DRI · NYSE · STOCK
Darden Restaurants (DRI) Stock Analysis
$225.77
52W $169.00 – $229.76
51/100
$25.38B
21.2
0.58
Is DRI Bullish or Bearish?
Mixed.
Innellis AI committee rates Darden Restaurants (DRI) Watch with a composite score of 51/100
, based on 6 analysts with 33% agreement.
Last updated August 24, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +8.73 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 — -11.27 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. Technical Analyst sees a compelling case — price structure making higher highs and higher lows. 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 3.4% 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
- Debt-to-equity of 1.84 adds balance-sheet risk to the value case — Value
- 4 consecutive earnings misses -- execution concerns — Growth
- Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
- High leverage (debt-to-equity 1.84) amplifies downside in a stress scenario — Risk
- 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 24, 2026
Overall Committee Score
51/100
Agreement
33%
Analysts
6
Conviction
Contested
Sector Rank
Top 79%
of 178 Consumer Cyclical peers
Value Analyst
neutral
50
/ 100 · High 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
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
neutral
60
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3063.01)
Investment Thesis Evolution
Committee score moved marginally from 50.9 to 51.3.
- New bearish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- Portfolio Manager: +1 bearish signal(s).
Comparing 2026-08-23 to 2026-08-24 (1 day apart).
Technical Analysis
RSI (14)
58.1
Neutral
MACD Histogram
0.302
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Support
$200.06
Resistance
$228.02
Bollinger %B
0.71
Inside Bands
Price vs Moving Averages
EMA 9
$220.05
Above
EMA 21
$215.29
Above
EMA 50
$209.45
Above
EMA 200
$201.94
Above
Fundamental Analysis
Valuation
54
Growth
29
Profitability
85
Financial Health
0
Cash Flow
70
Valuation
P/E Ratio
21.2×
P/B Ratio
11.47×
PEG Ratio
1.24
Dividend Yield
2.76%
52W High
$229.76
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 21.2 (inexpensive relative to a 15-40x range); Price-to-book of 11.5x; 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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