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Darden Restaurants

Consumer Cyclical Updated August 09, 2026
$213.80
52W $169.00 – $220.65
54/100
$24.48B
20.4
0.58
AI Committee Verdict
Watch
54/100
Conviction: Contested · 50% agreement · 6 analysts
+0.6%
-6.4%
0.09:1
Contested

Is DRI Bullish or Bearish?

Mixed. Innellis AI committee rates Darden Restaurants (DRI) Watch with a composite score of 54/100 , based on 6 analysts with 50% agreement. Last updated August 09, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +5.57 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -14.43 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Macro Analyst sees a compelling case — market regime is bullish (bull market -- normal position sizing). Growth Analyst remains cautious — 4 consecutive earnings misses -- execution concerns. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • ROE of 56.0% shows genuine earnings power backing the valuation — Value
  • Dividend yield of 2.9% pays you to wait — Value
  • Price structure making higher highs and higher lows — Technical
  • MACD histogram positive -- bullish momentum — Technical
  • Trend and market structure agree -- coherent bullish picture — Technical
  • Weekly trend (uptrend) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
  • Price-to-book of 10.5x prices in significant intangible value — Value
  • 4 consecutive earnings misses -- execution concerns — Growth
  • Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
  • Current ratio of 0.31 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 09, 2026
Overall Committee Score
54/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 75%
of 124 Consumer Cyclical peers
Value Analyst neutral
55 / 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 56.0% shows genuine earnings power backing the valuation
− Price-to-book of 10.5x prices in significant intangible value
Growth Analyst bearish
32 / 100 · High confidence
Growth story is weak, decelerating, or inconsistent
− 4 consecutive earnings misses -- execution concerns
Technical Analyst bullish
69 / 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
Risk Analyst bearish
35 / 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Current ratio of 0.31 is tight -- limited short-term liquidity cushion
Macro Analyst bullish
70 / 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst bullish
66 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.27 across 22 articles, 14d)
Portfolio Manager neutral
55 / 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
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Investment Thesis Evolution

Committee score weakened from 58.1 to 54.4.

Analyst-level changes:
  • Growth Analyst: score 28->32 (+4).
  • News Analyst: +1 bullish signal(s).
  • Risk Analyst joined: bearish at 35.
  • Value Analyst joined: neutral at 55.

Comparing 2026-08-08 to 2026-08-09 (1 day apart).

Technical Analysis

RSI (14)
69.8
Neutral
MACD Histogram
1.432
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Support
$200.06
Resistance
$215.03
Bollinger %B
0.94
Inside Bands
Price vs Moving Averages
EMA 9
$207.69 Above
EMA 21
$204.87 Above
EMA 50
$203.32 Above
EMA 200
$199.84 Above

Fundamental Analysis

Valuation
56
Growth
29
Profitability
85
Financial Health
0
Cash Flow
70
Valuation
P/E Ratio 20.4×
P/B Ratio 11.07×
PEG Ratio 1.19
Dividend Yield 2.86%
52W High $220.65
52W Low $169.00
Quality & Growth
ROE 5466.4%
ROA 938.2%
Gross Margin 6942.8%
Operating Margin 1198.1%
Revenue Growth YoY
Debt / Equity 2.74
AI Fundamental Assessment
P/E ratio of 20.4 (inexpensive relative to a 15-40x range); Price-to-book of 11.1x; PEG ratio of 1.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 54.7%; Return on assets of 9.4%; Net margin of 9.1%; Gross margin of 69.4%; Current ratio of 0.31 (tight short-term liquidity); Debt-to-equity of 2.74; Free cash flow per share is positive (9.79); Most recent quarter missed estimates by 0.3%; 4 consecutive earnings misses; EPS growth decelerating (+41.8% -> +24.1% QoQ); Analyst estimates rising over recent quarters
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📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
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