Why DRI beats the market
Up 37% in a year while the S&P 500 rose 12%.
“Food and beverage costs increased as a percentage of sales, primarily due to a 1.2 percent impact from inflation”
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Up 37% in a year while the S&P 500 rose 12%.
“Food and beverage costs increased as a percentage of sales, primarily due to a 1.2 percent impact from inflation”
| The chart | Above every average |
| Latest filing | 8-K, Oct 23 |
After its last 4 reports it closed +0.1% on average, higher 2 of 4 times.
Above Averagefor quality, not price, 7 of 14 chart checks firingWhat the Quality Score means
DRI is #1 of 27 by Quality Score.
| Rank | Stock | Quality Score |
|---|---|---|
| 1 | ||
| 2 | ||
| 3 | ||
| Open for its score | ||
| Open for its score | ||
| Open for its score | ||
| Open for its score |
Share count against a year before: DRI -2.7%, QSR +6.4%, EAT -5.8%, CAKE +0.4%.
Reports Fri Dec 18, before the open (in 38 days). Confirmed.
What an earnings report is: every 3 months, a company tells everyone how much it sold and earned. We read the figures, the outlook, and how the stock moved after.
Sales of $3.2B; a profit of $2.05 a share.
| Line | Q1 FY27 | Q1 FY26 |
|---|---|---|
| Olive Garden | $1.3B | $1.3B |
Each quarter's sales and their share of its total. Figures as filed (SEC filing, Oct 2)
| Measure | Figure |
|---|---|
| Diluted net earnings per share from continuing operations | $11.10 to $11.35 |
Sales grew 13% a year over 5 years, fiscal 2021 to 2026.
Pays $6.48 a share a year.
| Reported | Gap | Reaction | 5 days |
|---|---|---|---|
| Sep 24, 2026 | -2.3% | -3.0% | -9.6% |
| Jun 25, 2026 | -1.6% | -0.3% | -5.4% |
| Mar 19, 2026 | -2.5% | +1.9% | +0.5% |
Sales grew in five of the last seven years, to $13B in 2026. It made a profit in seven of the eight years.
RSI 63.7, MACD above signal, above both averages. Not scored.
Its dividends come to 70% of its free cash flow.
| Dividend | $6.48 a share a year |
| Paid out | About $733M a year |
| Free cash flow | $1.1B |
| Record | Raised each of the last 5 years |
7 insiders sold $16M across 14 filings in the last 6 months. No open-market buys on record. The newest:
10 trades disclosed in the last six months. The newest:
Officers and directors with a Form 4 in the last 12 months.
In ETFs: DRI is 0.6% of SCHD, 0.2% of DGRO, and 0.1% of VYM, the most of the 24 funds Breakaway covers, by each fund's latest filing, Jul 31 to Aug 31, 2026.
Darden Restaurants is the largest global full-service dining operator, with over $13 billion in system sales across 2,202 company-owned stores at the end of fiscal 2026, spanning the US and Canada. The firm operates 10 banners in four segments, including Olive Garden (42% of sales), LongHorn Steakhouse (26%), and fine dining (21%), which includes The Capital Grille, Ruth's Chris, and Eddie V's. The other 11% of sales comes from smaller concepts such as Yard House and Cheddar's. Darden primarily generates revenue through sales of food and beverage items at its company-owned restaurants. It also earns royalties on sales from 167 franchised locations in US and international markets, which sit within the other segment but are immaterial to consolidated results.
“The restaurant industry is intensely competitive with respect to the type and quality of food, price, service, restaurant location, personnel, brand, attractiveness of facilities, availability of carryout and home delivery, internet and mobile ordering capabilities, and effectiveness of advertising and marketing.”
DRI scores 14 today, which Breakaway calls Above Average. It is #1 of 27 in Retail-Eating Places by Quality Score, with 7 of 14 chart checks firing. Up 37% in a year while the S&P 500 rose 12%. Breakaway does not say whether to buy any stock: the score does not know your situation, and it is not a recommendation to buy or sell anything. Please do your own research.
DRI scores 14 today, which Breakaway calls Above Average (11 to 14). That is #1 of 27 in Retail-Eating Places by Quality Score. The score adds up the chart checks, the trend, the company's filed sales, its profits, the news, insider trades, and Congress trades. The section above lists the lines behind DRI's 14.
7 insiders sold $16M across 14 filings in the last 6 months. No open-market buys on record. The newest is Melvin John Martin, Group President, who sold $448K on Oct 6. Every filing, with the scored weight, for Pro members.
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Insider and Congress trades, the chart, and the financials, in one score.
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