Fundamental analysis · SEC EDGAR · as of 31/05/2026

Fundamental analysis of Darden Restaurants Inc

DRI · NYSE · Consumer

Fundamental quality

ATTRACTIVE

75

out of 100

Darden Restaurants Inc grows profitably: it increases revenue at double digits (12.9% a year) without giving up profitability (net margin 9.1%). On fundamental quality it scores 75 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its profitability (net margin 9.1%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Darden Restaurants is America's largest full-service restaurant operator: Olive Garden, LongHorn steakhouses and a collection of fine-dining brands. Middle America's tablecloth chain, run with a discipline that is the industry benchmark.

What will shape its future

  • Olive Garden's traffic, the mothership that decides the quarter.
  • The average diner's disposable income: eating out is the first thing cut.
  • Labor and food costs, the kitchen business's permanent pressure.

Breakdown by area

I.Growth
72

EPS growth: 16.8% · Revenue growth: 12.9%

II.Profitability
62

Net margin: 9.1% · ROE: 54.7% · ROIC: 32%

III.Financial health
88

Net debt/EBITDA: 0.99x

Source: SEC EDGAR · as of 31/05/2026

The score includes +1 for dividend strength: 5 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its profitability drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 65%
ROEbeats 91%
Growthbeats 69%
Less debtbeats 61%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Darden Restaurants Inc strengths

  • Solid return on capital: its ROE (54.7%) is inflated by buybacks, but ROIC —which strips that out— is 32%.
  • Growing earnings per share (16.8% annualized).
  • Revenue growing (12.9% annualized).
  • Revenue rising without interruption since 2021.

Darden Restaurants Inc risks and weaknesses

  • Its net debt has grown over the period.

Darden Restaurants Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20217,196629-285
20229,630953480
202310,488982517
202411,3901,0281,262
202512,0771,0501,889
202613,2111,2072,112

Between 2021 and 2026, revenue went from $7,196M to $13,211M (+84%) and net income went from $629M to $1,207M (+92%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

What changed with the May 31, 2026 results

Compared with the previous close (February 22, 2026), this is what moved in its accounts:

  • Quality score7375
  • ROE52.5%54.7%
  • Revenue growth9%12.9%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$6

per share, yearly

57.4% of earnings

Payout

at least 5 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Darden Restaurants Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Darden Restaurants Inc a good company to invest in?

In terms of business quality, Darden Restaurants Inc scores 75 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Darden Restaurants Inc a profitable company?

Darden Restaurants Inc is profitable, with a net margin of 9.1%, though a thin one.

Does Darden Restaurants Inc have a lot of debt?

Not particularly. Its net debt is 0.99 times its EBITDA, a low level.

Is Darden Restaurants Inc growing?

Its revenue has grown 12.9% annualized in recent years and its earnings per share 16.8%, and without interruption since 2021.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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