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Darden RestaurantsDRI +0.97%86 Cash-to-Debt is 0.03 as of May. 2026, which is 73% below its 10-year median of 0.11. GuruFocus rates DRI with a GF Score™ of 86/100 and a GF Value™ of $211.67 (Fairly Valued). The stock has 5 warning signs investors should review. Among 361 Restaurants companies, Darden Restaurants ranks worse than 86.98% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Darden Restaurants's cash to debt ratio for the quarter that ended in May. 2026 was 0.03.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Darden Restaurantscouldn't pay off its debt using the cash in hand for the quarter that ended in May. 2026.
The historical rank and industry rank for Darden Restaurants's Cash-to-Debt or its related term are showing as below:
DRI'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.04 Med: 0.11 Max: 0.49
Current: 0.04
During the past 13 years, Darden Restaurants's highest Cash to Debt Ratio was 0.49. The lowest was 0.04. And the median was 0.11.
DRI's Cash-to-Debt is ranked worse than 86.98% of 361
companies
in the Restaurants industry
Industry Median: 0.39
vs DRI: 0.04
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Darden Restaurants Cash-to-Debt Related Terms
Darden Restaurants Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Darden Restaurants's Cash-to-Debt can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Restaurants subindustry, Darden Restaurants's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Darden Restaurants Cash-to-Debt vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's Cash-to-Debt falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Darden Restaurants (DRI) has a Cash-to-Debt of 0.03 as of May. 2026. This is 73% below median its historical median of 0.11. Over the past decade, Darden Restaurants' Cash-to-Debt has ranged from 0.04 to 0.49. According to the industry distribution chart, Darden Restaurants ranks #314 out of 361 companies in the Restaurants industry, placing it in the top 87%.
Is Darden Restaurants' Cash-to-Debt too high?
Darden Restaurants' current Cash-to-Debt of 0.03 is 73% below median its 10-year median of 0.11. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 0.49. The Restaurants industry median Cash-to-Debt is 0.39. Darden Restaurants' value of 0.03 is 92.3% below this industry median. Based on the distribution chart, Darden Restaurants ranks #314 out of 361 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Darden Restaurants has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Darden Restaurants' Cash-to-Debt compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #314 out of 361 companies for Cash-to-Debt. This places Darden Restaurants in the lower half of its industry. The industry median Cash-to-Debt is 0.39. Darden Restaurants' value of 0.03 is 92.3% below this benchmark. Historically, Darden Restaurants' own Cash-to-Debt has ranged from 0.04 to 0.49 over the past decade. While the company's 10-year median is 0.11 vs. the industry median of 0.39, Darden Restaurants has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for a Restaurants company?
The median Cash-to-Debt among Restaurants companies is 0.39, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Darden Restaurants's current Cash-to-Debt of 0.03 is 92.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median Cash-to-Debt is 0.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Darden Restaurants's current Cash-to-Debt is 0.03, which is 73% below median its own 10-year median of 0.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Darden Restaurants stock overvalued right now?
Based on GuruFocus' analysis, Darden Restaurants (DRI) is currently considered Fairly Valued. The stock's GF Value™ is $211.67, compared to a current price of $211.31 — trading 0.2% below its estimated fair value. The current Cash-to-Debt is 0.03, which is 73% below median its 10-year median of 0.11 and 92.3% below the Restaurants industry median of 0.39. Darden Restaurants' overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Darden Restaurants (DRI), the current Cash-to-Debt is 0.03 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Darden Restaurants (DRI) Overvalued in 2026?
Based on GuruFocus' analysis, Darden Restaurants stock appears to be undervalued.
The current stock price of $211.31 is trading 0.2% below its estimated GF Value™ of $211.67.
GuruFocus considers Darden Restaurants to be Fairly Valued.
Key valuation signals for DRI:
Cash-to-Debt: 0.03 (73% below median its 10-year median of 0.11)
GF Value™: $211.67 vs. price of $211.31 (0.2% below fair value)
Industry Position: 92.3% below the Restaurants median (#314 of 361)
No single metric tells the full story. See the DRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Darden Restaurants is the largest global full-service dining operator, with over $12 billion in system sales across 2,159 company-owned stores at the end of fiscal 2025, spanning the US and Canada. The firm operates 10 banners in four segments, including Olive Garden (43% of sales), LongHorn Steakhouse (25%), and fine dining (21%), which includes The Capital Grille, Ruth's Chris, and Eddie V's. The other 11% of sales comes from smaller concepts such as Yard House and Cheddar's. Darden primarily generates revenue through sales of food and beverage items at its company-owned restaurants. It also earns royalties on sales from 154 franchised locations in US and international markets, which sit within the other segment but are immaterial to consolidated results.
86GF Score
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