NYSE · Consumer Cyclical

Darden Restaurants, Inc.

DRI · Restaurants

$191.96

▼ -2.8 (-1.44%)

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Mr. Market is currently offering Darden Restaurants, Inc. at $191.96.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability C

Gross Profit Margin 21.9%

Operating Margin 11.9%

Net Income Margin 8.7%

Fin. Health F

Years to Pay Off Debt 5.9 yrs

Working Capital vs Long-Term Debt -$3.5B

Working Capital -$1.3B

Valuation F

Margin of Safety 0.0%

Price-to-Book 9.51x

Cash Flow C

Free Cash Flow $1.0B

CapEx % of Net Income 64.0%

Owner Earnings $2.2B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $22.0B

Enterprise Value $30.2B

P/E (TTM) 20.25

Dividend Yield 3.03%

Exchange NYSE

Key Margins

Gross Profit 21.9%

Operating Margin 11.9%

Net Margin 8.7%

Company Info

Sector Consumer Cyclical

Industry Restaurants

Employees 197924

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Darden Restaurants, Inc. at $191.96.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $191.96, the stock trades at a 203% premium to its Graham Number of $63.43. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Darden Restaurants, Inc.

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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	21.9% ▲	21.4%	20.1%	20.7%	N/A
Operating Margin %	11.9% ▲	11.9%	11.6%	12.0%	N/A
Net Income %	8.7% ▼	9.0%	9.4%	9.9%	N/A
Diluted EPS	8.86 ▲	8.51	7.99	7.39	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$12.6B	$11.3B	$10.2B	$10.1B	N/A
Total Debt	$6.2B ↑	$5.4B	$4.8B	$4.9B	N/A
Working Capital	-$1.3B ▲	-$1.4B	-$940M	-$668M	N/A
Years to Pay Debt	5.94	5.28	4.88	5.13	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$1.0B ▲	$984M	$951M	$854M	N/A
Owner Earnings	$2.2B	$2.1B	$2.0B	$1.7B	N/A
CapEx % of Net Income	64.0%	61.1%	60.5%	42.2%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-8,510	-4,514	-1,871	254
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	1,955,800	1,815,300	1,612,700	1,530,500
Total Unusual Items	-74,000	-36,700	-15,300	2,000
Total Unusual Items Excluding Goodwill	-74,000	-36,700	-15,300	2,000
Net Income From Continuing Operation Net Minority Interest	1,051,000	1,030,500	983,500	954,700
Reconciled Depreciation	516,100	459,900	387,800	368,400
Reconciled Cost Of Revenue	9,434,100	8,955,500	8,378,500	7,635,000
EBITDA	1,881,800	1,778,600	1,597,400	1,532,500
EBIT	1,365,700	1,318,700	1,209,600	1,164,100
Net Interest Income	-175,100	-138,700	-81,300	-68,700
Interest Expense	178,500	143,200	89,100	70,600
Interest Income	3,400	4,500	7,800	1,900
Normalized Income	1,116,490	1,062,686	996,929	952,954
Net Income From Continuing And Discontinued Operation	1,049,600	1,027,600	981,900	952,800
Total Expenses	10,640,400	10,039,100	9,270,700	8,469,800
Total Operating Income As Reported	1,362,300	1,314,200	1,201,800	1,162,200
Diluted Average Shares	118,400	120,800	122,900	129,000
Basic Average Shares	117,500	119,900	121,900	127,800
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,049,600	1,027,600	981,900	952,800
Net Income Common Stockholders	1,049,600	1,027,600	981,900	952,800
Net Income	1,049,600	1,027,600	981,900	952,800
Net Income Including Noncontrolling Interests	1,049,600	1,027,600	981,900	952,800
Net Income Discontinuous Operations	-1,400	-2,900	-1,600	-1,900
Net Income Continuous Operations	1,051,000	1,030,500	983,500	954,700
Tax Provision	136,200	145,000	137,000	138,800
Pretax Income	1,187,200	1,175,500	1,120,500	1,093,500
Other Income Expense	-74,000	-36,700	-15,300	2,000
Other Non Operating Income Expenses					-8,700
Special Income Charges	-74,000	-36,700	-15,300	2,000
Gain On Sale Of Ppe	-48,100	-13,100	15,100	4,800
Other Special Charges	24,800	24,300	25,900
Write Off	1,000	-1,000	2,100	-4,000
Impairment Of Capital Assets	100	300	2,400	6,800
Net Non Operating Interest Income Expense	-175,100	-138,700	-81,300	-68,700
Interest Expense Non Operating	178,500	143,200	89,100	70,600
Interest Income Non Operating	3,400	4,500	7,800	1,900
Operating Income	1,436,300	1,350,900	1,217,100	1,160,200
Operating Expense	1,206,300	1,083,600	892,200	834,800
Depreciation Amortization Depletion Income Statement	516,100	459,900	387,800	368,400
Depreciation And Amortization In Income Statement	516,100	459,900	387,800	368,400
Selling General And Administration	690,200	623,700	504,400	466,400
Selling And Marketing Expense	169,900	144,500	118,300	93,200
General And Administrative Expense	520,300	479,200	386,100	373,200
Other Gand A	520,300	479,200	386,100	373,200
Gross Profit	2,642,600	2,434,500	2,109,300	1,995,000
Cost Of Revenue	9,434,100	8,955,500	8,378,500	7,635,000
Total Revenue	12,076,700	11,390,000	10,487,800	9,630,000
Operating Revenue	12,076,700	11,390,000	10,487,800	9,630,000

