DARDEN RESTAURANTS INC(DRI)Stock Analysis
AI analysis on 2,800+ stocks →Deep AI analysis on 2,800+ stocks →13F Pro Quality Score
Rank #410 of 2,879 stocksTOP 25%
View Consumer Discretionary peers →
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
DRI Stock Analysis & AI Quality Score
AI stock analysis and institutional research for DARDEN RESTAURANTS INC (DRI), a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores DRI at 68.6/100 on a 32-signal composite quality model, placing it at rank #410 of 2,879 stocks — the top 25% of the AI-ranked universe. DRI scores in the top quartile across revenue scale (88.7), balance sheet strength (84.6). Based on the latest XBRL financial filings (Q3 2026), DARDEN RESTAURANTS INC reports quarterly revenue of $3.3B, net income of $306.8M, an operating margin of 12.2%. Top institutional holders of DRI by reported 13-F value include Capital World Investors, BlackRock,, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. DRI trades on the NYSE exchange and files with the SEC under CIK 940944. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate DRI daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for DARDEN RESTAURANTS INC directly from SEC EDGAR. DARDEN RESTAURANTS INC's 13F Pro composite quality score has ranged between 8 and 72 since 2021, currently 68.6 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving DRI's Business? Latest 10-Q Breakdown
✓ 22/22 datapoints verifiedAI-extracted from DARDEN RESTAURANTS INC's 10-Q filed 2026-03-27 — Q3 FY2026 (quarter ended February 22, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Darden's Q3 sales grew 5.9% to $3.35B on 4.2% same-restaurant sales growth and 31 net new restaurants, but earnings per share declined 3.3% to $2.65 amid labor inflation and Bahama Breeze impairments.
Biggest Revenue Drivers
Total revenue: $3.35B+5.9% YoY
Same-restaurant sales up 3.2% from 3.6% average check increase offset by 0.4% guest count decline
Same-restaurant sales up 7.2% from 3.9% average check increase and 3.3% guest count increase
Same-restaurant sales up 3.9% from 3.6% average check and 0.3% guest count increase; includes Chuy's
Same-restaurant sales up 2.1% from 2.2% average check increase, offset by 0.1% guest count decline
Largest Expense Items
Inflation impact of 1.0% offset by 1.2% pricing and sales leverage
Inflation of 1.5% and menu mix impact of 0.2% partially offset by 1.0% pricing leverage
Inflation of 0.5% and delivery fees of 0.2% offset by 0.7% sales and pricing leverage
Incremental depreciation from Chuy's acquisition and new restaurant capital expenditures
Margins: Operating margin declined 110 basis points to 12.1% from 13.2% YoY, driven by food and beverage inflation (1.5% impact), partially offset by pricing leverage (1.0%) and labor productivity. Gross margin pressure from commodity costs outpaced pricing realization.
Watch Items from the Filing
- Bahama Breeze impairment charges of $22.4M in Q3 2026 as company closes ~14 restaurants and converts remaining ~14 to other brands; strategic alternatives review announced June 2025 completed February 2026.
- Chuy's acquisition ($649.1M total consideration October 2024) integration ongoing with $8.5M in costs YTD; results excluded from same-restaurant sales until Q4 FY2026 (16-month ownership period).
- Short-term debt increased $290M to $290M outstanding as of February 22, 2026 (vs $0M May 25, 2025), backed by $1.25B revolving credit facility with $960M available; interest expense up 9% YoY.
- Olive Garden Canada Restaurants divested July 14, 2025 to Recipe Unlimited; $45M gain on sale offset Bahama Breeze impairments, resulting in net $19.8M gain on disposals for 9M FY2026.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q3 2026
$3.3B
Net Income
Q3 2026
$306.8M
Free Cash Flow
Q3 2026
$451.9M
Operating Margin
Q3 2026
12.2%
D/E Ratio
Q3 2026
1.16
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+6.0% YoYNet Income
+2.1% YoYOperating Income
+3.7% YoYEPS (Diluted)
+4.1% YoYTotal Assets
+11.2% YoYTotal Debt
+46.1% YoY| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|
| Revenue | $12.08B +6.0% | $11.39B +8.6% | $10.49B +8.9% | $9.63B +23.4% | $7.81B -8.3% | $8.51B |
| Net Income | $1.05B +2.1% | $1.03B +4.7% | $981.9M +3.1% | $952.8M +1918.3% | $-52.4M -107.3% | $713.4M |
| Operating Income | $1.36B +3.7% | $1.31B +9.4% | $1.20B +3.4% | $1.16B +2326.3% | $47.9M -94.2% | $832.5M |
| EPS (Diluted) | $8.86 +4.1% | $8.51 +6.5% | $7.99 +8.1% | $7.39 +1818.6% | $-0.43 -107.6% | $5.69 |
| Total Assets | $12.59B +11.2% | $11.32B +10.6% | $10.24B +1.0% | $10.14B +1.9% | $9.95B +68.8% | $5.89B |
| Total Debt | $2.13B +46.1% | $1.46B +64.7% | $884.9M -1.8% | $901.0M -24.8% | $1.20B +29.2% | $927.7M |
AI Insight: DRI Financial Trends
Darden revenue hit a record $3,345M in Q1 2026, but operating margin compressed year-over-year as debt climbed to $2,431M.
