Valued at a market cap of $25.7 billion, Darden Restaurants, Inc. (DRI) is one of the largest full-service restaurant operators in the U.S., with a portfolio spanning casual dining, upscale dining and steakhouse concepts. The Orlando, Florida-based company operates under various well-known brands, including Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen, to name a few.
Shares of DRI have climbed 9.3% over the past year, trailing the S&P 500 Index ($SPX), which has soared 20.4%, but comfortably outperformed the State Street Consumer Discretionary Select Sector SPDR Fund’s (XLY) 3% return over the same time frame.
The momentum has picked up sharply in 2026, with DRI up 22.4% YTD, beating the S&P 500’s 13.7% advance and leaving XLY’s 1.0% decline far behind.
Darden Restaurants wrapped up fiscal 2026 on a strong note, reporting its Q4 results on June 25, 2026. Total sales jumped 13.7% year over year to $3.72 billion, fueled by a 53rd operating week, 4.6% growth in same-restaurant sales, and contributions from 43 net new restaurants. Adjusted diluted EPS climbed 22.8% to $3.66, highlighting solid underlying earnings growth despite costs related to restaurant closures and the Chuy’s integration.
For the current fiscal year, ending in May 2027, analysts expect DRI’s EPS to grow 6% year over year to $11.28. The company’s earnings surprise history is mixed. It met or topped the consensus estimates in two of the last four quarters, while missing on two other occasions.
Among the 28 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 16 “Strong Buy,” one "Moderate Buy," and 11 "Hold” ratings.
The configuration is bearish than a month ago, with 17 analysts suggesting a “Strong Buy” rating.
In June, J.P. Morgan analyst John Ivankoe maintained a “Buy” rating on Darden Restaurants and raised his price target to $225 from $220, signaling continued confidence in the company’s growth prospects.
The mean price target of $230 suggests a 2.1% premium to its current price levels, while its Street-high price target of $276 implies a 22.5% potential upside.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.