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	117,034	118,863	121,071	123,946
Share Issued	117,034	118,863	121,071	123,946
Net Debt	1,928,900	1,314,200	562,500	508,400
Total Debt	6,229,700	5,427,800	4,793,900	4,887,300
Tangible Book Value	-791,800	-388,400	279,500	281,700
Invested Capital	4,480,200	3,751,500	3,131,800	3,127,200
Working Capital	-1,309,800	-1,369,700	-939,700	-668,100
Net Tangible Assets	-791,800	-388,400	279,500	281,700
Capital Lease Obligations	4,060,800	3,918,800	3,863,600	3,958,300
Common Stock Equity	2,311,300	2,242,500	2,201,500	2,198,200
Total Capitalization	4,480,200	3,664,700	3,131,800	3,127,200
Total Equity Gross Minority Interest	2,311,300	2,242,500	2,201,500	2,198,200
Stockholders Equity	2,311,300	2,242,500	2,201,500	2,198,200
Gains Losses Not Affecting Retained Earnings	31,800	25,600	3,200	-1,900
Other Equity Adjustments	31,800	25,600	3,200	-1,900
Retained Earnings	-16,100	-35,500	-32,500	-25,900
Capital Stock	2,295,600	2,252,400	2,230,800	2,226,000
Common Stock	2,295,600	2,252,400	2,230,800	2,226,000
Total Liabilities Net Minority Interest	10,275,700	9,080,500	8,040,000	7,937,600
Total Non Current Liabilities Net Minority Interest	8,028,200	6,888,000	6,102,600	6,090,100
Other Non Current Liabilities	1,803,600	1,580,900	1,407,900	1,232,200
Derivative Product Liabilities	-40,000	-51,800	-45,400	-28,000
Non Current Deferred Liabilities	278,800	232,000	142,200	201,100
Non Current Deferred Taxes Liabilities	278,800	232,000	142,200	201,100
Long Term Debt And Capital Lease Obligation	5,985,800	5,126,900	4,597,900	4,684,800
Long Term Capital Lease Obligation	3,816,900	3,704,700	3,667,600	3,755,800
Long Term Debt	2,168,900	1,422,200	930,300	929,000
Current Liabilities	2,247,500	2,192,500	1,937,400	1,847,500
Other Current Liabilities	162,400	178,800	148,800	123,400
Current Deferred Liabilities	599,400	591,800	512,000	498,000
Current Deferred Revenue	599,400	591,800	512,000	498,000
Current Debt And Capital Lease Obligation	243,900	300,900	196,000	202,500
Current Capital Lease Obligation	243,900	214,100	196,000	202,500
Current Debt		86,800
Other Current Borrowings		86,800
Commercial Paper	0	86,800	0		0
Pensionand Other Post Retirement Benefit Plans Current	361,300	329,900	294,900	286,000
Payables And Accrued Expenses	880,500	791,100	785,700	737,600
Current Accrued Expenses	228,900	210,300	189,000	193,700
Interest Payable	21,400	20,200	16,000	12,200
Payables	651,600	580,800	596,700	543,900
Total Tax Payable	212,000	181,300	170,500	177,000
Income Tax Payable	4,700	6,100	7,800	32,100
Accounts Payable	439,600	399,500	426,200	366,900
Total Assets	12,587,000	11,323,000	10,241,500	10,135,800
Total Non Current Assets	11,649,300	10,500,200	9,243,800	8,956,400
Other Non Current Assets	274,300	255,700	222,800	218,800
Goodwill And Other Intangible Assets	3,103,100	2,630,900	1,922,000	1,916,500
Other Intangible Assets	1,443,700	1,239,900	884,600	879,100
Goodwill	1,659,400	1,391,000	1,037,400	1,037,400
Net PPE	8,271,900	7,613,600	7,099,000	6,821,100
Accumulated Depreciation	-4,066,400	-3,759,900	-3,422,000	-3,140,900
Gross PPE	12,338,300	11,373,500	10,521,000	9,962,000
Construction In Progress	234,800	179,100	200,700	156,000
Other Properties	7,615,800	7,027,000	6,530,800	6,290,500
Buildings And Improvements	4,328,900	4,034,500	3,655,500	3,389,300
Land And Improvements	158,800	132,900	134,000	126,200
Current Assets	937,700	822,800	997,700	1,179,400
Other Current Assets	156,700	136,700	154,500	141,400
Prepaid Assets	135,600	121,700	107,300	274,800
Inventory	311,600	290,500	287,900	270,600
Receivables	93,800	79,100	80,200	72,000
Receivables Adjustments Allowances	-600	-400	-300	-300
Other Receivables	52,200	37,700	39,600	32,800
Accounts Receivable	42,200	41,800	40,900	39,500
Cash Cash Equivalents And Short Term Investments	240,000	194,800	367,800	420,600
Cash And Cash Equivalents	240,000	194,800	367,800	420,600
Cash Equivalents	240,000	194,800	367,800	420,600

