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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 4/10

vs
industry
vs
history
Cash to Debt 0.29
DRI's Cash to Debt is ranked lower than
66% of the 288 Companies
in the Global Restaurants industry.

( Industry Median: 0.67 vs. DRI: 0.29 )
Ranked among companies with meaningful Cash to Debt only.
DRI' s 10-Year Cash to Debt Range
Min: 0.01   Max: 0.36
Current: 0.29

0.01
0.36
Equity to Asset 0.37
DRI's Equity to Asset is ranked lower than
65% of the 282 Companies
in the Global Restaurants industry.

( Industry Median: 0.49 vs. DRI: 0.37 )
Ranked among companies with meaningful Equity to Asset only.
DRI' s 10-Year Equity to Asset Range
Min: 0.27   Max: 0.59
Current: 0.37

0.27
0.59
F-Score: 7
Z-Score: 2.59
M-Score: -2.04
WACC vs ROIC
4.28%
8.10%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 5.42
DRI's Operating margin (%) is ranked higher than
53% of the 291 Companies
in the Global Restaurants industry.

( Industry Median: 4.86 vs. DRI: 5.42 )
Ranked among companies with meaningful Operating margin (%) only.
DRI' s 10-Year Operating margin (%) Range
Min: 3.08   Max: 10.31
Current: 5.42

3.08
10.31
Net-margin (%) 10.57
DRI's Net-margin (%) is ranked higher than
87% of the 291 Companies
in the Global Restaurants industry.

( Industry Median: 2.87 vs. DRI: 10.57 )
Ranked among companies with meaningful Net-margin (%) only.
DRI' s 10-Year Net-margin (%) Range
Min: -2.87   Max: 6.96
Current: 10.57

-2.87
6.96
ROE (%) 32.13
DRI's ROE (%) is ranked higher than
90% of the 282 Companies
in the Global Restaurants industry.

( Industry Median: 7.28 vs. DRI: 32.13 )
Ranked among companies with meaningful ROE (%) only.
DRI' s 10-Year ROE (%) Range
Min: -7.9   Max: 30.13
Current: 32.13

-7.9
30.13
ROA (%) 10.71
DRI's ROA (%) is ranked higher than
82% of the 291 Companies
in the Global Restaurants industry.

( Industry Median: 3.50 vs. DRI: 10.71 )
Ranked among companies with meaningful ROA (%) only.
DRI' s 10-Year ROA (%) Range
Min: -4.49   Max: 11.37
Current: 10.71

-4.49
11.37
ROC (Joel Greenblatt) (%) 9.64
DRI's ROC (Joel Greenblatt) (%) is ranked lower than
58% of the 290 Companies
in the Global Restaurants industry.

( Industry Median: 14.09 vs. DRI: 9.64 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
DRI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 7.93   Max: 24.66
Current: 9.64

7.93
24.66
Revenue Growth (3Y)(%) -4.10
DRI's Revenue Growth (3Y)(%) is ranked lower than
79% of the 219 Companies
in the Global Restaurants industry.

( Industry Median: 3.70 vs. DRI: -4.10 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
DRI' s 10-Year Revenue Growth (3Y)(%) Range
Min: -4.1   Max: 14.6
Current: -4.1

-4.1
14.6
EBITDA Growth (3Y)(%) -14.40
DRI's EBITDA Growth (3Y)(%) is ranked lower than
88% of the 183 Companies
in the Global Restaurants industry.

( Industry Median: 6.40 vs. DRI: -14.40 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
DRI' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -14.4   Max: 279.7
Current: -14.4

-14.4
279.7
EPS Growth (3Y)(%) -26.00
DRI's EPS Growth (3Y)(%) is ranked lower than
83% of the 151 Companies
in the Global Restaurants industry.

