Darden Restaurants, IncNYSE: DRI
Consumer Discretionary · Restaurants
$208.97
+0.10%
Vol: 168K
Research Digest
Tuesday, June 16, 2026
No significant overnight updates
No material news in the last 48 hours.
Previous Market Intelligence
13 daysJun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14No significant overnight updatesNeutral▶
No material news in the last 48 hours. Latest analyst PT moves (BofA to $276, KeyBanc to $228) and FY26 Q3 results predate the window.
May 21Darden Restaurants stock drops 3.2% to $192.81 amid dividend declaration and softer outlookMixed▶
Darden shares slipped 3.2% to around $192.81 in recent trading, with the company recently declaring a $1.50 dividend payout. The stock is down ~4% over the past year and ~11% over three months as restaurants remain pressured by weak consumer sentiment and inflation limiting margin recovery. Darden is exploring strategic alternatives for the Bahama Breeze brand and expanding Olive Garden into India (10+ outlets over three years). Q3 FY2026 (reported March) showed total sales up 5.9% to $3.3B and blended same-restaurant sales +4.2%. Next earnings June 18, 2026. The traffic-vs-pricing question for lower-income diners remains the central risk.
May 20Darden raises FY26 sales outlook to ~9.5% growth after Q3 EPS beat and $483M buyback.Positive▶
Darden posted Q3 FY26 adjusted EPS of $2.95 vs. $2.94 consensus and revenue of $3.35B (+5.9% y/y), narrowly beating estimates. Management raised its FY26 outlook to roughly 9.5% total sales growth and 4.5% same-restaurant sales growth, reaffirmed the $1.50 dividend, and completed a $483.46M buyback. The May 1 dividend was paid. Despite weak consumer sentiment pressuring lower-income diners, Darden brands grew above industry benchmarks, signaling resilience. Overall tone is positive on guide raise and capital return, balanced by softer quarterly profit.
May 19Darden Restaurants shares fell 3.2% to $192.81 on May 13, 2026 amid dividend declaration and lingering Smokey Bones closure concerns.Mixed▶
Darden Restaurants shares dropped 3.2% to $192.81 on May 13, 2026 after the company declared a $1.50 quarterly dividend payable May 1, 2026, with the stock then trading between $191.79 and $194.84 by May 18, 2026. Earlier in the quarter, Darden posted adjusted diluted EPS of $2.95 (beating $2.94 consensus) on revenue of $3.35 billion (vs $3.33B estimate), with total sales up 5.9% year-over-year. The May 2 closure of the Smokey Bones concept underscored Darden's willingness to retire brands that no longer fit its portfolio. Updated FY 2026 guidance raises sales to $13.1-$13.2 billion with EBITDA margins of 13.5-14.5%. The stock trades roughly 14% below the consensus target of $225.48 amid restaurant-sector pressure from weak consumer sentiment, especially among lower-income diners, ahead of the next earnings report on June 18, 2026.
May 18Darden Restaurants declares $1.50 quarterly dividend; shares fall 3.2% to $192.81 on May 13Mixed▶
Darden Restaurants declared a $1.50 quarterly dividend payable May 1, with shares falling 3.2% to $192.81 on May 13. The company's updated FY2026 guidance raises sales to $13.1-$13.2B with EBITDA margin expected at 13.5-14.5%, reflecting ongoing commodity headwinds. Q3 FY2026 revenue reached $3.35B with strong same-store sales at Olive Garden and LongHorn Steakhouse, net margin of 8.66% and ROE of 53.54%. The Smokey Bones closure highlights Darden's portfolio discipline. Next earnings report scheduled for June 18. As of May 18, the stock is trading around $195.89 vs consensus target of $225.48 (~14% below).
May 15Darden Restaurants shares fell 3.2% to $192.81 on May 13 after recently declaring $1.50 quarterly dividend (paid May 1); fiscal 2026 outlook of ~9.5% sales growth maintained.Neutral▶
Darden Restaurants shares fell 3.2% to $192.81 on May 13, 2026 with no fresh catalyst, putting price 7.3% below GF Value of $207.93. The decline followed the May 1 payment of the company's quarterly cash dividend of $1.50/share (record date April 10). Q3 fiscal 2026 results showed total sales +5.9% to $3.3B (vs $3.33B estimate) on blended same-restaurant sales +4.2% plus 31 net new restaurants; adjusted EPS of $2.95 narrowly beat $2.94 consensus. Updated fiscal 2026 outlook calls for ~9.5% total sales growth including ~4.5% same-restaurant sales growth. LongHorn Steakhouse continues to drive growth; AI used for operational efficiency. Risks: weak consumer sentiment intensifying competition particularly for lower-income diners, and persistent inflation limiting unit margin improvement. Generali Asset Management sold 6,630 shares.
May 14Darden Restaurants paid $1.50 quarterly dividend May 1 after Q3 earnings beat; Swedbank reduced position May 10Mixed▶
Darden Q3 fiscal 2026 EPS of $2.95 narrowly topped $2.94 consensus on revenue of $3.35B (vs $3.33B est, +5.9% YoY) with blended same-restaurant sales +4.2%. Quarterly dividend of $1.50 paid May 1. Swedbank AB sold shares per May 10 filing. Bahama Breeze restructuring continues with at least 14 locations to be converted to other Darden brands by late 2027 and 14 closing permanently. Cheddar opened 4th Gainesville location May 11. Stock at $192.34 May 13 with 3.0% yield. Next earnings June 18. Risk: weak consumer sentiment pressuring lower-income diner traffic.
