• Darden Restaurants is like the Procter & Gamble of the restaurant industry, managing a portfolio of well-known casual and fine dining brands rather than household goods.
• Darden Restaurants is like Marriott International for dining, operating a diverse collection of distinct restaurant brands similar to how Marriott manages various hotel chains.
• Darden Restaurants is like the Yum! Brands of casual and fine dining, owning and operating multiple popular full-service restaurant chains instead of quick-service ones.

• Olive Garden: Casual dining experiences featuring Italian-American cuisine.
• LongHorn Steakhouse: Casual dining experiences specializing in grilled steaks and other American favorites.
• Cheddar's Scratch Kitchen: Casual dining experiences offering classic American comfort food made from scratch.
• Yard House: Casual dining experiences known for an extensive selection of craft beers and American cuisine.
• The Capital Grille: Fine dining experiences featuring dry-aged steaks, fresh seafood, and an extensive wine list.
• Seasons 52: Upscale casual dining experiences focused on fresh, seasonal American cuisine with an emphasis on wine.
• Eddie V's Prime Seafood: Upscale dining experiences providing prime seafood, steaks, and a sophisticated ambiance.
• Bahama Breeze Island Grille: Casual dining experiences offering Caribbean-inspired food, tropical drinks, and a relaxed island atmosphere.

Darden Restaurants (symbol: DRI) is a publicly traded company that owns and operates a portfolio of full-service dining brands. Its primary business model involves serving meals directly to consumers through its restaurants.

Therefore, Darden Restaurants sells primarily to individuals.

Major Customers:

Darden Restaurants serves a diverse range of individual customers, which can be broadly categorized into the following:

• Families and Casual Diners: This category includes individuals and families seeking a relaxed, affordable, and consistent dining experience for everyday meals, celebrations, or casual gatherings. They are often drawn to brands like Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen, valuing menu variety, family-friendly environments, and good value.
• Upscale and Fine Dining Patrons: These customers are looking for premium dining experiences, often for special occasions, business meetings, or indulgent evenings. They frequent Darden's high-end brands such as The Capital Grille, Eddie V's, and Seasons 52, prioritizing exceptional service, sophisticated ambiance, high-quality ingredients, and extensive wine or cocktail selections.
• Social and Experiential Diners: This group seeks a lively atmosphere, unique beverage programs, and a more social or themed dining experience. Brands like Yard House (known for its extensive craft beer selection) and Bahama Breeze Island Grille (offering a tropical escape) cater to these customers, who are often looking to socialize with friends, enjoy a vibrant bar scene, or experience a distinct culinary theme.

• Sysco Corporation (SYY)
• The Coca-Cola Company (KO)

Rick Cardenas President & Chief Executive Officer

Rick Cardenas became President and Chief Executive Officer of Darden Restaurants on May 30, 2022. He is a 35-year veteran of the company, having started his career with Darden as a busser in 1984. After joining the restaurant support center in 1992 as an Auditor, he held increasingly responsible positions across various brands and functions, including Director of Corporate Development, Vice President of Finance and Assistant Controller for Olive Garden, Senior Vice President of Finance and Controller for LongHorn Steakhouse and Red Lobster, and Executive Vice President of Operations for LongHorn Steakhouse. He served as Chief Strategy Officer, then Chief Financial Officer (March 2016 to January 2021), and President and Chief Operating Officer (January 2021) before his current role. Cardenas briefly left Darden from 1998 to 2001 to work for management consulting firms Bain & Company and The Parthenon Group, where he worked across various industries on M&A due diligence and portfolio strategy. He currently serves on the board of directors of Tractor Supply Company.

Raj Vennam Senior Vice President, Chief Financial Officer

Raj Vennam was named Senior Vice President, Chief Financial Officer in January 2021. He began his career at Darden in 2003 as a Senior Business Analyst for Market Development. He progressed through various financial roles within Darden, including Senior Financial Analyst in Investment Analysis, Olive Garden Marketing Analysis, and Treasury, and as Director of Financial Planning & Analysis for LongHorn. In 2013, he joined Red Lobster (when it was part of Darden) as a Senior Director and advanced to Senior Vice President of Financial Planning & Analysis and Treasury. He returned to Darden in 2016 as Senior Vice President, Finance & Analytics, and was named Senior Vice President, Treasurer in July 2020. Prior to rejoining Darden, Vennam served as Vice President, Financial Planning & Analysis and Investor Relations at The Fresh Market. He currently serves as a member of the board of directors of Cushman & Wakefield.

Matt Broad Senior Vice President, General Counsel & Corporate Secretary

Matt Broad was appointed General Counsel and Corporate Secretary in October 2015. He is responsible for Darden's legal affairs, including corporate governance, labor and employment law, litigation, internal audit, and regulatory compliance. Broad brings over 30 years of experience in business and corporate law. Prior to Darden, he spent 10 years as Executive Vice President, General Counsel, and Chief Compliance Officer for OfficeMax Incorporated, where he established the legal department after a spin-off from Boise Cascade Corporation and later guided the company through its merger with Office Depot. Before OfficeMax, he was Associate General Counsel with Boise Cascade, where he oversaw over 60 acquisitions in the office products distribution sector. He also worked as a consultant with Axiom, providing legal counsel across various industries.

