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Darden Restaurants (FRA:DDN) Cyclically Adjusted Price-to-FCF : 26.40 (As of May. 22, 2024)


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What is Darden Restaurants Cyclically Adjusted Price-to-FCF?

As of today (2024-05-22), Darden Restaurants's current share price is €139.40. Darden Restaurants's Cyclically Adjusted FCF per Share for the quarter that ended in Feb. 2024 was €5.28. Darden Restaurants's Cyclically Adjusted Price-to-FCF for today is 26.40.

The historical rank and industry rank for Darden Restaurants's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

FRA:DDN' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 11.21   Med: 29.29   Max: 43.31
Current: 26.3

During the past years, Darden Restaurants's highest Cyclically Adjusted Price-to-FCF was 43.31. The lowest was 11.21. And the median was 29.29.

FRA:DDN's Cyclically Adjusted Price-to-FCF is ranked worse than
70.73% of 123 companies
in the Restaurants industry
Industry Median: 16.28 vs FRA:DDN: 26.30

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Darden Restaurants's adjusted free cash flow per share data for the three months ended in Feb. 2024 was €3.250. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is €5.28 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Darden Restaurants Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Darden Restaurants's Cyclically Adjusted Price-to-FCF 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.

* Premium members only.

Darden Restaurants Cyclically Adjusted Price-to-FCF Chart

Darden Restaurants Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.54 24.28 38.33 25.72 29.32

Darden Restaurants Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted Price-to-FCF 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 26.43 29.32 28.51 27.81 29.54

Competitive Comparison of Darden Restaurants's Cyclically Adjusted Price-to-FCF

For the Restaurants subindustry, Darden Restaurants's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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's Cyclically Adjusted Price-to-FCF Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Darden Restaurants's Cyclically Adjusted Price-to-FCF falls into.



Darden Restaurants Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Darden Restaurants's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=139.40/5.28
=26.40

* 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's Cyclically Adjusted FCF per Share for the quarter that ended in Feb. 2024 is calculated as:

For example, Darden Restaurants's adjusted Free Cash Flow per Share data for the three months ended in Feb. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=3.25/130.9299*130.9299
=3.250

Current CPI (Feb. 2024) = 130.9299.

Darden Restaurants Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201405 -0.030 100.373 -0.039
201408 -0.211 100.352 -0.275
201411 -0.980 99.635 -1.288
201502 2.099 99.032 2.775
201505 0.341 100.333 0.445
201508 0.285 100.548 0.371
201511 -0.105 100.135 -0.137
201602 2.454 100.040 3.212
201605 1.019 101.355 1.316
201608 0.698 101.617 0.899
201611 0.267 101.829 0.343
201702 2.383 102.779 3.036
201705 0.894 103.256 1.134
201708 0.524 103.587 0.662
201711 0.144 104.072 0.181
201802 2.102 105.052 2.620
201805 1.052 106.148 1.298
201808 0.651 106.383 0.801
201811 0.631 106.338 0.777
201902 2.540 106.649 3.118
201905 1.677 108.048 2.032
201908 0.942 108.245 1.139
201911 0.331 108.519 0.399
202002 2.634 109.139 3.160
202005 -2.222 108.175 -2.689
202008 1.052 109.662 1.256
202011 0.970 109.793 1.157
202102 1.531 110.968 1.806
202105 2.267 113.576 2.613
202108 0.600 115.421 0.681
202111 1.366 117.269 1.525
202202 2.242 119.703 2.452
202205 1.738 123.323 1.845
202208 2.379 124.958 2.493
202211 0.343 125.607 0.358
202302 2.759 126.928 2.846
202305 1.868 128.314 1.906
202308 0.849 129.538 0.858
202311 1.313 129.548 1.327
202402 3.250 130.930 3.250

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Darden Restaurants  (FRA:DDN) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Darden Restaurants Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Darden Restaurants's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Darden Restaurants (FRA:DDN) Business Description

Traded in Other Exchanges
Address
1000 Darden Center Drive, Orlando, FL, USA, 32837
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.

Darden Restaurants (FRA:DDN) Headlines

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