Darden Restaurants, Inc. — Earnings Quality Grade F
DRI · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 1 days, change -0 days YoY
AR growth 1.0% vs revenue growth 6.0%
Revenue 6.0%, CFFO 5.4%. Cash follows revenue
Expense Quality
Inventory 7.3% vs COGS 5.3%. Normal
CapEx growth 6.9% vs revenue 6.0%. Normal
SG&A/Gross Profit = 26.1%, excellent (<30%)
Gross margin 21.9%, change +0.5pp. Stable
Cash Flow Quality
CFFO/NI = 1.62. Profits backed by cash
FCF $1.0B, FCF/NI = 0.98
Accruals ratio = -5.2%. Low accruals
Cash $0.2B covers only 4% of debt $6.2B
Balance Sheet Health
Goodwill+Intangibles $3.1B = 134% of equity. Over 50%
Debt/EBITDA = 3.3x. Healthy
Other assets 7.3% vs revenue 6.0%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 18% YoY. Normal
Manipulation Score
M-Score = -2.75 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10