Kritika Sarmah
2 min read
In This Article:
With a market cap of $26.3 billion, Darden Restaurants, Inc. (DRI) is the world’s largest full-service restaurant operator, based in Orlando, Florida, with over 2,180 locations across the U.S., Canada, and select international markets. Its diverse brand portfolio includes casual dining favorites like Olive Garden, LongHorn Steakhouse, Cheddar’s, Yard House, and Bahama Breeze, alongside upscale chains such as The Capital Grille, Eddie V’s, Seasons 52, Ruth’s Chris Steak House, and Chuy’s.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Darden Restaurants fits this criterion perfectly. The company benefits from strong brand loyalty, consistent same-store sales growth in key segments like LongHorn, and disciplined operational execution that drives solid margins. Additionally, Darden maintains strong shareholder returns through regular dividends and share buybacks, reinforcing investor confidence.
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DRI shares are trading 1.9% below their 52-week high of $226.98, which they touched recently on June 17. DRI has increased 18.4% over the past three months, outpacing the broader Consumer Discretionary Select Sector SPDR Fund’s (XLY) 8.8% rise during the same time frame.
Over the longer term, Darden Restaurants has posted a strong performance, climbing 19.3% year-to-date while XLY has declined 6.2%. Over the past 52 weeks, its shares have advanced 46.6%, notably exceeding XLY’s 16.4% gain during the same period, highlighting its relative strength within the consumer discretionary space.
Indicating a bullish trend, DRI has been trading above its 50-day moving average since mid-April and over its 200-day moving averages since the end of August last year.
On Mar. 20, shares of Darden Restaurants rose over 5% after delivering Q3 results. The company reported adjusted EPS of $2.80, just shy of the Street’s estimate of $2.81, while revenue came in at $3.16 billion, slightly below the projected $3.21 billion. Looking ahead, Darden reaffirmed its full-year outlook, guiding for adjusted EPS between $9.45 and $9.52, with revenue expected to reach approximately $12.1 billion.
