Darden Restaurants, Inc. Website

Darden Restaurants, Inc.

NYSE-DRI

Company Overview

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 29, 2022, it owned and operated 1,867 restaurants, which included 884 under the Olive Garden brand, 546 under the LongHorn Steakhouse brand name, 172 under the Cheddar's Scratch Kitchen brand, 85 under the Yard House brand name, 62 under The Capital Grille brand, 45 under the Seasons 52 brand name, 42 under the Bahama Breeze brand, 28 under the Eddie V's Prime Seafood brand name, and 3 under the Capital Burger brand; and franchised 60 restaurants comprising 35 under the Olive Garden brand, 18 under the LongHorn Steakhouse brand name, 4 under the Cheddar's Scratch Kitchen brand, 2 under The Capital Grille brand name, and 1 under the Bahama Breeze brand.Darden Restaurants, Inc. was founded in 1968 and is based in Orlando, Florida.

  • Name

    Darden Restaurants, Inc.

  • CEO

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  • Website

    www.darden.com

  • Sector

    Hotels, Restaurants and Leisure

  • Year Founded

    1938

Company Statistics

Profile

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Bulls Say

  • Darden's strong restaurant margin recovery should defend its 2%-3% annual unit growth targets even as pressure builds elsewhere in the full-service restaurant industry.

  • Sticky off-premises sales could increase throughput capacity at mature concepts (Olive Garden, LongHorn) that were approaching dine-in limits.

  • Darden's recent cost savings measures look increasingly sticky, widening the profitability gap between the operator and its full service restaurant peers.

Bears Say

  • Slower full-service industry growth could result in aggressive discounting and challenges generating positive traffic in the intermediate term.

  • Limited-service restaurant competition in suburban trade areas could drive sales transfers, with those operators increasingly seeking to move closer to customers.

  • With new units costing anywhere from $3 million to $8 million at midpoint estimates, misgauging demographics, competition, or the allure of nearby attractions could prove costly.

Source: Morningstar Analysis - Sep 24, 2025

What's happening

Nov 15, 2025 - Dec 17, 2025

Darden Restaurants Inc. Surges Amid Mixed Analyst Sentiment

  • Analysts maintain confidence in Darden despite minor price target adjustments.
  • Anticipation builds for upcoming Q2 earnings announcement, with strong revenue expectations.
  • Darden outperforms both the S&P 500 and Consumer Discretionary sector significantly.

Over the past month, Darden Restaurants Inc. (DRI) has demonstrated a robust performance, achieving an overall increase of 7.3%. This growth is particularly noteworthy when juxtaposed with the S&P 500's return of just 1.3%, indicating that DRI outperformed the broader market index by 5.9%. The positive sentiment surrounding DRI was reinforced by several key factors during this period.

Morgan Stanley analysts maintained an Overweight rating on DRI while slightly adjusting their price target down from $238 to $236, reflecting continued confidence in the company's prospects despite minor revisions. Additionally, anticipation for Darden’s Q2 earnings announcement scheduled for December 18 further fueled investor optimism; analysts project earnings of $2.10 per share alongside revenue expectations nearing $3.07 billion.

In early December, Citi expressed a favorable outlook for DRI by forecasting a relief rally as year-end approaches, which contributed to heightened investor enthusiasm leading into this critical reporting period. Furthermore, strong Q1 results showcased a year-over-year revenue increase of 10.4%, although some earnings estimates were missed slightly; nevertheless, analyst confidence remained intact with a consensus "Moderate Buy" rating.

Conversely, bearish elements also impacted sentiment as Mizuho downgraded its rating to Neutral and lowered its price target significantly to $185 due to recalibrated expectations based on recent trends within the sector and broader economic indicators. Overall, mixed signals regarding analyst ratings and price targets emerged throughout November and early December—evidenced by upward adjustments from firms like Citigroup alongside downward revisions—but prevailing bullish momentum around upcoming financial disclosures played a crucial role in driving stock performance higher than that seen across both the Consumer Discretionary sector and general market indices during this timeframe.

Darden Restaurants Inc outperformed the Consumer Discretionary (XLY) sector by 54.5%.

NYSE:DRI