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	1,026,600	983,600	951,300	853,600
Repurchase Of Capital Stock	-418,200	-453,900	-458,700	-1,071,300
Repayment Of Debt	-21,000	-619,900	-19,800	-12,900
Issuance Of Debt	750,000	1,100,000	0	0
Issuance Of Capital Stock	55,600	43,600	35,400	40,200
Capital Expenditure	-671,900	-628,300	-594,300	-402,500
Interest Paid Supplemental Data	171,900	135,100	82,400	65,000
Income Tax Paid Supplemental Data	148,500	136,300	47,400	102,600
End Cash Position	254,500	220,100	416,200	472,100
Beginning Cash Position	220,100	416,200	472,100	1,214,700
Changes In Cash	34,400	-196,100	-55,900	-742,600
Financing Cash Flow	-385,800	-483,400	-1,033,100	-1,609,700
Cash Flow From Continuing Financing Activities	-385,800	-483,400	-1,033,100	-1,609,700
Net Other Financing Charges	-6,900	-11,600	-200	-2,700
Cash Dividends Paid	-658,500	-628,400	-589,800	-563,000
Common Stock Dividend Paid	-658,500	-628,400	-589,800	-563,000
Net Common Stock Issuance	-362,600	-410,300	-423,300	-1,031,100
Common Stock Payments	-418,200	-453,900	-458,700	-1,071,300
Common Stock Issuance	55,600	43,600	35,400	40,200
Net Issuance Payments Of Debt	642,200	566,900	-19,800	-12,900
Net Short Term Debt Issuance	-86,800	86,800	0	0
Short Term Debt Payments			-427,000	0	-270,000
Short Term Debt Issuance		86,800	427,000	0	0
Net Long Term Debt Issuance	729,000	480,100	-19,800	-12,900
Long Term Debt Payments	-21,000	-619,900	-19,800	-12,900
Long Term Debt Issuance	750,000	1,100,000	0	0
Investing Cash Flow	-1,278,300	-1,324,600	-568,400	-389,000
Cash Flow From Continuing Investing Activities	-1,278,300	-1,324,600	-568,400	-389,000
Net Other Investing Changes	4,800	1,500	500	3,400
Net Business Purchase And Sale	-613,700	-701,100	0	0
Purchase Of Business	-613,700	-701,100	0	0
Net Intangibles Purchase And Sale		-27,100	-29,400	-25,600
Purchase Of Intangibles		-27,100	-29,400	-25,600
Net PPE Purchase And Sale	-642,100	-597,900	-539,500	-366,800
Sale Of PPE	2,500	3,300	25,400	10,100
Purchase Of PPE	-644,600	-601,200	-564,900	-376,900
Capital Expenditure Reported	-27,300	-27,100	-29,400	-25,600
Operating Cash Flow	1,698,500	1,611,900	1,545,600	1,256,100
Cash From Discontinued Operating Activities	-8,500	-9,800	-7,200	-8,500
Cash Flow From Continuing Operating Activities	1,707,000	1,621,700	1,552,800	1,264,600
Change In Working Capital	11,500	72,000	184,700	-104,100
Change In Other Working Capital	-10,200	-5,400	166,300	74,900
Change In Other Current Liabilities	14,200	62,900	34,600	-124,100
Change In Payables And Accrued Expense	47,900	1,000	33,800	51,400
Change In Accrued Expense	13,300	7,700	-8,400	4,100
Change In Payable	34,600	-6,700	42,200	47,300
Change In Account Payable	26,600	-11,300	40,900	43,200
Change In Tax Payable	8,000	4,600	1,300	4,100
Change In Income Tax Payable	8,000	4,600	1,300	4,100
Change In Inventory	-20,500	5,600	-17,300	-79,800
Change In Receivables	-13,200	9,300	-8,200	-3,900
Other Non Cash Items	-4,900	-18,400	-600	10,800
Stock Based Compensation	79,100	68,500	67,500	60,500
Asset Impairment Charge	49,200	12,400	-10,600	-2,000
Deferred Tax	5,000	-3,200	-59,500	-23,700
Deferred Income Tax	5,000	-3,200	-59,500	-23,700
Depreciation Amortization Depletion	516,100	459,900	387,800	368,400
Depreciation And Amortization	516,100	459,900	387,800	368,400
Amortization Cash Flow	20,000	24,800	20,400	21,700
Amortization Of Intangibles	20,000	24,800	20,400	21,700
Depreciation	496,100	435,100	367,400	346,700
Net Income From Continuing Operations	1,051,000	1,030,500	983,500	954,700

