| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 55 | 20.2x | 17.8x | Around median | |
Growth | 59 | 9.4% | 7.1% | Around median | |
Quality | 70 | 16.6% | 4.5% | Top tier | |
Safety | 57 | 2.8x | 2.6x | Around median | |
Capital Return | 67 | 2.86% | 2.12% | Top tier | |
Momentum | 63 | 3.4% | 2.9% | Around median | |
Sentiment | 61 | 18 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Darden Restaurants operates a portfolio of approximately 2,200 restaurants across brands serving multiple occasions and price points, led by Olive Garden and LongHorn Steakhouse, alongside Yard House, Cheddar's Scratch Kitchen, Chuy's, Ruth's Chris Steak House, The Capital Grille, Eddie V's, and Seasons 52. Most of the business comes from restaurant sales, while international franchise agreements add income tied to a percentage of licensed restaurant sales. The company supports its brands with an owned food distribution network, direct sourcing from producers, and a proprietary point-of-sale system that connects demand forecasting with labor and payroll management.
In fiscal Q4 2026, revenue reached $3.7 billion, up 13.7% year over year, driven by 4.6% same-restaurant sales growth, the net addition of 43 new restaurants, and the 14th fiscal week. Gross profit according to EDGAR data was approximately $822.9 million, equivalent to a gross margin of about 22.2%, while net income was $404.9 million, equivalent to a net margin of about 10.9%. On an adjusted basis, diluted earnings per share from continuing operations increased 22.8% to $3.66, and restaurant-level profit margin improved by 50 basis points to 22.1%.
Performance varied among brands in fiscal Q4 2026; Olive Garden's total sales increased 11.4%, with same-restaurant sales growth of 2.4% and a segment profit margin of 24.3%, while LongHorn's total sales rose 21.9%, with same-restaurant growth of 9.5% and a margin of 21.2%. Fine Dining segment sales increased 10.9%, with same-restaurant growth of 1.9%, while Other Business segment sales rose 9.8%, with same-restaurant growth of 4.6% and a margin of 17.9%. In fiscal 2026, Olive Garden represented approximately 42% of sales and 47% of segment profits, down from 50% and 55%, respectively, in fiscal 2019, reflecting the expanding contribution of LongHorn and the rest of the portfolio.
The analyst consensus on DRI is “Buy,” with an average price target of $233.44 and a range of $212 to $250. The average target is approximately 1.6% above the top of the 52-week range of $229.76, while the stock's full range extends from $169 to $229.76. Earnings growth and restaurant expansion support this valuation, but the low target of $212 reflects the risks of slowing same-restaurant sales, inflationary pressures, and opening costs in fiscal 2027.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Revenue reached $3.7 billion, up 13.7% year over year, and same-restaurant sales grew 4.6%. Net income according to EDGAR was approximately $404.9 million, while adjusted earnings from continuing operations reached $422 million, or $3.66 per diluted share. Restaurant-level profit margin improved by 50 basis points to 22.1%, with $310 million returned to shareholders through $172 million in dividends and $138 million in share repurchases.
LongHorn achieved same-restaurant sales growth of 9.5% in fiscal Q4 2026, with traffic up 4.2% and the net addition of 27 new restaurants. Management attributed the performance to approximately ten years of investment in food quality and improved service, with scores for correctly cooked steaks reaching their highest levels. A social campaign to bring back lamb also helped sell more than the previous year in half the time, while segment profit margin increased by 110 basis points to 21.2%.
The company expects revenue of between $13.6 billion and $13.75 billion and same-restaurant sales growth of between 2.5% and 3.5%. The plan includes 75 to 80 gross new restaurant openings and the conversion of 11 Bahama Breeze locations, with capital expenditures of approximately $875 million. Expected earnings before interest, taxes, depreciation, and amortization range from $2.26 billion to $2.29 billion, while diluted earnings per share are expected to range from $11.10 to $11.35.
Automated analysis for informational purposes only — not investment advice.
The lighter-portion menu created an 80-basis-point drag on the average check in fiscal Q4 2026, with adoption in the low-to-mid-single-digit percentage range. Demand was concentrated during weekend lunches, and management stated that guests who choose it return more frequently. Despite an investment equivalent to approximately 50 basis points in the brand's margin, Olive Garden's profit margin increased by 50 basis points to 24.3%, and management expects a stable or positive margin in fiscal 2027.
Beef inflation was approximately 12% in fiscal 2026, but it did not prevent LongHorn from increasing its segment margin to 21.2% in fiscal Q4 2026. Management expects mid-to-high-single-digit inflation in fiscal Q1 2027, followed by slight deflation in fiscal Q2 2027, resulting in low-single-digit inflation for the full year. The owned distribution network and direct supplier contracts mitigate risks, but potential restrictions on interstate cattle movement could cause temporary supply disruption.
Darden plans to release fiscal Q1 2027 results on September 24, 2026, before the market opens, followed by a conference call. Investors will focus on management's expectation for low-to-mid-single-digit earnings-per-share growth during the quarter. Commodity costs will also be central because the company expects inflation of approximately 4% in fiscal Q1 2027, the highest expected level of the year.
