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DRI

DRI

Medium conviction

Darden Restaurants, Inc.

Consumer Cyclical · NYSE

$24.2B mkt cap

Brief updated Jun 15, 2026

Darden Restaurants, Inc., through its various subsidiaries, focuses on the ownership and operation of full-service dining establishments across both the United States and Canada. As of May 29, 2022, the company's extensive portfolio comprised 1,867 directly managed restaurants. These included a sign

Decifer Research·AI synthesis

Darden Restaurants faces growth test

Darden Restaurants operates 1,867 full-service dining establishments, with 784.0% year-over-year revenue growth. The company's gross margin is 44.03% and net margin is 8.66%. With a medium conviction score of 35/100, the analyst consensus rating is buy. This setup is interesting due to the high revenue growth and relatively low P/E ratio of 22.2x.

Why now

The current macro context, with the Dow dropping 400 points due to US-Iran unease, makes Darden's growth prospects more compelling. The recent revenue growth of 784.0% year-over-year, as of May 29, 2022, is a key catalyst to watch.

Key risks

Valuation risk is a concern, with a DCF intrinsic value of $212. Execution risk is also a factor, as the company must maintain its high revenue growth. Macro risk, such as further US-Iran tensions, could impact consumer spending and dining habits.

What to watch

The company's future revenue growth and net margin will be key indicators to confirm or deny the thesis over the next quarter. Investors should watch for updates on the company's performance, particularly in the context of the current macroeconomic uncertainty, to assess the sustainability of its growth prospects.

43Medium conviction Conviction
macro
0/25
analyst
15/38
momentum
15/20
forward catalyst
8/15
valuation
5/23
highs
3/12
news catalyst
0/12
options flow
0/12
peer network
0/8
counter thesis
0/3
Key financials
Revenue growth (YoY)784.0%
Gross margin4403.0%
Operating margin1162.0%
Net margin866.0%
P/E ratio22.2x
Return on equity5071.0%
FCF yield646.0%
Debt / equity2.9x
EV / sales2.4x
Valuation
Analyst consensusBUY
DCF fair value$212
Next EPS estimate$3.98
Macro context

Stock Market Today: Dow Drops 400 Points, Small Caps Crater On U.S.-Iran Unease; Macy's Wobbles (Live Coverage)

The Dow Jones dropped 400 points and small caps declined significantly due to rising tensions between the U.S. and Iran, sparking geopolitical uncertainty and risk-off sentiment in the markets. This escalation has the potential to impact global markets and asset classes.

Jun 3, 2026

SLB N.V. (SLB): A Top Oil Stock to Buy amid US-Iran War on Expected Growth

The US-Iran conflict is escalating, which could lead to increased geopolitical risk and potentially disrupt oil supplies, making SLB N.V. a potentially attractive investment due to expected growth.

Jun 3, 2026

Update: WTI Oil Rises Again as the United States and Iran Trade Strikes

The United States and Iran have engaged in trade strikes, leading to a rise in WTI oil prices as geopolitical tensions escalate in the region. This conflict has the potential to disrupt global oil supplies and impact markets.

Jun 3, 2026

Oil Rises Again as the United States and Iran Trade Strikes

The United States and Iran have engaged in a series of military strikes, leading to increased tensions in the Middle East and a subsequent rise in oil prices. This conflict has the potential to disrupt global oil supplies and impact the broader macro environment.

Jun 3, 2026

Analyst intelligence
38 Buy20 Hold1 Sell
Earnings intelligence

Earnings surprises

+0.3%

2026-03

-0.9%

2025-12

-1.5%

2025-09

+0.3%

2025-06

2025-03

Generated Mon, 15 Jun 2026 05:38:41 GMT by Decifer intelligence engine. For informational purposes only — not investment advice. Decifer Intelligence Hub.