Darden RestaurantsMEX:DRI 87 Pretax Margin % is 12.52% as of May. 2026, which is 32% above its 10-year median of 9.51. 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 366 Restaurants companies, Darden Restaurants ranks better than 82.79% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Darden Restaurants Pretax Margin % Related Terms
Darden Restaurants Pretax Margin % Historical Data
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The historical data trend for Darden Restaurants's Pretax 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.
MEX:DRI vs YUMC, TXRH, DPZ: Pretax Margin % Comparison
For the Restaurants subindustry, Darden Restaurants's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's Pretax Margin % 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.
Darden Restaurants (MEX:DRI) has a Pretax Margin % of 12.52% as of May. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Darden Restaurants and its competitors. This is 32% above median its historical median of 9.51. According to the industry distribution chart, Darden Restaurants ranks #63 out of 366 companies in the Restaurants industry, placing it in the top 17.2%.
Is Darden Restaurants' Pretax Margin % too high?
Darden Restaurants' current Pretax Margin % of 12.52% is 32% above median its 10-year median of 9.51. The Restaurants industry median Pretax Margin % is 2.76. Darden Restaurants' value of 12.52% is 354.4% above this industry median. Based on the distribution chart, Darden Restaurants ranks #63 out of 366 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 87/100, reflecting its overall financial health beyond just this single metric.
How does Darden Restaurants' Pretax Margin % compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #63 out of 366 companies for Pretax Margin %. This places Darden Restaurants in the top 17% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.76. Darden Restaurants' value of 12.52% is 354.4% above this benchmark. While the company's 10-year median is 9.51 vs. the industry median of 2.76, 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 Pretax Margin % for a Restaurants company?
The median Pretax Margin % among Restaurants companies is 2.76, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Darden Restaurants's current Pretax Margin % of 12.52% is 354.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Darden Restaurants and its competitors. For the Restaurants industry, the median Pretax Margin % is 2.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Darden Restaurants's current Pretax Margin % is 12.52%, which is 32% above median its own 10-year median of 9.51. 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 Pretax Margin % of 12.52%. 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 Pretax Margin % is 12.52%, which is 32% above median its 10-year median of 9.51 and 354.4% above the Restaurants industry median of 2.76. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Darden Restaurants (MEX:DRI), the current Pretax Margin % is 12.52% 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:
Pretax Margin %: 12.52% (32% above median its 10-year median of 9.51)
GF Value™: MXN3,414.96 vs. price of MXN3,470.00 (1.6% above fair value)
Industry Position: 354.4% above the Restaurants median (#63 of 366)
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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