Is the business good?
How good a business is DRI?
Darden Restaurants earns 34% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
34%
Return on invested capital · cost of capital 9.0% · 25 points above what the capital costs: growth creates value
- Operating margin
- 12%
Operating margin · Restaurants median 8.6% · 12 months to Q4 2026
- Cash conversion
- 0.93×
Cash conversion · 1.01× a year ago · some of the reported profit has not turned into cash yet
- Gross margin
- 20%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 9.0% |
| FY2022 | 12% |
| FY2023 | 11% |
| FY2024 | 12% |
| FY2025 | 11% |
| FY2026 | 12% |
Details›
- Gross margin12 months to Q4 2026
- 20%
- Operating margin12 months to Q4 2026
- 12%
- Net margin12 months to Q4 2026
- 9.1%
- Free cash flow margin
- 8.5%
- Revenue, trailing twelve months
- $13.2B
- Free cash flow, trailing twelve months
- $1.12B
- Net income, trailing twelve months
- $1.21B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 34%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.