Darden Restaurants (NYSE: DRI) is one of 44 publicly-traded companies in the “Restaurants & Bars” industry, but how does it compare to its peers? We will compare Darden Restaurants to related companies based on the strength of its valuation, institutional ownership, risk, dividends, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Darden Restaurants and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Darden Restaurants 1 14 9 0 2.33
Darden Restaurants Competitors 281 1589 2172 73 2.50

Darden Restaurants currently has a consensus target price of $87.29, suggesting a potential upside of 6.10%. As a group, “Restaurants & Bars” companies have a potential upside of 11.36%. Given Darden Restaurants’ peers stronger consensus rating and higher possible upside, analysts plainly believe Darden Restaurants has less favorable growth aspects than its peers.

Dividends

Darden Restaurants pays an annual dividend of $2.52 per share and has a dividend yield of 3.1%. Darden Restaurants pays out 65.1% of its earnings in the form of a dividend. As a group, “Restaurants & Bars” companies pay a dividend yield of 3.0% and pay out 60.9% of their earnings in the form of a dividend.

Profitability

This table compares Darden Restaurants and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Darden Restaurants 6.60% 26.06% 10.47%
Darden Restaurants Competitors 1.81% 3.87% 1.77%

Earnings and Valuation

This table compares Darden Restaurants and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Darden Restaurants $7.39 billion $975.90 million 21.26
Darden Restaurants Competitors $2.04 billion $349.42 million -2.92

Darden Restaurants has higher revenue and earnings than its peers. Darden Restaurants is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

90.3% of Darden Restaurants shares are held by institutional investors. Comparatively, 68.8% of shares of all “Restaurants & Bars” companies are held by institutional investors. 0.6% of Darden Restaurants shares are held by insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Darden Restaurants has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, Darden Restaurants’ peers have a beta of 0.65, suggesting that their average share price is 35% less volatile than the S&P 500.

Summary

Darden Restaurants beats its peers on 8 of the 15 factors compared.

About Darden Restaurants

Darden Restaurants, Inc. is a full-service restaurant company. The Company owned and operated 1,536 restaurants through its subsidiaries in the United States and Canada, as of May 29, 2016. The Company’s segments include Olive Garden, LongHorn Steakhouse, Fine Dining (which includes The Capital Grille, and Eddie V’s Prime Seafood and Wildfish Seafood Grille (Eddie V’s)) and Other Business (which includes Yard House, Seasons 52, Bahama Breeze, consumer-packaged goods and franchise revenues). As of May 29, 2016, the Company also had 50 restaurants operated by independent third parties pursuant to area development and franchise agreements. Olive Garden’s menu includes a range of authentic Italian foods featuring fresh ingredients and a selection of imported Italian wines. LongHorn Steakhouse restaurants feature a range of menu items, including fresh steaks and chicken, as well as salmon, shrimp, ribs, pork chops, burgers and prime rib.

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