📊 DRI Key Takeaways
Is DRI a Good Investment? Thesis Analysis
Darden demonstrates solid operational performance with strong profitability metrics (10.7% operating margin, 8.1% net margin) and excellent return on equity of 23.8%, supported by 6% revenue growth and 4.1% EPS growth. However, the company's financial structure shows concerning leverage with 1.03x debt-to-equity ratio and very weak liquidity position (0.39x current ratio), which limits financial flexibility despite robust interest coverage of 13.1x.
Why Buy DRI? Key Strengths
- Strong net margin at 8.1% with 2.1% net income growth demonstrates operational efficiency and pricing power
- Excellent return on equity of 23.8% indicates effective capital deployment and shareholder value generation
- Solid interest coverage ratio of 13.1x shows comfortable debt servicing capacity despite leverage
- Consistent revenue growth of 6% YoY indicates stable brand portfolio and market demand
DRI Investment Risks to Consider
- Very tight liquidity position with current ratio of 0.39x and quick ratio of 0.26x raises concerns about short-term obligations
- High leverage with debt-to-equity ratio of 1.03x limits financial flexibility for unexpected challenges or strategic investments
- Operating cash flow data unavailable prevents assessment of cash generation quality and working capital management
- Restaurant sector sensitivity to labor costs, commodity inflation, and consumer discretionary spending
Key Metrics to Watch
- Operating cash flow trend and free cash flow generation to assess actual cash conversion
- Current ratio and working capital management to monitor liquidity stress
- Operating margin sustainability amid wage and commodity cost pressures
- Debt reduction progress to improve capital structure and financial flexibility
DRI Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DRI Profitability Ratios
DRI vs Consumer Sector
How DARDEN RESTAURANTS INC compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DRI Overvalued or Undervalued?
Based on fundamental analysis, DARDEN RESTAURANTS INC has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DRI Balance Sheet & Liquidity
DRI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: DARDEN RESTAURANTS INC's revenue has grown significantly by 42% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.99 reflects profitable operations.
DRI Growth Metrics (YoY)
DRI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.9B | $215.1M | $1.82 |
| Q1 2026 | $2.8B | $207.2M | $1.74 |
| Q3 2025 | $3.0B | $312.9M | $2.60 |
| Q2 2025 | $2.7B | $212.1M | $1.76 |
| Q1 2025 | $2.7B | $194.5M | $1.59 |
| Q3 2024 | $2.8B | $286.6M | $2.34 |
| Q2 2024 | $2.5B | $187.2M | $1.52 |
| Q1 2024 | $2.4B | $193.0M | $1.56 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DRI Capital Allocation
DRI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for DARDEN RESTAURANTS INC (CIK: 0000940944)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DRI
What is the AI rating for DRI?
DARDEN RESTAURANTS INC (DRI) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DRI's key strengths?
Claude: Strong net margin at 8.1% with 2.1% net income growth demonstrates operational efficiency and pricing power. Excellent return on equity of 23.8% indicates effective capital deployment and shareholder value generation.
What are the risks of investing in DRI?
Claude: Very tight liquidity position with current ratio of 0.39x and quick ratio of 0.26x raises concerns about short-term obligations. High leverage with debt-to-equity ratio of 1.03x limits financial flexibility for unexpected challenges or strategic investments.
What is DRI's revenue and growth?
DARDEN RESTAURANTS INC reported revenue of $6.1B.
Does DRI pay dividends?
DARDEN RESTAURANTS INC pays dividends, with $349.0M distributed to shareholders in the trailing twelve months.
Where can I find DRI SEC filings?
Official SEC filings for DARDEN RESTAURANTS INC (CIK: 0000940944) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DRI's EPS?
DARDEN RESTAURANTS INC has a diluted EPS of $4.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DRI a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, DARDEN RESTAURANTS INC has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DRI stock overvalued or undervalued?
Valuation metrics for DRI: ROE of 23.8% (sector avg: 18%), net margin of 8.1% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy DRI stock in 2026?
Our dual AI analysis gives DARDEN RESTAURANTS INC a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DRI's free cash flow?
DARDEN RESTAURANTS INC's operating cash flow is N/A, with capital expenditures of $375.0M.
How does DRI compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 8.1% (avg: 8%), ROE 23.8% (avg: 18%), current ratio 0.39 (avg: 1.5).