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With a market cap of $24.3 billion, Darden Restaurants, Inc. (DRI) is one of the largest full-service dining restaurant operators in the U.S. and Canada, with over 1,700 locations. The Orlando, Florida-based company owns and operates over 1,700 restaurants under well-known brands such as Olive Garden, LongHorn Steakhouse, The Capital Grille, and Cheddar's Scratch Kitchen.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Darden Restaurants fits this criterion perfectly. With a diverse portfolio of casual and fine dining concepts, Darden offers a wide range of menu options, from Italian classics to premium steaks and seafood.
Shares of the full-service dining restaurant chain specialist are trading 1.5% below its 52-week high of $210.47. DRI has increased 9.9% over the past three months, outperforming the broader Dow Jones Industrials Average’s ($DOWI) 1.5% dip over the same time frame.
In the longer term, Darden Restaurants stock is up 11% on a YTD basis, outperforming DOWI’s marginal rise. In addition, shares of DRI have gained 26.8% over the past 52 weeks, compared to DOWI’s 8.7% return over the same time frame.
DRI has been trading above its 50-day and 200-day moving averages since August last year.
Despite reporting weaker-than-expected Q3 2025 adjusted EPS of $2.80 and revenue of $3.2 billion, Darden’s stock rose 5.8% on Mar. 20 due to its reaffirmed strong full-year EPS guidance of $9.45 to $9.52. Investors were also encouraged by the solid 6.9% year-over-year EPS growth and the company’s plan to open 50 to 55 new restaurants this fiscal year. The successful integration of Chuy’s Tex-Mex chain and LongHorn Steakhouse’s strong 2.6% same-restaurant sales growth further boosted confidence.
Additionally, $53 million in share repurchases reflected management’s confidence in its financial position and commitment to enhancing shareholder value.
Moreover, Darden Restaurants has outperformed its rival, Starbucks Corporation (SBUX), which has gained 7.8% over the past 52 weeks and 6.8% on a YTD basis.
Despite DRI’s outperformance, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 28 analysts covering the stock, and as of writing, it is trading below the mean price target of $211.75.
