Darden RestaurantsMEX:DRI 87 PEG Ratio is 1.07 as of Jun. 29, 2026, which is 18% below its 10-year median of 1.30. 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 112 Restaurants companies, Darden Restaurants ranks better than 50.89% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Darden Restaurants's PEG Ratio or its related term are showing as below:
MEX:DRI'
s PEG Ratio Range Over the Past 10 Years
Min: 0.49 Med: 1.3 Max: 9.08
Current: 1.17
During the past 13 years, Darden Restaurants's highest PEG Ratio was 9.08. The lowest was 0.49. And the median was 1.30.
MEX:DRI's PEG Ratio is ranked better than 50.89% of 112
companies
in the Restaurants industry
Industry Median: 1.255
vs MEX:DRI: 1.17
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Darden Restaurants (MEX:DRI) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Darden Restaurants PEG Ratio Related Terms
Darden Restaurants PEG Ratio Historical Data
* Premium members only.
The historical data trend for Darden Restaurants's PEG Ratio 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.
For the Restaurants subindustry, Darden Restaurants's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's PEG Ratio falls into.
* 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: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Darden Restaurants (MEX:DRI) has a PEG Ratio of 1.07 as of Jun. 29, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Darden Restaurants and its competitors. This is 18% below median its historical median of 1.30. Over the past decade, Darden Restaurants' PEG Ratio has ranged from 0.49 to 9.08. According to the industry distribution chart, Darden Restaurants ranks #55 out of 112 companies in the Restaurants industry, placing it in the top 49.1%.
Is Darden Restaurants' PEG Ratio too high?
Darden Restaurants' current PEG Ratio of 1.07 is 18% below median its 10-year median of 1.30. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 9.08. The Restaurants industry median PEG Ratio is 1.26. Darden Restaurants' value of 1.07 is 14.7% below this industry median. Based on the distribution chart, Darden Restaurants ranks #55 out of 112 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' PEG Ratio compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #55 out of 112 companies for PEG Ratio. This puts Darden Restaurants in the upper half of its industry. The industry median PEG Ratio is 1.26. Darden Restaurants' value of 1.07 is 14.7% below this benchmark. Historically, Darden Restaurants' own PEG Ratio has ranged from 0.49 to 9.08 over the past decade. While the company's 10-year median is 1.30 vs. the industry median of 1.26, Darden Restaurants has consistently been below 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 PEG Ratio for a Restaurants company?
The median PEG Ratio among Restaurants companies is 1.26, based on 112 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Darden Restaurants's current PEG Ratio of 1.07 is 14.7% below 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Darden Restaurants and its competitors. For the Restaurants industry, the median PEG Ratio is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Darden Restaurants's current PEG Ratio is 1.07, which is 18% below median its own 10-year median of 1.30. 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 PEG Ratio of 1.07. 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 PEG Ratio is 1.07, which is 18% below median its 10-year median of 1.30 and 14.7% below the Restaurants industry median of 1.26. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Darden Restaurants (MEX:DRI), the current PEG Ratio is 1.07 as of Jun. 29, 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:
PEG Ratio: 1.07 (18% below median its 10-year median of 1.30)
GF Value™: MXN3,414.96 vs. price of MXN3,470.00 (1.6% above fair value)
Industry Position: 14.7% below the Restaurants median (#55 of 112)
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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