| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 52 | 20.8x | 17.3x | Around median | |
Growth | 40 | 8.1% | 7.1% | Bottom tier | |
Quality | 69 | 15.9% | 4.5% | Top tier | |
Safety | 54 | 3.1x | 2.6x | Around median | |
Capital Return | 84 | 2.87% | 0.06% | Top tier | |
Momentum | 75 | 10.6% | -1.6% | Top tier | |
Sentiment | 61 | 18 | 3 | Around median |
The floor: what the company is worth if growth stopped today
44% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, 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 restaurant chains including Olive Garden, LongHorn Steakhouse, Yard House, and Chuy's, generating revenue from serving food and beverages across more than 2,200 restaurants. Its growth depends on increasing sales at existing restaurants and adding new locations, while using the group's scale to support operations, pricing, and brand development. In quarter 1 of fiscal year 2027 (ending 2026-08), the net addition of 53 restaurants and comparable sales growth helped lift revenue to 3.2 billion dollars, up 5.1% year over year.
Net income in quarter 1 of fiscal year 2027 (ending 2026-08) was 233.4 million dollars, and diluted earnings per share were 2.05 dollars, compared with net income of 257.8 million dollars and diluted earnings per share of 2.19 dollars in quarter 1 of fiscal year 2026 (ending 2025-08). Gross margin was 69.2% versus 18.9%, but operating margin was 10.0% versus 11.1%; therefore, the expansion in gross margin was not accompanied by an improvement in operating profitability. Operating cash flow was 275.8 million dollars versus 342.5 million dollars in the comparison period, making sales growth alone an incomplete description of the group's performance.
Brand contributions varied in quarter 1 of fiscal year 2027 (ending 2026-08): Olive Garden's total sales rose 2.2% and comparable sales rose 1%, with a segment profit margin of 20.4%, while LongHorn's total sales rose 10.9% and comparable sales rose 6.8%, with a segment profit margin of 18%. Comparable sales in the other business segment grew 4.5%, led by Yard House, which recorded growth of 10%. This mix reflects the ability of LongHorn and Yard House to support growth, while improving Olive Garden's performance remains a central priority for restoring earnings strength.
Q1 FY2027 (2026-08)
Last 12 months to 2026-08-30
When: Quarter 2 of fiscal year 2027
Year-over-year revenue growth at the 5.1% threshold
Operating margin at the 10.0% threshold
The median analyst price target is 240 dollars, within a range of 212 dollars to 255 dollars among 5 analysts, reflecting their expectations for growth and earnings. The discounted cash flow model yields 235 dollars, within a range of 176 dollars to 329 dollars and at a discount rate of 8.9%; it measures the value of expected cash flows and follows analysts' earnings estimates. The industry multiple valuation is 195 dollars, within a range of 142 dollars to 323 dollars, using next year's earnings and a median multiple of 17.4 among 31 companies, while the no-growth value is 78 dollars and measures current after-tax operating profit remaining constant forever at a discount rate of 8.9%. Analyst targets and the cash flow model are close, while the industry multiple valuation and no-growth value are lower, because the former prices Darden like its peers and the latter excludes any future growth. Analyst targets tend toward optimism and cash flow models tend toward conservatism by nature, so the differences in values illustrate the impact of growth, cash flow, and industry comparison assumptions without favoring a single value.
Figures in the text are as of 2026-10-03; the live price is shown at the top of the page.
Revenue rose 5.1% to 3.2 billion dollars in quarter 1 of fiscal year 2027 (ending 2026-08), but net income was 233.4 million dollars versus 257.8 million dollars in quarter 1 of fiscal year 2026 (ending 2025-08). Operating margin fell to 10.0% from 11.1%, with food and beverage expenses rising 30 basis points and pre-opening costs rising 10 basis points. Olive Garden's results also included a profit margin investment related to lighter portions, while improvements at some brands offset part of these pressures.
In quarter 1 of fiscal year 2027 (ending 2026-08), LongHorn's total sales grew 10.9% and comparable sales grew 6.8%, with the net addition of 29 restaurants. Segment profit margin was 18%, an increase of 60 basis points, combining expansion with improved profitability. The brand recorded its 22nd consecutive quarter of comparable sales growth, with a plan to improve the menu and add items during quarter 2 of fiscal year 2027.
Automated analysis for informational purposes only — not investment advice.
Olive Garden's comparable sales grew 1% in quarter 1 of fiscal year 2027 (ending 2026-08), compared with total sales growth of 2.2% and the net addition of 20 restaurants. At the beginning of quarter 2 of fiscal year 2027, it launched Never-Ending Pasta Bowl with the additions of Spicy Alfredo Sauce and Crispy Shrimp Fritta, and 10,000 Never-Ending Pasta Pass cards sold out immediately upon release. The brand is also working to strengthen its lunch offering and test a new platform, but the impact of these initiatives on traffic and profitability needs to appear in the results.
Share repurchases totaled 709.8 million dollars and free cash flow totaled 1.4 billion dollars over the last 12 months through 2026-08-30. The diluted share count fell 2.7% to 114.4 million shares in quarter 1 of fiscal year 2027 (ending 2026-08) from 117.6 million shares in quarter 1 of fiscal year 2026 (ending 2025-08). In contrast, total debt was 6.6 billion dollars and cash and investments were 220.5 million dollars in the latest period, so financial balance depends on continued cash generation alongside capital returns.
Yard House's comparable sales grew 10% in quarter 1 of fiscal year 2027 (ending 2026-08), leading the other business segment's growth of 4.5%. Darden plans to open 13 restaurants for the brand in fiscal year 2027, including 5 conversions from Bahama Breeze, with a smaller format to reduce construction costs at some locations. But the World Cup contributed approximately 180 basis points to comparable sales growth in the quarter, so demand outside this event represents a test of performance sustainability.
Over 90 days through 2026-10-03, 6 insiders executed 13 open-market sales worth 15.6 million dollars. Sales under prearranged 10b5-1 trading plans totaled zero, and sales outside those plans totaled 15.6 million dollars. No open-market purchases were recorded, and the largest seller was an executive who sold 8.2 million dollars worth.