Darden Restaurants Intrinsic Value Calculator – Is Darden Restaurants a Smart Value Investment on Friday?
December 18, 2023
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Investing in Darden Restaurants ($NYSE:DRI), Inc. stock is an important decision that should be taken only after careful consideration. While the company has experienced a recent series of declines in its net income, total assets have increased substantially over the last five years. With strong cash flow, solid balance sheet, and improving liquidity position, it appears that Darden Restaurants is well positioned for growth. Overall, investing in Darden Restaurants on Friday may be a smart value investment for investors looking for a long-term play. With its strong fundamentals and sound financials, the stock could provide a good return on investment with minimal risk.
However, it is important to research the company and its industry before making any investment decisions.
Share Price
Darden Restaurants, a multi-brand dining restaurant operator, had a modest stock market performance on Friday. The stock opened at $155.7 and went on to close at $156.7, recording a 0.5% increase from the prior closing price of 156.0. Overall, Darden Restaurants appears to be one of the better value investments currently available to investors. With its diverse portfolio of restaurants, including Olive Garden and LongHorn Steakhouse, as well as its commitment to quality food and service, Darden Restaurants is well-positioned to benefit from the increased consumer spending due to the depressed economy.
Additionally, the company’s focus on innovation and technology has allowed it to remain competitive in a highly competitive market. Therefore, for investors who are looking for value investments, Darden Restaurants is certainly worth considering as an option. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Darden Restaurants. More…
| Total Revenues | Net Income | Net Margin |
| 11.01k | 1.01k | 9.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Darden Restaurants. More…
| Operations | Investing | Financing |
| 1.52k | -1.32k | -281.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Darden Restaurants. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.32k | 9.28k | 16.95 |
Key Ratios Snapshot
Some of the financial key ratios for Darden Restaurants are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.4% | 71.0% | 11.7% |
| FCF Margin | ROE | ROA |
| 8.1% | 38.4% | 7.1% |
Analysis – Darden Restaurants Intrinsic Value Calculator
At GoodWhale, we have been analyzing the financials of DARDEN RESTAURANTS with our proprietary Valuation Line. We have calculated that the fair value of DARDEN RESTAURANTS shares should be around $175.1. However, currently the stock is trading at $156.7, which is a fair price that is undervalued by 10.5%. We believe this presents an excellent buying opportunity for investors who are looking to add DARDEN RESTAURANTS shares to their portfolios. More…
Peers
Darden Restaurants Inc. is an American multi-brand restaurant operator. Headquartered in Orlando, Florida, Darden owns several casual dining restaurant chains including Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, and Bahama Breeze. Darden has more than 1,700 restaurants across the United States and Canada. Max’s Group Inc., Del Taco Restaurants Inc., Skylark Holdings Co Ltd are all competitors of Darden Restaurants Inc.
– Max’s Group Inc ($PSE:MAXS)
Max’s Group Inc is a holding company that operates in the Philippines through its subsidiaries. The company’s businesses include restaurants, food manufacturing, and property development. As of 2022, Max’s Group Inc has a market cap of 3.4B and a ROE of 10.63%. The company’s restaurant business is the largest contributor to its revenue, followed by food manufacturing and property development.
– Del Taco Restaurants Inc ($TSE:3197)
Skylark Holdings Co Ltd is a Japanese conglomerate with a market cap of 360.59B as of 2022. The company has a Return on Equity of 7.47%. Skylark Holdings is engaged in the restaurant business, the retail business, and the real estate business. The company operates through its subsidiaries, which include Skylark Dining Co., Ltd., Skylark Retail Co., Ltd., and Skylark Real Estate Co., Ltd.
Summary
Darden Restaurants, Inc. is a popular multi-brand restaurant operator in the US, owning and operating a number of iconic restaurant brands such as Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, The Capital Grille, and Yard House. From an investment perspective, Darden Restaurants has been an attractive stock for investors due to its strong fundamentals and long-term growth prospects. The company has a strong balance sheet and consistently generates free cash flow to fund its growth initiatives. Darden also has a solid dividend yield and continues to reward shareholders with share buybacks.
Analysts are bullish on the stock and believe it is well-positioned to capitalize on the current tailwinds in the restaurant sector. Unfortunately, there is no Smart Value Friday for Darden Restaurants stock.
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