Darden Restaurants, Inc. (DRI)

Darden Restaurants' stock has shown strong performance over the past six months, with a 15.47% increase. From June 24, 2024, to June 20, 2025, the share price increased by 46.49%. Key events impacting the stock price include earnings reports, the acquisition of Chuy's Holdings, Inc., a $1 billion share repurchase program, an increased quarterly dividend to $1.40 per share, and an analyst upgrade from Jefferies. The permanent closure of 20 restaurants during Q4 FY2025, including 15 Bahama Breeze locations, is expected to be a headwind for fiscal 2026 total sales growth but slightly positive for earnings.

Darden Restaurants' business experiences demand seasonality influenced by holidays and economic conditions. Seasonal events like Valentine's Day significantly impact restaurant sales, particularly for Olive Garden and The Capital Grille. The shift of the Thanksgiving holiday between fiscal quarters can also impact reported same-restaurant sales. The company's results are affected by changes in economic conditions, including unemployment, energy prices, and interest rates, which can influence consumer behavior. Darden operates on a 52/53-week fiscal year ending the last Sunday in May, which can also reflect seasonal patterns in its financial reporting.

Darden Restaurants, Inc. is a prominent American multi-brand restaurant operator headquartered in Orlando, Florida. Operating in the Consumer Services sector, specifically in the Restaurants & Leisure industry, Darden is one of the world's largest full-service restaurant companies, owning and operating over 2,100 restaurants in the United States and Canada. Its portfolio includes casual dining brands like Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen, and fine dining brands like Ruth's Chris Steak House and The Capital Grille. Darden generates revenue primarily from its company-owned restaurants, with additional revenue from franchised locations and consumer-packaged goods sales.

Darden Restaurants primarily operates its full-service dining establishments across the United States and Canada. Beyond North America, the company extends its reach through independent third-party operators and joint ventures in various international regions, including Asia, Latin America, the Caribbean, and the Middle East. As of May 26, 2024, the group had 2,181 restaurants, with 2,031 owned and 146 franchised.

Darden Restaurants maintains a strong brand reputation as a leader in the full-service dining sector due to its operational excellence, strategic marketing, and commitment to high-quality dining experiences. Olive Garden and LongHorn Steakhouse have driven strong performance and achieved high guest satisfaction scores. The company has focused on enhancing digital capabilities to adapt to evolving consumer habits. However, the fine-dining brands experienced a drop in same-restaurant sales in Q2 Fiscal Year 2025 due to the shift of the Thanksgiving holiday and the impact of hurricanes, though adjusted figures showed improvement from the previous quarter.

Darden Restaurants is primarily owned by institutional shareholders, accounting for 93.81% of ownership, with 19.01% held by Darden Restaurants insiders and 0.00% by retail investors. Major institutional owners include Capital World Investors, Vanguard Group Inc, and BlackRock, Inc. The largest individual shareholder is Peter A. Feld, who owns 11.64 million shares, representing 9.94% of the company.