( Industry Median: 4.80 vs. DRI: -26.00 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
DRI' s 10-Year EPS Growth (3Y)(%) Range
Min: -26   Max: 33.1
Current: -26

-26
33.1
» DRI's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

DRI Guru Trades in Q2 2014

David Dreman 2,505 sh (+7.19%)
Paul Tudor Jones 11,133 sh (+3.33%)
Westport Asset Management 56,500 sh (unchged)
» More
Q3 2014

DRI Guru Trades in Q3 2014

David Dreman 2,586 sh (+3.23%)
Westport Asset Management 56,500 sh (unchged)
Paul Tudor Jones Sold Out
» More
Q4 2014

DRI Guru Trades in Q4 2014

Manning & Napier Advisors, Inc 208,832 sh (New)
Jim Simons 129,200 sh (New)
Westport Asset Management Sold Out
David Dreman 2,105 sh (-18.60%)
» More
Q1 2015

DRI Guru Trades in Q1 2015

Steven Cohen 50,000 sh (New)
Paul Tudor Jones 16,372 sh (New)
Manning & Napier Advisors, Inc 208,832 sh (unchged)
David Dreman Sold Out
Jim Simons Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with DRI

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Ratios

vs
industry
vs
history
P/E(ttm) 12.30
DRI's P/E(ttm) is ranked higher than
96% of the 245 Companies
in the Global Restaurants industry.

( Industry Median: 28.20 vs. DRI: 12.30 )
Ranked among companies with meaningful P/E(ttm) only.
DRI' s 10-Year P/E(ttm) Range
Min: 5.51   Max: 35.31
Current: 12.3

5.51
35.31
Forward P/E 23.26
DRI's Forward P/E is ranked lower than
64% of the 211 Companies
in the Global Restaurants industry.

( Industry Median: 19.31 vs. DRI: 23.26 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 65.40
DRI's PE(NRI) is ranked lower than
84% of the 202 Companies
in the Global Restaurants industry.

( Industry Median: 27.10 vs. DRI: 65.40 )
Ranked among companies with meaningful PE(NRI) only.
DRI' s 10-Year PE(NRI) Range
Min: 5.7   Max: 97.43
Current: 65.4

5.7
97.43
P/B 3.70
DRI's P/B is ranked lower than
56% of the 320 Companies
in the Global Restaurants industry.

( Industry Median: 3.20 vs. DRI: 3.70 )
Ranked among companies with meaningful P/B only.
DRI' s 10-Year P/B Range
Min: 1.41   Max: 6.06
Current: 3.7

1.41
6.06
P/S 1.31
DRI's P/S is ranked lower than
62% of the 320 Companies
in the Global Restaurants industry.

( Industry Median: 1.23 vs. DRI: 1.31 )
Ranked among companies with meaningful P/S only.
DRI' s 10-Year P/S Range
Min: 0.29   Max: 1.58
Current: 1.31

0.29
1.58
PFCF 60.90
DRI's PFCF is ranked lower than
82% of the 210 Companies
in the Global Restaurants industry.

( Industry Median: 25.67 vs. DRI: 60.90 )
Ranked among companies with meaningful PFCF only.
DRI' s 10-Year PFCF Range
Min: 9.74   Max: 95.06
Current: 60.9

9.74
95.06
POCF 18.82
DRI's POCF is ranked lower than
76% of the 246 Companies
in the Global Restaurants industry.

( Industry Median: 12.40 vs. DRI: 18.82 )
Ranked among companies with meaningful POCF only.
DRI' s 10-Year POCF Range
Min: 2.88   Max: 20.07
Current: 18.82

2.88
20.07
EV-to-EBIT 26.05
DRI's EV-to-EBIT is ranked lower than
73% of the 218 Companies
in the Global Restaurants industry.

( Industry Median: 18.59 vs. DRI: 26.05 )
Ranked among companies with meaningful EV-to-EBIT only.
DRI' s 10-Year EV-to-EBIT Range
Min: 6.7   Max: 50.7
Current: 26.05

6.7
50.7
Shiller P/E 18.40
DRI's Shiller P/E is ranked higher than
87% of the 192 Companies
in the Global Restaurants industry.

( Industry Median: 33.46 vs. DRI: 18.40 )
Ranked among companies with meaningful Shiller P/E only.
DRI' s 10-Year Shiller P/E Range
Min: 7.45   Max: 28.06
Current: 18.4

7.45
28.06
Current Ratio 0.73
DRI's Current Ratio is ranked lower than
70% of the 283 Companies
in the Global Restaurants industry.

