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Barchart
Barchart
Rashmi Kumari

Is Darden Restaurants Stock Outperforming the Nasdaq?

Darden Restaurants, Inc. (DRI), headquartered in Orlando, Florida, is a leading operator of full-service restaurants. It serves various cuisines through its iconic brands, including Olive Garden, LongHorn Steakhouse, and The Capital Grille. With a market cap of $22 billion, the company is dedicated to providing exceptional dining experiences, combining culinary excellence with warm hospitality to delight customers across the globe.

Companies with a market cap of $10 billion or more are classified as “large-cap stocks,” Darden Restaurants fits this category. Darden plays a vital role in shaping the hospitality industry, focusing on long-term growth, operational excellence, and delivering memorable dining experiences. Through its commitment to quality, innovation, and customer satisfaction, the company continues to enhance its value proposition while enriching lives through exceptional culinary offerings and warm hospitality.

Shares of this restaurant have fallen marginally from its 52-week high of $188.88, hit on Dec. 20. The stock is up 10.2% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX9.1% gain during the same time frame.

www.barchart.com

Over the past six months, DRI has risen by 21.6% and gained 15.7% over the past 52 weeks. In comparison, the NASX has climbed 10.4% over the last six months and 32.4% over the past year.

DRI has recently maintained its position above the 50-day moving average and has been trading above the 200-day moving average since August, signaling a sustained bullish trend.

www.barchart.com

On Dec. 19, Darden Restaurants delivered its Q2 2025 earnings report, boosting the stock by 14.7%. Adjusted EPS rose by 10.3% year-over-year to $2.03, slightly missing Wall Street’s estimate. Revenue increased by 6% to $2.89 billion, surpassing the consensus forecast of $2.88 billion. The company also updated its full-year fiscal 2025 guidance, projecting total sales of approximately $12.1 billion and net earnings per share from continuing operations in the range of $9.40 to $9.60.

Highlighting the contrast in performance, DRI's competitor, Dine Brands Global, Inc. (DIN), has underperformed the stock. DIN has declined 36.6% over the past 52 weeks.

Analysts are cautiously optimistic about DRI's prospects. The stock has a consensus rating of "Moderate Buy" from 28 analysts in coverage. The mean price target is $183.64, which indicates that the stock trades at a premium.

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