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Darden RestaurantsDRI +2.09%85 Debt-to-Equity is 2.87 as of May. 2026, which is 30% above its 10-year median of 2.20. GuruFocus rates DRI with a GF Score™ of 85/100 and a GF Value™ of $210.45 (Fairly Valued). The stock has 4 warning signs investors should review. Among 319 Restaurants companies, Darden Restaurants ranks worse than 85.89% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Darden Restaurants's Debt-to-Equity or its related term are showing as below:
DRI'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.39 Med: 2.2 Max: 2.87
Current: 2.87
During the past 13 years, the highest Debt-to-Equity Ratio of Darden Restaurants was 2.87. The lowest was 0.39. And the median was 2.20.
DRI's Debt-to-Equity is ranked worse than 85.89% of 319
companies
in the Restaurants industry
Industry Median: 0.9
vs DRI: 2.87
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Darden Restaurants Debt-to-Equity Related Terms
Darden Restaurants Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Darden Restaurants's Debt-to-Equity 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.
For the Restaurants subindustry, Darden Restaurants's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's Debt-to-Equity 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 Debt-to-Equity of 2.87 as of May. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Darden Restaurants and its competitors. This is 30% above median its historical median of 2.20. Over the past decade, Darden Restaurants' Debt-to-Equity has ranged from 0.39 to 2.87. According to the industry distribution chart, Darden Restaurants ranks #274 out of 319 companies in the Restaurants industry, placing it in the top 85.9%.
Is Darden Restaurants' Debt-to-Equity too high?
Darden Restaurants' current Debt-to-Equity of 2.87 is 30% above median its 10-year median of 2.20. Over the past 10 years, this metric has ranged from a low of 0.39 to a high of 2.87. The Restaurants industry median Debt-to-Equity is 0.90. Darden Restaurants' value of 2.87 is 218.9% above this industry median. Based on the distribution chart, Darden Restaurants ranks #274 out of 319 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Darden Restaurants has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Darden Restaurants' Debt-to-Equity compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #274 out of 319 companies for Debt-to-Equity. This places Darden Restaurants in the lower half of its industry. The industry median Debt-to-Equity is 0.90. Darden Restaurants' value of 2.87 is 218.9% above this benchmark. Historically, Darden Restaurants' own Debt-to-Equity has ranged from 0.39 to 2.87 over the past decade. While the company's 10-year median is 2.20 vs. the industry median of 0.90, Darden Restaurants has consistently been above 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 Debt-to-Equity for a Restaurants company?
The median Debt-to-Equity among Restaurants companies is 0.90, based on 319 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Darden Restaurants's current Debt-to-Equity of 2.87 is 218.9% above 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Darden Restaurants and its competitors. For the Restaurants industry, the median Debt-to-Equity is 0.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Darden Restaurants's current Debt-to-Equity is 2.87, which is 30% above median its own 10-year median of 2.20. 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 $210.45, compared to a current price of $208.85 — trading 0.8% below its estimated fair value. The current Debt-to-Equity is 2.87, which is 30% above median its 10-year median of 2.20 and 218.9% above the Restaurants industry median of 0.90. Darden Restaurants' overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Darden Restaurants (DRI), the current Debt-to-Equity is 2.87 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 $208.85 is trading 0.8% below its estimated GF Value™ of $210.45.
GuruFocus considers Darden Restaurants to be Fairly Valued.
Key valuation signals for DRI:
Debt-to-Equity: 2.87 (30% above median its 10-year median of 2.20)
GF Value™: $210.45 vs. price of $208.85 (0.8% below fair value)
Industry Position: 218.9% above the Restaurants median (#274 of 319)
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.
85GF Score
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