DRI
Consumer CyclicalDarden Restaurants, Inc. · Restaurants · $23B
What is Darden Restaurants, Inc.?
Darden Restaurants is one of the largest full-service restaurant operators in North America, running a portfolio of well-known dining brands across the United States and Canada. The company has built its business around casual and fine-dining experiences at scale.
Darden owns and operates full-service restaurants under multiple brands, ranging from everyday casual dining to upscale steakhouses and seafood concepts. Revenue comes primarily from dine-in and to-go food and beverage sales across its company-owned locations, supplemented by a smaller franchised restaurant network. The company manages each brand as a distinct concept targeting different dining occasions and price points, allowing it to serve a broad range of consumers.
Darden Restaurants was founded in 1968 and is headquartered in Orlando, Florida.
- Olive Garden — Italian-American casual dining chain
- LongHorn Steakhouse — casual steakhouse concept
- Cheddar's Scratch Kitchen — value-oriented scratch cooking
- The Capital Grille — upscale fine-dining steakhouse
- Yard House, Bahama Breeze, Seasons 52, and Eddie V's — specialty concepts
Is DRI a Good Stock to Buy?
UQS Score rates DRI as Below Average overall, reflecting meaningful headwinds across several key pillars.
The Quality and Valuation pillars both come in at Good, suggesting the business generates reasonable returns relative to its operational footprint and that the current price is not dramatically stretched versus fundamentals. These are the two areas where Darden holds up best in the UQS framework.
The Moat, Growth, and Risk pillars all register as Weak — pointing to limited competitive differentiation, constrained expansion potential, and elevated exposure to macro and operational pressures common in the restaurant industry.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does DRI pay dividends?
Yes — Darden Restaurants, Inc. pays a dividend.
Darden pays a regular dividend, reflecting its mature business model and consistent cash generation from its large restaurant network. The company has historically prioritized returning capital to shareholders alongside selective reinvestment in its brand portfolio. Income-focused investors often view Darden's dividend as a meaningful component of total return in the consumer cyclical space.
When does DRI report earnings?
Darden Restaurants reports earnings on a quarterly cadence, consistent with US-listed equities.
Darden's results tend to reflect broader consumer spending trends, traffic patterns across its dining concepts, and cost pressures in labor and food inputs. The company's multi-brand structure means performance can vary across segments in any given quarter.
For the most recent quarter's results and guidance, visit Darden Restaurants' official investor relations page.
DRI Price History
+62.0% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Darden Restaurants, Inc.?
Based on Darden Restaurants, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
DRI Long-term Outlook
The UQS Growth and Risk pillars both register as Weak for Darden, suggesting the near-to-medium-term fundamental outlook carries more uncertainty than the broader sector average. Expansion opportunities are constrained by market saturation in full-service dining, while cost pressures and consumer sensitivity to discretionary spending add to the risk profile. The Good Valuation pillar does provide some cushion, indicating the market may already be pricing in these challenges to a degree.
Growth drivers
- Menu innovation and off-premise dining expansion across established brands
- Selective new restaurant openings and franchise growth in underpenetrated markets
- Operational efficiency initiatives aimed at improving restaurant-level economics
Key risks
- Consumer pullback on discretionary dining during economic slowdowns
- Persistent labor and food cost inflation compressing restaurant margins
- Limited moat in a highly competitive full-service restaurant landscape
DRI vs Peers
Darden competes in a crowded restaurant and food-service landscape alongside global quick-service and casual-dining operators.
Restaurant Brands operates a franchise-heavy model across quick-service brands, giving it a structurally different cost and growth profile compared to Darden's company-owned full-service approach.
Yum China focuses exclusively on the Chinese market with a large quick-service footprint, contrasting with Darden's North American full-service concentration.
The TSX-listed share class of Restaurant Brands reflects the same underlying franchise-driven business, offering Canadian investors exposure to a global quick-service operator distinct from Darden's sit-down dining model.
Frequently Asked Questions
What does Darden Restaurants do?
Darden Restaurants owns and operates a portfolio of full-service restaurant brands across the United States and Canada. Its concepts span casual dining, specialty dining, and upscale fine dining, with Olive Garden and LongHorn Steakhouse being its two largest brands by location count. The company also franchises a smaller number of restaurants.
Does DRI pay dividends?
Yes, Darden Restaurants pays a regular dividend. The company has maintained a dividend program consistent with its mature, cash-generating business model. Investors seeking income from consumer cyclical stocks often include DRI in that conversation. For current dividend details, check Darden's investor relations page.
When does DRI report earnings?
