Darden RestaurantsStock Price and Value Analysis

Should you buy Darden Restaurants stock? (NYSE:DRI). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has stable growth.
  • This company has a high dividend yield.
  • This company is very stable.
  • This company is making money at a modest rate.
  • This stock looks overpriced.

DRI Free Cash Flow Trend

Based on historical returns, we believe that Darden Restaurants can grow its free cash at a rate of about 0%. That's positive!

Free Cash Flow trendline for DRI
Free Cash Flow trendline for Darden Restaurants

Inside the DRI Numbers

DRI Price
(Darden Restaurants stock price per share)
$86.41
[?] DRI Fair Price
(based on intrinsic value)
$41.73
[?] DRI Safety Price (based on a variable margin of safety) $33.38
[?] PE Ratio versus Sector 8% higher than other Services stocks
[?] PE Ratio versus Industry 4% higher than other Restaurants stocks
[?] Cash Yield 4.70%
[?] Free Cash Flow Jitter 16%
[?] Dividend Yield 3%

Is Darden Restaurants Stock on Sale?

We believe that Darden Restaurants may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Darden Restaurants looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy DRI Stock?

Does Darden Restaurants have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.