DRIDarden Restaurants
Is the business good?
The checks split: earnings fully cash-backed (1.3×), but returns that lean on debt.
Operating profit is fully backed by cash.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 55% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is DRI?
Darden Restaurants earns 28% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 19 points above what the capital costs: growth creates value
- Operating margin
- 12%
Operating margin · Restaurants median 7.8% · 12 months to Q1 2027
- Cash conversion
- 1.31×
Cash conversion · 1.41× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 9.0% |
| FY2022 | 12% |
| FY2023 | 11% |
| FY2024 | 12% |
| FY2025 | 11% |
| FY2026 | 12% |
Details›
- Gross margin12 months to Q1 2027
- 20%
- Operating margin12 months to Q1 2027
- 12%
- Net margin12 months to Q1 2027
- 8.8%
- Free cash flow margin
- 7.9%
- Revenue, trailing twelve months
- $13.4B
- Free cash flow, trailing twelve months
- $1.05B
- Net income, trailing twelve months
- $1.18B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 28%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Restaurants
The closest names by size in the same industry