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.
7.97%
0.83
29.20%
S&P 500
14.9%
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
98.86%
ROCE (avg)
35.16%
ROE (avg)
40.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
11.44
EV to EBIT
17.57
EV to EBITDA
12.92
EV to Capital Employed
5.67
EV to Sales
2.10
PEG Ratio
2.26
Dividend Yield
NA
ROCE (Latest)
32.29%
ROE (Latest)
54.54%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,708.4 MM
ROCE(HY)
Highest at 54.1%
DIVIDEND PER SHARE(HY)
Highest at USD 123.36
-7What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 73.8%
RAW MATERIAL COST(Y)
Grown by 6.01% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 388.27 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 123.36 times
INTEREST(Q)
Highest at USD 48.9 MM
Here's what is working for Darden Restaurants, Inc.
Operating Cash Flow
Highest at USD 1,708.4 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)
Dividend per share
Highest at USD 123.36 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Depreciation
Highest at USD 137.9 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.
Interest
Highest at USD 48.9 MM
in the last five periods and Increased by 5.84% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 388.27 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 123.36 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 73.8%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 6.01% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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