Last Updated: 15 Sep 2024
Executive Summary
Darden Restaurants Inc. (DRI) is a leading multi-brand restaurant operator with a market capitalization of $18.98 billion. The company has a strong financial profile with an EBITDA of $1.76 billion and a profit margin of 9.02%. DRI's stock price is currently trading at $160.25, below its 52-week high of $173.62. Analysts have a mixed outlook on the stock, with 10 strong buy ratings, 9 buy ratings, 11 hold ratings, and 1 strong sell rating.
Company Overview
Darden Restaurants, Inc. is an American multi-brand restaurant operator headquartered in Orlando, Florida. The company operates over 1,800 restaurants under the Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, and Seasons 52 brands. Darden Restaurants has a strong track record of growth and profitability, with revenue increasing by 6.8% and EPS increasing by 4.0% over the past year.
Fundamental Analysis
Darden Restaurants has a strong financial profile. The company's EBITDA margin of 15.5% is above the industry average of 13.0%. DRI also has a strong balance sheet, with $1.2 billion in cash and equivalents and $2.3 billion in total debt. The company's debt-to-equity ratio of 0.6 is below the industry average of 0.8.
Darden Restaurants' valuation metrics are attractive. The company's trailing PE ratio of 18.79 is below the industry average of 20.0. DRI's forward PE ratio of 16.42 is also below the industry average of 17.5.
Technical Analysis
Darden Restaurants' stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
Darden Restaurants' stock price is likely to remain under pressure in the short term. The stock is trading below its moving averages and its RSI is below 50. However, the stock's valuation metrics are attractive and the company has a strong financial profile.
Long Term Outlook
Darden Restaurants has a strong long-term outlook. The company's brands are well-known and have a loyal customer base. DRI also has a strong track record of growth and profitability. The company is expected to continue to grow its revenue and EPS in the long term.
Analyst Recommendations
Analysts have a mixed outlook on Darden Restaurants' stock. The consensus recommendation is a hold. However, there are 10 strong buy ratings and 9 buy ratings, indicating that some analysts are bullish on the stock.
