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olivLaw · US equity research

Darden Restaurants, Inc. DRI

Retail-Eating Places · SIC 5812

230.61USD+5.11% · 1 dayClose 04 Nov 2026

Darden Restaurants is one of the largest full-service restaurant operators in the United States, with Olive Garden and LongHorn Steakhouse as its main brands. Fiscal 2026 sales reached 13.21 bn USD, and the first quarter of fiscal 2027 shows higher sales and continued support from same-restaurant growth, against a backdrop of rising costs.

At the close of 04 Nov 2026, Darden Restaurants, Inc. (DRI) stock was 230.61 USD (+5.11% on the day), with market capitalisation 26.1 bn USD, P/E 22.5 on diluted EPS of 10.24 USD over the last 12 months, dividend yield 2.65%, beta 0.52, 52-week range 169.21–230.61 USD. Latest reported quarter (Q1 2027): revenue of 3.2 bn USD (+5.1% YoY), net income of 233.4 m USD (−9.5% YoY), diluted EPS 2.04 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
26.1 bn USD
shares as of 21 Sept 2026
P/E (TTM)
22.5
Diluted EPS TTM 10.24 · TTM to 30 Aug 2026
E/P (TTM)
4.44%
TTM to 30 Aug 2026
Dividend yield
2.65%
DPS 12m 6.12
Beta (2y)
0.52
Volatility (1y) 28%
52-week range
169.21230.61

Price history

Loading chart…

Technical reading

RSI (14)
69.0
strong (55–70)
Bollinger (20, 2)
198.00 – 229.85
above the upper band · %B 1.02 · band width 14.9%
SMA 50 / 200
210.67 / 205.89
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
4.38 / 2.91
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+15.5%−1.1%+16.6 pp—
3 months+10.4%−0.5%+10.9 pp—
6 months+17.8%+4.4%+13.4 pp—
Year to date+25.3%+12.3%+13.0 pp—
1 year+28.0%+13.5%+14.4 pp—
3 years+53.0%+76.4%−23.4 pp—
5 years+49.3%+63.7%−14.4 pp—
Max drawdown (1y)
−15.1%
12 Aug 2026 → 30 Sept 2026
Max drawdown (5y)
−28.1%
09 Nov 2021 → 16 Jun 2022
Compound annual growth (5y)
+8.3%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q1 2027 · 30 Aug 2026

Revenue
3.2 bn USD
+5.1% YoY
Net income
233.4 m USD
−9.5% YoY
Diluted EPS
2.04
−6.8% YoY
net / operating
7.3% / 10.0%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27
Revenue2.9 bn3.2 bn3.3 bn3.0 bn3.1 bn3.3 bn3.7 bn3.2 bn
Gross profit569.4 m673.0 m707.7 m574.3 m581.3 m703.6 m822.9 m602.9 m
Operating income292.1 m418.2 m382.8 m339.2 m320.4 m406.4 m516.8 m319.3 m
Depreciation & amortisation127.7 m131.9 m135.0 m135.1 m137.9 m141.8 m146.3 m144.2 m
Pre-tax income245.9 m372.7 m336.5 m293.8 m272.4 m356.8 m465.6 m269.0 m
Income tax30.2 m49.0 m32.5 m35.9 m35.0 m46.2 m57.8 m34.7 m
Net income215.1 m323.4 m303.8 m257.8 m237.2 m306.8 m404.9 m233.4 m
Diluted EPS1.822.742.57 ≈2.192.032.653.52 ≈2.04
Capex169.3 m ≈158.1 m ≈172.0 m174.1 m200.9 m ≈165.9 m ≈193.1 m175.3 m
Dividends paid164.5 m ≈164.1 m ≈163.9 m175.1 m173.9 m ≈172.5 m ≈171.5 m184.2 m
Share repurchases141.8 m ≈53.0 m ≈51.0 m182.7 m224.4 m ≈127.3 m ≈137.3 m220.8 m

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 78 percentile of its own 40-quarter history (min 17.0, median 20.6, max 30.0; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue8.5 bn7.8 bn7.2 bn9.6 bn10.5 bn11.4 bn12.1 bn13.2 bn
Revenue YoY+5.3%−8.3%−7.8%+33.8%+8.9%+8.6%+6.0%+9.4%
Net income713.4 m-52.4 m629.3 m952.8 m981.9 m1.0 bn1.0 bn1.2 bn
Net income YoY+19.7%−107.3%unavailable+51.4%+3.1%+4.7%+2.1%+15.0%
Diluted EPS5.69-0.434.777.397.998.518.8610.38
Diluted EPS YoY+20.3%−107.6%unavailable+54.9%+8.1%+6.5%+4.1%+17.2%
net %8.4%-0.7%8.7%9.9%9.4%9.0%8.7%9.1%
Free cash flowunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 31 May 2026