( Industry Median: 1.11 vs. DRI: 0.73 )
Ranked among companies with meaningful Current Ratio only.
DRI' s 10-Year Current Ratio Range
Min: 0.37   Max: 1.22
Current: 0.73

0.37
1.22
Quick Ratio 0.60
DRI's Quick Ratio is ranked lower than
73% of the 283 Companies
in the Global Restaurants industry.

( Industry Median: 0.93 vs. DRI: 0.60 )
Ranked among companies with meaningful Quick Ratio only.
DRI' s 10-Year Quick Ratio Range
Min: 0.16   Max: 1.1
Current: 0.6

0.16
1.1
Days Inventory 17.17
DRI's Days Inventory is ranked lower than
62% of the 273 Companies
in the Global Restaurants industry.

( Industry Median: 12.16 vs. DRI: 17.17 )
Ranked among companies with meaningful Days Inventory only.
DRI' s 10-Year Days Inventory Range
Min: 15.01   Max: 30.08
Current: 17.17

15.01
30.08
Days Sales Outstanding 3.57
DRI's Days Sales Outstanding is ranked higher than
74% of the 247 Companies
in the Global Restaurants industry.

( Industry Median: 9.61 vs. DRI: 3.57 )
Ranked among companies with meaningful Days Sales Outstanding only.
DRI' s 10-Year Days Sales Outstanding Range
Min: 1.88   Max: 3.83
Current: 3.57

1.88
3.83

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.36
DRI's Dividend Yield is ranked higher than
82% of the 293 Companies
in the Global Restaurants industry.

( Industry Median: 1.42 vs. DRI: 3.36 )
Ranked among companies with meaningful Dividend Yield only.
DRI' s 10-Year Dividend Yield Range
Min: 0.23   Max: 5.31
Current: 3.36

0.23
5.31
Dividend Payout 2.28
DRI's Dividend Payout is ranked lower than
95% of the 195 Companies
in the Global Restaurants industry.

( Industry Median: 0.58 vs. DRI: 2.28 )
Ranked among companies with meaningful Dividend Payout only.
DRI' s 10-Year Dividend Payout Range
Min: 0.07   Max: 3.67
Current: 2.28

0.07
3.67
Dividend growth (3y) 19.80
DRI's Dividend growth (3y) is ranked higher than
74% of the 94 Companies
in the Global Restaurants industry.

( Industry Median: 10.00 vs. DRI: 19.80 )
Ranked among companies with meaningful Dividend growth (3y) only.
DRI' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 108
Current: 19.8

0
108
Yield on cost (5-Year) 9.85
DRI's Yield on cost (5-Year) is ranked higher than
97% of the 297 Companies
in the Global Restaurants industry.

( Industry Median: 1.47 vs. DRI: 9.85 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
DRI' s 10-Year Yield on cost (5-Year) Range
Min: 0.67   Max: 15.38
Current: 9.85

0.67
15.38
Share Buyback Rate 1.70
DRI's Share Buyback Rate is ranked higher than
84% of the 173 Companies
in the Global Restaurants industry.

( Industry Median: -0.80 vs. DRI: 1.70 )
Ranked among companies with meaningful Share Buyback Rate only.
DRI' s 10-Year Share Buyback Rate Range
Min: 6.5   Max: 1.1
Current: 1.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 10.40
DRI's Price/Tangible Book is ranked lower than
81% of the 313 Companies
in the Global Restaurants industry.

( Industry Median: 3.90 vs. DRI: 10.40 )
Ranked among companies with meaningful Price/Tangible Book only.
DRI' s 10-Year Price/Tangible Book Range
Min: 0.95   Max: 17.8
Current: 10.4

0.95
17.8
Price/DCF (Projected) 1.70
DRI's Price/DCF (Projected) is ranked higher than
64% of the 226 Companies
in the Global Restaurants industry.

( Industry Median: 2.00 vs. DRI: 1.70 )
Ranked among companies with meaningful Price/DCF (Projected) only.
DRI' s 10-Year Price/DCF (Projected) Range
Min: 0.55   Max: 2.45
Current: 1.7

0.55
2.45
Price/Median PS Value 1.50
DRI's Price/Median PS Value is ranked lower than
58% of the 320 Companies
in the Global Restaurants industry.

( Industry Median: 1.30 vs. DRI: 1.50 )
Ranked among companies with meaningful Price/Median PS Value only.
DRI' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 1.75
Current: 1.5

0.4
1.75
Price/Graham Number 2.40
DRI's Price/Graham Number is ranked higher than
57% of the 242 Companies
in the Global Restaurants industry.

