Is DARDEN RESTAURANTS INC (DRI) Halal?

NYSE Consumer Cyclical United States $22.4B
✓ HALAL
Confidence: 95/100
DARDEN RESTAURANTS INC (DRI) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 26.4% against the AAOIFI threshold of 30%, DARDEN RESTAURANTS INC comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Restaurants), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from May 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 26.4%
/ 30%
1.0%
/ 30%
0.4%
/ 30%
0.03%
/ 5%
✓ HALAL
DJIM 26.4%
/ 33%
1.0%
/ 33%
0.4%
/ 33%
0.03%
/ 5%
✓ HALAL
MSCI 49.5%
/ 33%
1.9%
/ 33%
0.7%
/ 33%
0.03%
/ 5%
✗ NOT HALAL
S&P 26.4%
/ 33%
1.0%
/ 33%
0.4%
/ 33%
0.03%
/ 5%
✓ HALAL
FTSE 49.5%
/ 33%
1.9%
/ 33%
0.7%
/ 50%
0.03%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
20.3
Forward: 16.9
EPS
$9.49
Dividend Yield
312.0%
Payout: 62.2%
P/B Ratio
10.5
EV/EBITDA
14.9
EV: $30.0B
Revenue
$12.1B
Growth: 5.9%
Beta
0.6
Low volatility
Current Ratio
0.4

Profitability

Gross Margin 21.5%
Operating Margin 13.2%
Net Margin 8.7%
Return on Equity (ROE) 51.5%
Return on Assets (ROA) 7.3%

Cash Flow & Balance Sheet

Operating Cash Flow$1.7B
Free Cash Flow$1.0B
Total Debt$6.2B
Debt-to-Equity387.7
Current Ratio0.4
Total Assets$12.6B

Price & Trading

Last Close$198.87
50-Day MA$206.88
200-Day MA$199.17
Avg Volume1.5M
Beta0.6
52-Week Range
$169.00
$228.27

About DARDEN RESTAURANTS INC (DRI)

CEO
Mr. Ricardo Cardenas C.P.A.
Employees
197,924
Sector
Consumer Cyclical
Industry
Restaurants
Country
United States
Exchange
NYSE
Market Cap
$22.4B
Currency
USD

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 founded in 1938 and is based in Orlando, Florida.

Purification Calculator

As a halal stock with 0.03% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is DARDEN RESTAURANTS INC (DRI) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), DARDEN RESTAURANTS INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is DARDEN RESTAURANTS INC's debt ratio?

DARDEN RESTAURANTS INC's debt ratio is 26.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 49.5%.

Does DARDEN RESTAURANTS INC require dividend purification?

Yes, DARDEN RESTAURANTS INC has an impermissible income ratio of 0.03%, which means 0.03% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are DARDEN RESTAURANTS INC's key financial metrics?

DARDEN RESTAURANTS INC has a market capitalization of $22.4B, trailing P/E ratio of 20.3, and revenue of $12.1B. The company maintains a gross margin of 21.5% and a net margin of 8.7%. Return on equity stands at 51.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.