Cash
219.5 m USD
Financial debt
2.3 bn USD
Net debt
2.1 bn USD
Equity
2.2 bn USD
Total assets
12.9 bn USD
Debt / equity
1.06x
Current ratio
0.31x
ROE
53.4%
ROA
9.5%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
11.4 bn
2025
12.1 bn
2026
13.2 bn

SEC (XBRL)· 24 Jul 2026verified

Gross profit
2024
2.3 bn
2025
2.5 bn
2026
2.7 bn

SEC (XBRL)· 24 Jul 2026verified

Operating income
2024
1.3 bn
2025
1.4 bn
2026
1.6 bn

SEC (XBRL)· 24 Jul 2026verified

Depreciation & amortisation
2024
459.9 m
2025
516.1 m
2026
561.1 m

SEC (XBRL)· 24 Jul 2026verified

EBITDA
2024
1.8 bn ≈
2025
1.9 bn ≈
2026
2.1 bn ≈

SEC (XBRL)· 24 Jul 2026derived

Interest expense
2024
93.5 m
2025
115.9 m
2026
126.5 m

SEC (XBRL)· 24 Jul 2026verified

Pre-tax income
2024
1.2 bn
2025
1.2 bn
2026
1.4 bn

SEC (XBRL)· 24 Jul 2026verified

Income tax
2024
145.0 m
2025
136.2 m
2026
174.9 m

SEC (XBRL)· 24 Jul 2026verified

Net income
2024
1.0 bn
2025
1.0 bn
2026
1.2 bn

SEC (XBRL)· 24 Jul 2026verified

Diluted EPS
2024
8.51
2025
8.86
2026
10.38

SEC (XBRL)· 24 Jul 2026verified

Weighted average diluted shares
2024
120.8 m
2025
118.4 m
2026
116.3 m

SEC (XBRL)· 24 Jul 2026verified

Dividend per share
2024
5.24
2025
5.60
2026
6.00

SEC (XBRL)· 24 Jul 2026verified

Balance sheet · USD

Cash
2024
194.8 m
2025
240.0 m
2026
219.5 m

SEC (XBRL)· 24 Jul 2026verified

Inventories
2024
290.5 m
2025
311.6 m
2026
326.3 m

SEC (XBRL)· 24 Jul 2026verified

Current assets
2024
822.8 m
2025
937.7 m
2026
942.9 m

SEC (XBRL)· 24 Jul 2026verified

Goodwill
2024
1.4 bn
2025
1.7 bn
2026
1.7 bn

SEC (XBRL)· 24 Jul 2026verified

Intangibles (excl. goodwill)
2024
16.2 m
2025
14.3 m
2026
—

SEC (XBRL)· 18 Jul 2025verified

Total assets
2024
11.3 bn
2025
12.6 bn
2026
12.9 bn

SEC (XBRL)· 24 Jul 2026verified

Accounts payable
2024
399.5 m
2025
439.6 m
2026
427.7 m

SEC (XBRL)· 24 Jul 2026verified

Short-term debt
2024
86.8 m
2025
0
2026
693.6 m

SEC (XBRL)· 02 Oct 2026verified

Long-term debt
2024
1.4 bn
2025
2.1 bn
2026
1.6 bn

SEC (XBRL)· 24 Jul 2026verified

Current liabilities
2024
2.2 bn
2025
2.2 bn
2026
3.0 bn

SEC (XBRL)· 24 Jul 2026verified

Total liabilities
2024
9.1 bn
2025
10.3 bn
2026
10.7 bn

SEC (XBRL)· 24 Jul 2026verified

Equity
2024
2.2 bn †
2025
2.3 bn †
2026
2.2 bn †

SEC (XBRL)· 24 Jul 2026verified

Shares outstanding at year end
2024
118.9 m
2025
117.0 m
2026
114.1 m

SEC (XBRL)· 24 Jul 2026verified

Cash flow · USD

Capex
2024
601.2 m
2025
644.6 m
2026
734.0 m

SEC (XBRL)· 24 Jul 2026verified

Investing cash flow
2024
-1.3 bn
2025
-1.3 bn
2026
-711.4 m

SEC (XBRL)· 24 Jul 2026verified

Financing cash flow
2024
-483.4 m
2025
-385.8 m
2026
-1.2 bn

SEC (XBRL)· 24 Jul 2026verified

Dividends paid
2024
628.4 m
2025
658.5 m
2026
693.0 m

SEC (XBRL)· 24 Jul 2026verified

Share repurchases
2024
453.9 m
2025
418.2 m
2026
671.7 m

SEC (XBRL)· 24 Jul 2026verified

Computed indicators

Growth

Revenue growth (YoY)
9.4%
computed by olivLawFY 2026
Revenue CAGR 3Y
8.0%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
12.9%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
16.2%
computed by olivLawFY 2026
Net income growth (YoY)
15.0%
computed by olivLawFY 2026
Net income CAGR 3Y
7.1%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
