DRI
Darden Restaurants, Inc.
DRI's fundamentals are mixed: revenue grew 8.1%, but free cash flow fell 4.4%. At 22x earnings, it's trading above its usual 20x. Analysts expect earnings growth.
DRI Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Stable | |
| Healthy |
DRI's revenue, profitability and balance sheet are currently healthy, and its cash flow is stable.
DRI PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 17x | $179 | -22% |
| Fair | 20x | $205 | -10% |
| Forward | 20x | $228 | — |
| Current | 22x | $228 | — |
| Expensive | 23x | $232 | +1.7% |
Historical ranges are pointers, not guarantees.
DRI's PE is in its expensive range at 22x. If earnings grow as analysts expect, today's price would be 20x next year's earnings, in its fair range.
DRI Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Stable | |
| Stable | |
| Broad | |
| Moderate |
Analysts expect DRI's earnings to grow, with its revenue and profitability holding steady.
DRI Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $11.48 | +12% |
| Q3 2026 | $10.23 | +9.9% |
| Q2 2026 | $10.38 | +17% |
| Q1 2026 | $9.43 | +6.4% |
| Q4 2025 | $9.52 | +9.2% |
| Q3 2025 | $9.31 | +7.5% |
| Q2 2025 | $8.86 | +4.1% |
| Q1 2025 | $8.86 | +4% |
| Q4 2024 | $8.72 | +5.6% |
DRI's earnings per share have climbed steadily: $10.23 over the past year, up 9.9% from the year before, and higher year over year for 14 quarters in a row.
DRI Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $3.2B | +5.1% |
| Q2 2026 | $3.7B | +14% |
| Q1 2026 | $3.3B | +5.9% |
| Q4 2025 | $3.1B | +7.3% |
| Q3 2025 | $3B | +10% |
| Q2 2025 | $3.3B | +11% |
| Q1 2025 | $3.2B | +6.2% |
| Q4 2024 | $2.9B | +6% |
DRI's revenue has grown year over year for 22 quarters in a row: $3.2B last quarter, up 5.1% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 10% | -1.2 points |
| Q2 2026 | 14% | +2.2 points |
| Q1 2026 | 12% | -1.1 points |
| Q4 2025 | 10% | +0.2 points |
| Q3 2025 | 11% | +1.4 points |
| Q2 2025 | 12% | -1.7 points |
| Q1 2025 | 13% | +0.2 points |
| Q4 2024 | 10% | -0.1 points |
DRI's operating margin was 10% last quarter, down 1.2 points from the same quarter a year ago.
DRI Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $103.7M | -38% |
| Q2 2026 | $379M | +33% |
| Q1 2026 | $451.9M | +5.1% |
| Q4 2025 | $119.8M | -45% |
| Q3 2025 | $168.4M | +32% |
| Q2 2025 | $285M | -0.2% |
| Q1 2025 | $430.1M | -1.7% |
| Q4 2024 | $219.3M | +22% |
DRI generated $1.1B in free cash flow over the past year, down 4.4% from the year before.
DRI Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -1.6% | -1.9M shares |
| 1 year | -2.7% | -3.2M shares |
| 3 years | -6.2% | -7.6M shares |
| 5 years | -13% | -17.3M shares |
| Available history | -7.5% | -9.3M shares |
DRI has 114M diluted shares, down 2.7% from a year ago, with $710M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $220.8M |
| Q2 2026 | $137.3M |
| Q1 2026 | $127.3M |
| Q4 2025 | $224.4M |
| Q3 2025 | $182.7M |
| Q2 2025 | $51M |
| Q1 2025 | $53M |
| Q4 2024 | $141.8M |
DRI spent $710M buying back its own shares over the past year, up 66% from the year before.
DRI Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 1.1x | Healthy |
| Q2 2026 | 0.7x | Very low |
| Q1 2026 | 1.1x | Healthy |
| Q4 2025 | 1.2x | Healthy |
| Q3 2025 | 1.1x | Healthy |
| Q2 2025 | 1.0x | Healthy |
| Q1 2025 | 1.0x | Healthy |
| Q4 2024 | 1.2x | Healthy |
DRI's net debt is about 1.1 years of its operating earnings (EBITDA), about the same as a year ago.
DRI Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 62.0 | Neutral |
| Stochastic | 80.3 | Overbought |
DRI's weekly RSI is 62 (neutral) and its Stochastic is 80 (overbought).
DRI PE vs Consumer Cyclical Sector
| Metric | DRI | Sector median | Relative |
|---|---|---|---|
| PE | 22x | 18x | 24% above |
| PE % | 79 | 47 | 32 pts above |
DRI is trading at 22x earnings, a 24% premium to the Consumer Cyclical sector's median of 18x.
DRI Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $212.6 | 7.2% above |
| 20 week MA | $211.0 | 8% above |
| 50 week MA | $205.0 | 11% above |
| 100 week MA | $201.2 | 13% above |
| 200 week MA | $178.7 | 28% above |
DRI is in an uptrend: it's above all five of its weekly moving averages, and 28% above its 200-week average.
DRI Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $108.0 | $117.9 | +9.1% |
| 2021 | $117.9 | $148.8 | +26% |
| 2022 | $148.8 | $138.8 | -6.7% |
| 2023 | $138.8 | $164.3 | +18% |
| 2024 | $164.3 | $187.6 | +14% |
| 2025 | $187.6 | $188.4 | +0.4% |
| 2026 YTD | $188.4 | $227.9 | +21% |
DRI has finished higher in five of the last six years. It's up 21% so far in 2026.