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DRI

BEARISH
$201.06 Live
Darden Restaurants, Inc. · NYSE
Target $225.48 (+12.1%)
$169.0 52W Range $228.27

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
Darden Restaurants exhibits a stable but mediocre Piotroski F-Score of 4/9, signaling a lack of strong financial momentum. The stock is trading at a massive premium, with a current price of $201.06 compared to a Graham Number of $62.59 and an Intrinsic Value of $66.43. While the company maintains an exceptional ROE of 51.54%, this is heavily leveraged against a precarious balance sheet characterized by a critical current ratio of 0.39 and high debt-to-equity. Negative earnings growth and bearish insider activity further undermine the bullish analyst consensus.

Key Strengths

Exceptional Return on Equity (ROE) of 51.54%
Consistent positive revenue growth (5.90% YoY)
Strong market position with a $23B market cap
Sustainable dividend yield of 2.98% with a manageable payout ratio
Strong analyst support with a target price of $225.48

Key Risks

Severe overvaluation relative to Graham and Intrinsic value baselines
Critical liquidity risk indicated by a Current Ratio of 0.39 and Quick Ratio of 0.13
High financial leverage with a Debt/Equity ratio of 3.88
Negative earnings growth (-3.30% YoY and -5.10% Q/Q)
Bearish insider sentiment with 12 sell transactions and zero buys
AI Fair Value Estimate
Based on comprehensive analysis
$82.5
-59.0% below current price

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