Darden Restaurants Climbed While Profit Fell

Simply Wall St.10-30

Olive Garden’s decision to revive the never ending pasta promotion and limited time Pasta Pass deal put a very specific bet on value dining at the center of Darden Restaurants’ story. Holding Darden ...

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Holding Darden ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nyse-dri/darden-restaurants/news/darden-restaurants-climbed-while-profit-fell\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Darden Restaurants Climbed While Profit Fell</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDarden Restaurants Climbed While Profit Fell\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-10-30 01:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-services/nyse-dri/darden-restaurants/news/darden-restaurants-climbed-while-profit-fell><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Olive Garden’s decision to revive the never ending pasta promotion and limited time Pasta Pass deal put a very specific bet on value dining at the center of Darden Restaurants’ story. Holding Darden ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nyse-dri/darden-restaurants/news/darden-restaurants-climbed-while-profit-fell\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DRI","symbol_name":"达登饭店","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-services/nyse-dri/darden-restaurants/news/darden-restaurants-climbed-while-profit-fell","article_id":"2679280137","we_media_id":null,"thumbnails":["https://simplywall.st/cdn-cgi/image/fit=cover,format=auto,width=320,height=180/https://images.simplywall.st/asset/industry/4214000-choice1-card/1789016022172"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/consumer-services/nyse-dri/darden-restaurants/news/darden-restaurants-climbed-while-profit-fell","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2679280137","pubTimestamp":1793294827,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Olive Garden’s decision to revive the never ending pasta promotion and limited time Pasta Pass deal put a very specific bet on value dining at the center of Darden Restaurants’ story. Holding Darden Restaurants over the past year would have returned 22.5%, including dividends. If you had been weighing a purchase before that call, what did you need to believe about guest appetite for promos versus pressure on margins and traffic mix?\nIf the move has made Darden Restaurants harder to judge,...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"DRI":"达登饭店","BK4588":"碎股","BK4504":"桥水持仓","LU0154245673.USD":"BNP PARIBAS US MID CAP \"C\" (USD) INC","BK4209":"餐馆","LU0154245756.USD":"BNP PARIBAS US MID CAP \"C\" (USD) ACC","BK4585":"ETF&股票定投概念"},"translate_title":"达顿餐厅股价上涨，利润下降","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DRI":1},"content_text":"Olive Garden’s decision to revive the never ending pasta promotion and limited time Pasta Pass deal put a very specific bet on value dining at the center of Darden Restaurants’ story. Holding Darden Restaurants over the past year would have returned 22.5%, including dividends. If you had been weighing a purchase before that call, what did you need to believe about guest appetite for promos versus pressure on margins and traffic mix? If the move has made Darden Restaurants harder to judge, start where the gap is still open and scan 26 high quality undervalued stocks. AdvertisementThe Argument You Would Have Had To Settle On Darden Restaurants The shares cost US$181 at the start of the period, so any view on Darden Restaurants began with whether that price already captured its strengths in casual dining and brand scale. The bullish Narrative pointed to a Fair Value of US$225, a notional price based on assumptions that revenue could grow 5.5% with profit margins reaching 10.0% and a future P/E of 23.0x. That view rested on factors such as Uber Direct rollout, menu promotions and smaller prototypes supporting sales and earnings. The bearish story anchored on a Fair Value of US$157 and focused on different risks. Heavy reliance on traditional formats, slower digital progress and exposure to rising labor and food costs were expected to pressure demand and long run profitability. NYSE:DRI 1-Year Stock Price Chart What The Results Put To The Test At Darden Restaurants The clearest test came from Darden Restaurants reporting Q1 2027 figures with revenue at US$3.2b versus US$3.0b a year earlier, while net income slipped to US$234.3m and net margin moved from 8.5% to 7.3%. That combination of higher sales and softer profitability cut both ways for the earlier bull case that leaned on cleaner margin expansion. The useful takeaway for you is how much hinged on margin resilience, not just sales momentum. When you look at another restaurant stock, track whether net margin is moving in the same direction as revenue before accepting any upbeat story built on scale and promotions. What Darden Restaurants’ Price Already Assumes Darden Restaurants now trades at US$217, with the selected Narrative arguing that its Fair Value sits below the current price despite the one year gain. The Narrative focuses on weekday lunch, pricing discipline and new unit economics as the key variables. Anyone paying today’s price is effectively betting that Olive Garden traffic and new openings deliver. That raises the question of how this view aligns with the cited lunch softness and the unproven performance of newer locations. \"Although Darden Restaurants is leaning on brand specific menu and daypart initiatives at Olive Garden to revive weekday lunch, the reported deterioration of weekday lunch traffic by hundreds of basis points versus pre COVID creates a risk that marketing around soup, salad and breadsticks and the new lunch platform test in FY2027 fails to restore traffic density. This would limit same restaurant sales and weigh on revenue and segment profit.\" That disagreement has a full argument behind it. → Uncover the lower Fair Value this Narrative argues for Which Company Could Surprise You Next? By the time a rally makes headlines, you are reading about returns someone else has already earned. Why not go straight to the source and look for your own contrarian opportunity? These three companies trade below our estimated value.  Company 1 - 32% below our estimate - targets data center GPU demand as AI changes electricity and cooling needs. Company 2 - 43% below our estimate - converts a large queue of complex builds into recurring installation and maintenance work. Company 3 - 23% below our estimate - embeds AI copilots and cloud services inside core enterprise productivity and planning tools.  Those are three of them. See every one of the 24 solid balance sheet companies → This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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