Darden Restaurants, Inc. DRI

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
72/100
Moderate

About Darden Restaurants, Inc.

Darden Restaurants, Inc., together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. The company operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Chuy's, Yard House, Ruth's Chris Steak House, The Capital Grille, Seasons 52, Eddie V's Prime Seafood, Bahama Breeze, The Capital Burger, Darden and Darden Restaurants brand names. Darden Restaurants, Inc. was … Full DRI analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 90.7th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 1.00), demonstrating pricing resilience across cycles.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.17), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
75

Where DRI ranks in Restaurants

Darden Restaurants, Inc. ranks #8 of 57 scored companies in Restaurants by moat score — the top 14%. The widest moat in the group is Yum! Brands, Inc. (YUM) at 83/100.

Moat scores for companies ranked near DRI in Restaurants
# Company Moat score Rating
4 McDonald's Corporation MCD 79/100 Strong
5 Chipotle Mexican Grill, Inc. CMG 78/100 Strong
6 Rave Restaurant Group, Inc. RAVE 76/100 Strong
7 Wendy's Company (The) WEN 72/100 Moderate
8 Darden Restaurants, Inc. DRI 72/100 Moderate
9 Restaurant Brands International QSR 70/100 Moderate
10 Yum China Holdings, Inc. YUMC 70/100 Moderate
11 Texas Roadhouse, Inc. TXRH 69/100 Moderate
12 Nathan's Famous, Inc. NATH 68/100 Moderate

See every General Corporate company ranked by moat score →

How DRI scores on the Corporate Default defenses

Pricing Power

Score 75 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 86 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 67 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 89 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 54 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 58 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding DRI's moat

What is Darden Restaurants, Inc.'s moat score?

Darden Restaurants, Inc. (DRI) scores 72 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #8 of 57 scored companies in Restaurants, the top 14%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 56 companies in Restaurants. Its strongest defense is Capital Efficiency (89/100) and its weakest is Resilience (54/100).

How does Darden Restaurants, Inc. compare with other Restaurants companies?

Darden Restaurants, Inc. ranks #8 of 57 scored companies in Restaurants by moat score. The widest moat in Restaurants is Yum! Brands, Inc. (YUM) at 83/100. The companies ranked closest are Wendy's Company (The) (WEN) at 72 just above it and Restaurant Brands International (QSR) at 70 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 56 companies in Restaurants. The defenses are then weighted to produce the overall score out of 100.

Why is Darden Restaurants, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Darden Restaurants, Inc.?

The Corporate Default template measures 6 defenses, and DRI scores: Pricing Power (75), Cost Advantage (86), Customer Stickiness (67), Capital Efficiency (89), Resilience (54), Scale & Market Position (58). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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