Darden Restaurants Inc logo

Darden Restaurants Inc(DRI)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$200.52
10/08/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for DRI

10/08/2026: DRI (1-star) is currently NOT-A-BUY. Pass it for now.

Darden Restaurants is a prominent U.S. operator of full-service dining brands, including Olive Garden and LongHorn Steakhouse. The company is known for strong operating margins achieved through significant economies of scale and a diverse brand portfolio. Its investment story centers on steady growth from unit expansion, integration of acquired brands, and a reliable dividend payout. Risks include sensitivity to inflationary pressures on food and labor, intense competition from faster dining alternatives, and cyclicality in consumer discretionary spending. Darden may best suit value and dividend-oriented investors, while stakeholders should monitor operational efficiency in newly acquired brands and the company's ability to navigate changing consumer dining habits.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers moderate growth through unit expansion rather than high-growth disruption.
Momentum investorMixed fitMomentum suitability depends on sustained share price trends relative to market conditions.
Value investorStrong fitDarden often trades at valuations that attract value investors seeking stable, established cash flows.
Dividend investorStrong fitThe company's history of reliable dividend payments makes it attractive for income-focused portfolios.
Low-risk investorStrong fitDarden's mature business model and established market position provide relative stability.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock can fluctuate with consumer sentiment and broader economic data.
Valuation riskMediumOverpaying during market exuberance can lead to compressed future returns.
Competition risk (Fast-casual/Quick-service)Medium / highShifting consumer preferences toward faster, cheaper dining impacts full-service visits.
Business qualityStrongDarden maintains a strong franchise quality through well-recognized and managed brands.
Dividend incomeStrongA consistent dividend history supports long-term income goals for investors.
Execution riskMediumSuccessful integration of acquired brands and maintaining operational standards is critical.

Price Behavior

Steady Uptrend
PRICE PATH

Steady Uptrend

The stock demonstrates consistent and steady upward price momentum.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit 1.32%
Avg. Invested days 46
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/08/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
DRI receives a 4-star rating, supported by solid company fundamentals, solid quantitative characteristics, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
DRI has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2026 versus FY2025, solid earnings growth (+15.0%) and solid cash generation (FCF margin 8.5%) are partially offset by moderate revenue growth (+9.4%), soft profitability (net margin 9.1%), very low insider ownership of 0.30%.

Financial Health Rating

★★★★★
DRI's financial health is supported by strong cash strength, including free-cash-flow generation of $1.1B (8.5% of revenue). Liquidity is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is DRI's strongest growth driver at +15.0% FY2026 versus FY2025 (solid, 4 stars). Revenue growth (+9.4%, moderate) and free-cash-flow growth (+8.3%, moderate) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 101.7% and approximately 99.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.30%, which materially reduces the ownership score.

Top 5 Institutional Investors

Capital World Investors 13.36%
BlackRock Inc 8.62%
Vanguard Capital Management, LLC 6.58%
Vanguard Portfolio Management, LLC 4.73%
State Street Corp 4.41%

Unit Economics (Per $1K Revenue)

★★★★★
DRI generates approximately $694 of gross profit, $120 of operating income, and $85 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Moderate margins and moderate cash conversion support a 3-star rating, while capital efficiency is solid.

Economic Dimensions

★★★★★
Effective Tax Rate: 12.60%

Quantitative Style Profile

★★★★★
DRI has a high-quality, large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltLow VolatilityLarge / Mega Cap StabilityShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 22.80B USD
Price to earnings Ratio 19.56
1Y Target Price 233.44
Price to earnings Ratio 19.56
1Y Target Price 233.44
Volume (30-day avg) 1.3M shares
Beta 0.62
52 Weeks Range 165.13 - 229.76
Updated Date 10/07/2026
52 Weeks Range 165.13 - 229.76
Updated Date 10/07/2026
Dividends yield (FY) 3.01%
Basic EPS (TTM) 10.3

How Company Makes Money

Business areaWhat it includesRetail investor read
Casual DiningOlive Garden, LongHorn Steakhouse, and Cheddar's revenue streams.The bulk of revenue comes from reliable, high-volume casual dining brands.
Fine DiningThe Capital Grille and Eddie V's premium experience revenue.Premium segments provide higher-margin contributions and brand prestige.
GeographyOperations primarily within the United States.The company's success is tied almost entirely to the U.S. consumer environment.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Earnings Date

Report Date 2026-09-24
When Before Market
Estimate 2.06
Actual 2.05

Profitability

Profit Margin 8.85%
Operating Margin (TTM) 9.85%

Management Effectiveness

Return on Assets (TTM) 7.65%
Return on Equity (TTM) 55.43%

Valuation

Trailing PE 19.56
Forward PE 18.94
Enterprise Value 30.37B
Price to Sales(TTM) 1.71
Enterprise Value 30.37B
Price to Sales(TTM) 1.71
Enterprise Value to Revenue 2.3
Enterprise Value to EBITDA 14.15
Shares Outstanding 113.14M
Shares Floating 112.62M
Shares Outstanding 113.14M
Shares Floating 112.62M
Percent Insiders 0.3
Percent Institutions 101.74

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Darden Restaurants Inc

Exchange NYSE
Headquarters Orlando, FL, United States
IPO Launch date 1995-05-05
CEO, President & Director Mr. Ricardo Cardenas C.P.A.
Sector Consumer Cyclical
Industry Restaurants
Full time employees 209931
Full time employees 209931

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.

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