DRIDarden Restaurants

$197.61+4.9% 1Y

Is the price fair?

Fair

Neither cheap nor expensive: nothing decisive, though at the top of its own P/E range.

1 to watch, 2 neutral
What the price assumes~+8% a year

Priced for ~8% a year FCF growth. Roughly in line with its three-year revenue growth of 7% a year.

Vs its own P/E rangedearer than 76% of its own historyderived

Expensive vs its own history: P/E 19.3 vs a 17.5 median over 37 quarters (+10% vs median).

Vs sector (EV/EBIT)17.2×

Sector median 16.2× across 156 covered peers. EV/EBIT counts debt as part of the price, so a cash-rich and a borrowed company can be compared on the same footing.

Unless marked, from derived, as of Aug 30, 2026.

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.

P/E (valuation)middle of the market
FCF yieldmiddle of the market

Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.

What DRI's price assumes

Darden Restaurants trades at 19.3× earnings against 29.0× for the median Restaurants name, cheaper than its own group.

19.3

Trailing P/E · Restaurants median 29.0 · cheaper than the typical name in its group

Price / sales
1.83

Price / sales · today's price, trailing year to Aug 30, 2026

Free cash flow yield
4.3%

Free cash flow yield · Restaurants median 4.3%

Growth the price implies
+7.6%

Growth the price implies · The price pays for +7.6% free cash flow growth a year for a decade; the business has delivered +9.6% a year over the last three.

Details›
Price / booktoday's price, trailing year to Aug 30, 2026
11.8
EV / EBITtoday's price, trailing year to Aug 30, 2026
17.2
EV / salestoday's price, trailing year to Aug 30, 2026
2.01
Consumer Cyclical median P/E321 names
17.8
Restaurants median P/E30 names
29.0
Free cash flow, trailing twelve months
$1.05B
Market capitalisation
$24.4B
3-year revenue growth
+7.5%
3-year free cash flow growth
+9.6%
What the market has paid for these earnings: 37 quarters of its own multiple × $10.23 of trailing earnings per share
MethodPer share
Its own P/E history, lower quartile$171.88
Its own P/E history, median$179.29
Its own P/E history, upper quartile$194.09
52-week range$166.67 – $227.72
Today$197.61

Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.