS $68.36 $12.80 -81%
Domino's Pizza, Inc DPZ $322.18 $231.96 -28%
CAVA Group CAVA $68.85 $10.69 -84%

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Frequently asked questions

Is Darden Restaurants, Inc (DRI) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of $173.68 versus a price of $210.94, about −18% (overvalued).
What is the fair value of DRI?
Our model-based fair value for Darden Restaurants, Inc is $173.68 (as of Jul 15, 2026), built from audited fundamentals. The current price is $210.94.
What is the quality score of DRI?
Darden Restaurants, Inc has a Quality Score of 70/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Darden Restaurants, Inc (DRI)?
Darden Restaurants, Inc reported trailing-twelve-month revenue of about $12.8B (latest available figure, as of Jul 15, 2026).
What is the net profit margin of DRI?
The net profit margin of Darden Restaurants, Inc is about 8.7%, meaning it keeps roughly 8.7% of revenue as net income. Based on the latest reported figures.
Does Darden Restaurants, Inc pay a dividend?
Darden Restaurants, Inc currently shows a dividend yield of about 2.98% relative to its recent price (as of Jul 15, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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