Darden Restaurants

DRI

Market cap $23.9B

As of quarter end, Invesco Global Opportunities Fund was well-balanced across 180 small- and mid-cap stocks from around the world, with approximately 60% of the fund invested in the US and 37% across non-US. The largest sector overweights compared to the benchmark were industrials at +6.4% and financials at -5.3%. During the quarter, we added and removed several stocks to reflect our desired positioning and upgrade the portfolio.

It's been a difficult past year for the broad basket of restaurant stocks, thanks to swift shifts in consumer tastes and higher operating costs.

Restaurant chains like Starbucks, Wendy's and Denny's announced that they were closing locations this year to help their businesses. U.S. restaurant traffic fell every month this year except for July, according to Black Box Intelligence data.

TipRanks discusses three dividend-paying stocks, including Chevron and Darden Restaurants.

Darden Restaurants (DRI) remains a solid 'Buy', leveraging scale and multi-brand diversification to outperform peers despite beef-driven margin compression. DRI's updated FY 2026 guidance raises sales to $13.1–$13.2 billion, with EBITDA margin expected at 13.5–14.5%, reflecting ongoing commodity headwinds. Capital returns remain robust, with $1.18 billion returned in the last twelve months and long-term EPS growth targeted at 6–10% annually.

The core thesis is straightforward: the long-term uptrend looks intact, momentum indicators are turning, and fundamentals—paired with institutional positioning—create a credible path to market-beating total returns in 2026 if the stock clears nearby resistance.

Darden Restaurants, Inc. (DRI) Q2 2026 Earnings Call Transcript

Darden Restaurants, Inc. is rated a quality Hold at current ~$200 levels, reflecting fair valuation. DRI's Q2 saw strong 7.3% revenue growth and positive comps across all segments, led by LongHorn Steakhouse and Olive Garden. Margin pressure persists from high commodity costs, with EPS missing by $0.02 despite higher sales and positive guidance.

Darden Restaurants Inc, the owner of Olive Garden and LongHorn Steakhouse, on Thursday raised its full-year sales forecast for the second consecutive quarter after posting stronger-than-expected revenue and earnings, though rising commodity costs continue to weigh on profits. For the second quarter, total sales increased 7.3% to $3.1 billion, driven by a 4.3% same-restaurant sales (SRS) gain and revenue from 30 net new restaurants.

DRI second-quarter EPS missed estimates, but revenues beat on 7.3% sales growth and 4.3% comps, sending shares up 5% in premarket trading.