DRIDRI
US • —
$206.01
P/E
19.83
PEG
1.16
FCF Yield
—
Rev Growth YoY
+9.4% YoY
Gross Margin
21.7%
Health Score
6/10
D/E Ratio
1.06
Confidence
MEDIUM
Business Snapshot
Darden Restaurants operates a portfolio of full-service dining brands, including Olive Garden and LongHorn Steakhouse, generating revenue primarily through company-owned restaurant sales. The company operates within the US casual dining sector, where it holds a leading position through scale, brand recognition, and operational efficiency. While Darden's market capitalisation and trailing twelve-month revenue figures are not available in the provided data, its industry standing is well-established as one of the largest full-service restaurant operators in North America. A defining characteristic of Darden is its high market share in the casual dining space, supported by a diversified brand strategy that helps mitigate risks associated with any single concept.
Financial Health
Gross margin stands at 21.7%, a typical level for the capital-intensive full-service restaurant industry, though a prior-year comparison is unavailable for trend analysis. Net margin of 9.1% indicates a solid ability to translate revenue into profit after accounting for all costs...
Risk Assessment
- LIQUIDITY — Current ratio of 0.31x indicates the company has far fewer current assets than current liabilities, creating a risk of short-term funding pressure.
- EARNINGS QUALITY — Darden did not beat analyst estimates in any of the last four reported quarters, suggesting earnings results have consistently fallen short of expectations.
- DEBT — Debt-to-equity of 1.06x shows a moderate but notable reliance on debt financing, which could constrain financial flexibility during economic downturns.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 21.7%, a typical level for the capital-intensive full-service restaurant industry, though a prior-year comparison is unavailable for trend analysis. Net margin of 9.1% indicates a solid ability to translate revenue into profit after accounting for all costs. The balance sheet shows a debt-to-equity ratio of 1.06x, a manageable level of leverage, but a current ratio of 0.31x points to very low short-term liquidity, a potential risk if economic conditions deteriorate. Free cash flow figures are unavailable, preventing a direct assessment of cash generation or FCF yield. Overall, Darden demonstrates reasonable profitability and moderate debt, but extremely low current assets relative to liabilities and the absence of FCF data introduce caution for investors focused on balance-sheet resilience and cash returns.
- LIQUIDITY — Current ratio of 0.31x indicates the company has far fewer current assets than current liabilities, creating a risk of short-term funding pressure. - EARNINGS QUALITY — Darden did not beat analyst estimates in any of the last four reported quarters, suggesting earnings results have consistently fallen short of expectations. - DEBT — Debt-to-equity of 1.06x shows a moderate but notable reliance on debt financing, which could constrain financial flexibility during economic downturns. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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