Latest Ratios: P/E Ratio 19.6x · EV/EBITDA 13.6x · ROE 53.4%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $23.3B | $23.5B | $24.2B | $17.8B | $19.5B | $16.3B | $18.9B | $9.4B | $14.6B | $11.0B | $11.2B |
| Enterprise Value | $29.1B | $29.3B | $30.1B | $23.1B | $23.9B | $20.7B | $23.4B | $14.7B | $15.1B | $11.8B | $11.9B |
| P/E Ratio → | 19.56 | 19.63 | 23.03 | 17.34 | 19.84 | 17.06 | 30.03 | — | 20.44 | 18.48 | 23.40 |
| P/S Ratio | 1.76 | 1.78 | 2.00 | 1.57 | 1.86 | 1.69 | 2.62 | 1.21 | 1.71 | 1.36 | 1.56 |
| P/B Ratio | 10.61 | 10.64 | 10.45 | 7.95 | 8.85 | 7.40 | 6.71 | 4.05 | 6.10 | 5.02 | 5.33 |
| P/FCF | 20.80 | 20.99 | 23.34 | 18.13 | 20.47 | 18.97 | 20.41 | 43.40 | 18.61 | 18.75 | 19.17 |
| P/OCF | 12.56 | 12.68 | 14.15 | 11.06 | 12.60 | 12.94 | 15.81 | 13.26 | 11.58 | 11.00 | 12.45 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.22 | 2.50 | 2.02 | 2.28 | 2.15 | 3.25 | 1.88 | 1.77 | 1.46 | 1.66 |
| EV / EBITDA | 13.58 | 13.68 | 16.05 | 13.00 | 15.04 | 13.54 | 23.43 | 36.35 | 12.88 | 10.92 | 12.53 |
| EV / EBIT | 18.39 | 16.50 | 22.07 | 17.49 | 19.77 | 17.80 | 36.50 | — | 18.01 | 15.36 | 17.54 |
| EV / FCF | — | 26.20 | 29.12 | 23.45 | 25.12 | 24.18 | 25.32 | 67.54 | 19.22 | 20.08 | 20.38 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 69.4% | 69.4% | 21.9% | 21.4% | 20.1% | 20.7% | 20.8% | 18.0% | 21.7% | 21.6% | 21.9% |
| Operating Margin | 12.0% | 12.0% | 11.3% | 11.5% | 11.5% | 12.1% | 9.0% | 0.6% | 9.8% | 9.5% | 9.4% |
| Net Profit Margin | 9.1% | 9.1% | 8.7% | 9.0% | 9.4% | 9.9% | 8.7% | -0.7% | 8.4% | 7.4% | 6.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 53.4% | 53.4% | 46.1% | 46.2% | 44.6% | 38.0% | 24.5% | -2.2% | 31.1% | 27.7% | 23.6% |
| ROA | 9.5% | 9.5% | 8.8% | 9.5% | 9.6% | 9.2% | 6.1% | -0.7% | 12.6% | 11.1% | 9.7% |
| ROIC | 14.5% | 14.5% | 13.0% | 14.0% | 13.6% | 12.4% | 6.5% | 0.7% | 21.4% | 19.9% | 20.6% |
| ROCE | 15.7% | 15.7% | 14.0% | 15.1% | 14.5% | 13.6% | 7.6% | 0.8% | 19.6% | 19.0% | 18.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.74 | 2.74 | 2.70 | 2.42 | 2.18 | 2.22 | 2.05 | 2.58 | 0.39 | 0.42 | 0.45 |
| Debt / EBITDA | 2.82 | 2.82 | 3.32 | 3.06 | 3.02 | 3.19 | 5.76 | 14.88 | 0.80 | 0.86 | 0.99 |
| Net Debt / Equity | — | 2.64 | 2.59 | 2.33 | 2.01 | 2.03 | 1.62 | 2.25 | 0.20 | 0.36 | 0.33 |
| Net Debt / EBITDA | 2.72 | 2.72 | 3.19 | 2.95 | 2.78 | 2.92 | 4.55 | 12.99 | 0.40 | 0.72 | 0.74 |
| Debt / FCF | — | 5.21 | 5.79 | 5.32 | 4.65 | 5.21 | 4.91 | 24.14 | 0.60 | 1.33 | 1.20 |
| Interest Coverage | 9.15 | 9.15 | 7.57 | 9.43 | 14.21 | 15.90 | 9.72 | -1.59 | 15.49 | 4.74 | 16.36 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.31 | 0.31 | 0.42 | 0.38 | 0.51 | 0.64 | 1.01 | 0.61 | 0.61 | 0.40 | 0.46 |
| Quick Ratio | 0.21 | 0.21 | 0.28 | 0.24 | 0.37 | 0.49 | 0.91 | 0.50 | 0.46 | 0.25 | 0.32 |
| Cash Ratio | 0.07 | 0.07 | 0.11 | 0.09 | 0.19 | 0.23 | 0.66 | 0.43 | 0.31 | 0.11 | 0.18 |
| Asset Turnover | — | 1.03 | 0.96 | 1.01 | 1.02 | 0.95 | 0.68 | 0.78 | 1.44 | 1.48 | 1.35 |
| Inventory Turnover | 12.38 | 12.38 | 30.28 | 30.83 | 29.10 | 28.22 | 29.89 | 30.93 | 32.13 | 30.86 | 31.31 |
| Days Sales Outstanding | — | 3.59 | 2.83 | 2.53 | 2.79 | 2.73 | 3.46 | 2.33 | 3.79 | 3.78 | 3.86 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.0% | 3.0% | 2.7% | 3.5% | 3.0% | 3.5% | 1.1% | 3.4% | 2.5% | 2.8% | 2.5% |
| Payout Ratio | 57.4% | 57.4% | 62.7% | 61.2% | 60.1% | 59.1% | 32.2% | — | 52.0% | 52.6% | 58.3% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.1% | 5.1% | 4.3% | 5.8% | 5.0% | 5.9% | 3.3% | — | 4.9% | 5.4% | 4.3% |
| FCF Yield | 4.8% | 4.8% | 4.3% | 5.5% | 4.9% | 5.3% | 4.9% | 2.3% | 5.4% | 5.3% | 5.2% |
| Buyback Yield | 2.9% | 2.9% | 1.7% | 2.5% | 2.4% | 6.6% | 0.2% | 3.5% | 1.4% | 2.1% | 2.1% |
| Total Shareholder Yield | 5.8% | 5.8% | 4.5% | 6.1% | 5.4% | 10.1% | 1.3% | 6.9% | 4.0% | 5.0% | 4.5% |
| Shares Outstanding | — | $115M | $118M | $121M | $123M | $129M | $132M | $123M | $125M | $126M | $126M |
High lease-adjusted leverage
Based on current market data, DRI trades at a 20.57x TTM P/E ratio, which appears to command a premium relative to peers like Bloomin' Brands, suggesting investors are pricing in the company's diversified portfolio as a defensive anchor despite the broader casual dining sector's ongoing traffic headwinds.
