Darden RestaurantsSTU:DDN -0.37%85 Operating Margin % is 14.46% as of May. 2026, which is 34% above its 10-year median of 10.81. GuruFocus rates STU:DDN with a GF Score™ of 85/100 and a GF Value™ of €183.44 (Fairly Valued). The stock has 5 warning signs investors should review. Among 365 Restaurants companies, Darden Restaurants ranks better than 84.38% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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 Margin % Related Terms
Darden Restaurants Operating Margin % Historical Data
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The historical data trend for Darden Restaurants's Operating Margin % 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.
STU:DDN vs YUMC, TXRH, DPZ: Operating Margin % Comparison
For the Restaurants subindustry, Darden Restaurants's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Darden Restaurants's Operating Margin % for the fiscal year that ended in May. 2026 is calculated as
* 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 (STU:DDN) has a Operating Margin % of 14.46% as of May. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Darden Restaurants and its competitors. This is 34% above median its historical median of 10.81. Over the past decade, Darden Restaurants' Operating Margin % has ranged from 5.61 to 12.16. According to the industry distribution chart, Darden Restaurants ranks #57 out of 365 companies in the Restaurants industry, placing it in the top 15.6%.
Is Darden Restaurants' Operating Margin % too high?
Darden Restaurants' current Operating Margin % of 14.46% is 34% above median its 10-year median of 10.81. Over the past 10 years, this metric has ranged from a low of 5.61 to a high of 12.16. The Restaurants industry median Operating Margin % is 4.26. Darden Restaurants' value of 14.46% is 239.4% above this industry median. Based on the distribution chart, Darden Restaurants ranks #57 out of 365 companies in the Restaurants industry, which is in the top quartile — a strong position 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' Operating Margin % compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #57 out of 365 companies for Operating Margin %. This places Darden Restaurants in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.26. Darden Restaurants' value of 14.46% is 239.4% above this benchmark. Historically, Darden Restaurants' own Operating Margin % has ranged from 5.61 to 12.16 over the past decade. While the company's 10-year median is 10.81 vs. the industry median of 4.26, 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 Operating Margin % for a Restaurants company?
The median Operating Margin % among Restaurants companies is 4.26, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Darden Restaurants's current Operating Margin % of 14.46% is 239.4% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Darden Restaurants and its competitors. For the Restaurants industry, the median Operating Margin % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Darden Restaurants's current Operating Margin % is 14.46%, which is 34% above median its own 10-year median of 10.81. 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 Operating Margin % is 14.46%, which is 34% above median its 10-year median of 10.81 and 239.4% above the Restaurants industry median of 4.26. Darden Restaurants' overall GF Score™ is 85/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Darden Restaurants (STU:DDN), the current Operating Margin % is 14.46% 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:
Operating Margin %: 14.46% (34% above median its 10-year median of 10.81)
GF Value™: €183.44 vs. price of €186.40 (1.6% above fair value)
Industry Position: 239.4% above the Restaurants median (#57 of 365)
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 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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