May 13Darden paid quarterly dividend of $1.50 on May 1 after Q3 FY26 EPS beat at $2.95 vs $2.94 consensus on $3.35B revenue (+5.9% YoY).Positive▶
Darden Restaurants paid its $1.50 quarterly dividend on May 1, reinforcing capital return. Q3 fiscal 2026 adjusted EPS of $2.95 narrowly beat the $2.94 consensus on revenue of $3.35B (+5.9% YoY), ahead of the $3.33B forecast. The updated fiscal 2026 outlook projects ~9.5% total sales growth and ~4.5% same-restaurant sales growth. Stock traded $196.23 with consensus average PT of $228.39 (16.4% upside). Restaurants remain under pressure as weak consumer sentiment intensifies competition.
May 12Darden Restaurants Q3 fiscal 2026 EPS of $2.95 beat $2.94 consensus on revenue of $3.35B (+5.9% YoY); quarterly dividend paid May 1.Positive▶
Darden Restaurants reported Q3 fiscal 2026 adjusted EPS of $2.95, modestly beating the $2.94 consensus, with revenue of $3.35B exceeding the $3.33B estimate and up 5.9% YoY. The company paid its quarterly dividend on May 1, 2026, reinforcing its capital return track record. Shares trade at $195.80 on May 11 with a P/E of 20.76 and 3.1% dividend yield. Casual dining faces ongoing pressure from weak low-income consumer sentiment, but Darden's value leadership and menu innovation are seen as competitive advantages.
May 11Darden Q3 FY26 beats with EPS $2.95 and 5.9% sales growth; paid $1.50 dividend May 1, opening 65-70 new restaurantsPositive▶
Darden Restaurants Q3 FY26 results beat with adjusted EPS of $2.95 (vs $2.94 consensus) and revenue of about $3.35B vs $3.33B expected, total sales +5.9% YoY driven by blended same-restaurant sales +4.2% and 31 net new restaurants. The company repurchased $127M of stock and paid a $1.50 quarterly dividend on May 1. Cheddars Scratch Kitchen opened its 4th Gainesville location on May 11. Darden plans 65-70 new openings between May 2025 and May 2026, focused on Olive Garden and LongHorn. At least 14 Bahama Breeze locations will be converted by 2027 and 14 closed permanently. FY26 outlook updated to mid-single-digit sales growth and stable margins.
May 8Darden Restaurants Q3 FY2026 sales up 5.9% to $3.3B with same-restaurant sales +4.2%; 31 net new locations added.Positive▶
Darden Restaurants reported Q3 FY2026 results (period ended February 22, 2026) with total sales increasing 5.9% to $3.3 billion, driven by blended same-restaurant sales increase of 4.2% and 31 net new restaurants. Board declared quarterly cash dividend of $1.50 per share, payable May 1, 2026, to shareholders of record April 10, 2026. During quarter, company repurchased approximately 0.7 million shares for total of $127 million. Company completed exploration of Bahama Breeze strategic alternatives, closing 14 out of 28 locations and converting remaining sites to other brands; Smokey Bones barbecue chain fully closed after 27-year run. Darden operates more than 2,100 restaurants across Olive Garden, LongHorn Steakhouse, Yard House, Ruth Chris Steak House, Cheddar Scratch Kitchen, The Capital Grille, Chuy, Seasons 52, Eddie V and Bahama Breeze. Consensus Buy rating from 25 analysts with 12-month price target of $226.50 (+17.73% upside from $194.65). Analysts project 22.2% YoY EPS growth. GLP-1 drug adoption presents both opportunity and threat to restaurant sector.
May 7Darden Restaurants reports Q3 fiscal 2026 sales growth of 5.9% to $3.3B with 4.2% same-restaurant sales increase and 31 new units.Positive▶
Darden Restaurants reported Q3 fiscal 2026 results with total sales rising 5.9% to $3.3 billion, driven by 4.2% blended same-restaurant sales growth and 31 net new restaurant openings. The company repurchased $127 million of common stock and declared a quarterly dividend of $1.50 per share payable May 1, 2026. Management announced it will permanently close 14 Bahama Breeze locations (closure expected through April 5, 2026) while converting the remaining 14 units into other Darden brands. Analysts are bullish with an average Buy rating and $226.50 price target.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| MCDMCDONALD | $287.18 | +0.37% | +1.3% | 20.1x | 0.41 | $203.3B |
| SBUXSTARBUCKS | $101.54 | -0.05% | -4.7% | 33.7x | 0.98 | $115.8B |
| YUMYUM | $157.72 | +1.97% | +1.6% | 20.6x | 0.57 | $42.6B |
| CMGCHIPOTLE | $33.25 | +1.57% | -3.0% | 24.1x | 0.98 | $42.0B |
| DRIDARDEN | $208.97 | +0.10% | +7.8% | 18.4x | 0.59 | $23.9B |
| DPZDOMINO | $321.21 | +1.48% | +2.8% | 15.1x | 0.97 | $10.5B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price above both MAs — bullish structure.