Stock fact sheet · data as of
Darden Restaurants, Inc. (DRI): fair value, margin of safety and Wheel Score
Consumer Cyclical · Restaurants · United States · Defensive
Is DRI undervalued?
Darden Restaurants, Inc. (DRI) closed at 214.31 on 16 Oct 2026, 34% above the GLS average fair value of 160.14. 5 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between Graham Number (65.30) and Graham Growth (262.79). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files DRI under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for DRI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 245.23 | +14% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 65.30 | -70% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 262.79 | +23% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 90.15 | -58% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 97.44 | -55% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 254.96 | +19% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 217.93 | +2% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 91.82 | -57% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 115.64 | -46% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -85.84 | -140% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 237.79 | +11% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Darden Restaurants, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability DRI scores 7.2/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 14.1%, ROE 54.7%, ROA 9.4% - with debt at 2.87 times equity and a free-cash-flow yield of 4.4%. Debt of 2.87 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 2.91% at a payout ratio of 59%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Olive Garden 42%, LongHorn Steakhouse 27%, Other Segments 22% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 23 Sep 2026.
| Piotroski F-score | 8 / 9 | ROIC | 14.1% |
|---|---|---|---|
| GLS Moat | 7.2 / 10 | ROE | 54.7% |
| Debt / equity | 2.87 | ROA | 9.4% |
| Free-cash-flow yield | 4.4% | Payout ratio | 59% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 62: Fair
A Wheel Score of 62 puts Darden Restaurants, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 18/20, Moat 11/15, Premium 15/20 and Stability 18/20; the weakest part is Value (0/25).
Implied volatility is 30% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (15 of 20 points). Chain open interest is 22,049 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.1M shares a day on a market cap of $24.2B, with a beta of 0.62 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -34% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 11 / 15 | moat 7.2/10 | |
| Premium | 15 / 20 | implied volatility 30% | |
| Stability | 18 / 20 | 1.1M shares/day, $24.2B cap, beta 0.62 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 17 Dec 2026, 62 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Restaurants
The 12 companies below are the closest to Darden Restaurants, Inc. by market cap within the Restaurants industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| QSR Restaurant Brands International Inc. | 72.41 | 69.84 | -4% | 70Good | $25.3B |
| CMG Chipotle Mexican Grill, Inc. | 30.56 | 26.14 | -17% | 71Good | $38.7B |
| YUMC Yum China Holdings, Inc. | 43.20 | 69.88 | +38% | 91Prime | $14.8B |
| YUM Yum! Brands, Inc. | 146.69 | 140.99 | -4% | 70Good | $40.0B |
| TXRH Texas Roadhouse, Inc. | 166.64 | 124.53 | -34% | 64Fair | $10.9B |
| DPZ Domino's Pizza, Inc. | 303.09 | 307.19 | +1% | 77Good | $10.0B |
| EAT Brinker International, Inc. | 204.91 | 291.64 | +30% | 90Prime | $8.6B |
| BROS Dutch Bros Inc. | 41.10 | 24.65 | -67% | 54Fair | $7.7B |
| CAVA CAVA Group, Inc. | 55.40 | 13.31 | -316% | 56Fair | $6.5B |
| CAKE The Cheesecake Factory Incorporated | 116.59 | 93.42 | -25% | 57Fair | $5.8B |
| SBUX Starbucks Corporation | 93.25 | 44.22 | -111% | 62Fair | $106.3B |
| MCD McDonald's Corporation | 242.50 | 213.16 | -14% | 64Fair | $171.6B |
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Start free See the Sunday ScanQuestions about DRI
Is DRI undervalued right now?
No: at 214.31 the stock trades 34% above the GLS average fair value of 160.14 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of DRI and what does it mean?
DRI scores 62 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for DRI?
160.14 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Darden Restaurants, Inc. report earnings next?
The next earnings report is due on 17 Dec 2026, 62 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does DRI have listed options, and how liquid are they?
Yes. The nightly snapshot found 590 listed contracts with 22,049 open interest across all expiries and implied volatility of 30% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.