At a glance
Darden Restaurants Inc is worth $25.21B, about 22 times its fiscal 2026 earnings. Revenue grew 9.4% to $13.21B in fiscal 2026, with 9.1% kept as profit; over 5 years it has grown 12.9% a year. It pays a 2.8% dividend yield, raised every year for at least 5 years, and returned $6.21B to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +27.6% over the past year with dividends reinvested and +12.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 71.8% in the 2020 crash (S&P 500: 33.7%) and 25.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 10 months and 5 months after the lows.
The business in plain English
Darden Restaurants runs sit-down, full-service restaurants. As of May 31, 2026, it owned and operated 2,202 restaurants, all in the United States, under brands including Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Chuy's, Yard House, Ruth's Chris Steak House and The Capital Grille. Franchisees ran another 167, many abroad. Most revenue comes from selling food and drinks directly to diners; franchisees add royalties and fees.
Olive Garden, which Darden calls the largest full-service Italian restaurant operator in the United States, is its biggest brand. In fiscal 2026 (the 53 weeks ended May 31, 2026), it brought in $5.59 billion, or 42.3% of Darden's $13.21 billion in revenue. LongHorn Steakhouse added 25.9% and the Fine Dining segment (Ruth's Chris, The Capital Grille and Eddie V's) 10.4%. The remaining 21.3% came from the Other Business segment: Yard House, Cheddar's, Chuy's, Seasons 52, smaller brands and franchise fees.
In fiscal 2026, the average check per person was about $25 at Olive Garden and $28.50 at LongHorn, but roughly $104 at Ruth's Chris and $107 at The Capital Grille. Darden grows partly by buying chains, adding Ruth's Chris in June 2023 and Chuy's in October 2024. It is also winding down Bahama Breeze, closing about half its restaurants in April 2026 and planning to convert the rest to other Darden brands.
Price history
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DRI +27.6% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Olive Garden | $5.59B | 42.3% |
| LongHorn Steakhouse | $3.42B | 25.9% |
| Other Business | $2.82B | 21.3% |
| Fine Dining | $1.38B | 10.4% |
Latest results
- In Q1 FY2027 (ended Aug 30, 2026), revenue was $3.20B, up 5.1% from a year earlier, and net income was $233.4M (-9.5%).
- For fiscal 2026, revenue was $13.21B (+9.4% year over year; +12.9% a year from FY2021 to FY2026) with a 9.1% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +12.9% good |
|---|---|
| Operating margin | 12% watch |
| Free cash flow margin | 8.5% watch |
| Return on equity (FY2026) | 54.7% (lifted by a small equity base, often the result of years of buybacks) good |
| Return on assets (FY2026) | 9.4% good |
| Net cash (cash minus debt) | $-2.40B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $7.20B | $629.3M | $938.6M |
| FY2022 | $9.63B | $952.8M | $887.7M |
| FY2023 | $10.49B | $981.9M | $987.9M |
| FY2024 | $11.39B | $1.03B | $1.02B |
| FY2025 | $12.08B | $1.05B | $1.06B |
| FY2026 | $13.21B | $1.21B | $1.12B |
Valuation snapshot
| Market value | $25.21B |
|---|---|
| P/E ratio | 21.5 |
| Dividend yield | 2.8% |
Rank among 1514 US companies
Market value at each year end
Darden Restaurants’s market value went from $9.03B at the end of 2016 to $25.21B on Nov 2, 2026, about 2.8 times as much; since the end of 2025 it is up 19%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $25.21B | +19.0% |
| 2025 | $21.19B | -3.1% |
| 2024 | $21.87B | +11.5% |
| 2023 | $19.62B | +16.5% |
| 2022 | $16.84B | -12.5% |
| 2021 | $19.24B | +23.9% |
| 2020 | $15.52B | +17.2% |
| 2019 | $13.25B | +7.4% |
| 2018 | $12.33B | +4.0% |
| 2017 | $11.86B | +31.4% |
| 2016 | $9.03B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| DRI price data to Nov 2, 2026 | +24.9% | +27.6% | +18.7% | +12.9% | +16.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +24.9% |
| 2025 | +1.6% |
| 2024 | +17.7% |
| 2023 | +22.8% |
| 2022 | -4.8% |
| 2021 | +29.5% |
| 2020 | +10.4% |
| 2019 | +12.3% |
| 2018 | +6.9% |
| 2017 | +36.0% |
| 2016 | +18.2% |
| 2015 | +25.7% |
| 2014 | +12.8% |
| 2013 | +26.0% |
| 2012 | +2.6% |
| 2011 | +1.3% |
| 2010 | +36.2% |
| 2009 | +27.9% |
| 2008 | +4.2% |
| 2007 | -30.2% |
| 2006 | +3.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 44% over that stretch · deepest drop along the way 69%, back to its old high 15.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 66% over that stretch · deepest drop along the way 71.8%, back to its old high 9.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 9.3% over that stretch · deepest drop along the way 25%, back to its old high 5.1 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 5 sales ($2.6M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 5, 2026 | John W. Wilkerson President, Olive Garden | sell | $1.3M |
| Aug 5, 2026 | John W. Wilkerson President, Olive Garden | sell | $521K |
| Oct 6, 2026 | Melvin John Martin Group President | sell | $448K |
| Jul 31, 2026 | Laura B Williamson President, LongHorn Steakhouse | sell | $227K |
| Jul 31, 2026 | Laura B Williamson President, LongHorn Steakhouse | sell | $91K |
Who owns it
Large shareholders (13G filings)
| Capital World Investors | 12.5% | Mar 31, 2025 |
| BlackRock, Inc. | 8% | Dec 31, 2025 |
| Vanguard Capital Management | 7.52% | Mar 31, 2026 |
| Wellington Management Group LLP | 3.4% | Jun 30, 2026 |
| Capital International Investors | 1.7% | May 30, 2025 |
ETFs with the most weight in DRI
| PEJ Invesco Leisure and Entertainment ETF | 3.28% |
| CNAV Mohr Company Nav ETF | 2.54% |
| SDOG ALPS Sector Dividend Dogs ETF | 2.25% |
| RSPD Invesco S&P 500 Equal Weight Consumer Discretionary ETF | 2.19% |
| RUNN Running Oak Efficient Growth ETF | 1.95% |
| JMID Janus Henderson Mid Cap Growth Alpha ETF | 1.85% |
| HEJD VictoryShares Hedged Equity Income ETF | 1.62% |
| FXD First Trust Consumer Discretionary AlphaDEX Fund | 1.35% |
What could go wrong
- Acquired brands may not pay off. Darden grows partly by buying chains like Ruth's Chris and Chuy's. If brands lose appeal or new restaurants disappoint, it may have to write down goodwill (the premium paid in acquisitions), cutting reported earnings.
