Darden Restaurants, Inc.

Darden Restaurants, Inc.

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Market Cap$24.48B
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Darden Restaurants, Inc.Darden Restaurants, Inc.20.42.81%55%1.83.1

Earnings Call Q4 2026

June 25, 2026 - AI Summary

Strong Q4 + full-year execution vs industry; profitable and resilient despite inflation - Q4 total sales $3.7B (+13.7% YoY); same-restaurant sales +4.6% with positive traffic; same-restaurant guest counts also exceeded industry by 300+ bps. - Adjusted diluted EPS +22.8% to $3.66 (includes $0.25 benefit from the extra fiscal week). - Full fiscal year: same-restaurant sales +4.5% (outperformed industry); total sales +9.4%, crossing $13B+ for the first time; Adjusted diluted EPS +11.4% to $10.64. - Negative/surprising: Restaurant-level EBITDA compressed 20 bps for the year due to elevated commodity costs and a deliberate choice not to fully price inflation, though earnings after tax stayed flat via sales/G&A leverage.
Margins: pricing discipline is working, but commodities still pressure - Q4 performance drivers: food & beverage flat (commodity inflation ~3% offset by pricing/mix), restaurant labor down 40 bps (productivity/sales leverage despite ~3.2% labor inflation), marketing 10 bps lower due to leverage. - Q4 restaurant-level EBITDA +50 bps to 22.1%; adjusted tax rate 12.8%. - Guidance assumes continued pricing ~in line with ~3% inflation rather than aggressive pass-through.
FY2027 outlook: moderate comp growth + growth in openings; EPS front-loaded softness - FY2027 forecast: total sales $13.6B–$13.75B - same-restaurant sales +2.5% to +3.5% (implies flat-to-positive traffic; check growth mid-to-high 2%). - 75–80 gross new openings plus 11 Bahama Breeze conversions. - Capex ~ $875M: - ~$25M for Bahama Breeze conversions, - ~$350M maintenance + IT, - ~$500M tied to new unit growth/pipeline build. - EBITDA $2.26B–$2.29B; EPS $11.10–$11.35. - EPS cadence expectation: Q1 low-to-mid single digit EPS growth; remaining quarters “balanced” on a 52-week basis—driven by highest expected commodities inflation (~4%) in Q1 plus some near-term one-time costs.

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$227.44

Target Price by Analysts

11.3% upsideDarden Restaurants Target Price DetailsTarget Price
$299.03

Current Fair Value

46.4% upside

Undervalued by 46.4% based on the discounted cash flow analysis.

Share Statistics

Market cap$24.48 Billion
Enterprise Value$31.06 Billion
Dividend Yield$6.00 (2.81%)
Earnings per Share$10.46
Beta0.59
Outstanding Shares114,300,000

Return

Return on Equity54.66%ROE
Return on Assets9.38%
Return on Invested Capital18.37%

Valuation & Multiples

P/E Ratio20.43P/E Ratio
PEG61.4PEG
Price to Sales1.78Price to Sales
Price to Book Ratio10.75Price to Book Ratio
Enterprise Value to Revenue2.35
Enterprise Value to EBIT17.15
Enterprise Value to Net Income25
Total Debt to Enterprise0.22
Debt to Equity3.08Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
June 25, 2026
EPS Estimate
$3.63
Average shareholder expectation
Revenue Estimate
$3.73 B
Average shareholder expectation

Next Earnings Call

Expected Date
September 17, 2026
EPS Estimate
$2.08
Average shareholder expectation
Revenue Estimate
$3.21 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.8770▼ 13.36%
Total Calls663,400▼ 22.12%
Total Puts581,800▼ 32.41%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %95.48%▼ 1.73%
Total Invested$21.69B▲ 4.60%
Investors Holding1,060▲ 25.00%

ESG Score

No data

About Darden Restaurants, Inc.

185 employees
CEO: Eugene Lee

Darden is a restaurant company featuring a portfolio of differentiated brands that include Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V's.

Relevant Senate Committees

Joint Committee on Taxation

As the technical body for tax legislation, its analysis and revenue estimates directly shape corporate tax structures and policy, significantly influencing Darden's financial planning and overall tax burden.

Finance

This powerful committee controls taxation, trade, and entitlement spending. Its decisions on corporate tax rates, trade policies affecting food imports, and programs impacting consumer spending directly influence Darden's profitability and market valuation.

Agriculture, Nutrition, and Forestry

This committee's oversight of the Farm Bill directly impacts agricultural policies and commodity prices, which are major input costs for Darden Restaurants, affecting food supply and pricing.

Health, Education, Labor, and Pensions

This committee directly regulates labor laws, including minimum wage, worker benefits, and unionization, which are critical operational cost factors and regulatory considerations for the highly labor-intensive restaurant industry.