Is Darden Restaurants, Inc. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Darden Restaurants, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 24, an EV to EBITDA of 14.67, and a PEG ratio of 8.48, all suggesting that the stock may be priced higher than its growth prospects warrant.
In comparison to peers, Yum! Brands, Inc. has a higher P/E ratio of 28.45, while Yum China Holdings, Inc. presents a lower P/E of 16.99, highlighting a mixed competitive landscape. Darden's recent stock performance shows a decline of 9.68% over the past week, contrasting with a 1.05% gain in the S&P 500, which reinforces the notion that the stock may be losing favor in the current market environment.