- Food costs and tariffs can squeeze margins. Darden has little control over prices for beef, pork, chicken, seafood, cheese and produce, and tariffs could raise costs for imported produce and seafood. Raising menu prices to compensate may drive guests away.
- Rising wages and hard-to-fill jobs. Darden operates in many states and cities where the minimum wage is well above the federal level. Hiring and keeping enough trained staff can be hard, and higher entry-level pay tends to lift other wages.
- Food safety scares can hit whole brands. Food-borne illness anywhere in the supply chain could hurt a brand across hundreds of restaurants. Social media can spread bad publicity quickly, and guest counts and sales may fall as a result.
- Long leases are hard to exit. Most Darden restaurants operate under long-term leases. If it wants to close one, Darden may be stuck with the lease; it may also be unable to renew leases on sites it wants to keep.
- Diners cut back when money is tight. A sit-down meal is easy to skip. Job losses, higher energy prices, rising interest rates or a weaker economy can lead guests to eat out less, hurting sales and earnings.
Recent events
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Shareholder vote results
- Quarterly results released
- Quarterly results released; Bylaws or fiscal year changed
- Quarterly results released
- Quarterly results released
For income and retirement investors
Darden has raised its regular dividend for five straight fiscal years, from $1.55 a share in fiscal 2021 to $6.00 in fiscal 2026, about 31% a year from a low base. Fiscal 2026 dividends took 57.4% of net income and 61.9% of free cash flow (cash left after running the business and investing in restaurants). Over fiscal 2022–2026, it also spent about $3.07 billion buying back its own shares, close to the $3.13 billion paid in dividends, and the share count fell 11.4% between December 2021 and September 2026. The yield was 2.88% as of October 28, 2026.
In past downturns, the stock dropped 69% from peak to low in the 2008 financial crisis and 71.8% in the 2020 COVID crash, returning to its prior peak about 15.6 and 9.7 months after the lows. In the 2022 bear market it fell 25% and recovered in about five months. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Darden Restaurants make money?
Mostly by selling food and drinks in restaurants it owns. As of May 31, 2026, Darden owned and operated 2,202 full-service restaurants in the United States. In fiscal 2026, revenue was $13.21 billion: Olive Garden contributed 42.3%, LongHorn Steakhouse 25.9%, fine dining brands such as Ruth's Chris and The Capital Grille 10.4%, and other brands plus franchise fees 21.3%. Net income was $1.21 billion, or 9.1% of sales. Franchisees, who ran 167 restaurants, pay royalties to use Darden's brand names.
Does Darden raise its dividend every year?
Yes, for five straight fiscal years through fiscal 2026. The regular dividend rose from $1.55 per share in fiscal 2021 to $6.00 in fiscal 2026, though the jump to $4.40 in fiscal 2022 came off a low base. A five-year streak is shorter than the decades-long records of some dividend payers, and raises aren't guaranteed. Dividends took 57.4% of fiscal 2026 net income, and the yield was 2.88% as of October 28, 2026.
What restaurants does Darden own?
As of May 31, 2026, Darden owned and operated Olive Garden (949 restaurants), LongHorn Steakhouse (618), Cheddar's Scratch Kitchen (184), Chuy's (110), Yard House (93), Ruth's Chris (83), The Capital Grille (74), Seasons 52 (44), Eddie V's (31), Bahama Breeze (13) and The Capital Burger (3). In February 2026, Darden said it expected to convert the remaining Bahama Breeze restaurants to other brands. Red Lobster is not on the list, though Darden's subsidiary GMRI started in 1968 as Red Lobster Inns of America.
How has Darden stock performed over the long term?
The share price has risen substantially over the long run, with deep drops along the way. As of October 28, 2026, it was up about 360% over 10 years (16.5% a year), 76% over five years (12% a year) and 23.2% over one year. These are price changes only; dividends would add to them. Its worst decline over 21.3 years of price history was 72.8%, and it lost 4.83% in calendar 2022. On that date, the shares traded at 20.9 times fiscal 2026 earnings.
How much debt does Darden have?
About $2.62 billion as of August 30, 2026, against $220.5 million of cash and investments, for net debt (debt minus cash) of roughly $2.40 billion. Shareholders' equity was $2.07 billion, small next to $13.23 billion of total assets, which helps explain the high 54.7% return on equity (profit as a share of shareholders' equity) in fiscal 2026. Most restaurants also sit in leased buildings, a long-term commitment. A filing on October 23, 2026 reported a new financial obligation, so these figures may have changed.