--- title: Darden Restaurants (DRI) — intrinsic value and fair price canonical: https://sweetvaluelab.com/stocks/dri ticker: DRI as_of: 2026-10-17 sector: Consumer Cyclical industry: Restaurants --- # Darden Restaurants (DRI) Darden Restaurants (DRI) closed at $216.35 on Oct 16, 2026, undervalued by 3% vs its model value of $222.51 (from a five-year discounted cash flow). ## Key figures | Figure | Value | | --- | ---: | | Last close | $216.35 (Oct 16, 2026) | | Model value (from a five-year discounted cash flow) | $222.51 | | Price vs model | undervalued by 3% vs model | | Range of that model | $142.53 – $503.43 | | Market value | $24.5B | | P/E (fiscal 2026) | 20.8 | | Net margin (fiscal 2026) | 9.1% | | Free cash flow (fiscal 2026) | $1.1B | | Dividend yield (trailing twelve months) | 2.88% | | Beta | 0.62 | | Cost of capital (WACC) | 7.87% | | Business classification | Dividend Payer (Low/slowing growth (~8% recent), Moderate margins (9% net margin), Pays dividends, Highly cyclical earnings) | ## Dividends | Figure | Value | | --- | ---: | | Trailing dividend yield | 2.88% | | Dividends per share, last 12 months | $6.24 | | Dividends / free cash flow (fiscal 2026) | 61.9% | | Raised | 5 years in a row | | Growth over 5 years | 12.6% a year | | Latest payment | $1.62, ex-date Oct 9, 2026, paid Nov 2, 2026 | | Year of payments | Dividends per share | | --- | ---: | | To Oct 7, 2021 | $3.45 | | To Oct 6, 2022 | $4.62 | | To Oct 6, 2023 | $5.04 | | To Oct 10, 2024 | $5.42 | | To Oct 10, 2025 | $5.80 | | Trailing twelve months (to Oct 9, 2026) | $6.24 | ## Valuation models Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026. | Model | Role | Value per share | Low | High | | --- | --- | ---: | ---: | ---: | | DCF · Perpetuity growth · 5y | primary | $222.51 | $142.53 | $503.43 | | DCF · Perpetuity growth · 10y | cross check | $243.57 | $160.13 | $532.02 | | DCF · EBITDA exit · 5y | cross check | $357.10 | $265.26 | $464.93 | | DCF · EBITDA exit · 10y | cross check | $358.61 | $255.97 | $494.51 | | P/E · peers | cross check | $356.47 | $183.63 | $1,034.29 | | P/E · own history | cross check | $221.88 | $207.25 | $249.14 | | PEG | sanity check | $129.30 | $129.30 | $129.30 | | EV/EBITDA · peers | cross check | $335.30 | $201.08 | $470.10 | | EV/Revenue · peers | cross check | $46.90 | $24.95 | $52.43 | | Earnings power value | cross check | $0.00 | $0.00 | $0.00 | | Dividend discount | cross check | $183.49 | $123.41 | $288.19 | ## Insider activity (SEC Form 4) Past 90 days: 0 open-market buys ($0) and 5 open-market sales ($2.6M); 10b5-1 plan sales included. | Date | Insider | Relationship | Transaction | Shares | Value | | --- | --- | --- | --- | ---: | ---: | | Oct 6, 2026 | Martin Melvin John | Group President | Open-market sell | 2,209 | $447,565.5 | | Sep 29, 2026 | Madonna John W. | SVP, Corporate Controller | Bona fide gift | 75 | $0 | | Sep 28, 2026 | Madonna John W. | SVP, Corporate Controller | Bona fide gift | 510 | $0 | | Sep 23, 2026 | CHUGG JULIANA L | Director | Grant / award | 936 | $0 | | Sep 23, 2026 | WILMOTT TIMOTHY J | Director | Grant / award | 936 | $0 | ## Recent SEC filings | Filed | Form | What | Filing | | --- | --- | --- | --- | | Oct 2, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/940944/000094094426000042/dri-20260830.htm | | Sep 24, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/940944/000094094426000035/dri-20260923.htm | | Sep 24, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/940944/000094094426000032/dri-20260924.htm | | Aug 10, 2026 | ARS | Annual report to shareholders | https://www.sec.gov/Archives/edgar/data/940944/000119312526342051/d117676dars.pdf | | Aug 10, 2026 | DEFA14A | Additional proxy materials | https://www.sec.gov/Archives/edgar/data/940944/000119312526342032/dri-2026_notice__access.htm | ## Superinvestors holding it (latest 13F) | Manager | Quarter | Shares | Value | | --- | --- | ---: | ---: | | Bridgewater | 2026-06-30 | 6,765 | $1.4M | 1 tracked managers in all. ## About Darden Restaurants, Inc., through its various subsidiaries, focuses on the ownership and operation of full-service dining establishments across both the United States and Canada. As of May 29, 2022, the company's extensive portfolio comprised 1,867 directly managed restaurants. These included a significant presence from its flagship brands: 884 Olive Garden outlets, 546 LongHorn Steakhouse locations, 172 Cheddar's Scratch Kitchens, 85 Yard House venues, 62 Capital Grille branches, 45 Seasons 52 restaurants, 42 Bahama Breeze sites, 28 Eddie V's Prime Seafood establishments, and 3 Capital Burger eateries. In addition to its owned operations, Darden also oversees 60 franchised restaurants, specifically 35 Olive Garden units, 18 LongHorn Steakhouse units, 4 Cheddar's Scratch Kitchens, 2 Capital Grille locations, and 1 Bahama Breeze restaurant. The company, which originated in 1968, is headqu… --- Source: https://sweetvaluelab.com/stocks/dri (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. 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