Darden Restaurants reports earnings on a quarterly basis, as is standard for US-listed companies. Exact upcoming report dates are not covered by our data source. Visit Darden's investor relations page for the current earnings calendar.
Is DRI a good stock to buy?
UQS Score rates DRI as Below Average overall. While the Quality and Valuation pillars show relative strength, the Moat, Growth, and Risk pillars are all Weak — flagging meaningful challenges. Whether DRI fits your portfolio depends on your risk tolerance and investment goals. The complete pillar breakdown is available to Pro members.
Is DRI overvalued?
The UQS Valuation pillar for DRI comes in as Good, suggesting the stock is not dramatically overpriced relative to its fundamentals at the time of scoring. That said, valuation should be considered alongside the Weak Growth and Risk profiles. View the full valuation metrics with a UQS Pro account.
How does DRI compare to its competitors?
Darden's full-service, company-owned restaurant model differs meaningfully from franchise-heavy quick-service operators like Restaurant Brands International. Darden carries more direct operational exposure — including labor and food costs — while franchise models shift much of that burden to franchisees. Each structure has distinct risk and return characteristics.
What is DRI's market cap bracket?
Darden Restaurants is classified as a large-cap company. This places it among the more established and widely followed names in the consumer cyclical and restaurant sector, typically attracting both institutional and retail investor attention.
Who founded Darden Restaurants?
Darden Restaurants traces its roots to Bill Darden, who opened the first Red Lobster restaurant in 1968. The company later spun off from General Mills in 1995 as an independent publicly traded entity. Founding context is widely available through public historical records.
Is DRI a long-term quality investment?
As a long-term quality indicator, DRI's UQS profile is mixed. The Good Quality pillar reflects reasonable operational fundamentals, but Weak scores in Moat, Growth, and Risk suggest the business faces structural headwinds that could limit compounding over time. Pro members can access the full analysis to assess long-term fit.
What is the main competitive advantage of Darden Restaurants?
Darden's primary advantage lies in its scale and brand recognition — particularly Olive Garden, which holds a dominant position in Italian-American casual dining. However, the UQS Moat pillar rates as Weak, indicating that durable competitive differentiation remains a challenge in the highly competitive full-service restaurant industry.
What sector does DRI belong to?
Darden Restaurants is classified under the Consumer Cyclical sector. This means its performance is closely tied to consumer discretionary spending, which tends to fluctuate with economic conditions, employment levels, and consumer confidence.
Is DRI a growth stock or value stock?
Based on UQS pillar labels, DRI leans toward value rather than growth. The Growth pillar is Weak, suggesting limited near-term expansion momentum, while the Valuation pillar is Good — indicating the stock may offer reasonable value relative to its current fundamentals rather than a premium growth profile.
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Pro Analysis
DRI — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 42.5 | 61.3 | 31.0 | 39.9 | 8.7 | 67.5 | -0.9 |
| May 10, 2026 | 43.4 | 63.7 | 31.0 | 39.9 | 8.7 | 69.3 | +0.4 |
| May 3, 2026 | 43.0 | 61.4 | 31.0 | 39.9 | 8.7 | 70.9 | +0.2 |
| May 1, 2026 | 42.8 | 61.4 | 31.0 | 39.9 | 8.7 | 69.8 | -0.3 |
| Apr 26, 2026 | 43.1 | 61.4 | 31.0 | 39.9 | 8.7 | 71.5 | -0.1 |
| Apr 25, 2026 | 43.2 | 61.4 | 31.0 | 39.9 | 8.7 | 71.9 | +0.1 |
| Apr 24, 2026 | 43.1 | 61.5 | 31.0 | 39.9 | 8.7 | 71.0 | +0.1 |
| Apr 23, 2026 | 43.0 | 61.5 | 31.0 | 39.8 | 8.7 | 70.7 | -0.2 |
| Apr 21, 2026 | 43.2 | 61.3 | 31.0 | 39.8 | 8.7 | 72.1 | 0.0 |
| Apr 19, 2026 | 43.2 | 61.4 | 31.0 | 39.8 | 8.7 | 72.0 | -0.1 |
DRI — Pillar Breakdown
Quality
— 61.3/100 (25%)Darden Restaurants, Inc. shows solid profitability with healthy returns on capital and reasonable margins.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 39.9/100 (20%)Darden Restaurants, Inc. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 8.7/100 (15%)Darden Restaurants, Inc. presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 67.9/100 (15%)Darden Restaurants, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 31/100 (25%)Darden Restaurants, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DRI.
Score Composition
Financial Data
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How is the DRI UQS Score Calculated?
The UQS (Unified Quality Score) for Darden Restaurants, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Darden Restaurants, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Darden Restaurants, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.