DRI (Darden Restaurants) Debt-to-EBITDA : (As of May. 2026)

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DRI Darden Restaurants Inc DRI
86 GF Score
Price $209.28
GF Value $211.72
Valuation Fairly Valued
! 5 Warning Signs
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What is Darden Restaurants Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Darden Restaurants's Short-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2026 was $929 Mil. Darden Restaurants's Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2026 was $7,082 Mil. Darden Restaurants's annualized EBITDA for the quarter that ended in May. 2026 was $2,652 Mil. Darden Restaurants's annualized Debt-to-EBITDA for the quarter that ended in May. 2026 was 3.02.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Darden Restaurants's Debt-to-EBITDA or its related term are showing as below:

DRI' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.79   Med: 3.03   Max: 21.94
Current: 2.95

During the past 13 years, the highest Debt-to-EBITDA Ratio of Darden Restaurants was 21.94. The lowest was 0.79. And the median was 3.03.

DRI's Debt-to-EBITDA is ranked better than
50.16% of 305 companies
in the Restaurants industry
Industry Median: 2.97 vs DRI: 2.95

Darden Restaurants  (NYSE:DRI) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Darden Restaurants Debt-to-EBITDA Related Terms

Darden Restaurants Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Darden Restaurants's Debt-to-EBITDA 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.

Darden Restaurants Debt-to-EBITDA Chart

Darden Restaurants Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Debt-to-EBITDA
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Darden Restaurants Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
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DRI vs YUMC, TXRH, DPZ: Debt-to-EBITDA Comparison

For the Restaurants subindustry, Darden Restaurants's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Darden Restaurants's Debt-to-EBITDA falls into.


DRI
86GF Score
Darden Restaurants Inc DRI
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Darden Restaurants Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Darden Restaurants's Debt-to-EBITDA for the fiscal year that ended in May. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(928.9 + 7081.7) / 2146
=3.73

Darden Restaurants's annualized Debt-to-EBITDA for the quarter that ended in May. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(928.9 + 7081.7) / 2652.4
=3.02

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (May. 2026) EBITDA data.

Is Darden Restaurants (DRI) Overvalued in 2026?

Based on GuruFocus' analysis, Darden Restaurants stock appears to be undervalued. The current stock price of $209.28 is trading 1.2% below its estimated GF Value™ of $211.72. GuruFocus considers Darden Restaurants to be Fairly Valued.

Key valuation signals for DRI:

  • Debt-to-EBITDA:
  • GF Value™: $211.72 vs. price of $209.28 (1.2% below fair value)
  • GF Score™: 86/100 with 5 warning signs

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 Business Description

Address 1000 Darden Center Drive, Orlando, FL, USA, 32837
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

Get the complete analysis for DRI

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$209.28
Price
$211.72
GF Value