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Darden Restaurants, Inc. – Food Service Contractors
darden is a restaurant company featuring a portfolio of differentiated brands that include olive garden, longhorn steakhouse, cheddar's scratch kitchen, yard house, the capital grille, seasons 52, bahama breeze and eddie v's. our people equal our success, and we are proud to employ 165,000 team members in more than 1,600 restaurants. together, we create memorable experiences for 380 million guests each year in communities across north america.
Analysis Results
Intrinsic Value $157.70
Latest Price $143.50
Relative Value 9% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 8.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 0.821 0.767
2025 0.891 0.777
2026 0.967 0.788
2027 1.05 0.798
2028 1.14 0.809
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 22.8 billion. This corresponds to a present value of 15.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.94 billion. Adding in the terminal value gives a total present value of 19.1 billion.

There are presently 121.0 million outstanding shares, so the intrinsic value per share is 157.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 997,700,000
Current Cash 225,500,000
Current Liabilities 1,937,400,000
Current Debt 13,500,000
Non-Cash Working Capital (NCWC) -1,151,700,000
Change in NCWC -212,800,000
EBIT 1,191,200,000
Tax Provision 137,000,000
Depreciation and Amortization 387,800,000
Capital Expenditure -594,300,000
Unlevered Free Cash Flow 626,255,734
Current Assets 1,179,400,000
Current Cash 287,500,000
Current Liabilities 1,847,400,000
Current Debt 16,600,000
Non-Cash Working Capital (NCWC) -938,900,000
Change in NCWC 122,500,000
EBIT 1,160,200,000
Tax Provision 138,800,000
Depreciation and Amortization 368,400,000
Capital Expenditure -402,500,000
Unlevered Free Cash Flow 1,101,333,644
Current Assets 1,871,100,000
Current Cash 1,091,500,000
Current Liabilities 1,848,300,000
Current Debt 7,300,000
Non-Cash Working Capital (NCWC) -1,061,400,000
Change in NCWC 53,600,000
EBIT 655,300,000
Tax Provision -55,900,000
Depreciation and Amortization 350,900,000
Capital Expenditure -270,300,000
Unlevered Free Cash Flow 789,500,000
Current Assets 1,101,400,000
Current Cash 699,300,000
Current Liabilities 1,792,800,000
Current Debt 275,700,000
Non-Cash Working Capital (NCWC) -1,115,000,000
Change in NCWC -184,400,000
EBIT 438,100,000
Tax Provision -111,800,000
Depreciation and Amortization 355,900,000
Capital Expenditure -484,500,000
Unlevered Free Cash Flow 125,100,000
Current Assets 892,600,000
Current Cash 349,100,000
Current Liabilities 1,474,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) -930,600,000
Change in NCWC -52,400,000
EBIT 851,500,000
Tax Provision 63,700,000
Depreciation and Amortization 336,700,000
Capital Expenditure -477,900,000
Unlevered Free Cash Flow 588,565,281
Current Assets 553,600,000
Current Cash 47,300,000
Current Liabilities 1,384,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) -878,200,000
Change in NCWC -249,300,000
EBIT 770,200,000
Tax Provision 1,900,000
Depreciation and Amortization 313,100,000
Capital Expenditure -418,800,000
Unlevered Free Cash Flow 412,783,985
Current Assets 799,800,000
Current Cash 139,500,000
Current Liabilities 1,289,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) -628,900,000
Change in NCWC -68,400,000
EBIT 669,100,000
Tax Provision 154,800,000
Depreciation and Amortization 272,900,000
Capital Expenditure -318,300,000
Unlevered Free Cash Flow 392,775,788
Current Assets 820,300,000
Current Cash 193,700,000
Current Liabilities 1,187,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) -560,500,000
Change in NCWC 22,900,000
EBIT 628,000,000
Tax Provision 90,000,000
Depreciation and Amortization 290,200,000
Capital Expenditure -228,300,000
Unlevered Free Cash Flow 587,116,210
Current Assets 1,056,400,000
Current Cash 458,100,000
Current Liabilities 1,196,700,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) -583,400,000
Change in NCWC -1,065,600,000
EBIT 429,700,000
Tax Provision -21,100,000
Depreciation and Amortization 319,300,000
Capital Expenditure -296,500,000
Unlevered Free Cash Flow -613,100,000
Current Assets 1,976,400,000
Current Cash 98,300,000
Current Liabilities 1,618,500,000
Current Debt 222,600,000
Non-Cash Working Capital (NCWC) 482,200,000
Change in NCWC 1,057,400,000
EBIT 327,200,000
Tax Provision -8,600,000
Depreciation and Amortization 304,400,000
Capital Expenditure -414,800,000
Unlevered Free Cash Flow 1,274,200,000
Current Assets 764,900,000
Current Cash 88,200,000
Current Liabilities 1,416,400,000
Current Debt 164,500,000
Non-Cash Working Capital (NCWC) -575,200,000
Change in NCWC -100,800,000
EBIT 648,300,000
Tax Provision 109,800,000
Depreciation and Amortization 394,800,000
Capital Expenditure -685,600,000
Unlevered Free Cash Flow 120,437,863
Current Assets 757,600,000
Current Cash 70,500,000
Current Liabilities 1,774,100,000
Current Debt 612,600,000
Non-Cash Working Capital (NCWC) -474,400,000
Change in NCWC 33,600,000
EBIT 739,600,000
Tax Provision 161,500,000
Depreciation and Amortization 349,100,000
Capital Expenditure -639,700,000
Unlevered Free Cash Flow 295,381,504

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