Darden Restaurants Stock Buy Hold or Sell Recommendation
| DRI Stock | USD 199.93 0.92 0.46% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Darden Restaurants is 'Hold'. The recommendation algorithm takes into account all of Darden Restaurants' available fundamental, technical, and predictive indicators you will find on this site.
Check out Darden Restaurants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Darden Stock please use our How to Invest in Darden Restaurants guide. In addition, we conduct extensive research on individual companies such as Darden and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Darden Restaurants. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
Darden |
Execute Darden Restaurants Buy or Sell Advice
The Darden recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Darden Restaurants. Macroaxis does not own or have any residual interests in Darden Restaurants or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Darden Restaurants' advice using the current market data and latest reported fundamentals.
Time Horizon
3 Months |
Risk Tolerance
I am an educated risk taker |
 |  |
Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Darden Restaurants Trading Alerts and Improvement Suggestions
| Darden Restaurants has 5.43 B in debt with debt to equity (D/E) ratio of 2.89, meaning that the company heavily relies on borrowing funds for operations. Darden Restaurants has a current ratio of 0.51, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Darden to invest in growth at high rates of return. | |
| Over 97.0% of Darden Restaurants shares are held by institutions such as insurance companies | |
| On 3rd of February 2025 Darden Restaurants paid $ 1.4 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: SP 500 Gains and Losses Today Accenture, Gartner Stocks Pressured by Government Spending Cuts |
Darden Restaurants Returns Distribution Density
The distribution of Darden Restaurants' historical returns is an attempt to chart the uncertainty of Darden Restaurants' future price movements. The chart of the probability distribution of Darden Restaurants daily returns describes the distribution of returns around its average expected value. We use Darden Restaurants price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Darden Restaurants returns is essential to provide solid investment advice for Darden Restaurants.
| Mean Return | 0.33 |
| Value At Risk | -2.27 |
| Potential Upside | 2.84 |
| Standard Deviation | 2.49 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Darden Restaurants historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Darden Stock Institutional Investors
| Shares | |||
| Morgan Stanley - Brokerage Accounts | 2024-12-31 | 1.8 M | |
| Earnest Partners Llc | 2024-12-31 | 1.6 M | |
| Bank Of America Corp | 2024-12-31 | 1.6 M | |
| Ubs Group Ag | 2024-12-31 | 1.5 M | |
| Wellington Management Company Llp | 2024-12-31 | 1.5 M | |
| Northern Trust Corp | 2024-12-31 | 1.4 M | |
| Dimensional Fund Advisors, Inc. | 2024-12-31 | 1.3 M | |
| Goldman Sachs Group Inc | 2024-12-31 | 1.1 M | |
| Bank Of New York Mellon Corp | 2024-12-31 | 1 M | |
| Capital World Investors | 2024-12-31 | 14.9 M | |
| Vanguard Group Inc | 2024-12-31 | 13.7 M |
Darden Restaurants Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change In Cash | 451.4M | (742.6M) | (55.9M) | (196.1M) | (225.5M) | (214.2M) | |
| Free Cash Flow | 924.9M | 857M | 951.8M | 993.4M | 1.1B | 1.2B | |
| Depreciation | 350.9M | 368.4M | 387.8M | 459.9M | 528.9M | 288.4M | |
| Other Non Cash Items | (162.1M) | 13.2M | 115.6M | (6M) | (6.9M) | (6.6M) | |
| Capital Expenditures | 269.1M | 399.1M | 593.8M | 628.3M | 722.5M | 422.1M | |
| Net Income | 632.4M | 954.7M | 983.5M | 1.0B | 1.2B | 1.2B | |
| End Period Cash Flow | 1.2B | 472.1M | 416.2M | 220.1M | 253.1M | 205.9M | |
| Change To Inventory | 16.1M | (79.8M) | (17.3M) | 5.6M | 5.0M | 5.3M | |
| Dividends Paid | 202.6M | 563M | 589.8M | 628.4M | 722.7M | 758.8M | |
| Change To Netincome | (92.9M) | 216.7M | 51.9M | (8.8M) | (10.1M) | (9.6M) | |
