DRI · NYSE · STOCK
Darden Restaurants (DRI) Stock Analysis
$197.55
52W $169.00 – $229.76
49/100
$22.64B
19.2
0.62
Is DRI Bullish or Bearish?
Mixed.
Innellis AI committee rates Darden Restaurants (DRI) Watch with a composite score of 49/100
, based on 6 analysts with 33% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +10.88 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 — -9.12 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. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 55.9% shows genuine earnings power backing the valuation — Value
- Dividend yield of 3.4% pays you to wait — Value
- Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
- Price-to-book of 10.5x prices in significant intangible value — Value
- Debt-to-equity of 1.84 adds balance-sheet risk to the value case — Value
- 5 consecutive earnings misses -- execution concerns — Growth
- Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
- MACD histogram negative -- bearish momentum — Technical
- High leverage (debt-to-equity 1.84) amplifies downside in a stress scenario — 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 October 10, 2026
Overall Committee Score
49/100
Agreement
33%
Analysts
6
Conviction
Contested
Sector Rank
Top 92%
of 178 Consumer Cyclical peers
Value Analyst
neutral
50
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 55.9% 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
− 5 consecutive earnings misses -- execution concerns
Technical Analyst
neutral
54
/ 100 · High confidence
Mixed or range-bound price action
+ Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement
− MACD histogram negative -- bearish momentum
Risk Analyst
bearish
32
/ 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 1.84) amplifies downside in a stress scenario
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
62
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 49.1 to 49.1.
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
37.7
Neutral
MACD Histogram
-0.099
Bearish Momentum
Trend Direction
Sideways
Weekly: Sideways
Market Structure
Hh Hl
Support
$191.88
Resistance
$204.54
Bollinger %B
0.26
Inside Bands
Price vs Moving Averages
EMA 9
$200.39
Below
EMA 21
$203.72
Below
EMA 50
$207.01
Below
EMA 200
$203.73
Below
Fundamental Analysis
Valuation
45
Growth
25
Profitability
68
Financial Health
0
Cash Flow
70
Valuation
P/E Ratio
19.2×
P/B Ratio
10.86×
PEG Ratio
1.98
Dividend Yield
3.16%
52W High
$229.76
52W Low
$169.00
Quality & Growth
ROE
5466.4%
ROA
938.2%
Gross Margin
3332.6%
Operating Margin
1214.1%
Revenue Growth YoY
—
Debt / Equity
3.20
AI Fundamental Assessment
P/E ratio of 19.2 (inexpensive relative to a 15-40x range); Price-to-book of 10.9x; PEG ratio of 2.0 (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 8.8%; Gross margin of 33.3%; Current ratio of 0.30 (tight short-term liquidity); Debt-to-equity of 3.20; Free cash flow per share is positive (9.30); Most recent quarter missed estimates by 1.2%; 5 consecutive earnings misses; EPS growth decelerating (+24.1% -> -44.0% QoQ); Average YoY EPS growth of 4.1%; Analyst estimates falling over recent quarters
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