Darden Restaurants (MEX:DRI) Beneish M-Score: -2.36 (As of Jun. 27, 2026)


MEX:DRI Darden Restaurants Inc MEX:DRI
87 GF Score
Price MXN3,470.00
GF Value MXN3,414.96
! 5 Warning Signs
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What is Darden Restaurants Beneish M-Score?

Darden Restaurants MEX:DRI 87 Beneish M-Score is -2.36 as of Jun. 27, 2026. 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 357 Restaurants companies, Darden Restaurants ranks worse than 86.27% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Darden Restaurants's Beneish M-Score or its related term are showing as below:

MEX:DRI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19   Med: -2.62   Max: -2.36
Current: -2.36

During the past 13 years, the highest Beneish M-Score of Darden Restaurants was -2.36. The lowest was -3.19. And the median was -2.62.


Darden Restaurants Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Darden Restaurants's Beneish M-Score 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 Beneish M-Score Chart

Darden Restaurants Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.45 -2.61 -2.70 -2.54 -2.36

Darden Restaurants Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Beneish M-Score 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 -2.54 -2.32 -2.15 -2.14 -2.36

MEX:DRI vs YUMC, TXRH, DPZ: Beneish M-Score Comparison

For the Restaurants subindustry, Darden Restaurants's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Darden Restaurants's Beneish M-Score falls into.


MEX:DRI
87GF Score
Darden Restaurants Inc MEX:DRI
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Darden Restaurants Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Darden Restaurants for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.2643+0.528 * 1.0117+0.404 * 0.9961+0.892 * 0.9781+0.115 * 0.9442
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9235+4.679 * -0.049029-0.327 * 0.9943
=-2.47

* 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.

This Year (May26) TTM:Last Year (May25) TTM:
Total Receivables was MXN2,254 Mil.
Revenue was 64520.436 + 57608.408 + 56831.151 + 57424.537 = MXN236,385 Mil.
Gross Profit was 15026.662 + 12794.98 + 11541.738 + 11757.63 = MXN51,121 Mil.
Total Current Assets was MXN16,359 Mil.
Total Assets was MXN223,160 Mil.
Property, Plant and Equipment(Net PPE) was MXN147,156 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN10,055 Mil.
Selling, General, & Admin. Expense(SGA) was MXN12,475 Mil.
Total Current Liabilities was MXN52,143 Mil.
Long-Term Debt & Capital Lease Obligation was MXN92,995 Mil.
Net Income was 7024.934 + 5283.311 + 4345.556 + 4862.235 = MXN21,516 Mil.
Non Operating Income was -360.876 + -583.782 + -95.265 + 680.864 = MXN-359 Mil.
Cash Flow from Operations was 9884.181 + 10602.785 + 5869.798 + 6459.718 = MXN32,816 Mil.
Total Receivables was MXN1,823 Mil.
Revenue was 63569.484 + 64819.213 + 58900.353 + 54383.228 = MXN241,672 Mil.
Gross Profit was 14547.322 + 14540.193 + 12599.377 + 11190.281 = MXN52,877 Mil.
Total Current Assets was MXN18,220 Mil.
Total Assets was MXN244,567 Mil.
Property, Plant and Equipment(Net PPE) was MXN160,724 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN10,330 Mil.
Selling, General, & Admin. Expense(SGA) was MXN13,811 Mil.
Total Current Liabilities was MXN43,669 Mil.
Long-Term Debt & Capital Lease Obligation was MXN116,305 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(2253.739 / 236384.532) / (1822.544 / 241672.278)
=0.009534 / 0.007541
=1.2643

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(52877.173 / 241672.278) / (51121.01 / 236384.532)
=0.218797 / 0.216262
=1.0117

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (16359.126 + 147155.799) / 223160.068) / (1 - (18219.612 + 160723.91) / 244566.77)
=0.267275 / 0.268324
=0.9961

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=236384.532 / 241672.278
=0.9781

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(10329.635 / (10329.635 + 160723.91)) / (10054.581 / (10054.581 + 147155.799))
=0.060388 / 0.063956
=0.9442

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(12475.224 / 236384.532) / (13811.176 / 241672.278)
=0.052775 / 0.057148
=0.9235

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((92994.928 + 52143.089) / 223160.068) / ((116304.741 + 43669.168) / 244566.77)
=0.650376 / 0.654111
=0.9943

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(21516.036 - -359.059 - 32816.482) / 223160.068
=-0.049029

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Darden Restaurants has a M-score of -2.47 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.36 mean?
Darden Restaurants (MEX:DRI) has a Beneish M-Score of -2.36 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Darden Restaurants and its competitors. According to the industry distribution chart, Darden Restaurants ranks #308 out of 357 companies in the Restaurants industry, placing it in the top 86.3%.
Is Darden Restaurants' Beneish M-Score too high?
Darden Restaurants' current Beneish M-Score is -2.36. Based on the distribution chart, Darden Restaurants ranks #308 out of 357 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Darden Restaurants has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Darden Restaurants' Beneish M-Score compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #308 out of 357 companies for Beneish M-Score. This places Darden Restaurants in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Restaurants company?
A good Beneish M-Score depends on the Restaurants industry context. However, Beneish M-Score 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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Darden Restaurants and its competitors. Darden Restaurants's current Beneish M-Score is -2.36. 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 Beneish M-Score of -2.36. 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 Beneish M-Score is -2.36. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Darden Restaurants (MEX:DRI), the current Beneish M-Score is -2.36 as of Jun. 27, 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:

  • Beneish M-Score: -2.36
  • GF Value™: MXN3,414.96 vs. price of MXN3,470.00 (1.6% above fair value)
  • GF Score™: 87/100 with 5 warning signs

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 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.
87GF Score

Get the complete analysis for MEX:DRI

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

MXN3,470.00
Price
MXN3,414.96
GF Value