| Investments | (263.7M) | (389M) | (568.4M) | (1.3B) | (1.2B) | (1.1B) | |
| Net Borrowings | (6.2M) | 264.8M | (277.1M) | (12.9M) | (14.8M) | (15.6M) |
Darden Restaurants Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Darden Restaurants or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Darden Restaurants' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Darden stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.40 | |
β | Beta against Dow Jones | 1.21 | |
σ | Overall volatility | 1.70 | |
Ir | Information ratio | 0.16 |
Darden Restaurants Volatility Alert
Darden Restaurants has relatively low volatility with skewness of 3.09 and kurtosis of 16.93. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Darden Restaurants' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Darden Restaurants' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Darden Restaurants Fundamentals Vs Peers
Comparing Darden Restaurants' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Darden Restaurants' direct or indirect competition across all of the common fundamentals between Darden Restaurants and the related equities. This way, we can detect undervalued stocks with similar characteristics as Darden Restaurants or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Darden Restaurants' fundamental indicators could also be used in its relative valuation, which is a method of valuing Darden Restaurants by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Darden Restaurants to competition |
| Fundamentals | Darden Restaurants | Peer Average |
| Return On Equity | 0.51 | -0.31 |
| Return On Asset | 0.0706 | -0.14 |
| Profit Margin | 0.09 % | (1.27) % |
| Operating Margin | 0.10 % | (5.51) % |
| Current Valuation | 29.17 B | 16.62 B |
| Shares Outstanding | 117.15 M | 571.82 M |
| Shares Owned By Insiders | 0.42 % | 10.09 % |
| Shares Owned By Institutions | 97.30 % | 39.21 % |
| Number Of Shares Shorted | 4.61 M | 4.71 M |
| Price To Earning | 20.13 X | 28.72 X |
| Price To Book | 10.58 X | 9.51 X |
| Price To Sales | 2.01 X | 11.42 X |
| Revenue | 11.39 B | 9.43 B |
| Gross Profit | 2.48 B | 27.38 B |
| EBITDA | 1.78 B | 3.9 B |
| Net Income | 1.03 B | 570.98 M |
| Cash And Equivalents | 367.8 M | 2.7 B |
| Cash Per Share | 3.08 X | 5.01 X |
| Total Debt | 5.43 B | 5.32 B |
| Debt To Equity | 2.89 % | 48.70 % |
| Current Ratio | 0.52 X | 2.16 X |
| Book Value Per Share | 18.87 X | 1.93 K |
| Cash Flow From Operations | 1.62 B | 971.22 M |
| Short Ratio | 4.13 X | 4.00 X |
| Earnings Per Share | 8.75 X | 3.12 X |
| Price To Earnings To Growth | 1.90 X | 4.89 X |
| Target Price | 204.71 | |
| Number Of Employees | 191.1 K | 18.84 K |
| Beta | 1.27 | -0.15 |
| Market Capitalization | 23.31 B | 19.03 B |
| Total Asset | 11.32 B | 29.47 B |
| Retained Earnings | (35.5 M) | 9.33 B |
| Working Capital | (1.37 B) | 1.48 B |
Note: Acquisition by Timothy Wilmott of 173 shares of Darden Restaurants subject to Rule 16b-3 [view details]
Darden Restaurants Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Darden . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Darden Restaurants Buy or Sell Advice
When is the right time to buy or sell Darden Restaurants? Buying financial instruments such as Darden Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Darden Restaurants in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 constituents at this time.
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Check out Darden Restaurants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Darden Stock please use our How to Invest in Darden Restaurants guide.You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is Hotels, Restaurants & Leisure space 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.
Quarterly Earnings Growth 0.032 | Earnings Share 8.75 | Revenue Per Share | Quarterly Revenue Growth 0.06 | Return On Assets |
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 if Darden Restaurants is a good investment 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.