The current forward P/E of 20.11 implies that the market expects consistent earnings growth, yet this valuation may be optimistic given the recent volatility in free cash flow margins. Investors should monitor whether this premium is justified by structural scale advantages or if it reflects a mispricing of the risks associated with geographic saturation and potential cannibalization across its steakhouse concepts.
As reported in financial statements, DRI's ROIC has remained in a low single-digit range, specifically 4.5% in 2026Q4, which indicates that the company's recent aggressive acquisition strategy, including Ruth's Chris, has yet to generate returns that meaningfully exceed the cost of capital for the broader enterprise.
The persistent gap between ROE and ROIC suggests that financial leverage is being utilized to inflate equity returns, masking the underlying operational efficiency of the restaurant portfolio. This trend warrants further investigation into whether the integration of new brands is creating long-term value or simply diluting the returns on invested capital through increased goodwill and asset intensity.
According to recent quarterly filings, DRI's cash conversion cycle has fluctuated significantly, reaching 20 days in 2026Q4, which highlights the company's reliance on supplier credit and inventory management to bridge the gap between operational cash outflows and the collection of revenue from its diverse dining segments.
The negative DIO and DPO figures observed in several periods suggest that Darden effectively utilizes its scale to negotiate favorable payment terms with suppliers, effectively financing its operations through trade payables. However, this efficiency is highly sensitive to supply chain disruptions, and any shift in supplier leverage could quickly impact the company's already tight liquidity position.
Based on the 2026Q4 data, Darden's current ratio of 0.31 highlights a constrained liquidity position, suggesting that the company relies heavily on ongoing operational cash flow to meet its short-term obligations rather than maintaining a significant cash buffer on the balance sheet to navigate potential economic downturns.
This low liquidity ratio appears to be a structural feature of the business model rather than a temporary anomaly, reflecting a strategy of aggressive capital deployment. Investors should monitor whether this lack of a cash cushion leaves the company vulnerable to sudden shocks in consumer discretionary spending or unexpected spikes in commodity costs.
A critical review of the balance sheet suggests that the reported debt-to-equity ratio of 2.74 may significantly understate the company's true financial risk, as it likely excludes the substantial off-balance-sheet operating lease obligations inherent in operating nearly 1,900 physical restaurant locations across the United States.
The debt-to-equity ratio is frequently misapplied to restaurant operators like Darden because it ignores the fixed nature of lease commitments, which function similarly to debt in a downturn. Analysts should instead focus on lease-adjusted leverage metrics to gain a more accurate understanding of the company's true solvency and its ability to service obligations during periods of declining traffic.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DRI stock.
Darden Restaurants, Inc.'s current P/E ratio is 19.6x. The historical average is 17.8x. This places it at the 64th percentile of its historical range.
Darden Restaurants, Inc.'s current EV/EBITDA is 13.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.3x.
Darden Restaurants, Inc.'s return on equity (ROE) is 53.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.2%.
Based on historical data, Darden Restaurants, Inc. is trading at a P/E of 19.6x. This is at the 64th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Darden Restaurants, Inc.'s current dividend yield is 2.96% with a payout ratio of 57.4%.
Darden Restaurants, Inc. has 69.4% gross margin and 12.0% operating margin. Operating margin between 10-20% is typical for established companies.
Darden Restaurants, Inc.'s Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.