DRI:NYE-Darden Restaurants, Inc (USD)

COMMON STOCK | Restaurants | NYE

Last Closing Price

USD 85.93

Change

+7.81 (+10.00)%

Market Cap

USD 10.14B

Volume

3.93M

Average Target Price

USD 86.96 (+1.20%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of November 24, 2019, it owned and operated approximately 1,799 restaurants, which included 867 under the Olive Garden, 518 under the LongHorn Steakhouse, 166 under the Cheddar's Scratch Kitchen, 79 under the Yard House, 59 under The Capital Grille, 45 under the Seasons 52, 42 under the Bahama Breeze, and 23 under the Eddie V's Prime Seafood brands. Darden Restaurants, Inc. was founded in 1968 and is based in Orlando, Florida.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-06-03 )

Largest Industry Peers for Restaurants

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
MCD McDonald's Corporation

+5.70 (+3.04%)

USD139.48B 24.74 18.00
CMG Chipotle Mexican Grill, Inc

-9.18 (-0.87%)

USD29.53B 87.69 38.32
YUM Yum! Brands, Inc

+2.35 (+2.55%)

USD27.25B 25.28 21.23
YUMC Yum China Holdings, Inc

+1.47 (+3.09%)

USD17.83B 32.41 12.56
QSR Restaurant Brands Internationa..

+1.46 (+2.56%)

USD16.85B 23.52 13.37
DPZ Domino's Pizza, Inc

+5.28 (+1.37%)

USD15.00B 36.78 27.11
ARMK Aramark

+1.35 (+5.09%)

USD6.63B 58.84 11.85
CNNE Cannae Holdings, Inc

-0.28 (-0.77%)

USD2.85B 3.63 2.23
SHAK Shake Shack Inc

+2.11 (+3.94%)

USD2.25B 111.10 40.09
EAT Brinker International, Inc

+1.51 (+5.61%)

USD0.99B 8.37 10.31

ETFs Containing DRI

Symbol Name Weight Mer Price(Change) Market Cap
HAU-U:CA Horizons Active US Divide.. 3.45 % 0.79 %

N/A

N/A
RCD Invesco S&P 500 Equal Wei.. 1.77 % 0.40 %

+4.01 (+4.47%)

USD0.05B

Market Performance

  Market Performance vs.
Industry/Classification (Restaurants)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -21.17% 50% F 30% F
Dividend Return 0.81% 45% F 36% F
Total Return -20.37% 50% F 30% F
Trailing 12 Months  
Capital Gain -27.19% 41% F 24% F
Dividend Return 1.49% 40% F 37% F
Total Return -25.70% 35% F 23% F
Trailing 5 Years  
Capital Gain 33.45% 69% D+ 79% C+
Dividend Return 18.05% 89% B+ 65% D
Total Return 51.50% 69% D+ 80% B-
Average Annual (5 Year Horizon)  
Capital Gain 14.30% 76% C 88% B+
Dividend Return 3.00% 80% B- 64% D
Total Return 17.30% 76% C 89% B+
Risk Return Profile  
Volatility (Standard Deviation) 21.70% 82% B- 49% F
Risk Adjusted Return 79.70% 88% B+ 93% A
Market Capitalization 10.14B 67% D+ 85% B
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Restaurants)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 15.21 65% D 52% F
Price/Book Ratio 4.34 38% F 17% F
Price / Cash Flow Ratio 8.07 44% F 39% F
EV/EBITDA 12.38 50% F 40% F
Management Effectiveness  
Return on Equity 27.45% 85% B 92% A-
Return on Invested Capital 21.38% 72% C- 93% A
Return on Assets 5.88% 72% C- 82% B-
Debt to Equity Ratio 38.77% 47% F 69% D+
Technical Ratios  
Short Ratio 2.01 50% F 48% F
Short Percent 6.92% 28% F 46% F
Beta 1.31 61% D- 34% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What to not like:
Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.