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Darden Restaurants (FRA:DDN) Cyclically Adjusted PS Ratio : 1.93 (As of May. 27, 2024)


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What is Darden Restaurants Cyclically Adjusted PS Ratio?

As of today (2024-05-27), Darden Restaurants's current share price is €136.15. Darden Restaurants's Cyclically Adjusted Revenue per Share for the quarter that ended in Feb. 2024 was €70.54. Darden Restaurants's Cyclically Adjusted PS Ratio for today is 1.93.

The historical rank and industry rank for Darden Restaurants's Cyclically Adjusted PS Ratio or its related term are showing as below:

FRA:DDN' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.66   Med: 1.71   Max: 2.6
Current: 1.91

During the past years, Darden Restaurants's highest Cyclically Adjusted PS Ratio was 2.60. The lowest was 0.66. And the median was 1.71.

FRA:DDN's Cyclically Adjusted PS Ratio is ranked worse than
80.49% of 246 companies
in the Restaurants industry
Industry Median: 0.785 vs FRA:DDN: 1.91

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Darden Restaurants's adjusted revenue per share data for the three months ended in Feb. 2024 was €22.904. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is €70.54 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Darden Restaurants Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Darden Restaurants's Cyclically Adjusted PS Ratio 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.

* Premium members only.

Darden Restaurants Cyclically Adjusted PS Ratio Chart

Darden Restaurants Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.02 1.32 2.38 1.84 2.16

Darden Restaurants Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.04 2.16 2.08 2.07 2.21

Competitive Comparison of Darden Restaurants's Cyclically Adjusted PS Ratio

For the Restaurants subindustry, Darden Restaurants's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio 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's Cyclically Adjusted PS Ratio Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Darden Restaurants's Cyclically Adjusted PS Ratio falls into.



Darden Restaurants Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Darden Restaurants's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=136.15/70.54
=1.93

* 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's Cyclically Adjusted Revenue per Share for the quarter that ended in Feb. 2024 is calculated as:

For example, Darden Restaurants's adjusted Revenue per Share data for the three months ended in Feb. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=22.904/130.9299*130.9299
=22.904

Current CPI (Feb. 2024) = 130.9299.

Darden Restaurants Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201405 8.958 100.373 11.685
201408 9.065 100.352 11.827
201411 9.791 99.635 12.866
201502 12.017 99.032 15.888
201505 13.082 100.333 17.071
201508 11.716 100.548 15.256
201511 11.543 100.135 15.093
201602 12.878 100.040 16.854
201605 12.325 101.355 15.921
201608 12.070 101.617 15.552
201611 12.191 101.829 15.675
201702 14.012 102.779 17.850
201705 13.829 103.256 17.535
201708 12.882 103.587 16.282
201711 12.773 104.072 16.069
201802 13.715 105.052 17.093
201805 14.363 106.148 17.716
201808 14.191 106.383 17.465
201811 13.804 106.338 16.996
201902 15.833 106.649 19.438
201905 15.968 108.048 19.350
201908 15.396 108.245 18.623
201911 15.045 108.519 18.152
202002 17.522 109.139 21.020
202005 9.355 108.175 11.323
202008 9.860 109.662 11.772
202011 10.657 109.793 12.709
202102 10.858 110.968 12.811
202105 14.136 113.576 16.296
202108 14.883 115.421 16.883
202111 15.252 117.269 17.029
202202 16.829 119.703 18.407
202205 19.589 123.323 20.797
202208 19.486 124.958 20.417
202211 19.815 125.607 20.655
202302 21.243 126.928 21.913
202305 20.881 128.314 21.307
202308 20.524 129.538 20.745
202311 20.861 129.548 21.084
202402 22.904 130.930 22.904

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Darden Restaurants  (FRA:DDN) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Darden Restaurants Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Darden Restaurants's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Darden Restaurants (FRA:DDN) Business Description

Traded in Other Exchanges
Address
1000 Darden Center Drive, Orlando, FL, USA, 32837
Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $10.5 billion in fiscal 2023 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2023, the company operated 1,914 restaurants in the U.S.

Darden Restaurants (FRA:DDN) Headlines

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