DARDEN RESTAURANTS INC (DRI)

Darden Restaurants, Inc. is a full-service restaurant company. As of May 31, 2026, it owned and operated 2,202 restaurants in the United States through subsidiaries, led by GMRI, Inc. A further 167 restaurants were run by independent third parties under area development and franchise agreements, four operated under contractual agreements, and one was jointly owned with a third party and operated independently. The company was incorporated in Florida in 1995 after being acquired by General Mills in 1970 and then distributed to General Mills stockholders. Fiscal 2026 was a 53-week year, and total sales were about $13.2 billion.

The company manages its brands in North America as operating segments and reports four segments: Olive Garden, LongHorn Steakhouse, Fine Dining (Ruth's Chris, The Capital Grille and Eddie V's), and Other (Yard House, Cheddar's Scratch Kitchen, Chuy's, Seasons 52, Bahama Breeze, The Capital Burger, and franchise royalties and fees). Olive Garden is the largest full-service Italian restaurant operator in the U.S., with 1,012 restaurants in total and an average check of about $25. LongHorn Steakhouse is a steakhouse brand with an average check of about $28.50. The fine dining brands have average checks of roughly $104 to $126. The other brands cover American, Tex-Mex, seasonal grill, Caribbean-inspired and burger concepts. In February 2026 Darden decided to close about half of the Bahama Breeze restaurants and convert the rest to other Darden brands over 12 to 18 months. In July 2025 it sold eight Olive Garden restaurants in Canada to Recipe Unlimited, which now operates them as a franchisee.

Customers are diners in the full-service segment, and the company does not rely on any major customers. Sales come mainly from food and beverage, and customers and long-lived assets are predominantly in the U.S. Franchised and contractual restaurants are located in Latin America, Canada, Asia, the Middle East, Europe, the Caribbean, Puerto Rico and Guam. The full-service segment is described as highly fragmented, with many independent operators and small chains. During fiscal 2026 Darden added 43 net new U.S. restaurants and plans about 75 to 80 new openings in fiscal 2027. Site selection draws on demographics, competition, visibility and access, and a new restaurant takes about 250 days to build and open on average.

Each restaurant is led by a General Manager or Managing Partner, supported by additional managers and typically 35 to 200 hourly team members, with Directors of Operations overseeing groups of restaurants. Training includes eight to twelve-week programs for management trainees and dedicated teams for new openings. A Total Quality Department oversees food safety, using supplier evaluations, third-party inspections and audits, and Hazard Analysis and Critical Control Point programs. The company relies on its supply chain, brand management and information technology capabilities. Its headquarters and restaurant support center are at 1000 Darden Center Drive, Orlando, Florida.