Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $10.5 billion in fiscal 2023 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2023, the company operated 1,914 restaurants in the U.S.

Financial Strength

5/10

Name	Current	Vs Industry
Cash-To-Debt	0.05
Equity-to-Asset	0.19
Debt-to-Equity	2.43
Debt-to-EBITDA	3.01
Interest Coverage	10.42
Piotroski F-Score	7/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	2.42	Distress Grey Safe
Beneish M-Score	-2.48	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

7/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	10.3
	3-Year EBITDA Growth Rate	83.8
	3-Year EPS without NRI Growth Rate	60.4
	3-Year FCF Growth Rate	61.2
	3-Year Book Growth Rate	0.4
	Future 3-5Y EPS without NRI Growth Rate	10.06
	Future 3-5Y Total Revenue Growth Rate	5.8

Momentum Rank

4/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	15.19
	9-Day RSI	24.41
	14-Day RSI	35.01
	6-1 Month Momentum %	11.4
	12-1 Month Momentum %	11.4

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	0.39
	Quick Ratio	0.25
	Cash Ratio	0.11
	Days Inventory	12.29
	Days Sales Outstanding	2.02
	Days Payable	17.33

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	2.48
	Dividend Payout Ratio	0.29
	3-Year Dividend Growth Rate	22.4
	Forward Dividend Yield %	2.48
	5-Year Yield-on-Cost %	4.31
	3-Year Average Share Buyback Ratio	2.3
	Shareholder Yield %	2.12

Profitability Rank

7/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	21.03
	Operating Margin %	11.66
	Net Margin %	9.24
	FCF Margin %	8.54
	ROE %	48.74
	ROA %	9.53
	ROIC %	10.17
	ROC (Joel Greenblatt) %	17.94
	ROCE %	15.18
	Years of Profitability over Past 10-Year	9

GF Value Rank

6/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	18.35
	Forward PE Ratio	15.82
	PE Ratio without NRI	10.58
	Shiller PE Ratio	27.82
	Price-to-Owner-Earnings	17.43
	PEG Ratio	0.85
	PS Ratio	1.69
	PB Ratio	8.57
	Price-to-Free-Cash-Flow	19.86
	Price-to-Operating-Cash-Flow	11.88
	EV-to-EBIT	17.94
	EV-to-Forward-EBIT	16.37
	EV-to-EBITDA	13.49
	EV-to-Forward-EBITDA	12.32
	EV-to-Revenue	2.12
	EV-to-Forward-Revenue	1.97
	EV-to-FCF	24.88
	Price-to-Projected-FCF	1.94
	Price-to-DCF (Earnings Based)	0.45
	Price-to-DCF (FCF Based)	1.15
	Price-to-Median-PS-Value	1.04
	Earnings Yield (Greenblatt) %	5.58
	FCF Yield %	5.11
	Forward Rate of Return (Yacktman) %	-18.63

GF Value: R$196.98

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