DRI (Darden Restaurants) Operating Income: $1,607 Mil (TTM As of May. 2026)

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DRI Darden Restaurants Inc DRI
85 GF Score
Price $208.85
GF Value $210.45
Valuation Fairly Valued
! 4 Warning Signs
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What is Darden Restaurants Operating Income?

Darden Restaurants DRI +2.09% 85 Operating Income is $1,607 Mil as of May. 2026. 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.

Darden Restaurants's Operating Income for the three months ended in May. 2026 was $538 Mil. Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was $1,607 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Darden Restaurants's Operating Income for the three months ended in May. 2026 was $538 Mil. Darden Restaurants's Revenue for the three months ended in May. 2026 was $3,719 Mil. Therefore, Darden Restaurants's Operating Margin % for the quarter that ended in May. 2026 was 14.46%.

Good Sign:

Darden Restaurants Inc operating margin is expanding. Margin expansion is usually a good sign.

Darden Restaurants's 5-Year average Growth Rate for Operating Margin % was 4.20% per year.

Operating Income or EBIT 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 24.36%.


Darden Restaurants  (NYSE:DRI) Operating Income Explanation

1. Operating Income or EBIT 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 )
=2150.4 * ( 1 - 12.41% )/( (13751.9 + 14006.5)/ 2 )
=1883.53536/13879.2
=13.57 %

where

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 )
=2063.6/( ( (8462.5 + max(-1549.5, 0)) + (8481.7 + max(-1438.4, 0)) )/ 2 )
=2063.6/( ( 8462.5 + 8481.7 )/ 2 )
=2063.6/8472.1
=24.36 %

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)
=(107.7 + 345.3 + 315.8) - (736 + 654.9 + 927.4)
=-1549.5

Working Capital(Q: May. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(44.6 + 326.3 + 267.2) - (918.4 + 606 + 552.1)
=-1438.4

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. Operating Income is also linked to Operating Margin %:

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

Operating Margin %=Operating Income (Q: May. 2026 )/Revenue (Q: May. 2026 )
=537.6/3718.8
=14.46 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Darden Restaurants Operating Income Related Terms


Darden Restaurants Operating Income Historical Data

* Premium members only.

The historical data trend for Darden Restaurants's Operating Income 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 Operating Income Chart

Darden Restaurants Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,160.20 1,217.10 1,350.90 1,436.30 1,606.60

Darden Restaurants Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Operating Income 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 439.60 303.10 325.60 440.30 537.60
DRI
85GF Score
Darden Restaurants Inc DRI
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Darden Restaurants Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income 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 $1,607 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 Operating Income →
What does a Operating Income of $1,607 Mil mean?
Darden Restaurants (DRI) has a Operating Income of $1,607 Mil as of May. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Darden Restaurants and its competitors.
Is Darden Restaurants' Operating Income too high?
Darden Restaurants' current Operating Income is $1,607 Mil. 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' Operating Income compare to YUMC and TXRH?
Darden Restaurants' Operating Income of $1,607 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 Operating Income for a Restaurants company?
A good Operating Income depends on the Restaurants industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Darden Restaurants and its competitors. Darden Restaurants's current Operating Income is $1,607 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 (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 Operating Income is $1,607 Mil. 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 Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Darden Restaurants (DRI), the current Operating Income is $1,607 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 (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:

  • Operating Income: $1,607 Mil
  • GF Value™: $210.45 vs. price of $208.85 (0.8% below fair value)
  • GF Score™: 85/100 with 4 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.
85GF Score

Get the complete analysis for DRI

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

$208.85
Price
$210.45
GF Value