ScoreWhy is Darden Restaurants, Inc. ?
1
High Management Efficiency with a high ROCE of 35.16%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.52 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 9.12%
4
Flat results in May 25
- INTEREST(HY) At USD 92 MM has Grown at 35.1%
5
With ROCE of 31.62%, it has a very expensive valuation with a 6.32 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 9.22%, its profits have risen by 0.9% ; the PEG ratio of the company is 8.5
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Darden Restaurants, Inc. should be less than 10%
- Overall Portfolio exposure to Leisure Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Darden Restaurants, Inc. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Darden Restaurants, Inc.
2.82%
0.83
29.20%
S&P 500
21.51%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.08%
EBIT Growth (5y)
42.83%
EBIT to Interest (avg)
11.87
Debt to EBITDA (avg)
0.52
Net Debt to Equity (avg)
0.81
Sales to Capital Employed (avg)
2.69
Tax Ratio
11.47%
Dividend Payout Ratio
63.17%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
35.16%
ROE (avg)
40.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
Price to Book Value
10.65
EV to EBIT
16.48
EV to EBITDA
12.12
EV to Capital Employed
5.32
EV to Sales
1.97
PEG Ratio
2.10
Dividend Yield
NA
ROCE (Latest)
32.29%
ROE (Latest)
54.54%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,853.1 MM
DIVIDEND PER SHARE(HY)
Highest at USD 118.11
INTEREST COVERAGE RATIO(Q)
Highest at 1,337.7
RAW MATERIAL COST(Y)
Fallen by -3.44% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 34.2 times
NET SALES(Q)
Highest at USD 3,718.8 MM
OPERATING PROFIT(Q)
Highest at USD 684.9 MM
OPERATING PROFIT MARGIN(Q)
Highest at 18.42 %
PRE-TAX PROFIT(Q)
Highest at USD 468.9 MM
NET PROFIT(Q)
Highest at USD 410.69 MM
EPS(Q)
Highest at USD 3.51
-3What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 42.68%
CASH AND EQV(HY)
Lowest at USD 476.1 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 118.11 times
Here's what is working for Darden Restaurants, Inc.
Operating Cash Flow
Highest at USD 1,853.1 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 1,337.7
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 118.11 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 3,718.8 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 684.9 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 18.42 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 468.9 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 468.9 MM has Grown at 46.04%
over average net sales of the previous four periods of USD 321.08 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 410.69 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 410.69 MM has Grown at 45.18%
over average net sales of the previous four periods of USD 282.88 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 3.51
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 34.2 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -3.44% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 146.3 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Darden Restaurants, Inc.
Cash and Eqv
Lowest at USD 476.1 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 118.11 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio
Lowest at 42.68%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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