These metrics estimate what Darden Restaurants, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$63.43

Margin of Safety

Market Cap ÷ Company Value

1.94

P/B Ratio

9.51

Warren's Owner Earnings

$2.2B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$12.1B

vs > $1.5B revenue

❌ Strong Financial Condition

0.42x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

3.03%

vs Uninterrupted dividends

❌ Earnings Growth

+19.9% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

20.2x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

9.51x P/B (P/E×P/B: 192.6)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-81.53

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$139.34

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	64.0%	61.1%	60.5%	42.2%	N/A
Repurchase of Capital Stock	-$418M	-$454M	-$459M	-$1.1B	N/A
Free Cash Flow	$1.0B ▲	$984M ▲	$951M ▲	$854M •	N/A •
Warren's Owner Earnings	$2.2B	$2.1B	$2.0B	$1.7B	N/A

Peers & Industry Comparison

Restaurants — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
DRI	$191.96	$22.0B	20.25	21.9%	8.7%	$12.1B
MCD McDonald's Corporation	$284.35	$202.1B	23.8	57.4%	31.9%	$26.9B
SBUX Starbucks Corporation	$104.83	$119.5B	80.0	21.9%	3.9%	$38.5B
YUM Yum! Brands, Inc.	$154.13	$42.6B	24.8	45.7%	20.5%	$8.5B
QSR Restaurant Brands International	$80.11	$36.6B	30.5	33.8%	8.2%	$9.4B
DPZ Domino's Pizza Inc	$330.22	$11.0B	19.0	28.7%	11.9%	$5.0B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.30%

Low — management has little skin in the game

Return on Equity (ROE)

45.4%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

8.3%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$418M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+14.8% YoY

Debt is growing — management is leveraging up

Leadership Team

Ricardo Cardenas CPA

CEO, President & Director

Age 57

Pay: $3,697,698

0.352% of net income

Rajesh Vennam

Senior VP & CFO

Age 51

Pay: $1,743,571

0.166% of net income

Todd Burrowes

President of Business Development

Age 62

Pay: $1,822,234

0.174% of net income

John Melvin Martin

President of Specialty Restaurant Group

Age 64

Pay: $1,386,062

0.132% of net income

Daniel Kiernan

President of Olive Garden

Age 64

Pay: $1,806,851

0.172% of net income

Top Institutional Holders

Institution	% Owned	Shares
Capital World Investors	13.24%	15,161,277
Vanguard Group Inc	12.28%	14,063,355
Blackrock Inc.	8.67%	9,929,909
Wellington Management Group, LLP	7.05%	8,077,567
State Street Corporation	4.25%	4,868,175
Charles Schwab Investment Management, Inc.	3.66%	4,189,868
Raymond James Financial, Inc.	3.04%	3,481,748
Geode Capital Management, LLC	2.95%	3,374,663

⚠️ Very high debt-to-equity — leverage risk

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.59

Low volatility — more stable than the market

Short Interest

6.0% of float

Moderate short interest

Debt-to-Equity

3.88x

High leverage — significant financial risk

Current Ratio

0.39x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $169.00 Current: $191.96 High: $228.27

Currently at 39% of 52-week range

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