13.9%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
17.2%
computed by olivLawFY 2026
EPS CAGR 3Y
9.1%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
16.8%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
20.3%
computed by olivLawTTM to 30 Aug 2026
EBITDA margin
16.0%
computed by olivLawTTM to 30 Aug 2026
EBIT margin
11.7%
computed by olivLawTTM to 30 Aug 2026
Net margin
8.8%
computed by olivLawTTM to 30 Aug 2026
FCF margin
unavailable
input data missing

Returns

ROE
55.1%
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
ROA
9.1%
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
ROIC
31.2%
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
ROCE
15.6%
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
Payout ratio (EPS)
59.8%
computed by olivLawTTM to 30 Aug 2026
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
2.4 bn USD
computed by olivLawbalance sheet at 30 Aug 2026
Net debt / EBITDA
1.1x
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
Debt / equity
1.3x
computed by olivLawbalance sheet at 30 Aug 2026
Interest coverage
12.4x
computed by olivLawTTM to 30 Aug 2026

Liquidity

Current ratio
0.3x
computed by olivLawbalance sheet at 30 Aug 2026
Quick ratio
0.2x
computed by olivLawbalance sheet at 30 Aug 2026
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Aug 2026

Cash

Operating cash flow
unavailable
input data missing
Capital expenditure
735.2 m USD
computed by olivLawTTM to 30 Aug 2026
Free cash flow
unavailable
input data missing
FCF conversion
unavailable
input data missing
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
26.1 bn USD
computed by olivLawbalance sheet at 30 Aug 2026
Enterprise value
28.5 bn USD
computed by olivLawbalance sheet at 30 Aug 2026
Market cap / net income TTM
22.1x
computed by olivLawTTM to 30 Aug 2026
P/E (TTM)
22.5x
computed by olivLawTTM to 30 Aug 2026
Earnings yield
4.4%
computed by olivLawTTM to 30 Aug 2026
P/B
12.6x
computed by olivLawbalance sheet at 30 Aug 2026
P/S
2.0x
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
EV/EBITDA
13.4x
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
EV/EBIT
18.2x
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
EV/Sales
2.1x
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
2.7%
computed by olivLawTTM to 30 Aug 2026
Shareholder yield (distributions)
5.4%
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 61 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

230.61 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 26.1 bn USD

Key indicators

Market capitalisation
26.1 bn USD
computed by olivLawbalance sheet at 30 Aug 2026
P/E (TTM)
22.5x
computed by olivLawTTM to 30 Aug 2026
P/B
12.6x
computed by olivLawbalance sheet at 30 Aug 2026
EV/EBITDA
13.4x
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
ROE
55.1%
computed by olivLawTTM to 30 Aug 2026 · balance sheet at 30 Aug 2026
Net margin
8.8%
computed by olivLawTTM to 30 Aug 2026
Revenue growth (YoY)
9.4%
computed by olivLawFY 2026
Dividend yield
2.7%
computed by olivLawTTM to 30 Aug 2026

Coverage and freshness

30/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Aug 2026
Latest balance sheet date: 30 Aug 2026
Share count (cover of the latest filing), as of: 21 Sept 2026
Source: SEC (XBRL)published 02 Oct 2026
verified 2506derived 159

