Darden Restaurants Inc (DRI) is fairly valued and Texas Roadhouse Inc (TXRH) is slightly overvalued.
Against our estimates of intrinsic value, DRI trades at the wider discount: a margin of safety of +3%, against -20% for TXRH.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $219.43; the price of $213.54 is 3% below that value, and 78% of that value comes from beyond year five.
Leak Score 59/100 on 9 of 12 signals
Discounting its cash flows at 8.9% (average of 3 methods) values the shares at $138.80; the price of $166.12 is 20% above that value, and 77% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | DRI | TXRH |
|---|---|---|
| Verdict | Fairly valued | Slightly overvalued |
| Price | $213.54 | $166.12 |
| Intrinsic value | $219.43 | $138.80 |
| Margin of safety | +3% | -20% |
| Leak Score | 59/100 (9/12) | 59/100 (3/12) |
| Market cap | $24.2B | $10.9B |
| Revenue growth, 5 years | 12.9% | 19.6% |
| Operating margin | 12.2% | 8.2% |
| Net margin | 9.1% | 6.6% |
| Return on equity | 53.7% | 27.5% |
| Debt to equity | 3.63 | 0.70 |
| P/E | 20.6x | 26.6x |
| Forward P/E | 17.2x | 21.3x |
| P/B | 11.0x | 7.0x |
| Dividend yield | 3.1% | 1.8% |