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DRI price
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Research · S&P 500 · Consumer Discretionary
DRI · Darden Restaurants
The numbers, the scorecard and what analysts say, with the source for each. Information, not advice.
Value Scorecard · run 2026-10-18
13 value checks: 12 scored 1 to 5, plus moat evidence
36/60
moderate value scoreEarnings & returns
EPS Trend
5/5Diluted EPS: $7.99 (2023), $8.51 (2024), $8.86 (2025), $10.38 (2026). It rose every year; the framework scores that as 5.
ROE Trend
5/5ROE (net income / common equity): 44.6% (2023), 45.8% (2024), 45.4% (2025), 54.7% (2026). Median 45.6%, lowest 44.6%; the framework scores a median above 20% as 5.
ROIC
4/5ROIC of 16.1%: operating income of $1.58B divided by $9.86B of capital (total assets $12.86B minus current liabilities $3.01B), fiscal year to May 31, 2026, as filed in the 10-K (SEC EDGAR). The framework scores 15-20% as 4.
Profit Margins
3/5Net margin of 8.8%; the framework scores 5-10% as 3; gross margin 21.7%, operating margin 9.9%.
Balance sheet & cash
Debt-to-Equity
1/5Debt-to-equity of 4.15; the framework scores above 2.5 as 1 (total debt $8.59B, total cash $220.50M).
Free Cash Flow
5/5Free cash flow (operating cash flow minus capital expenditure): $951.30M (2023), $983.60M (2024), $1.03B (2025), $1.09B (2026). It rose every year; the framework scores that as 5.
Retained Earnings
1/5Retained earnings, as filed in the 10-Ks (SEC EDGAR): -$32.50M (2023), -$35.50M (2024), -$16.10M (2025), -$108.40M (2026). The latest balance is negative (an accumulated deficit); the framework scores that as 1.
Valuation models
Graham IV
4/5IV = EPS x (8.5 + 2g) x (4.4 / Y) = $10.30 x (8.5 + 2 x 10.4) x (4.4 / 4.5) = $295.08. Current price $216.35; price is 26.7% below the model value.
DCF Value
1/5FCF/share = $7.025, stage 1 growth = 7.7% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $32.98, PV of terminal value = $93.00, DCF value = $125.98. Current price $216.35; price is 71.7% above the model value.
Margin of Safety
3/5Graham value $295.08 (price is 26.7% below the model value); DCF value $125.98 (price is 71.7% above the model value).
Price-to-Book
1/5P/B of 11.85; the framework scores above 5.0 as 1.
Business quality
Moat Evidence
Not scoredA moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.
Return on capital, each year
Above 15% in 4 of 10 years (2017-2026); lowest 0.6%, highest 18.8%.
Gross margin, each year
Between 15.0% and 20.5% over 10 years (a range of 5.5 points).
Competition, in the company’s own words · 10-K filed Jul 24, 2026
The restaurant industry is intensely competitive with respect to the type and quality of food, price, service, restaurant location, personnel, brand, attractiveness of facilities, availability of carryout and home delivery, internet and mobile ordering capabilities, and effectiveness of advertising and marketing. The restaurant business is often affected by changes in consumer tastes; national, regional or local economic conditions; demographic trends; traffic patterns; the type, number and location of competing restaurants; and consumers’ discretionary purchasing power. We compete within each market with national and regional chains and locally-owned restaurants for guests, management and hourly personnel and suitable real estate sites. In addition, expanding product offerings at fast casual and quick-service restaurants and the convenience of home delivery services, together with negative economic conditions, could cause consumers to choose less expensive alternatives or reduce the frequency of their restaurant visits. We expect intense competition to continue in all of these areas. Other factors pertaining to our competitive position in the industry are addressed under the sections entitled “Sourcing and Distribution,” “Integrated Marketing” and “Information Technology and Cybersecurity” in this Item 1 and in our Risk Factors in Item 1A of this Form 10-K.
The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.
Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.
Capital Allocation
3/5Capital allocation, 2023-2026: dividends or buybacks paid in every year (pass); $4.57B paid out against $4.05B of free cash flow (fail: paid out more than free cash flow); total debt $4.79B to $6.32B, up 31.9%, 2.9x EBITDA (fail: up more than 10% and above 2x EBITDA); shares outstanding 0.12B to 0.11B, down 5.8% (pass). 2 of 4 tests passed; the framework scores that as 3.
Filings
Company notices to the SEC
Not scoredThree kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.
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These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.
How the Graham and DCF values were calculated
Graham Formula:
IV = EPS x (8.5 + 2g) x (4.4 / Y)
EPS = $10.30, g = 10.4%, Y = 4.5
IV = $295.08
Current price $216.35 vs Graham value $295.08 — price is 26.7% below the model value.
DCF:
FCF/share = $7.025
Stage 1 growth = 7.7% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
Y1: $7.566 → PV $6.878
Y2: $8.148 → PV $6.734
Y3: $8.775 → PV $6.593
Y4: $9.451 → PV $6.455
Y5: $10.179 → PV $6.320
Stage 1 PV sum = $32.98
Terminal value at end of Y5 = $149.78
PV of terminal value = $93.00
DCF value = $125.98
Current price $216.35 vs DCF value $125.98 — price is 71.7% above the model value.Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $216.35. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.
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