Darden Restaurants, Inc.DRI
NYSE•Consumer Cyclical•Restaurants
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.
Darden Restaurants, Inc. (DRI) reported trailing twelve months revenue of $12.76B as of February 2026, a 8.5% increase year-over-year. Quarterly revenue reached $3.35B, reflecting continued top-line momentum.
Darden Restaurants, Inc. generated $1.11B in TTM net income, with quarterly EBITDA of $548.20M. The operating margin contracted from 13.2% to 12.1%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (12.1%) and net margin (9.2%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 10.2% a year ago, reflecting increased costs or interest expense.
DRI trades at a P/E of 22.6x (in line with broad market averages) and a P/S of 2.0x. The price-to-book ratio of 11.9x indicates a significant premium over book value.
The company generated $451.90M in free cash flow over the trailing twelve months, a 5.1% increase year-over-year, indicating cash generation ability. The balance sheet shows $12.89B in total assets with $2.14B in long-term debt against $2.10B in stockholders equity for a debt-to-equity ratio of 1.0. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~11.5% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 49.2% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (7 of 7 quarters up), with ~12.1% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~11.3% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 1.0 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 3.7% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation