Darden Restaurants, Inc. (DRI): Price and Financial Metrics

DRI Stock Price Chart Interactive Chart >

DRI Price/Volume Stats

Darden Restaurants, Inc. (DRI) Company Bio

Darden Restaurants owns and operates restaurants under the Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V's, and Yard House brand names. The company was founded in 1968 and is based in Orlando, Florida.

DRI Price Forecast Based on DCF Valuation

We started the process of determining a valid price forecast for Darden Restaurants Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Darden Restaurants Inc ranked in the 12th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 92%. In terms of the factors that were most noteworthy in this DCF analysis for DRI, they are:

• Darden Restaurants Inc's effective tax rate, as measured by taxes paid relative to net income, is at 31 -- greater than 90.9% of US stocks with positive free cash flow.
• Darden Restaurants Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -4.17. This coverage rate is greater than that of just 12.89% of stocks we're observing for the purpose of forecasting via discounted cash flows.
• The weighted average cost of capital for the company is 12. This value is greater than 69.69% stocks in the Consumer Cyclical sector that generate free cash flow.

TNL, LEVI, TXRH, APTV, and BYD can be thought of as valuation peers to DRI, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.