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Morningstar

Darden Restaurants Inc DRI Stock Quote

Morningstar Rating
| Rating as of

NYSE: DRI

Last close prices updated as of Jun 09, 2023, 7:00 PM EST | USD | BATS BZX Real-Time Price
  • Last Close 161.91
  • Sector Consumer Cyclical
  • Industry Restaurants
  • Investment Style Mid Blend
  • Day Range 161.80  –  164.57
  • Year Range 110.96  –  164.98
  • Market Cap 19.5797 Bil
  • Volume / Avg 1.0 Mil /  1.4 Mil
  • Price / Sales 1.94
  • Price / Book 9.58
  • Forward Div Yield 2.99%
  • Trailing Div Yield 2.99%

Morningstar‘s Stock Analysis DRI

Valuation
Currency in —
Is it the right time to buy or sell?
Find out with Morningstar Investor
Is it the right time to buy or sell?
Find out with Morningstar Investor

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Darden Announces Acquisition of Ruth's Hospitality Group in Curious but Fairly Priced Strategic Move

Sean Dunlop Equity Analyst

Analyst Note

| Sean Dunlop |

We're not entirely sure why narrow-moat Darden Restaurants has elected to purchase 154-unit Ruth's Hospitality group, but at least it doesn't appear to be overpaying for the privilege. The acquisitive full-service operator intends to add the upscale steakhouse chain to its lineup at a valuation of $715 million after a planned cash offer of $21.50 per share, representing a 34% premium to the steakhouse's May 2, 2023, closing price and 9.4 times trailing EBITDA. Given the muted scale of the deal (with Ruth's clocking in at just shy of 4% of Darden's intraday market cap and at 5.2% of fiscal 2022 sales) and a reasonable multiple—PitchBook data suggests a median restaurant acquisition multiple of 12.4 times trailing EBITDA over the past five years—we don't anticipate any consequential changes to our $143 fair value estimate for Darden or to our Standard capital allocation rating. Deal closure is expected in June and without external financing.

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Key Statistics DRI

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Company Profile DRI

Business Description

Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $9.6 billion in fiscal 2022 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of eight restaurant chains: Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Eddie V’s, and Bahama Breeze. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2022, the company operated 1,864 restaurants in the U.S.

Contact
1000 Darden Center Drive
Orlando, FL, 32837
Sector Consumer Cyclical
Industry Restaurants
Employees 178,956

Related Articles DRI

Stock Analyst Update

Darden Announces Acquisition of Ruth’s Hospitality Group in Curious but Fairly Priced Strategic Move

Sean Dunlop
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Darden Earnings: Traffic Gains and Margin Improvement Validate Management Strategy

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Related News DRI

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Competitors & Peers DRI

More on DRI’s Competitors & Peers

Morningstar analysts hand-select direct competitors or comparable companies to provide context on the strength and durability of DRI’s competitive advantage.

Darden Restaurants Inc

XNYS: DRI

McDonald's Corp

XNYS: MCD

Starbucks Corp

XNAS: SBUX

Chipotle Mexican Grill Inc

XNYS: CMG
Price
161.91286.7997.962,040.55
Currency
USDUSDUSDUSD
Change
−$1.45 (0.89%) +$1.01 (0.35%) −$1.19 (1.20%) +$17.32 (0.86%)
Market Cap
19.58 Bil209.38 Bil112.30 Bil56.30 Bil
Industry
Restaurants Restaurants Restaurants Restaurants
Sector
Consumer Cyclical
Consumer Cyclical
Consumer Cyclical
Consumer Cyclical

* Trading data in this section is delayed by at least 15 minutes.

FAQs for Darden Restaurants Inc Stock

Yes. DRI has a forward dividend yield of 2.99%. See DRI’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

Learn more about dividend yield.

DRI’s market cap is 19.58 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

Learn more about market capitalization.

DRI’s stock style is Mid Core.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

DRI’s price/sales is 1.94.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

DRI’s price/forward earnings is 21.14.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

DRI’s price/book is 9.59.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See DRI’s valuation ratios compared to the Market Index.

DRI’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare DRI’s historical performance against its industry peers and the overall market.