Score by group

  • Balance sheet71
  • Valuation24
  • Quality85
  • Growth64
  • Returns77

Estimated value range

Low
78.85
USD per share
Mid
90.44
USD per share
High
106.03
USD per share
Price: 230.61 USD
The price is above the range
Potential to the central value: -60.8% (value / price − 1)
Margin of safety: -155.0% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 78.85 – 106.03 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · not enough peers
  • Peers: P/Eunavailable · not enough peers
  • Dividend discount (DDM)78.85 – 106.03 (Mid 90.44)
Multiple comparisons use the SIC vertical

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 61/100

FactorValueScoreWeight used
ROIC · Quality31.2%100 (on a fixed band)13%
Net margin · Quality8.8%59 (on a fixed band)8%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth8.0%67 (on a fixed band)10%
EPS CAGR 3Y · Growth9.1%61 (on a fixed band)10%
Net debt / EBITDA · Balance sheet1.1x82 (on a fixed band)13%
Interest coverage · Balance sheet12.4x100 (on a fixed band)8%
Current ratio · Balance sheet0.3x0 (on a fixed band)5%
P/E (TTM) · Valuation22.5x34 (on a fixed band)13%
EV/EBITDA · Valuation13.4x15 (on a fixed band)13%
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returns5.4%77 (on a fixed band)8%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet71/100 · 3/3 factors with a value
  • Growth64/100 · 2/2 factors with a value
  • Quality85/100 · 2/3 factors with a value
  • Returns· partial77/100 · 1/2 factors with a value
  • Valuation24/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

DARDEN RESTAURANTS, INC. (DRI). Latest full fiscal year: 2026; data up to 2026-08-30.

Figures computed from the financial statements: revenue 13.2 bn USD in 2026; YoY growth 9.4%; net margin 8.8%; ROE 55.1%; net debt/EBITDA 1.1x.

The estimated value range is 78.85–106.03 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 90.44 USD, the price of 230.61 USD leaves a potential of -60.8% (value / price − 1) and a margin of safety of -155.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 61/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROIC: 31.2%
  • Net debt / EBITDA: 1.1x
  • Interest coverage: 12.4x
  • Shareholder yield (distributions): 5.4%

What contradicts it

  • Current ratio: 0.3x
  • EV/EBITDA: 13.4x
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): FCF conversion, FCF yield, Payout ratio (FCF).

Versus the vertical median

Not enough comparable companies with data for an average.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
144.06
Total return -35% · Per year -35%
254.27
Total return 13% · Per year 13%
382.44
Total return 69% · Per year 69%
3 years
149.82
Total return -28% · Per year -10%
296.57
Total return 38% · Per year 11%
488.32
Total return 124% · Per year 31%
5 years
155.80
Total return -21% · Per year -5%
345.91
Total return 67% · Per year 11%
623.51
Total return 193% · Per year 24%
What moves the 3-year price the most
  • Exit P/E± 74.14
  • Net margin± 51.90
  • Annual revenue growth± 41.22
  • Annual dilution± 4.36

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Darden Restaurants is one of the largest full-service restaurant operators in the United States, with Olive Garden and LongHorn Steakhouse as its main brands. Fiscal 2026 sales reached 13.21 bn USD, and the first quarter of fiscal 2027 shows higher sales and continued support from same-restaurant growth, against a backdrop of rising costs.13

SWOT

Strengths

  • A portfolio of strong, differentiated brands with a leading position in the full-service segment.
  • Large operating scale that supports purchasing, marketing and supply chain.
  • Growth in same-restaurant sales in recent periods.

Weaknesses

  • Margins sensitive to inflation in food, labor and utilities.
  • Dependence on discretionary consumer spending in the full-service segment.
  • Restructuring of the Bahama Breeze brand brings closure and conversion costs.

Opportunities

  • Converting Bahama Breeze restaurants to other Darden brands could improve network returns.
  • Planned fiscal 2027 openings and the integration of Chuy's could support growth.
  • The share repurchase program and dividend show capacity to return capital to shareholders.

Threats

  • Economic pressure and higher interest rates could reduce guest visit frequency.
  • Intense competition could limit the ability to raise menu prices.
  • Public health and food safety risks could affect brand reputation.

