Darden Stock Performance

DRI
 Stock
  

USD 124.97  4.54  3.51%   

On a scale of 0 to 100, Darden Restaurants holds a performance score of 7. The firm shows a Beta (market volatility) of 1.1872, which means a somewhat significant risk relative to the market. Let's try to break down what Darden's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Darden Restaurants will likely underperform. Although it is important to respect Darden Restaurants historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Darden Restaurants technical indicators, you can presently evaluate if the expected return of 0.2% will be sustainable into the future. Please utilizes Darden Restaurants downside variance, and the relationship between the treynor ratio and kurtosis to make a quick decision on whether Darden Restaurants price patterns will revert.
  
Darden Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Darden Restaurants are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Darden Restaurants reported solid returns over the last few months and may actually be approaching a breakup point. ...more

Darden Price Channel

Quick Ratio0.27
Fifty Two Week Low110.96
Target High Price155.00
Fifty Two Week High158.39
Payout Ratio59.46%
Trailing Annual Dividend Yield0.52%
Target Low Price122.00

Darden Restaurants Relative Risk vs. Return Landscape

If you would invest  11,544  in Darden Restaurants on July 9, 2022 and sell it today you would earn a total of  1,407  from holding Darden Restaurants or generate 12.19% return on investment over 90 days. Darden Restaurants is generating 0.2013% of daily returns assuming volatility of 2.0937% on return distribution over 90 days investment horizon. In other words, 18% of stocks are less volatile than Darden, and above 97% of all equities are expected to generate higher returns over the next 90 days.
  Daily Expected Return (%)  
       Risk (%)  
Considering the 90-day investment horizon Darden Restaurants is expected to generate 1.66 times more return on investment than the market. However, the company is 1.66 times more volatile than its market benchmark. It trades about 0.1 of its potential returns per unit of risk. The DOW is currently generating roughly -0.07 per unit of risk.

Darden Restaurants Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Darden Restaurants' investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Darden Restaurants, and traders can use it to determine the average amount a Darden Restaurants' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0962

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Estimated Market Risk
 2.09
  actual daily
 
 18 %
of total potential
 
1818
Expected Return
 0.2
  actual daily
 
 3 %
of total potential
 
33
Risk-Adjusted Return
 0.1
  actual daily
 
 7 %
of total potential
 
77
Based on monthly moving average Darden Restaurants is performing at about 7% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Darden Restaurants by adding it to a well-diversified portfolio.

About Darden Restaurants Performance

To evaluate Darden Restaurants Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Darden Restaurants generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Darden Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Darden Restaurants market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Darden's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 29, 2022, it owned and operated 1,867 restaurants, which included 884 under the Olive Garden brand, 546 under the LongHorn Steakhouse brand name, 172 under the Cheddars Scratch Kitchen brand, 85 under the Yard House brand name, 62 under The Capital Grille brand, 45 under the Seasons 52 brand name, 42 under the Bahama Breeze brand, 28 under the Eddie Vs Prime Seafood brand name, and 3 under the Capital Burger brand and franchised 60 restaurants comprising 35 under the Olive Garden brand, 18 under the LongHorn Steakhouse brand name, 4 under the Cheddars Scratch Kitchen brand, 2 under The Capital Grille brand name, and 1 under the Bahama Breeze brand.Darden Restaurants, Inc. was founded in 1968 and is based in Orlando, Florida

Things to note about Darden Restaurants

Checking the ongoing alerts about Darden Restaurants for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Darden Restaurants help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Darden Restaurants Alerts

Equity Alerts and Improvement Suggestions

The company has 5.91 B in debt with debt to equity (D/E) ratio of 2.69, meaning that the company heavily relies on borrowing funds for operations. Darden Restaurants has a current ratio of 0.63, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Darden Restaurants until it has trouble settling it off, either with new capital or with free cash flow. So, Darden Restaurants' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Darden Restaurants sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Darden to invest in growth at high rates of return. When we think about Darden Restaurants' use of debt, we should always consider it together with cash and equity.
Over 93.0% of Darden Restaurants shares are held by institutions such as insurance companies
Latest headline from www.nasdaq.com: Wendys Banks on Unit Expansion Efforts, Costs High - Nasdaq
Continue to Investing Opportunities. You can also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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Is Darden Restaurants' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Darden Restaurants. If investors know Darden will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Darden Restaurants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Darden Restaurants is measured differently than its book value, which is the value of Darden that is recorded on the company's balance sheet. Investors also form their own opinion of Darden Restaurants' value that differs from its market value or its book value, called intrinsic value, which is Darden Restaurants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Darden Restaurants' market value can be influenced by many factors that don't directly affect Darden Restaurants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Darden Restaurants' value and its price as these two are different measures arrived at by different means. Investors typically determine Darden Restaurants value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Darden Restaurants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.