NASDAQ · STOCK
Darden Restaurants
$203.87
52W $169.00 – $220.65
54/100
$23.32B
19.5
0.58
Is DRI Bullish or Bearish?
Mixed.
Innellis AI committee rates Darden Restaurants (DRI) Watch with a composite score of 54/100
, based on 7 analysts with 57% agreement.
Last updated July 31, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +5.58 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 — -14.42 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. News Analyst sees a compelling case — news sentiment is positive (+0.40 across 18 articles, 14d). 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 3.0% 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 July 31, 2026
Overall Committee Score
54/100
Agreement
57%
Analysts
7
Conviction
Contested
Sector Rank
Top 39%
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
neutral
52
/ 100 · Moderate confidence
Moderate risk -- no single red flag, but nothing that clearly de-risks the position either
− Current ratio of 0.31 is tight -- limited short-term liquidity cushion
Macro Analyst
neutral
58
/ 100 · Moderate confidence
Macro backdrop is mixed or neutral -- not a strong tailwind or headwind either way
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
70
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.40 across 18 articles, 14d)
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 2744.14)
Investment Thesis Evolution
Committee score moved marginally from 53.4 to 54.4.
- New bearish signals: 2 appeared.
- Bullish support removed: 2 signal(s) disappeared.
- New bullish signals: 6 appeared.
- Bearish pressure eased: 4 signal(s) disappeared.
- Analyst(s) changed stance: Macro Analyst, Technical Analyst.
Analyst-level changes:
- Macro Analyst: stance bullish->neutral; score 65->58 (-8); +1 bullish signal(s).
- News Analyst: score 76->70 (-6); +1 bullish signal(s).
- Portfolio Manager: +2 bearish signal(s).
- Technical Analyst: stance neutral->bullish; score 48->69 (+20); +3 bullish signal(s).
- Value Analyst: +1 bullish signal(s).
Comparing 2026-07-30 to 2026-07-31 (1 day apart).
Technical Analysis
RSI (14)
53.3
Neutral
MACD Histogram
1.238
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Hh Hl
Support
$200.06
Resistance
$204.54
Bollinger %B
0.66
Inside Bands
Price vs Moving Averages
EMA 9
$203.33
Above
EMA 21
$202.19
Above
EMA 50
$202.05
Above
EMA 200
$199.38
Above
Fundamental Analysis
Valuation
58
Growth
29
Profitability
1
Financial Health
0
Cash Flow
37
Valuation
P/E Ratio
19.5×
P/B Ratio
10.54×
PEG Ratio
1.14
Dividend Yield
0.03%
52W High
$220.65
52W Low
$169.00
Quality & Growth
ROE
54.7%
ROA
9.4%
Gross Margin
69.4%
Operating Margin
12.0%
Revenue Growth YoY
—
Debt / Equity
2.74
AI Fundamental Assessment
P/E ratio of 19.5 (inexpensive relative to a 15-40x range); Price-to-book of 10.5x; PEG ratio of 1.1 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.5%; Return on assets of 0.1%; Net margin of 0.1%; Gross margin of 0.7%; Current ratio of 0.31 (tight short-term liquidity); Debt-to-equity of 2.74; Free cash flow margin of 0.6% (thin cash generation); 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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