Darden Stock Today

DRI
 Stock
  

USD 125.82  3.69  2.85%   

Market Performance
7 of 100
Odds Of Distress
Less than 23
Darden Restaurants is trading at 125.82 as of the 7th of October 2022. This is a -2.85% down since the beginning of the trading day. The stock's open price was 129.51. Darden Restaurants has about a 23 % chance of experiencing some form of financial distress in the next two years of operation and did not have a very good performance during the last 90 trading days. Equity ratings for Darden Restaurants are calculated daily based on our scoring framework. The performance scores are derived for the period starting the 17th of October 2020 and ending today, the 7th of October 2022. Click here to learn more.
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. The company has 129.78 M outstanding shares of which 4.83 M shares are currently shorted by investors with about 3.07 days to cover. More on Darden Restaurants

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Follow Valuation Odds of Bankruptcy
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Darden Restaurants Stock Highlights

Most reasonable investors view market volatility as an opportunity to invest at a favorable price or to sell short against a bearish trend. Darden Restaurants' investment highlights are automatically generated signals that are significant enough to either complement your investing judgment regarding Darden Restaurants or challenge it. These highlights can help you better understand the position you are entering and avoid costly mistakes.
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
ChairmanEugene Lee
Thematic IdeaRestaurants (view all)
Average Analyst Recommendation
Analysts covering Darden Restaurants report their recommendations after researching Darden Restaurants' financial statements, talking to executives and customers, or listening in on Darden Restaurants' conference calls. The current trade recommendation is based on an ongoing consensus estimate among financial analysts covering Darden Restaurants. The Darden consensus assessment is calculated by taking the average forecast from all of the analysts covering Darden Restaurants.
Macroaxis Advice
Unlike general analyst consensus, Macroaxis buy hold or sell recommendation is provided in the context of your current investment horizon and risk tolerance. The advice algorithm takes into account all of Darden Restaurants' available fundamental, technical, and predictive indicators. Your current horizon is 90 days - details
Strong BuyUndervalued
Darden Restaurants (DRI) is traded on New York Stock Exchange in USA and employs 178,956 people. The company currently falls under 'Large-Cap' category with total capitalization of 16.39 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Darden Restaurants's market, we take the total number of its shares issued and multiply it by Darden Restaurants's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and these looking for more risk prefer small-cap and mid-cap equities. Darden Restaurants runs under Consumer Cyclical sector within Restaurants industry. The entity has 129.78 M outstanding shares of which 4.83 M shares are currently shorted by investors with about 3.07 days to cover. Darden Restaurants has about 420.6 M in cash with 1.26 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.39.
Check Darden Restaurants Probability Of Bankruptcy
Ownership
Darden Restaurants holds a total of one hundred twenty-nine million seven hundred eighty thousand outstanding shares. The majority of Darden Restaurants outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Darden Restaurants to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Darden Restaurants. Please pay attention to any change in the institutional holdings of Darden Restaurants as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Ownership Allocation (%)

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Darden Stock Price Odds Analysis

In reference to a normal probability distribution, the odds of Darden Restaurants jumping above the current price in 90 days from now is about 48.01%. The Darden Restaurants probability density function shows the probability of Darden Restaurants stock to fall within a particular range of prices over 90 days. Considering the 90-day investment horizon the stock has a beta coefficient of 1.1872 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Darden Restaurants will likely underperform. Additionally, the company has an alpha of 0.2532, implying that it can generate a 0.25 percent excess return over DOW after adjusting for the inherited market risk (beta).
  Odds Below 125.82HorizonTargetOdds Above 125.82
51.72%90 days
 125.82 
48.01%
Based on a normal probability distribution, the odds of Darden Restaurants to move above the current price in 90 days from now is about 48.01 (This Darden Restaurants probability density function shows the probability of Darden Stock to fall within a particular range of prices over 90 days) .

Darden Stock Institutional Holders

Institutional Holdings refers to the ownership stake in Darden Restaurants that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Darden Restaurants' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Darden Restaurants' value.
InstituionSecurity TypeTotal SharesValue
Capital International InvestorsCommon Shares15.8 M1.8 B
Capital World InvestorsCommon Shares15.6 M1.8 B
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Darden Restaurants Risk Profiles

Investors will always prefer to have the highest possible return on investment while minimizing volatility. Darden Restaurants market risk premium is the additional return an investor will receive from holding Darden Restaurants long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Darden Restaurants. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Although Darden Restaurants' alpha and beta are two of the key measurements used to evaluate Darden Restaurants' performance over the market, the standard measures of volatility play an important role as well.

Darden Stock Against Markets

Picking the right benchmark for Darden Restaurants stock is fundamental to making educated investment choices. Many naive investors compare their positions with the S&P 500 or with the Nasdaq. But these benchmarks are not all-inclusive and generally should be used only for large-capitalization equities or stock offerings from large companies. When the price of a selected benchmark declines in a down market, there may be an uptick in Darden Restaurants stock price where buyers come in believing the asset is cheap. The opposite is true when the market is bullish; so, accurately picking the benchmark for Darden Restaurants is critical whether you are bullish or bearish towards Darden Restaurants at a given time.

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Our tools can tell you how much better you can do entering a position in Darden Restaurants without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Darden Restaurants Corporate Directors

Darden Restaurants corporate directors refer to members of a Darden Restaurants board of directors. The board of directors generally takes responsibility for the Darden Restaurants' affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Darden Restaurants' board members must vote for the resolution. The Darden Restaurants board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
Jean Birch - Independent DirectorProfile
Nana Mensah - Independent DirectorProfile
Alan Stillman - Independent DirectorProfile
Betsy Atkins - Independent DirectorProfile

Invested in Darden Restaurants?

The danger of trading Darden Restaurants is mainly related to its market volatility and company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Darden Restaurants is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Darden Restaurants. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Darden Restaurants is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
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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.