Shares of Darden Restaurants Inc (NYSE:DRI) are down 9.7% this morning to trade at $188.61, after the Olive Garden parent posted earnings of $1.97 per share, missing expectations, while revenue of $3.04 billion came in line with forecasts. The brand, which also owns LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, and more, reported strong same-stores sales growth across its portfolio, but struggled with weakness in its fine dining segment amid rising costs. Even so, Darden raised its 2026 forecast, signaling confidence in a potential rebound.
If today's trajectory holds, the equity will log its fifth-straight daily loss and its worst session since March 2022. It would also mark the steepest post-earnings drop in at least nine quarters as the stock plummets to its lowest levels since April. So far, 2025 has been mixed for the stock: it's up 1.3% year-to-date and notched an all-time high in June, but is now counting on its 320-day moving average to prevent further losses.
Analysts lean bullish. Of the 29 brokerages in coverage, 18 maintain a "buy" or better rating, while 11 call it a "hold." The stock saw a flood of price-target adjustments after earnings, but the 12-month consensus price target of $232.94 remains at a hefty premium to current levels.
In the options pits, however, sentiment is clearly leaning bearish. So far today, 7,865 puts have traded versus 1,885 calls, with overall volume operating at 24 times the average intraday amount. The most active contracts are the monthly September 200-, 195-, 190-, and 185- strike puts, with new positions being opened at the last.
