Darden Restaurants (STU:DDN) EBIT: €1,375 Mil (TTM As of May. 2026)


STU:DDN Darden Restaurants Inc STU:DDN
86 GF Score
Price €186.40
GF Value €183.44
Valuation Fairly Valued
! 5 Warning Signs
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What is Darden Restaurants EBIT?

Darden Restaurants STU:DDN -0.37% 86 EBIT is €1,375 Mil as of May. 2026. GuruFocus rates STU:DDN with a GF Score™ of 86/100 and a GF Value™ of €183.44 (Fairly Valued). The stock has 5 warning signs investors should review.

Darden Restaurants's earnings before interest and taxes (EBIT) for the three months ended in May. 2026 was €460 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in May. 2026 was €1,375 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Darden Restaurants's annualized ROC % for the quarter that ended in May. 2026 was 13.57%. Darden Restaurants's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 25.53%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Darden Restaurants's Earnings Yield (Joel Greenblatt) % for the quarter that ended in May. 2026 was 5.15%.


Darden Restaurants  (STU:DDN) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Darden Restaurants's annualized ROC % for the quarter that ended in May. 2026 is calculated as:

ROC % (Q: May. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2026 ) + Invested Capital (Q: May. 2026 ))/ count )
=1840.744 * ( 1 - 12.41% )/( (11626.24 + 12133.029)/ 2 )
=1612.3076696/11879.6345
=13.57 %

where

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=10903.925 - 622.656 - ( 203.378 - max(0, 2206.622 - 861.651+203.378))
=11626.24

Invested Capital(Q: May. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=11010.214 - 642.685 - ( 187.892 - max(0, 2572.622 - 807.122+187.892))
=12133.029

Note: The Operating Income data used here is four times the quarterly (May. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Darden Restaurants's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: May. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Feb. 2026  Q: May. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1840.744/( ( (7159.275 + max(-1303.009, 0)) + (7260.335 + max(-1359.67, 0)) )/ 2 )
=1840.744/( ( 7159.275 + 7260.335 )/ 2 )
=1840.744/7209.805
=25.53 %

where Working Capital is:

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(91.114 + 292.124 + 275.035) - (622.656 + 554.045 + 784.581)
=-1303.009

Working Capital(Q: May. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(111.194 + 279.313 + 228.723) - (642.685 + 518.736 + 817.479)
=-1359.67

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (May. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Darden Restaurants's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: May. 2026 )
=1374.687/26680.747
=5.15 %

* 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 EBIT Related Terms


Darden Restaurants EBIT Historical Data

* Premium members only.

The historical data trend for Darden Restaurants's EBIT 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 EBIT Chart

Darden Restaurants Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,101.24 1,112.83 1,219.80 1,211.38 1,375.25

Darden Restaurants Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
EBIT 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 327.30 260.36 281.64 372.49 460.19

STU:DDN vs YUMC, TXRH, DPZ: EBIT Comparison

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

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

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


STU:DDN
86GF Score
Darden Restaurants Inc STU:DDN
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Darden Restaurants EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,375 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €1,375 Mil mean?
Darden Restaurants (STU:DDN) has a EBIT of €1,375 Mil as of May. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Darden Restaurants.
Is Darden Restaurants' EBIT too high?
Darden Restaurants' current EBIT is €1,375 Mil. 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' EBIT compare to YUMC and TXRH?
Darden Restaurants' EBIT of €1,375 Mil can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Restaurants company?
A good EBIT depends on the Restaurants industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Darden Restaurants. Darden Restaurants's current EBIT is €1,375 Mil. 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 (STU:DDN) is currently considered Fairly Valued. The stock's GF Value™ is €183.44, compared to a current price of €186.40 — trading 1.6% above its estimated fair value. The current EBIT is €1,375 Mil. 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 EBIT calculated?
EBIT is calculated from a company's financial statements. For Darden Restaurants (STU:DDN), the current EBIT is €1,375 Mil 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 (STU:DDN) Overvalued in 2026?

Based on GuruFocus' analysis, Darden Restaurants stock appears to be overvalued. The current stock price of €186.40 is trading 1.6% above its estimated GF Value™ of €183.44. GuruFocus considers Darden Restaurants to be Fairly Valued.

Key valuation signals for STU:DDN:

  • EBIT: €1,375 Mil
  • GF Value™: €183.44 vs. price of €186.40 (1.6% above fair value)
  • GF Score™: 86/100 with 5 warning signs

No single metric tells the full story. See the STU:DDN 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 STU:DDN

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

€186.40
Price
€183.44
GF Value