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Darden Restaurants (LTS:0I77) Cyclically Adjusted Price-to-FCF : 25.57 (As of May. 24, 2024)


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

As of today (2024-05-24), Darden Restaurants's current share price is $147.274. Darden Restaurants's Cyclically Adjusted FCF per Share for the quarter that ended in Feb. 2024 was $5.76. Darden Restaurants's Cyclically Adjusted Price-to-FCF for today is 25.57.

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

LTS:0I77' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 11.21   Med: 29.29   Max: 43.31
Current: 25.56

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.

LTS:0I77's Cyclically Adjusted Price-to-FCF is ranked worse than
70.73% of 123 companies
in the Restaurants industry
Industry Median: 15.99 vs LTS:0I77: 25.56

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 $3.506. 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 $5.76 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
=147.274/5.76
=25.57

* 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)
=3.506/130.9299*130.9299
=3.506

Current CPI (Feb. 2024) = 130.9299.

Darden Restaurants Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201405 -0.041 100.373 -0.053
201408 -0.281 100.352 -0.367
201411 -1.222 99.635 -1.606
201502 2.383 99.032 3.151
201505 0.381 100.333 0.497
201508 0.317 100.548 0.413
201511 -0.113 100.135 -0.148
201602 2.721 100.040 3.561
201605 1.153 101.355 1.489
201608 0.783 101.617 1.009
201611 0.288 101.829 0.370
201702 2.538 102.779 3.233
201705 0.987 103.256 1.252
201708 0.619 103.587 0.782
201711 0.169 104.072 0.213
201802 2.595 105.052 3.234
201805 1.243 106.148 1.533
201808 0.752 106.383 0.926
201811 0.717 106.338 0.883
201902 2.883 106.649 3.539
201905 1.876 108.048 2.273
201908 1.048 108.245 1.268
201911 0.365 108.519 0.440
202002 2.872 109.139 3.445
202005 -2.423 108.175 -2.933
202008 1.245 109.662 1.486
202011 1.147 109.793 1.368
202102 1.851 110.968 2.184
202105 2.755 113.576 3.176
202108 0.705 115.421 0.800
202111 1.559 117.269 1.741
202202 2.544 119.703 2.783
202205 1.838 123.323 1.951
202208 2.411 124.958 2.526
202211 0.350 125.607 0.365
202302 2.953 126.928 3.046
202305 2.030 128.314 2.071
202308 0.926 129.538 0.936
202311 1.421 129.548 1.436
202402 3.506 130.930 3.506

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  (LTS:0I77) 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 (LTS:0I77) 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 (LTS:0I77) Headlines

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