DARDEN RESTAURANTS INC (DDN.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:DDN • US2371941053

171.4 EUR
+4.5 (+2.7%)
Last: Feb 3, 2026, 07:00 PM
Fundamental Rating

5

DDN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 59 industry peers in the Hotels, Restaurants & Leisure industry. DDN has a medium profitability rating, but doesn't score so well on its financial health evaluation. DDN is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • DDN had positive earnings in the past year.
  • DDN had a positive operating cash flow in the past year.
  • Each year in the past 5 years DDN has been profitable.
  • In the past 5 years DDN always reported a positive cash flow from operatings.
DDN.DE Yearly Net Income VS EBIT VS OCF VS FCFDDN.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

1.2 Ratios

  • The Return On Assets of DDN (8.67%) is better than 77.97% of its industry peers.
  • With an excellent Return On Equity value of 53.94%, DDN belongs to the best of the industry, outperforming 96.61% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 12.02%, DDN is in the better half of the industry, outperforming 69.49% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for DDN is in line with the industry average of 13.35%.
Industry RankSector Rank
ROA 8.67%
ROE 53.94%
ROIC 12.02%
ROA(3y)9%
ROA(5y)8.46%
ROE(3y)45.28%
ROE(5y)40.31%
ROIC(3y)12.45%
ROIC(5y)11.32%
DDN.DE Yearly ROA, ROE, ROICDDN.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

1.3 Margins

  • DDN has a Profit Margin of 8.92%. This is in the better half of the industry: DDN outperforms 61.02% of its industry peers.
  • In the last couple of years the Profit Margin of DDN has declined.
  • DDN has a Operating Margin of 11.64%. This is comparable to the rest of the industry: DDN outperforms 52.54% of its industry peers.
  • DDN's Operating Margin has improved in the last couple of years.
  • DDN has a Gross Margin of 21.63%. This is in the lower half of the industry: DDN underperforms 67.80% of its industry peers.
  • In the last couple of years the Gross Margin of DDN has grown nicely.
Industry RankSector Rank
OM 11.64%
PM (TTM) 8.92%
GM 21.63%
OM growth 3Y-1.01%
OM growth 5Y15.81%
PM growth 3Y-4.23%
PM growth 5YN/A
GM growth 3Y1.84%
GM growth 5Y3.94%
DDN.DE Yearly Profit, Operating, Gross MarginsDDN.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20