• Revenue grew 5.9% year-over-year in Q1 2026 ($3,345M vs. $3,158M in Q1 2025), sustaining consistent top-line momentum.
• Operating margin contracted from 13.2% in Q1 2025 to 12.1% in Q1 2026, signaling cost pressure despite higher revenue.
• Total debt rose from $2,181M in Q1 2025 to $2,431M in Q1 2026, a $250M increase year-over-year.
• Equity remained relatively stable between $2,071M and $2,311M across all eight quarters, showing no sharp deterioration.
⚠ Operating income of $320M–$339M in Q3–Q4 2025 trailed year-ago comparables; margin recovery in seasonal quarters warrants close monitoring.
⚠ Total debt has risen steadily from $1,457M in Q2 2024 to $2,577M in Q4 2025 — leverage trajectory is a key risk.
⚠ Operating cash flow is unreported across all periods; absence of FCF data limits full assessment of balance-sheet sustainability.
AI Insight: DRI Ratio Trends
Darden's profitability metrics have structurally compressed year-over-year, with Q1 2026 OpMargin of 12.2% trailing Q2 2024's peak of 13.4% while leverage has nearly doubled.
• Operating margin declined from a peak of 13.4% in Q2 2024 to 12.2% in Q1 2026, a 120bp contraction year-over-year.
• ROIC fell from 42.8% in Q2 2024 to 35.9% in Q1 2026, a 690bp drop indicating lower capital efficiency.
• D/E ratio rose sharply from 0.65 in Q2 2024 to 1.24 in Q4 2025, though Q1 2026 holds steady at 1.16.
• Q1 2026 shows sequential improvement: OpMargin recovered to 12.2% and ROE to 58.3% from Q4 2025's 10.3% and 45.6%.
⚠ D/E remains elevated at 1.16 versus 0.65 two years ago — sustained leverage increase warrants monitoring of debt servicing capacity.
⚠ Q1 seasonal bounce is consistent year-over-year; confirm whether Q2 2026 margins sustain above Q2 2025's 11.7%.
⚠ ROA dropped from 10.9% in Q2 2024 to 9.5% in Q1 2026, suggesting asset base growth outpacing earnings recovery.
Get alerted when DRI's score changes
Free account: watchlist tracking, the daily AI brief, and the AI screener.
Available Research
13F Pro tracks comprehensive data for DARDEN RESTAURANTS INC including:
Top Institutional Holders of DRI
Capital World Investors
$2.9B14,928,684 shBlackRock, Inc.
$1.9B9,649,638 shVANGUARD CAPITAL MANAGEMENT LLC
$1.5B7,473,998 shWELLINGTON MANAGEMENT GROUP LLP
$1.3B6,848,992 shVANGUARD PORTFOLIO MANAGEMENT LLC
$1.0B5,355,047 shSTATE STREET CORP
$953.1M4,861,580 shRAYMOND JAMES FINANCIAL INC
$699.0M3,565,772 shGEODE CAPITAL MANAGEMENT, LLC
$673.6M3,443,672 shCHARLES SCHWAB INVESTMENT MANAGEMENT INC
$659.9M3,366,224 shBANK OF AMERICA CORP /DE/
$629.7M3,212,283 sh
| Fund | Value | Shares |
|---|---|---|
| Capital World Investors | $2.9B | 14,928,684 |
| BlackRock, Inc. | $1.9B | 9,649,638 |
| VANGUARD CAPITAL MANAGEMENT LLC | $1.5B | 7,473,998 |
| WELLINGTON MANAGEMENT GROUP LLP | $1.3B | 6,848,992 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $1.0B | 5,355,047 |
| STATE STREET CORP | $953.1M | 4,861,580 |
| RAYMOND JAMES FINANCIAL INC | $699.0M | 3,565,772 |
| GEODE CAPITAL MANAGEMENT, LLC | $673.6M | 3,443,672 |
| CHARLES SCHWAB INVESTMENT MANAGEMENT INC | $659.9M | 3,366,224 |
| BANK OF AMERICA CORP /DE/ | $629.7M | 3,212,283 |
More Consumer Discretionary Companies
View all Consumer Discretionary →Put DRI on your watchlist
Track score changes the day DARDEN RESTAURANTS INC files with the SEC, follow the hedge funds that own it, screen 2,800+ AI-scored stocks, and get the daily brief — free.
Free tier includes 13F data, economic indicators, and market overview. Pro starts at $6.67/mo (billed annually).
Popular Research
Is DRI a good stock to buy?
13F Pro's AI-powered analysis of DARDEN RESTAURANTS INC (DRI) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Consumer Discretionary sector (listed on NYSE). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for DRI are available on the DRI stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own DRI?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling DRI. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of DARDEN RESTAURANTS INC's investment landscape.