Should I Buy DRI? DRI 2026 Analysis

Should You Buy Darden Restaurants Inc (DRI) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

216.270

1 Day change

1.27%

52 Week Range

228.270

Analysis Updated At

2026/02/04

Should I buy Analysis is updated weekly. For real time "Should I Buy" analysis, please sign up to get free answers.

Not a good buy right now: price ($210.85) is pushing above near-term resistance (R1 ~$210.29) with short-term overbought conditions and weakening momentum.
Upside catalysts (upgrades + portfolio optimization/closures) are real, but near-term risk/reward looks unfavorable given insider/hedge fund selling and margin pressure.
For an impatient buyer, this setup is more likely to chop/pull back than deliver clean immediate upside; better to hold/avoid initiating at this level.

Intellectia Proprietary Trading Signals

AI Stock Picker: No signal on given stock today.
SwingMax: No signal on given stock today.

Technical Analysis

Trend/momentum: MACD histogram is negative (-0.463) but contracting, suggesting downside momentum is fading, not reversing strongly yet.
Overbought/extension: RSI(6) ~75 indicates short-term extension; rallies here often see consolidation or pullback.
Moving averages: converging MAs suggest a transition zone (range/consolidation risk) rather than a clean trend impulse.
Levels: Pivot ~$203.15 is the first meaningful support; below that, S1 ~$196.02. Resistance is R1 ~$210.29 (being tested) then R2 ~$214.70.
Pattern-based stats provided: expected drift is slightly negative over the next week (-1.93%) with modest +1 month (+1.32%), implying near-term cooling after the run.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Sentiment mix: Open Interest P/C 0.72 leans bullish positioning overall, but Volume P/C 1.35 shows heavier put trading today (more defensive/hedging short-term).
Activity: today’s options volume (657) is below the 30-day average (today vs avg ~35%), suggesting conviction is not high despite the price pop.
Volatility: 30D IV 28.6 vs 5D/10D IV ~32 indicates IV has been coming down (less demand for protection/speculation); IV percentile ~54 is mid-range (not “cheap” or “panic” pricing).

Technical Summary

Sell

Buy

Positive Catalysts

- Corporate actions: permanent closure of 14 Bahama Breeze locations and planned brand conversions could improve portfolio quality and margins over time.

Neutral/Negative Catalysts

- Flow signals: hedge funds net selling surged (+1366.73% QoQ selling) and insiders are selling more (+310.23% MoM selling), a near-term sentiment headwind.
- Cost pressure: beef inflation and heavy advertising spend continue to pressure margins (reinforced in news).
- Technical risk: price is extended into resistance with short-term overbought readings, increasing odds of a pullback/consolidation.
- No event-driven “must-buy-now” proprietary signal (no AI Stock Picker / SwingMax trigger).

Financial Performance

Latest reported quarter: 2026/Q2.
Growth: Revenue $3.102B (+7.34% YoY), Net Income $237.2M (+10.27% YoY), EPS $2.03 (+11.54% YoY) — solid top-line and earnings growth.
Profitability: Gross margin 15.86% (down 5.48% YoY) — growth is being achieved with margin compression, consistent with commodity + investment headwinds.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: mixed-to-improving overall after multiple January changes.
Bullish changes: Melius upgraded to Buy (PT to $265); Mizuho upgraded to Outperform (PT to $235).
Cautious/negative changes: Raymond James downgraded to Market Perform; Truist downgraded to Hold (PT $207); some targets trimmed/tempered amid sector challenges.
Wall Street “pros” view: durable traffic/share gains, incremental occasions (delivery), and potential margin upside as pricing accelerates.
Wall Street “cons” view: limited multiple-expansion room at current valuation/price, fewer near-term sales drivers, and persistent commodity/macro pressure.

20 Analyst Rating

Wall Street analysts forecast DRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRI is 221.82 USD with a low forecast of 200 USD and a high forecast of 261 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

12 Buy

8 Hold

0 Sell

Moderate Buy

Current: 213.560

Low

200

Averages

221.82

High

261

Current: 213.560

Low

200

Averages

221.82

High

261

Mizuho, Melius

upgrade

$208.54

AI Analysis

2026-01-23

Reason

Mizuho, Melius

Price Target

$208.54

AI Analysis

2026-01-23

upgrade

Reason

Darden jumps 2% to $208.54 after upgrades at Mizuho, Melius

Melius Research

Hold

Buy

upgrade

$240 -> $265

2026-01-23

Reason

Melius Research

Price Target

$240 -> $265

2026-01-23

upgrade

Hold

Buy

Reason

Melius Research upgraded Darden to Buy from Hold with a price target of $265, up from $240. The firm says the company's discipline to value is driving durable traffic and market share gains. Meanwhile, beef inflation is a "timing headwind, not a structural impairment," the analyst tells investors in a research note. Melius believes Darden is intentionally absorbing elevated costs to defend steak occasions and emerge from the cycle with a larger traffic base. First-party delivery is also creating a "new incremental occasion" at Olive Garden, the firm adds. Darden this morning was also upgraded at Mizuho.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for DRI

Unlock Now

DRI Should I Buy

DRI Should I Buy

Should You Buy Darden Restaurants Inc (DRI) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

People Also Watch