Darden Restaurants, Inc. (DRI) fair value analysis

Fundamentals (4 quarters) how computed

Market cap

$22.4B

P/E (trailing)

18x

Revenue (TTM)

$13.4B

Net margin

8.8%

EPS (TTM)

$10.74

Gross margin

69.2%

Debt / equity

3.20

Revenue growth (3-yr avg)

5.8%

Shares outstanding

113M

Derived indicators how computed

Quality grade

F →

Margin trend

Expanding

52-week position

The lower-middle quarter of its range

Technicals how computed

RSI (14-day)

64 · neutral

50-day average

$211.53

200-day average

$204.86

Moving-average state

50-day above 200-day (golden cross state); price between the averages

Dividends how computed

Paid, last 12 months

$6.24 per share (4 payments)

Yield on last price

3.16%

Consecutive years of increases

5

Last ex-dividend date

2026-10-09

Last payment date

2026-11-02

Earnings how computed

Last 8 quarters vs consensus

4 beat, 3 missed

Quarter by quarter

2026-08 ▼ miss (-0.5%)
2026-05 ▲ beat (+0.8%)
2026-02 ▲ beat (+0.3%)
2025-11 ▼ miss (-1.0%)
2025-08 ▼ miss (-2.0%)
2025-05 ▲ beat (+0.3%)
2025-02 ▬ met (0.0%)
2024-11 ▲ beat (+0.5%)

Analyst consensus how computed

This is not TickrTrends' verdict.

Analyst ratings

18 buy · 9 hold · 1 sell (28 analysts)

Consensus lean

Buy-leaning

Consensus price target

$233

Target vs last price

+17.9%

Recent DRI news

TickrTrends' derived news-sentiment signal for DRI is currently leaning positive, computed from recent coverage.

• Is It Too Late to Buy Darden Restaurants Inc (DRI) After 3.0% Rally? GF Value Says Undervalued (gurufocus.com, 2026-10-13)
  TickrTrends take: Darden Restaurants operates in the Consumer Cyclical sector, where valuation metrics become particularly important given sensitivity to economic conditions and consumer spending patterns. The recent 3% rally in DRI's stock price occurs within a context where TickrTrends' analysis indicates the stock remains undervalued, suggesting that price appreciation may not have fully reflected the company's underlying value. Investors monitoring valuation-focused strategies should track whether DRI's earnings trajectory and capital allocation justify the current undervalued assessment, particularly as consumer discretionary spending evolves.
• Darden (DRI): LongHorn Keeps Carrying the Portfolio While Olive Garden’s Growth Fades (insidermonkey.com, 2026-09-29)
  TickrTrends take: Darden's performance disparity between its LongHorn Steakhouse brand and Olive Garden suggests uneven momentum across its portfolio, which is relevant context for evaluating whether the company's current fairly valued status accurately reflects its growth trajectory. Investors focused on valuation metrics should monitor whether LongHorn's strength can offset headwinds at Olive Garden, as divergent brand performance in the Consumer Cyclical sector can impact overall earnings stability and justify future valuation adjustments. The sustainability of this performance gap will be key to determining if the fairly valued assessment remains appropriate in coming quarters.
• DRI Maintained by Citigroup -- Price Target Lowered to $247 (gurufocus.com, 2026-09-25)
  TickrTrends take: Citigroup's decision to lower its price target for DRI to $247 while maintaining its rating suggests the analyst sees limited upside from current levels, which aligns with TickrTrends' assessment that the stock is fairly valued. For valuation-focused investors in the Consumer Cyclical sector, this price target adjustment indicates the market may have already priced in the company's near-term prospects, leaving little margin of safety at present valuations. Monitoring whether other analysts follow suit with similar target reductions could signal whether consensus expectations are shifting for the company's earnings or growth trajectory.

What people are saying

Follow the DRI conversation: Stocktwits · Reddit · X

TickrTrends weekly updates

• 2026-10-19 — TickrTrends' derived indicators for DRI show a shift in valuation assessment this week. The DCF cross-check band moved from an overvalued status last week to none this week, indicating a change in the valuation model's output. Despite this week's adjustment in the DCF cross-check band, the current valuation verdict for DRI remains undervalued.
• 2026-10-12 — No material change this week: the verdict, bands and grades all held steady.
• 2026-10-11 — No material change this week: the verdict, bands and grades all held steady.
• 2026-10-10 — TickrTrends' derived indicators for DRI shifted this week as the DCF cross-check band moved from no signal to overvalued, while the overall valuation verdict moved from undervalued to fairly valued. This change reflects a recalibration of the company's valuation metrics within the Consumer Cyclical sector. DRI is currently assessed as fairly valued based on these updated indicators.
• 2026-10-06 — DRI's valuation verdict shifted from Fairly valued to Undervalued this week, reflecting changes in TickrTrends' derived indicators within the Consumer Cyclical sector. This movement suggests that the company's current market price has become more attractive relative to its fundamental metrics compared to the previous week's assessment.
• 2026-09-28 — TickrTrends' derived indicators for DRI show movement across multiple valuation measures this week. The DCF cross-check band shifted from an overvalued assessment to none, while the revenue growth band moved from strong to modest. Despite these changes, DRI maintains a current valuation verdict of fairly valued.
• 2026-09-21 — No material change this week: the verdict, bands and grades all held steady.
• 2026-09-17 — No material change this week: the verdict, bands and grades all held steady.

Frequently asked questions

Is DRI stock undervalued?

Based on TickrTrends' Forward Fair Value model (updated 2026-10-19), DRI is trading at a 10–25% discount to estimated fair value and screens as undervalued. The exact fair value and discount are available to subscribers.

What is DRI's TickrTrends verdict?

DRI's current verdict is Undervalued, refreshed with every weekly Forward Fair Value run.

How does DRI compare to other Consumer Cyclical stocks?

DRI ranks #40 of 85 Consumer Cyclical stocks in TickrTrends' coverage by discount to fair value.

Is DRI overbought or oversold?

DRI's 14-day RSI is in neutral territory - neither overbought nor oversold.

Does DRI pay a dividend?

Yes. DRI paid $6.24 per share over the last twelve months (4 payments), a 3.16% yield on TickrTrends' last price, and has raised the annual total for 5 consecutive years. The last ex-dividend date was 2026-10-09.

Does DRI usually beat earnings estimates?

Over its last 8 reported quarters DRI beat the consensus estimate 4 times and missed 3 times, by TickrTrends' comparison of reported and estimated EPS.

What do analysts say about DRI?

Of 28 analysts covering DRI, 18 rate it a buy, 9 a hold and 1 a sell - buy-leaning, with a consensus price target of $233 (+17.9% versus TickrTrends' last price). This is the analyst consensus, not TickrTrends' Forward Fair Value verdict.

More in Consumer Cyclical

• EBAY — eBay Inc.
• ETSY — Etsy, Inc.
• EXPE — Expedia Group, Inc.
• EYE — National Vision Holdings, Inc.
• F — Ford Motor Company
• FIVE — Five Below, Inc.
• FOXF — Fox Factory Holding Corp.

All Consumer Cyclical fair-value coverage →

Head-to-head comparisons

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