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Darden Restaurants Inc
NYSE:DRI

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Darden Restaurants Inc
NYSE:DRI
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Price: 196.51 USD -1.1% Market Closed
Market Cap: $22.5B

EV/FCFF

26.5
Current
8%
More Expensive
vs 3-y average of 24.4

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
26.5
=
Enterprise Value
$26.4B
/
Free Cash Flow to Firm
$994.2m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
26.5
=
Enterprise Value
$26.4B
/
Free Cash Flow to Firm
$994.2m

Valuation Scenarios

Darden Restaurants Inc is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (24.4), the stock would be worth $181.43 (8% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-17%
Maximum Upside
+15%
Average Downside
5%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 26.5 $196.51
0%
3-Year Average 24.4 $181.43
-8%
5-Year Average 22 $163.52
-17%
Industry Average 30.5 $226.67
+15%
Country Average 23.2 $172.39
-12%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
US
Darden Restaurants Inc
NYSE:DRI
22.5B USD 26.5 20.4
US
McDonald's Corp
NYSE:MCD
208.2B USD 34.4 24.3
US
Starbucks Corp
NASDAQ:SBUX
110.8B USD 61.2 80.9
UK
Compass Group PLC
LSE:CPG
45.2B GBP 25.4 0.3
US
Chipotle Mexican Grill Inc
NYSE:CMG
42.9B USD 28.9 27.9
US
Yum! Brands Inc
NYSE:YUM
43.3B USD 33.1 27.8
CA
Restaurant Brands International Inc
NYSE:QSR
27.1B USD 30.3 34.9
IN
Eternal Ltd
NSE:ETERNAL
2.3T INR -151.1 968.5
JP
Friendly Corp
TSE:8209
2.9T JPY -28.7 -6.5
CN
Yum China Holdings Inc
NYSE:YUMC
16.8B USD 18.4 18

Market Distribution

In line with most companies in the United States of America
Percentile
57th
Based on 8 393 companies
57th percentile
26.5
Low
0 — 15.4
Typical Range
15.4 — 35.1
High
35.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 15.4
Median 23.2
70th Percentile 35.1
Max 3 178 983.5

Darden Restaurants Inc
Glance View

Darden Restaurants Inc., a prominent player in the American dining landscape, has crafted a robust portfolio comprising some of the nation's beloved casual dining brands. It owns and operates well-known restaurant chains such as Olive Garden, LongHorn Steakhouse, and The Capital Grille, among others. Darden's story is one of strategic brand management and leveraging consumer loyalty through differentiated dining experiences. The company has honed its expertise in serving diverse culinary preferences, appealing to both casual diners and patrons seeking upscale steakhouse offerings. It ensures that each brand retains its unique identity while benefiting from the collective strength of Darden’s corporate resources, which include supply chain efficiencies, real estate acumen, and marketing prowess. The path to profitability for Darden is paved by a meticulously designed operating model that captures value across every facet of the dining experience. Revenue streams flow from the consistent turnover of high-volume restaurant traffic, enhanced by an emphasis on customer engagement and satisfaction. Darden invests heavily in brand-specific marketing to cultivate strong brand loyalty and repeat visits. The average guest check and operational efficiency are critical metrics, closely monitored to optimize performance across their vast network of locations. By maintaining a disciplined approach to cost management while investing in front-line innovation, such as digital ordering and delivery platforms, Darden ensures that it constantly adapts to shifting consumer preferences without losing its competitive edge in the bustling restaurant industry.

DRI Intrinsic Value
200.7 USD
Undervaluation 2%
Intrinsic Value
Price $196.51
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