( Industry Median: 2.70 vs. DRI: 2.40 )
Ranked among companies with meaningful Price/Graham Number only.
DRI' s 10-Year Price/Graham Number Range
Min: 0.73   Max: 3.88
Current: 2.4

0.73
3.88
Earnings Yield (Greenblatt) 3.70
DRI's Earnings Yield (Greenblatt) is ranked lower than
59% of the 302 Companies
in the Global Restaurants industry.

( Industry Median: 4.70 vs. DRI: 3.70 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) only.
DRI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2   Max: 14.9
Current: 3.7

2
14.9
Forward Rate of Return (Yacktman) -9.46
DRI's Forward Rate of Return (Yacktman) is ranked lower than
81% of the 156 Companies
in the Global Restaurants industry.

( Industry Median: 9.17 vs. DRI: -9.46 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) only.
DRI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -9.7   Max: 25.3
Current: -9.46

-9.7
25.3

Analyst Estimate

May15 May16 May17
Revenue(Mil) 6,764 6,915 7,187
EPS($) 2.52 2.82 2.94
EPS without NRI($) 2.52 2.82 2.94

Business Description

Industry: Restaurants » Restaurants
Compare:BH, CMG, MCD, DIN, SBUX » details
Traded in other countries:DDN.Germany,
Darden Restaurants Inc is a Florida corporation incorporated in March 1995, and is the parent company of GMRI, Inc. The Company owns and operates full service restaurant. As of May 25, 2014, it operated through subsidiaries 2,207 restaurants in the United States and Canada. In the United States, it operated 2,174 restaurants in all 50 states, including 831 Olive Garden, 679 Red Lobster, 464 LongHorn Steakhouse, 54 The Capital Grille, 52 Yard House, 38 Seasons 52, 37 Bahama Breeze, 12 Eddie V's Prime Seafood, four test "synergy restaurants and three Wildfish Seafood Grille restaurants. In Canada, it operated 33 restaurants, including 27 Red Lobster and six Olive Garden restaurants. Through subsidiaries, it owns and operates all restaurants in the United States and Canada, except for three restaurants located in Central Florida and three restaurants in California which are owned jointly by the Company and third parties, and managed by the Company, seven franchised restaurants in Puerto Rico and one Atlanta, Georgia airport location. Of 2,207 restaurants in the United States and Canada open on May 25, 2014, 1,060 were located on owned sites and 1,147 were located on leased sites. As of May 25, 2014, it had 52 restaurants operated by independent third parties pursuant to area development and franchise agreements, including 23 Red Lobster restaurants in Japan, seven LongHorn Steakhouse restaurants in Puerto Rico (mentioned above), seven Red Lobster restaurants, four Olive Garden restaurants, and one LongHorn Steakhouse restaurant in the Middle East region. and five Olive Garden restaurants, one Red Lobster restaurant and one The Capital Grille restaurant in Mexico, one Red Lobster restaurant and one Olive Garden restaurant in Brazil and one Olive Garden restaurant in Peru. The Company's purchasing staff sources, negotiates and purchases food and supplies from more than 2,000 suppliers whose products originate in more than 30 countries. The Company is subject to various federal, state, local and international laws affecting its business.
» More Articles for NYSE:DRI

Headlines

Articles On GuruFocus.com
Darden Restaurants – Is It Worth Buying After Stong Rally In Six Months? May 08 2015 
Weekly CEO Buys Highlight: NRZ, BH, OPK, DRI, CLMS Apr 17 2015 
A Look at McDonald´s Performance Mar 28 2015 
Darden’s Earnings Report Signifies Turnaround Mar 24 2015 
Darden Restaurants Posts A Quarter Report Worth Mentioning Mar 24 2015 
Darden Restaurant Earnings Report – Tread With Caution Mar 23 2015 
Westport Buys Apparel Retailer Express During Q4 Feb 11 2015 
Betting on Starbucks' Future Jan 23 2015 
EBIX – Still a Bargain with at Least 25% Upside Potential Jan 08 2015 
Wendy's Absolute and Relative Valuation Nov 11 2014 

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