Darden Restaurants Inc. (DRI.N): FQ4Q26 Final Bite: Following the Playbook and Gaining Share

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Darden Restaurants Inc. (DRI.N): FQ4Q26 Final Bite: Following the Playbook and Gaining Share

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25 Jun 2026 19:03:22 ET │ 13 pages

Darden Restaurants Inc. (DRI.N)

F4Q26 Final Bite: Following the Playbook and Gaining Share

CITI'S TAKE

Results/outlook did little to alter debates surrounding DRI—the company

continues to execute on the fundamentals while working through a choppy

consumer backdrop that pressures some parts of the business more than Buy

others. The business is slowly diversifying away from OG as the primary Price (25 Jun 26 16:00) US$212.76

profit center (50%/55% sales/profits in FY19, 42%/47% in FY26) which

Target price US$245.00should help blunt negative narratives around the brand being in the GLP-1

crosshairs, and DRI’s balance sheet/cash generation affords the company a Expected share price return 15.2%

unique ability to accelerate this diversification through portfolio additions. Expected dividend yield 3.0%

Even without the topspin provided by potential M&A, we continue to view

Expected total return 18.2%DRI’s valuation (~11x our CY27E EBITDA) against its LT algo (including 10-

15% TSR) as attractive. Market Cap US$24,368M

Key points from the call/follow-up — (1) F1Q27 is starting on slower comp footing,

with the summer soccer tournament and the Father’s Day/Juneteenth shifts adding

noise to the period, though FY27 guidance (+2.5-3.5%) appears reasonable. Pricing Price Performance

and inflation are expected to be 1H heavy and ease as the year progresses while OG

should still be cycling through mix headwinds tied to the lighter portions menu (RIC: DRI.N, BB: DRI US)

(likely ~50bps) in F1Q. In F4Q, DRI’s casual concepts saw growth across all income

groups though noted some softness in the <35-year-old cohort. (2) Beef (~28% of