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Upturn AI Summary - About
Darden Restaurants Inc(DRI)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
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 style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The company offers moderate growth through unit expansion rather than high-growth disruption. |
| Momentum investor | Mixed fit | Momentum suitability depends on sustained share price trends relative to market conditions. |
| Value investor | Strong fit | Darden often trades at valuations that attract value investors seeking stable, established cash flows. |
| Dividend investor | Strong fit | The company's history of reliable dividend payments makes it attractive for income-focused portfolios. |
| Low-risk investor | Strong fit | Darden's mature business model and established market position provide relative stability. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The stock can fluctuate with consumer sentiment and broader economic data. |
| Valuation risk | Medium | Overpaying during market exuberance can lead to compressed future returns. |
| Competition risk (Fast-casual/Quick-service) | Medium / high | Shifting consumer preferences toward faster, cheaper dining impacts full-service visits. |
| Business quality | Strong | Darden maintains a strong franchise quality through well-recognized and managed brands. |
| Dividend income | Strong | A consistent dividend history supports long-term income goals for investors. |
| Execution risk | Medium | Successful integration of acquired brands and maintaining operational standards is critical. |
Price Behavior

Steady Uptrend
The stock demonstrates consistent and steady upward price momentum.

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 Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
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 area | What it includes | Retail investor read |
|---|---|---|
| Casual Dining | Olive Garden, LongHorn Steakhouse, and Cheddar's revenue streams. | The bulk of revenue comes from reliable, high-volume casual dining brands. |
| Fine Dining | The Capital Grille and Eddie V's premium experience revenue. | Premium segments provide higher-margin contributions and brand prestige. |
| Geography | Operations 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
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 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
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)
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)
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)
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)
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)
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)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
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)
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)
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)
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)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
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)
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)
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 | Website https://www.darden.com |
Full time employees 209931 | Website https://www.darden.com | ||
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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