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3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DDN is still creating some value.
  • DDN has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for DDN has been reduced compared to 5 years ago.
  • DDN has a worse debt/assets ratio than last year.
DDN.DE Yearly Shares OutstandingDDN.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
DDN.DE Yearly Total Debt VS Total AssetsDDN.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • DDN has an Altman-Z score of 2.43. This is not the best score and indicates that DDN is in the grey zone with still only limited risk for bankruptcy at the moment.
  • The Altman-Z score of DDN (2.43) is better than 62.71% of its industry peers.
  • The Debt to FCF ratio of DDN is 4.42, which is a neutral value as it means it would take DDN, 4.42 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 4.42, DDN is doing good in the industry, outperforming 66.10% of the companies in the same industry.
  • DDN has a Debt/Equity ratio of 2.05. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of DDN (2.05) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 2.05
Debt/FCF 4.42
Altman-Z 2.43
ROIC/WACC1.45
WACC8.3%
DDN.DE Yearly LT Debt VS Equity VS FCFDDN.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • DDN has a Current Ratio of 0.39. This is a bad value and indicates that DDN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Current ratio value of 0.39, DDN is not doing good in the industry: 76.27% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.26 indicates that DDN may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.26, DDN is doing worse than 77.97% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.39
Quick Ratio 0.26
DDN.DE Yearly Current Assets VS Current LiabilitesDDN.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 8.62% over the past year.
  • The Earnings Per Share has been growing by 24.78% on average over the past years. This is a very strong growth
  • Looking at the last year, DDN shows a quite strong growth in Revenue. The Revenue has grown by 8.61% in the last year.
  • DDN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.12% yearly.
EPS 1Y (TTM)8.62%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%2.46%
Revenue 1Y (TTM)8.61%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%7.34%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.73% on average over the next years. This is quite good.
  • Based on estimates for the next years, DDN will show a small growth in Revenue. The Revenue will grow by 5.76% on average per year.
EPS Next Y11.75%
EPS Next 2Y9.67%
EPS Next 3Y9.65%
EPS Next 5Y8.73%
Revenue Next Year9.12%
Revenue Next 2Y6.53%
Revenue Next 3Y6.18%
Revenue Next 5Y5.76%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
DDN.DE Yearly Revenue VS EstimatesDDN.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
DDN.DE Yearly EPS VS EstimatesDDN.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 20.65 indicates a rather expensive valuation of DDN.
  • Compared to the rest of the industry, the Price/Earnings ratio of DDN indicates a somewhat cheap valuation: DDN is cheaper than 72.88% of the companies listed in the same industry.
  • DDN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
  • Based on the Price/Forward Earnings ratio of 17.65, the valuation of DDN can be described as rather expensive.
  • 71.19% of the companies in the same industry are more expensive than DDN, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 25.51. DDN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.65
Fwd PE 17.65
DDN.DE Price Earnings VS Forward Price EarningsDDN.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as DDN.
  • DDN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 24.41
EV/EBITDA 13.17
DDN.DE Per share dataDDN.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • DDN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)0.83
EPS Next 2Y9.67%
EPS Next 3Y9.65%

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6

5. Dividend

5.1 Amount

  • DDN has a Yearly Dividend Yield of 2.96%.
  • DDN's Dividend Yield is rather good when compared to the industry average which is at 1.34. DDN pays more dividend than 86.44% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, DDN pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.96%

5.2 History

  • On average, the dividend of DDN grows each year by 16.99%, which is quite nice.
Dividend Growth(5Y)16.99%
Div Incr YearsN/A
Div Non Decr YearsN/A
DDN.DE Yearly Dividends per shareDDN.DE Yearly Dividends per shareYearly Dividends per share 2021 2022 2025 2026 1 2 3

5.3 Sustainability

  • DDN pays out 60.33% of its income as dividend. This is not a sustainable payout ratio.
  • DDN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.33%
EPS Next 2Y9.67%
EPS Next 3Y9.65%
DDN.DE Yearly Income VS Free CF VS DividendDDN.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B
DDN.DE Dividend Payout.DDN.DE Dividend Payout, showing the Payout Ratio.DDN.DE Dividend Payout.PayoutRetained Earnings

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DARDEN RESTAURANTS INC

FRA:DDN (2/3/2026, 7:00:00 PM)

