Darden Restaurants, Inc. (DRI) AI Stock Analysis

Founded in 1968 and headquartered in Orlando, Florida, Darden Restaurants, Inc. operates a portfolio of full-service dining establishments across the United States and Canada. As of May 29, 2022, the company owned and managed 1,867 restaurants and franchised another 60 locations. Its flagship brand is Olive Garden, featuring 884 locations serving Italian-inspired cuisine, followed by LongHorn Steakhouse with 546 restaurants. Additional concepts include Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood, and Capital Burger.

Darden grew revenue from $9.63B in FY2022 to $13.21B in FY2026, achieving a 5-year revenue CAGR of 12.9% from FY2021 to FY2026. Annual net income rose from $952.8M in FY2022 to $1.21B in FY2026, with diluted EPS increasing from $7.44 to $10.66 over the same period. Operating margin was 12.0% in FY2026, compared to 12.1% in FY2022 and 11.3% in FY2025. In the latest quarter ending August 31, 2026, quarterly revenue increased 5.1% year-over-year, while quarterly earnings declined 6.7%. Trailing twelve-month revenue stood at $13.37B with an operating margin of 9.8% and a net profit margin of 8.8%.

As of August 31, 2026, Darden held $220.5M in cash and short-term investments alongside total debt of $6.63B, resulting in net debt of $6.41B. Shareholders' equity was $2.07B, producing a debt-to-equity ratio of 3.20 and a current ratio of 0.30. In FY2026, the company generated $1.85B in operating cash flow and directed $734.0M toward capital expenditures. Cash deployment included $671.7M in share buybacks and $693.0M in dividends paid, contributing to a 12.3% reduction in share count over 5 years.

Darden has an enterprise value of $30.37B and a market cap of $24.48B. The stock trades at a trailing P/E of 21.0x and a forward P/E of 18.9x, which are both above the median of its S&P 500 Consumer Cyclical peers of 19.7x and 15.6x, respectively. Its EV-to-EBITDA multiple of 14.2x also exceeds the peer group median of 13.2x, while its price-to-sales ratio of 1.8x sits below the peer median of 2.0x. Over the past year, DRI gained 19.1%, outpacing the S&P 500's 16.8% return, though its 5-year gain of 71.2% trailed the index's 83.0%.

Darden pays a quarterly dividend with a forward annual dividend of $6.48, providing a dividend yield of 3.00%. The company has paid dividends for 32 consecutive years and achieved a 5-year annualized dividend growth rate of 37.5%. Its payout ratio is 58.1%, and its most recent ex-dividend date was October 9, 2026.

Wall Street analysts coverage includes 16 Strong Buy, 2 Buy, 9 Hold, and 1 Sell ratings. The mean price target of $233.44 implies a 7.9% premium over the last close of $216.35. For the fiscal year ending May 31, 2027, consensus estimates project revenue of $13.70B and EPS of $11.26, representing 5.8% EPS growth. Over the last 4 quarters, Darden has beaten consensus EPS estimates 2 times.

This page is an AI-written research summary of Darden Restaurants, Inc. (DRI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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