Zacks Investment Research·5 days ago
Darden Stock Outlook Centers on Growth Brands and Cost RisksDRI enters fiscal 2027 with growth from LongHorn, digital initiatives and new restaurants, while inflation and cautious spending test margins.
Darden Restaurants, Inc.(DRI)Earnings, Financials & Key Ratios
DRI•NYSE
$204.50
19.7× P/E·Price updated Jul 7, 2026
AboutDarden 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.Show more
- Revenue$13.21B+9.4%
- EBITDA$2.14B+14.1%
- Net Income$1.21B+15.0%
- EPS (Diluted)10.39+17.3%
- Gross Margin69.43%+217.3%
- EBITDA Margin16.23%+4.3%
- Operating Margin11.98%+6.2%
- Net Margin9.13%+5.1%
- ROE53.41%+15.9%
DRI Price & Volume
Darden Restaurants, Inc. (DRI) stock price & volume — 10-year historical chart
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Revenue Growth Acceleration Faces Capital Allocation Headwinds
Investment Thesis • Updated 2026Q4
VerdictNeutral
Growth:Accelerating
Profitability:Moderate
Financial:Strained
Cash Flow:Mixed
Primary Risk:High lease-adjusted leverage
Key Thesis Takeaways
- Darden Restaurants exhibits a complex financial profile characterized by a recent 13.7% revenue growth surge in 2026Q4, though this top-line expansion is tempered by inconsistent operating margins and significant capital intensity.
- While the company maintains a consistent dividend policy, the reliance on debt to fund operations—evidenced by a 2.74 debt-to-equity ratio—creates potential vulnerability to interest rate fluctuations and consumer discretionary spending pullbacks.
- Investors should monitor the sustainability of recent growth against the backdrop of a constrained 0.31 current ratio and the potential for future earnings dilution from ongoing stock-based compensation.
Verdict Logic
while the company demonstrates robust OCF/NI conversion ratios consistently above 1.30, the combination of a 20.57 P/E ratio and a tight 0.31 current ratio suggests limited margin for error in a volatile consumer environment.
DRI Growth Metrics
Darden Restaurants, Inc. (DRI) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years6.66%
5 Years12.92%
3 Years8%
TTM9.39%
Profit CAGR
10 Years12.4%
5 Years13.91%
3 Years7.11%
TTM14.98%
EPS CAGR
10 Years13.61%
5 Years16.85%
3 Years9.15%
TTM17%
Return on Capital
10 Years13.81%
5 Years14.57%
3 Years14.91%
Last Year15.67%
DRI Recent Earnings
Darden Restaurants, Inc. (DRI) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 7/12 qtrs (58%)●Beat Revenue 6/12 qtrs (50%)
Q3 2026Latest
Jun 25, 2026Metric
Actual
Est
EPS
$3.66+0.8%
$3.63
Rev
$3.7B-0.3%
$3.7B
Q2 2026
Mar 19, 2026Metric
Actual
Est
EPS
$2.95+0.3%
$2.94
Rev
$3.3B+0.3%
$3.3B
Q4 2025
Dec 18, 2025Metric
Actual
Est
EPS
$2.08-1.0%
$2.10
Rev
$3.1B+0.9%
$3.1B
Q4 2025
Sep 18, 2025Metric
Actual
Est
EPS
$1.97-1.5%
$2.00
Rev
$3.0B+0.1%
$3.0B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q3 2026Latest | Jun 25, 2026 | $3.66vs $3.63+0.8% | $3.7Bvs $3.7B-0.3% |
| Q2 2026 | Mar 19, 2026 | $2.95vs $2.94+0.3% | $3.3Bvs $3.3B+0.3% |
| Q4 2025 | Dec 18, 2025 | $2.08vs $2.10-1.0% | $3.1Bvs $3.1B+0.9% |
| Q4 2025 | Sep 18, 2025 | $1.97vs $2.00-1.5% | $3.0Bvs $3.0B+0.1% |
Based on last 12 quarters of dataView full earnings history →
Latest DRI News
Recent stock market news and headlines for Darden Restaurants, Inc. (DRI)
Zacks Investment Research·5 days ago
Is DRI Stock a Buy Now After Earnings Growth and Valuation ResetDarden combines earnings growth, cash returns and a lower valuation multiple, but estimate cuts and inflation keep investors weighing the stock's outlook.
Zacks Investment Research·5 days ago
Darden Stock Trends Show Digital Gains and Margin PressureDRI is balancing digital growth, brand diversification and value-focused pricing as inflation and consumer spending trends shape its margin outlook.
Seeking Alpha·6 days ago
Dividend Announcements: June 20-26, 2026In this article series, I summarize dividend announcements of the past week. Thirteen companies in my database (including 7 banks) announced dividend increases. JPMorgan Chase stands out with a 10% dividend hike, an A+ safety grade, and a new $50B buyback, and trades only 3.35% above fair value. Matson is the week's high-quality non-bank, boasting a 7.34 quality score, 9.4 safety score, and a conservative 10% payout ratio.
MarketBeat·Jun 29, 2026
New Stock Price Highs Are on the Menu for Darden RestaurantsDarden Restaurants' NYSE: DRI stock price is on track to hit new highs because its high-quality business is outperforming peers, growing across brands, generating ample cash flows, and sustaining a robust capital return program. The capital return program is a significant factor in 2026, with investors reducing exposure to high-risk tech stocks in favor of safer havens.
Peers Comparison
Key metrics vs top competitors for Darden Restaurants, Inc. (DRI)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $204.50 | $23.42B | 19.68 | 9.39% | 9.13% | 53.41% | 2.94% | |
| $175.30 | $7.52B | 21.07 | 21.95% | 8.07% | 123.43% | — | |
| $187.03 | $12.29B | 30.66 | 9.39% | 6.85% | 27.87% | — | |
| $7.98 | $680.12M | 126.47 | 0.14% | 0.55% | 5.85% | — | |
| $6.25 | $321.87M | 15.24 | -2.5% | 2.24% | — | — | |
| $77.74 | $3.86B | 25.32 | 4.75% | 4.34% | 38.34% | — |
Compare DRI vs Peers
Darden Restaurants, Inc. (DRI) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
DRI SEC Filings & Documents
Darden Restaurants, Inc. (DRI) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Jun 25, 2026·SEC
Material company update
Mar 19, 2026·SEC
Material company update
Dec 18, 2025·SEC
10-K Annual Reports
1FY 2025
Jul 18, 2025·SEC
10-Q Quarterly Reports
6Get notified when DRI posts new earnings or crosses analyst targets
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DRI Frequently Asked Questions
Darden Restaurants, Inc. (DRI) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Darden Restaurants, Inc.'s revenue?
Darden Restaurants, Inc. (DRI) reported $13.21B in revenue for fiscal year 2026. This represents a 317% increase from $3.17B in 1997.
How fast is Darden Restaurants, Inc. growing?
Darden Restaurants, Inc. (DRI) grew revenue by 9.4% over the past year. This is steady growth.
Is DRI profitable?
Yes, Darden Restaurants, Inc. (DRI) is profitable, generating $1.21B in net income for fiscal year 2026 (9.1% net margin).
Dividend & Returns
Does DRI pay dividends?
Yes, Darden Restaurants, Inc. (DRI) pays a dividend with a yield of 2.94%. This makes it attractive for income-focused investors.
What is DRI's return on equity?
Darden Restaurants, Inc. (DRI) has a return on equity (ROE) of 53.4%. This is excellent, indicating efficient use of shareholder capital.
What is Darden Restaurants, Inc.'s free cash flow?
Darden Restaurants, Inc. (DRI) generated $1.12B in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.