Darden Restaurants DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.131%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 1%

Historical Data

Revenue growth in the last 10 years (CAGR): 5.15%

Earnings growth in the last 10 years (CAGR): 10.84%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 6.71%

Future Assumptions

End of Year FCF growth: 6%

Growth until end of 2026: 6%

Growth until end of 2034: 5%

Perpetual growth: 3%

Net Debt: 8.124B

Outstanding Stock Options Present Value Assumption: $0.137B

Assumptions used for the Black & Scholes model:

• Stock Price: $207
• Strike Price: $112.57
• Time to expiration: 6 years
• Risk Free Rate: 4.18%
• Volatility: 40.8%

(I tend to shorten the expiration time of options because I expect them to be exercised before the expiration date.)

Restricted Stock Units Present Value Assumption: $0.122B

Stock Valuation based on these assumptions: $112

Last update 01/21/2026

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Darden Restaurants (DRI) and I don’t plan to add a position in the coming days.