Darden Restaurants, Inc. — Restaurants. Scored on the same transparent model behind the daily rankings.
★
DRI
Darden Restaurants, Inc. · Restaurants
FCF$1.1bC+
Rev+9.4%B
D/E3.65C
P/E19.8xB+
PEG1.89C+
60.6Score
$203.58$23.3B
1Y Target$228.54Analyst consensus · 24 analysts
5Y Target$334.61Compound horizon
10Y Target$496.37Long-dated conviction
FCF$1.1bTTMC+
FCF $1.1b — respectable but not differentiating
Rev+9.4%TTM YoYB
Revenue +9.4% — at or above S&P median
D/E3.65C
D/E 3.65 — more levered than most Consumer Cyclical peers (≈90th pctile)
P/E19.8xB+
P/E 19.8 — below the Consumer Cyclical median (≈40th pctile)
PEG1.89C+
PEG 1.89 — modest premium; above fair value
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 60.6
Quality0.80
Growth0.81
Value0.34
Why this score
Buying back stock
Raising its dividend
Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high
8% off the 12-month high
vs DCF fair value18% belowest. fair value ~$249
What the price assumes: free cash flow compounding at ~2% a year for the next decade — vs the ~10% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability62% · Agross profit ÷ total assets (Novy-Marx)
ROIC30.7% · Areturn on invested capital — not score-weighted
Why now
Restaurants · market cap $23.3b. 8% off the 52-week high of $220.65. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $228.54 (implying +12% upside).
Moat
ROE 55% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which.
Risk
D/E 3.65 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer.
Horizon
1-3 yr $228.54 (24-analyst consensus) — fundamentals + valuation re-rating. 5 yr $334.61 at ~10% CAGR — compounding case rests on the competitive position widening. 10 yr $496.37 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
DRI vs the Top Picks average
Pillar
DRI
Book avg
Diff
Quality
0.80
0.82
-0.02
Growth
0.81
0.90
-0.09
Value
0.34
0.75
-0.41
Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · DRI
Trend
+7.5 over 32 daily scores
From 53.3 (Jun 22) → 60.8 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · DRI
$
%
%
Shares to buy
9
Position size
$1,832
3.7% of portfolio
Stop price
$152.69
25% below $203.58
$ at risk if stopped
$458.06
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Darden Restaurants, Inc. (DRI): score, valuation & FAQ
Darden Restaurants, Inc. (DRI) is a Restaurants company that scores 60.6 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (B+). On valuation, DRI sits about 18% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 2% annual free-cash-flow growth over the next decade.
Is DRI a good stock to buy?
Bull Rankings scores DRI 60.6 out of 100 on its quality-growth model, which is a middling reading. That is driven by P/E (B+). A score is a quantitative screen of Darden Restaurants, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does DRI score 60.6 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). DRI earns its highest marks on P/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is DRI overvalued or undervalued?
Based on $203.58, DRI sits about 18% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 2% annual free-cash-flow growth over the next decade. It trades at a 19.8x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in DRI?
D/E 3.65 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.