171.4

+4.5 (+2.7%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)12-18
Earnings (Next)03-18
Inst Owners94.95%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap19.94B
Revenue(TTM)12.58B
Net Income(TTM)1.12B
Analysts77.3
Price Target192.2 (12.14%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.96%
Yearly Dividend4.68
Dividend Growth(5Y)16.99%
DP60.33%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.3%
Min EPS beat(2)-2.55%
Max EPS beat(2)-2.05%
EPS beat(4)0
Avg EPS beat(4)-1.53%
Min EPS beat(4)-2.55%
Max EPS beat(4)-0.66%
EPS beat(8)1
Avg EPS beat(8)-1.59%
EPS beat(12)5
Avg EPS beat(12)-0.23%
EPS beat(16)7
Avg EPS beat(16)-0.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)4
Avg Revenue beat(16)-1.03%
PT rev (1m)0%
PT rev (3m)N/A
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.01%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 20.65
Fwd PE 17.65
P/S 1.88
P/FCF 24.41
P/OCF 13.89
P/B 11.35
P/tB N/A
EV/EBITDA 13.17
EPS(TTM)8.3
EY4.84%
EPS(NY)9.71
Fwd EY5.67%
FCF(TTM)7.02
FCFY4.1%
OCF(TTM)12.34
OCFY7.2%
SpS91.33
BVpS15.11
TBVpS-6.71
PEG (NY)1.76
PEG (5Y)0.83
Graham Number53.12
Profitability
Industry RankSector Rank
ROA 8.67%
ROE 53.94%
ROCE 14.23%
ROIC 12.02%
ROICexc 12.28%
ROICexgc 17.2%
OM 11.64%
PM (TTM) 8.92%
GM 21.63%
FCFM 7.69%
ROA(3y)9%
ROA(5y)8.46%
ROE(3y)45.28%
ROE(5y)40.31%
ROIC(3y)12.45%
ROIC(5y)11.32%
ROICexc(3y)12.83%
ROICexc(5y)11.9%
ROICexgc(3y)17.84%
ROICexgc(5y)16.28%
ROCE(3y)14.18%
ROCE(5y)12.88%
ROICexgc growth 3Y1.15%
ROICexgc growth 5Y21.42%
ROICexc growth 3Y-1.77%
ROICexc growth 5Y19.57%
OM growth 3Y-1.01%
OM growth 5Y15.81%
PM growth 3Y-4.23%
PM growth 5YN/A
GM growth 3Y1.84%
GM growth 5Y3.94%
F-Score8
Asset Turnover0.97
Health
Industry RankSector Rank
Debt/Equity 2.05
Debt/FCF 4.42
Debt/EBITDA 2.13
Cap/Depr 135.69%
Cap/Sales 5.83%
Interest Coverage 7.92
Cash Conversion 84.82%
Profit Quality 86.17%
Current Ratio 0.39
Quick Ratio 0.26
Altman-Z 2.43
F-Score8
WACC8.3%
ROIC/WACC1.45
Cap/Depr(3y)140.02%
Cap/Depr(5y)121.27%
Cap/Sales(3y)5.58%
Cap/Sales(5y)4.94%
Profit Quality(3y)96.8%
Profit Quality(5y)105.36%
High Growth Momentum
Growth
EPS 1Y (TTM)8.62%
EPS 3Y8.81%
EPS 5Y24.78%
EPS Q2Q%2.46%
EPS Next Y11.75%
EPS Next 2Y9.67%
EPS Next 3Y9.65%
EPS Next 5Y8.73%
Revenue 1Y (TTM)8.61%
Revenue growth 3Y7.84%
Revenue growth 5Y9.12%
Sales Q2Q%7.34%
Revenue Next Year9.12%
Revenue Next 2Y6.53%
Revenue Next 3Y6.18%
Revenue Next 5Y5.76%
EBIT growth 1Y8.14%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year47.9%
EBIT Next 3Y17.98%
EBIT Next 5Y12.44%
FCF growth 1Y8.15%
FCF growth 3Y6.34%
FCF growth 5Y35.25%
OCF growth 1Y11.89%
OCF growth 3Y10.58%
OCF growth 5Y19.02%

DARDEN RESTAURANTS INC / DDN.DE FAQ

What is the fundamental rating for DDN stock?

ChartMill assigns a fundamental rating of 5 / 10 to DDN.DE.


What is the valuation status for DDN stock?

ChartMill assigns a valuation rating of 4 / 10 to DARDEN RESTAURANTS INC (DDN.DE). This can be considered as Fairly Valued.


How profitable is DARDEN RESTAURANTS INC (DDN.DE) stock?

DARDEN RESTAURANTS INC (DDN.DE) has a profitability rating of 6 / 10.


What is the valuation of DARDEN RESTAURANTS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for DARDEN RESTAURANTS INC (DDN.DE) is 20.65 and the Price/Book (PB) ratio is 11.35.


Can you provide the dividend sustainability for DDN stock?

The dividend rating of DARDEN RESTAURANTS INC (DDN.DE) is 6 / 10 and the dividend payout ratio is 60.33%.