Darden Restaurants Shares Outstanding vs. Gross Profit

DRI Stock  USD 166.69  1.70  1.03%   
Based on Darden Restaurants' profitability indicators, Darden Restaurants may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Darden Restaurants' ability to earn profits and add value for shareholders. The Darden Restaurants' current Sales General And Administrative To Revenue is estimated to increase to 0.05, while Price To Sales Ratio is projected to decrease to 1.23. As of now, Darden Restaurants' Net Income is increasing as compared to previous years. The Darden Restaurants' current Net Income Applicable To Common Shares is estimated to increase to about 1.2 B, while Total Other Income Expense Net is forecasted to increase to (131.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.180.2116
Fairly Down
Very volatile
Operating Profit Margin0.110.1154
Sufficiently Down
Slightly volatile
For Darden Restaurants profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Darden Restaurants to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Darden Restaurants utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Darden Restaurants's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Darden Restaurants over time as well as its relative position and ranking within its peers.
  

Darden Restaurants' Revenue Breakdown by Earning Segment

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For more detail on how to invest in Darden Stock please use our How to Invest in Darden Restaurants guide.
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
0.087
Dividend Share
5.33
Earnings Share
8.67
Revenue Per Share
95.695
Quarterly Revenue Growth
0.01
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.

Darden Restaurants Gross Profit vs. Shares Outstanding Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Darden Restaurants's current stock value. Our valuation model uses many indicators to compare Darden Restaurants value to that of its competitors to determine the firm's financial worth.
Darden Restaurants is rated below average in shares outstanding category among its peers. It is rated # 4 in gross profit category among its peers fabricating about  16.98  of Gross Profit per Shares Outstanding. As of now, Darden Restaurants' Gross Profit is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Darden Restaurants' earnings, one of the primary drivers of an investment's value.

Darden Gross Profit vs. Shares Outstanding

Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.

Darden Restaurants

Shares Outstanding

 = 

Public Shares

-

Repurchased

 = 
117.5 M
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Darden Restaurants

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Darden Gross Profit Comparison

Darden Restaurants is currently under evaluation in gross profit category among its peers.

Darden Restaurants Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Darden Restaurants, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Darden Restaurants will eventually generate negative long term returns. The profitability progress is the general direction of Darden Restaurants' change in net profit over the period of time. It can combine multiple indicators of Darden Restaurants, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income25.6 M26.9 M
Operating Income1.3 B1.4 B
Income Before Tax1.2 B1.2 B
Total Other Income Expense Net-138.7 M-131.8 M
Net IncomeB1.1 B
Income Tax Expense145 M91.5 M
Net Income Applicable To Common Shares1.1 B1.2 B
Net Income From Continuing OpsB591.2 M
Net Interest Income-138.7 M-145.6 M
Interest Income4.5 M4.3 M
Non Operating Income Net Other-10 M-10.5 M
Change To Netincome-10.1 M-9.6 M
Net Loss 8.57 (0.40)
Income Quality 1.57 (14.46)
Net Income Per E B T 0.87  0.31 

Darden Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Darden Restaurants. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Darden Restaurants position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Darden Restaurants' important profitability drivers and their relationship over time.

Use Darden Restaurants in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Darden Restaurants position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Darden Restaurants will appreciate offsetting losses from the drop in the long position's value.

Darden Restaurants Pair Trading

Darden Restaurants Pair Trading Analysis

The ability to find closely correlated positions to Darden Restaurants could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Darden Restaurants when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Darden Restaurants - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Darden Restaurants to buy it.
The correlation of Darden Restaurants is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Darden Restaurants moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Darden Restaurants moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Darden Restaurants can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Darden Restaurants position

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.

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When determining whether Darden Restaurants offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Darden Restaurants' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Darden Restaurants Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Darden Restaurants Stock:
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
To fully project Darden Restaurants' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Darden Restaurants at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Darden Restaurants' income statement, its balance sheet, and the statement of cash flows.
Potential Darden Restaurants investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Darden Restaurants investors may work on each financial statement separately, they are all related. The changes in Darden Restaurants's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Darden Restaurants's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.