Darden Restaurants

NYSE: DRI

Stock price

200.52 USD

(+29.72%) 5 years

Financial Performance

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5Y price score: 38

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The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 280.6%

DATE RANGE:

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169.0

52-week range

229.7

200.52

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Required return / cost of capital
%
FCFF terminal growth rate
%

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

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FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

4.5 %

Dividend Yield TTM

3.1 %

Market cap $

$ 22,967

Price / Earnings TTM

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P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

19.6

Price / Book TTM

11

PEG TTM

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Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

1.1

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

9.7 %

43.7 %

280.6 %

Free cash flow per share growth

(36.6) %

38.4 %

128.5 %

Earnings per share growth

(6.8) %

117.8 %

258.3 %

Founded: 1,938

Employees: 191,105

Business Summary:Darden Restaurants, Inc., through its various subsidiaries, focuses on the ownership and operation of full-service dining establishments across both the United States and Canada. As of May 29, 2022, the company's extensive portfolio comprised 1,867 directly managed restaurants. These included a significant presence from its flagship brands: 884 Olive Garden outlets, 546 LongHorn Steakhouse locations, 172 Cheddar's Scratch Kitchens, 85 Yard House venues, 62 Capital Grille branches, 45 Seasons 52 restaurants, 42 Bahama Breeze sites, 28 Eddie V's Prime Seafood establishments, and 3 Capital Burger eateries. In addition to its owned operations, Darden also oversees 60 franchised restaurants, specifically 35 Olive Garden units, 18 LongHorn Steakhouse units, 4 Cheddar's Scratch Kitchens, 2 Capital Grille locations, and 1 Bahama Breeze restaurant. The company, which originated in 1968, is headquartered in Orlando, Florida.

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Fair Value Reference Estimate

Latest Earnings Call Takeaways

2027 Q1 (Sep 24, 2026)

1) Strategy & Leadership
- Darden's first quarter of fiscal 2027 showed solid results, with all segments reporting positive same-restaurant sales.
- The leadership emphasized a focus on operational excellence, guest satisfaction, and long-term growth strategies.
- Olive Garden is leveraging its brand equity through promotions like the Never-Ending Pasta Bowl, which has seen strong early results.
- The company is actively working on community engagement, including partnerships with Feeding America to support food distribution.

2) Financial & Segment Results
- Total sales reached $3.2 billion, a 5.1% increase YoY, with same-restaurant sales growing 3.2% on a comparable calendar basis.
- Diluted net earnings per share rose to $2.05, reflecting a 4.1% increase YoY.
- Segment performance highlights:
| Segment | Same-Restaurant Sales Growth | Total Sales Growth | Segment Profit Margin | |-----------------------|------------------------------|--------------------|-----------------------| | Olive Garden | 1% | 2.2% | 20.4% | | LongHorn Steakhouse | 6.8% | 10.9% | 18% | | Other Business (Yard House) | 4.5% | 3.6% | 15.8% | - Yard House achieved a remarkable 10% same-restaurant sales growth, aided by events like the World Cup.

3) Problems / Headwinds
- The World Cup negatively impacted same-restaurant sales by approximately 80 basis points for Darden overall, particularly affecting brands other than Yard House.
- Olive Garden faced challenges due to consumer concerns about lettuce and a lighter portion menu, which created a mix headwind.
- The transition to a 52-week fiscal year has created some complexities in year-over-year comparisons.

4) Operational or Product Plans
- Olive Garden plans to enhance its lunch offerings and has initiated tests for new lunch platforms to drive traffic.
- LongHorn Steakhouse will introduce new menu items to strengthen value and variety.
- Yard House is set to open 13 new restaurants this fiscal year, including conversions from Bahama Breeze, utilizing a new smaller prototype to lower construction costs.
- Darden is committed to maintaining strong margins while investing in food quality and operational improvements across its brands.

5) Guidance & Outlook / Investor Angle
- Darden reaffirmed its fiscal 2027 guidance, projecting diluted net earnings per share between $11.10 and $11.35.
- The company anticipates a 1% headwind to second-quarter sales due to the Thanksgiving calendar shift but expects to offset this in the third quarter.
- Overall, Darden's strong brand portfolio and strategic focus position it well for long-term shareholder value creation, despite short-term challenges.

Bottom line: Darden's solid Q1 results reflect effective brand strategies and operational excellence, positioning the company for continued growth and resilience against headwinds, making it an attractive investment for shareholders.

Annual Reports, Presentations And IR Contacts

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Darden Restaurants — Financial Overview, Stock Price, Market Cap

Darden Restaurants is a company. Founded in 1938. As of October 9, 2026, the company's market capitalization is $22966558802 with a current stock price of $200.52.