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Orlando, Florida-based Darden Restaurants, Inc. (DRI) owns and operates full-service restaurants. With a market cap of $24.8 billion, the company owns and operates a variety of seafood and Italian restaurants under a multitude of brand names, serving customers in the U.S. and Canada.
Shares of leading full-service restaurant operator have outperformed the broader market over the past year. DRI has gained 39.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.5%. In 2025, DRI stock is up 13.4%, surpassing the SPX’s 1.3% rise on a YTD basis.
Zooming in further, DRI’s outperformance is also apparent compared to the AdvisorShares Restaurant ETF (EATZ). The exchange-traded fund has gained about 18.8% over the past year. Moreover, DRI’s double-digit returns on a YTD basis outshine the ETF’s 4% gains over the same time frame.
DRI has seen strong performance due to increased sales at their restaurants, the acquisition of new locations, and successful integration of Chuy's Tex-Mex chain. With brands like Olive Garden and LongHorn Steakhouse in their portfolio, Darden is well-positioned in the casual and fine dining market. They are also testing delivery services with Uber Technologies, Inc. (UBER) at select Cheddar's Scratch Kitchen locations to potentially expand their reach.
On Mar. 20, DRI shares closed up more than 5% after reporting its Q3 results. Its adjusted EPS of $2.80 missed Wall Street expectations of $2.81. The company’s revenue was $3.16 billion, missing Wall Street forecasts of $3.21 billion. DRI expects full-year adjusted EPS in the range of $9.45 to $9.52, and revenue is expected to be $12.1 billion.
For the current fiscal year, ending in May, analysts expect DRI’s EPS to grow 6.9% to $9.49 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the 27 analysts covering DRI stock, the consensus is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buys,” eight “Holds,” and one “Moderate Sell.”
This configuration is less bullish than a month ago, with 17 analysts suggesting a “Strong Buy.”
On Apr. 14, Morgan Stanley (MS) kept an “Overweight” rating on DRI and lowered the price target to $215, implying a potential upside of 1.6% from current levels.
The mean price target of $212.44 represents a marginal premium to DRI’s current price levels. The Street-high price target of $240 suggests an upside potential of 13.4%.
