Darden Restaurants Stock 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 is very stable.
  • This company has an average dividend yield.
  • This company has wild ups and downs.
  • This stock looks overpriced.
  • This company is making money at a modest rate.

Inside the DRI Numbers

DRI Price
(Darden Restaurants stock price per share)
$145.62
[?] DRI Fair Price
(based on intrinsic value)
$42.72
[?] DRI Safety Price (based on a variable margin of safety) $34.18
[?] PE Ratio versus Sector 114% higher than other Consumer Goods stocks
[?] PE Ratio versus Industry 39% higher than other Restaurants stocks
[?] Cash Yield 2.68%
[?] Free Cash Flow Jitter 264%
[?] Dividend Yield 2%
Shares Shorted 5,530,515

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 5,530,515 shares shorted. With 130,161,214 shares available for purchase and an average trading volume over the past 10 trading days of 1,191,487, it would take at least 4.642 days for all of the short holders to cover their shorts.

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.