DARDEN RESTAURANTS INC (DDN.DE) Fundamental Analysis & Valuation
FRA:DDN • US2371941053
Current stock price
180.1 EUR
-5.5 (-2.96%)
Last:
This DDN.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. DDN.DE Profitability Analysis
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.
- DDN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of DDN (8.67%) is better than 80.70% of its industry peers.
- With an excellent Return On Equity value of 53.94%, DDN belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
- With a decent Return On Invested Capital value of 12.02%, DDN is doing good in the industry, outperforming 71.93% of the companies in the same industry.
- DDN had an Average Return On Invested Capital over the past 3 years of 12.45%. This is in line with the industry average of 11.82%.
| Industry Rank | Sector 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%
1.3 Margins
- DDN's Profit Margin of 8.92% is fine compared to the rest of the industry. DDN outperforms 68.42% 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 54.39% of its industry peers.
- In the last couple of years the Operating Margin of DDN has grown nicely.
- DDN has a worse Gross Margin (21.63%) than 66.67% of its industry peers.
- DDN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. DDN.DE Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DDN is creating some value.
- Compared to 1 year ago, DDN has less shares outstanding
- Compared to 5 years ago, DDN has less shares outstanding
- Compared to 1 year ago, DDN has a worse debt to assets ratio.
2.2 Solvency
- DDN has an Altman-Z score of 2.50. 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.
- DDN's Altman-Z score of 2.50 is fine compared to the rest of the industry. DDN outperforms 70.18% of its industry peers.
- DDN has a debt to FCF ratio of 4.42. This is a neutral value as DDN would need 4.42 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.42, DDN is in the better half of the industry, outperforming 64.91% 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.
- DDN's Debt to Equity ratio of 2.05 is in line compared to the rest of the industry. DDN outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.05 | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.46
WACC8.22%
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.
- DDN's Current ratio of 0.39 is on the low side compared to the rest of the industry. DDN is outperformed by 77.19% of its industry peers.
- A Quick Ratio of 0.26 indicates that DDN may have some problems paying its short term obligations.
- DDN has a worse Quick ratio (0.26) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.26 |
3. DDN.DE Growth Analysis
3.1 Past
- DDN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.62%, which is quite good.
- The Earnings Per Share has been growing by 24.78% on average over the past years. This is a very strong growth
- DDN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.61%.
- The Revenue has been growing by 9.12% on average over the past years. This is quite good.
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
- Based on estimates for the next years, DDN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.63% on average per year.
- Based on estimates for the next years, DDN will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y11.82%
EPS Next 2Y9.73%
EPS Next 3Y9.63%
EPS Next 5Y8.63%
Revenue Next Year9.12%
Revenue Next 2Y6.53%
Revenue Next 3Y6.18%
Revenue Next 5Y5.77%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. DDN.DE Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.29, DDN is valued on the expensive side.
- Based on the Price/Earnings ratio, DDN is valued a bit cheaper than the industry average as 70.18% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 26.21. DDN is around the same levels.
- The Price/Forward Earnings ratio is 18.18, which indicates a rather expensive current valuation of DDN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DDN indicates a somewhat cheap valuation: DDN is cheaper than 61.40% of the companies listed in the same industry.
- DDN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 18.18 |
4.2 Price Multiples
- DDN's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DDN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.91 | ||
| EV/EBITDA | 13.83 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DDN does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of DDN may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)0.86
EPS Next 2Y9.73%
EPS Next 3Y9.63%
5. DDN.DE Dividend Analysis
5.1 Amount
- DDN has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.46, DDN pays a better dividend. On top of this DDN pays more dividend than 85.96% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, DDN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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
5.3 Sustainability
- 60.33% of the earnings are spent on dividend by DDN. 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 2Y9.73%
EPS Next 3Y9.63%
DDN.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:DDN (2/25/2026, 7:00:00 PM)
180.1
-5.5 (-2.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)12-18 2025-12-18/bmo
Earnings (Next)03-19 2026-03-19/bmo
Inst Owners99.7%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap20.74B
Revenue(TTM)12.58B
Net Income(TTM)1.12B
Analysts77.3
Price Target195.05 (8.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend4.83
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)1.48%
PT rev (3m)0.06%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.29 | ||
| Fwd PE | 18.18 | ||
| P/S | 1.92 | ||
| P/FCF | 24.91 | ||
| P/OCF | 14.18 | ||
| P/B | 11.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.83 |
EPS(TTM)8.46
EY4.7%
EPS(NY)9.91
Fwd EY5.5%
FCF(TTM)7.23
FCFY4.01%
OCF(TTM)12.71
OCFY7.05%
SpS94.02
BVpS15.55
TBVpS-6.91
PEG (NY)1.8
PEG (5Y)0.86
Graham Number54.41
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.5 |
F-Score8
WACC8.22%
ROIC/WACC1.46
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 Y11.82%
EPS Next 2Y9.73%
EPS Next 3Y9.63%
EPS Next 5Y8.63%
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 5Y5.77%
EBIT growth 1Y8.14%
EBIT growth 3Y6.75%
EBIT growth 5Y26.36%
EBIT Next Year47.83%
EBIT Next 3Y17.98%
EBIT Next 5Y11.74%
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 Fundamental Analysis 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 3 / 10 to DARDEN RESTAURANTS INC (DDN.DE). This can be considered as Overvalued.
Can you provide the profitability details for DARDEN RESTAURANTS INC?
DARDEN RESTAURANTS INC (DDN.DE) has a profitability rating of 6 / 10.
How financially healthy is DARDEN RESTAURANTS INC?
The financial health rating of DARDEN RESTAURANTS INC (DDN.DE) is 3 / 10.
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%.