Risks

  • Rising costshigh

    Inflation in food, labor and utilities could compress margins if prices cannot be adjusted enough.1

  • Economically sensitive demandhigh

    A decline in discretionary spending or in guest traffic could reduce sales.1

  • Workforcemedium

    Difficulty recruiting and retaining qualified staff could affect openings and service quality.1

  • Food safety and reputationmedium

    Food safety incidents, real or perceived, can quickly damage brand reputation.1

  • Execution of the restructuring planlow

    Converting Bahama Breeze restaurants and integrating Chuy's could face operational difficulties or unexpected costs.12

Investment thesis

What would need to be true (bull case)

  • If same-restaurant sales stay positive and margins stabilise, the company could sustain profit growth from fiscal 2026.
  • A diversified brand portfolio and operating scale could support the planned fiscal 2027 openings.
  • The fiscal 2027 outlook was reaffirmed in September 2026, suggesting stability in management's stated expectations.3

What would break the thesis

  • If costs keep rising faster than menu prices, margins could decline.
  • A slowdown in discretionary spending could reduce guest traffic in full-service restaurants.
  • Restructuring Bahama Breeze and integrating Chuy's could add costs in the short term.

What to watch

  • Trend in same-restaurant sales and guest trafficQ2 2027
  • Olive Garden and LongHorn segment margins under cost pressureQ2 2027
  • Completion of Bahama Breeze conversions and effect on the networkQ4 2027
  • Delivery against the fiscal 2027 sales and EPS outlook2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Darden operates full-service restaurants through subsidiaries in the United States, and as of May 31, 2026 it owned and operated 2,202 restaurants under several brands, including Olive Garden, LongHorn Steakhouse, Yard House and Ruth's Chris Steak House.1 The company describes its strategy as relying on scale, strong brands and a guest experience built on cuisine, service and atmosphere.1 Besides company-owned restaurants, franchised and contractually operated restaurants add royalty income.1

Network growth continued through new openings and the Chuy's acquisition, completed in October 2024 and fully integrated by the end of fiscal 2026.1 For fiscal 2027 the company expects new restaurant openings and same-restaurant sales growth, and the first quarter confirms a positive trend.23

Segments

Olive Garden

Olive Garden is the largest full-service Italian restaurant operator in the United States and generated the company's largest sales segment in fiscal 2026.1 In the first quarter of fiscal 2027 segment sales rose 2.2% year on year, supported by same-restaurant sales growth.2

Market context

The company operates in the full-service segment of the restaurant industry, which includes many independent operators and small chains, making the market fragmented.1 Darden says it could gain share if operators with strong brands expand their position.1

Demand depends on discretionary consumer spending, which is sensitive to energy prices, interest rates and unemployment, and rising food and labor costs could compress margins if menu prices cannot be raised enough.1

Trends

  • Cost inflationheadwind

    Prices for food, labor and utilities have risen, and in fiscal 2026 food and beverage costs grew as a share of sales due to inflation.1 If menu prices do not offset these costs, margins could decline.

  • Same-restaurant sales growthtailwind

    Same-restaurant sales rose in fiscal 2026 and in the first quarter of fiscal 2027, supported by a higher average check and, for LongHorn, more guests.12

  • Minimum wage pressureheadwind

    Increases in federal and local minimum wages and competition for qualified staff can raise labor costs and limit pricing flexibility.1

  • Network reshapingmixed

    Darden is opening new restaurants while closing and converting weaker units, such as Bahama Breeze, which changes the portfolio and may bring short-term closure costs.12

Competitive position

Darden competes with other full-service restaurant operators in the United States, a fragmented segment with many independent operators and small chains.1 Differentiation depends on brands, guest experience and the company's operating scale.1

Competitive pressure is felt mainly in menu pricing and in recruiting staff, where the market is described as competitive.1

  • Independent full-service operators

    The company identifies many independent operators and small chains in the full-service segment, without an individual list of competitors in the given sources.

  • Full-service restaurants in similar price ranges

    Competition comes from restaurants targeting the same consumers, especially in price ranges similar to Darden's brands.

  • Steakhouse and fine dining operators

    LongHorn, Ruth's Chris and The Capital Grille compete with other steakhouse and fine dining operators.

  • Italian and Mexican sit-down restaurant operators

    Olive Garden and Chuy's compete with sit-down restaurants in Italian and Mexican cuisine.

News & filings

In the press

The latest news item in our archive is from 24 Sept 2026; the newest SEC filing is from 23 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-05-31 · SEC / Darden Restaurants, Inc. · 24 Jul 2026
  2. [2] Form 10-Q, quarter ended 2026-08-30 · SEC / Darden Restaurants, Inc. · 02 Oct 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Darden Restaurants, Inc. · 24 Sept 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.