Darden RestaurantsMEX:DRI 87 Interest Coverage is 10.50 as of May. 2026, which is 8% above its 10-year median of 9.74. GuruFocus rates MEX:DRI with a GF Score™ of 87/100 and a GF Value™ of MXN3,414.96. The stock has 5 warning signs investors should review. Among 262 Restaurants companies, Darden Restaurants ranks better than 56.87% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Darden Restaurants's
Operating Income
for the
three
months ended in May. 2026 was MXN9,327 Mil. Darden Restaurants's Interest Expense for the
three
months ended in May. 2026 was MXN-888 Mil.
Darden Restaurants's interest coverage for the quarter that ended in May. 2026 was 10.50.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Darden Restaurants's Interest Coverage or its related term are showing as below:
MEX:DRI'
s Interest Coverage Range Over the Past 10 Years
Min: 4.76 Med: 9.74 Max: 16.43
Current: 8.27
MEX:DRI's Interest Coverage is ranked better than 56.87% of 262
companies
in the Restaurants industry
Industry Median: 6.45
vs MEX:DRI: 8.27
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Darden Restaurants Interest Coverage Related Terms
Darden Restaurants Interest Coverage Historical Data
* Premium members only.
The historical data trend for Darden Restaurants's Interest Coverage 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: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:DRI vs YUMC, TXRH, DPZ: Interest Coverage Comparison
For the Restaurants subindustry, Darden Restaurants's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MEX:DRI) has a Interest Coverage of 10.50 as of May. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Darden Restaurants and its competitors. This is near median its historical median of 9.74. Over the past decade, Darden Restaurants' Interest Coverage has ranged from 4.76 to 16.43. According to the industry distribution chart, Darden Restaurants ranks #113 out of 262 companies in the Restaurants industry, placing it in the top 43.1%.
Is Darden Restaurants' Interest Coverage too high?
Darden Restaurants' current Interest Coverage of 10.50 is near median its 10-year median of 9.74. Over the past 10 years, this metric has ranged from a low of 4.76 to a high of 16.43. The Restaurants industry median Interest Coverage is 6.45. Darden Restaurants' value of 10.50 is 62.8% above this industry median. Based on the distribution chart, Darden Restaurants ranks #113 out of 262 companies in the Restaurants industry, which is above the industry midpoint. Overall, Darden Restaurants has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Darden Restaurants' Interest Coverage compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #113 out of 262 companies for Interest Coverage. This puts Darden Restaurants in the upper half of its industry. The industry median Interest Coverage is 6.45. Darden Restaurants' value of 10.50 is 62.8% above this benchmark. Historically, Darden Restaurants' own Interest Coverage has ranged from 4.76 to 16.43 over the past decade. While the company's 10-year median is 9.74 vs. the industry median of 6.45, 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 Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Darden Restaurants's current Interest Coverage of 10.50 is 62.8% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Darden Restaurants and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Darden Restaurants's current Interest Coverage is 10.50, which is near median its own 10-year median of 9.74. 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?
Darden Restaurants (MEX:DRI) has a current Interest Coverage of 10.50. The stock's GF Value™ is MXN3,414.96, compared to a current price of MXN3,470.00 — trading 1.6% above its estimated fair value. The current Interest Coverage is 10.50, which is near median its 10-year median of 9.74 and 62.8% above the Restaurants industry median of 6.45. Darden Restaurants' overall GF Score™ is 87/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Darden Restaurants (MEX:DRI), the current Interest Coverage is 10.50 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 (MEX:DRI) Overvalued in 2026?
Based on GuruFocus' analysis, Darden Restaurants stock appears to be overvalued.
The current stock price of MXN3,470.00 is trading 1.6% above its estimated GF Value™ of MXN3,414.96.
Key valuation signals for MEX:DRI:
Interest Coverage: 10.50 (near median its 10-year median of 9.74)
GF Value™: MXN3,414.96 vs. price of MXN3,470.00 (1.6% above fair value)
Industry Position: 62.8% above the Restaurants median (#113 of 262)
No single metric tells the full story. See the MEX: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.
87GF Score
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