With a market capitalization of $13,064,718,505, Darden Restaurants Inc has a greater market value than 87.19% of US stocks.
DRI's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 220.8 -- higher than 85.08% of US-listed equities with positive expected earnings growth.
With a year-over-year growth in debt of 490.18%, Darden Restaurants Inc's debt growth rate surpasses 96.39% of about US stocks.
Stocks that are quantitatively similar to DRI, based on their financial statements, market capitalization, and price volatility, are CBOE, H, OC, NWL, and NLSN.
DRI's SEC filings can be seen here. And to visit Darden Restaurants Inc's official web site, go to www.darden.com.
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
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DRI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Darden Restaurants Inc ranked in the 12th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Darden Restaurants Inc, consider:
Darden Restaurants Inc's effective tax rate, as measured by taxes paid relative to net income, is at 51 -- greater than 94.09% 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 -1.87. This coverage rate is greater than that of just 17.32% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 11. This value is greater than 67.7% stocks in the Consumer Cyclical sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BOOT, ALV, DIN, KNDI, and VAC 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.
Unfortunately, the phrase feast or famine has become an excellent description for the economic situation of people and companies in the COVID-19 era. While those fortunate enough to have been in businesses that transitioned easily to the work from home environment, the disruptions have been minimal, and in some cases,...
Marco Mazzocco, CFA on Seeking Alpha | September 29, 2020
Argus upgrades Darden Restaurants (DRI) to a Buy rating from Hold and assigns a price target of $115."We think that Darden turned the corner in 1Q21 with a more moderate decline in comp sales (down 29% after a sharper drop of 48% in 4Q20) and well-above-consensus EPS. Management expects further...