Doug Milanes Senior Vice President, Chief Supply Chain Officer

Doug Milanes has served as Chief Supply Chain Officer at Darden Restaurants since May 2015.

Dan Kiernan President, Olive Garden

Dan Kiernan was named President of Olive Garden in January 2018. He began his career with Olive Garden as a Manager-in-Training in 1992 and advanced through various operational roles, including General Manager, Director of Operations, Senior Vice President, Operations, and Executive Vice President, Operations.

The key risks to Darden Restaurants (symbol: DRI) are primarily centered around economic volatility, operational challenges related to labor, and the highly competitive nature of the restaurant industry.

1. Economic Factors and Cost Pressures: Darden Restaurants faces significant risks from adverse economic conditions and escalating costs. This includes broad macroeconomic factors such as unemployment, energy prices, and interest rates, which can impact consumer spending on dining out. More specifically, the company is susceptible to commodity inflation, particularly rising beef and seafood costs, as well as increased labor and insurance expenses, all of which can compress profit margins.
2. Labor Availability and Costs: A crucial operational risk for Darden Restaurants is the ability to attract, train, reward, and retain a sufficient number of qualified restaurant team members and effective leaders. Labor shortages or increased labor costs, including minimum wage rate changes and other employment-related regulations, can negatively impact service quality, operational efficiency, and overall profitability across its brands.
3. Intense Competition and Shifting Consumer Preferences: The restaurant industry is characterized by intense competition from a wide array of dining establishments, including other full-service restaurants, quick-service restaurants, and meal delivery services. Darden must continuously adapt to evolving consumer preferences, dining habits, and marketing strategies to maintain its market share and drive profitable sales growth.

The proliferation and increasing sophistication of virtual restaurant brands and ghost kitchens represent a clear emerging threat. These models leverage centralized kitchen facilities and delivery platforms to offer diverse food options without the traditional overhead of brick-and-mortar dining rooms. This allows for potentially lower operating costs, rapid market entry for niche cuisines, and the ability to directly cater to the growing consumer preference for high-quality, convenient meal delivery. While Darden Restaurants has adapted its operations to include off-premise dining, virtual brands pose a challenge by offering a fundamentally different cost structure and agility in competing for consumer spend on restaurant-quality meals consumed at home. This shift could erode market share from Darden's takeout and delivery offerings, and for some consumers, even influence the decision to dine out versus opting for a gourmet meal delivered from a virtual brand.

U.S. Full-Service Restaurants Market

U.S. Fine Dining Market

U.S. Casual Dining Market

1. New Restaurant Openings and Unit Growth: Darden Restaurants plans for significant new restaurant expansion. The company anticipates opening approximately 60-65 new restaurants in fiscal year 2026, building on a projected 50-55 new units in 2025. This expansion includes both domestic and international markets, with plans to open 25 new restaurants in Canada and the UK in fiscal 2026.
2. Strategic Acquisitions: Acquisitions play a role in diversifying Darden's brand portfolio and extending its market reach. The recent acquisition of 103 Chuy's restaurants is expected to contribute to total sales growth and generate supply chain and technology synergies. This strategy helps broaden the customer base and fortify competitive positioning.
3. Same-Restaurant Sales Growth Driven by Core Brands and Menu Innovation: Darden expects continued same-restaurant sales growth, projecting an increase of 2.5% to 3.5% for fiscal 2026. Flagship brands like Olive Garden and LongHorn Steakhouse consistently outperform industry benchmarks through effective marketing, menu innovation, and strategic pricing. For example, Olive Garden saw a 5.9% same-restaurant sales increase in Q1 2026, driven by new menu items and first-party delivery, while LongHorn Steakhouse achieved 5.5% growth. Darden also implements strategic portion size adjustments and pricing strategies to manage inflationary pressures.
4. Expansion of Digital and Off-Premise Dining Services: The company is capitalizing on the growing demand for off-premise dining through digital innovation and expanded delivery services. The completion of the Uber Direct rollout for Olive Garden, with a transparent pricing model mirroring in-restaurant offerings, is a key initiative to capture a larger share of the off-premise market and drive incremental sales. This partnership reflects Darden's recognition of the shift towards digital-first ordering and delivery services.

Share Repurchases

• In June 2025, Darden's Board of Directors authorized a new share repurchase program of up to $1 billion, which replaced the previous authorization.
• During the fourth quarter of fiscal 2025 (ended May 25, 2025), the company repurchased approximately 0.2 million shares of common stock for $51 million. For the full fiscal year 2025, Darden returned $418 million to shareholders through share repurchases.
• In the first quarter of fiscal 2026 (ended August 31, 2025), Darden repurchased $183 million of its stock.

Share Issuance

• In fiscal year 2020, Darden issued 9 million shares of common stock.

Outbound Investments

• In July 2024, Darden acquired 103 Chuy's Tex Mex restaurants for $605 million, including the assumption of debt.
• Darden also completed the acquisition of Ruth's Chris Steak House.

Capital Expenditures

• For fiscal year 2026, Darden anticipates total capital spending between $700 million and $750 million.
• The projected capital expenditures for fiscal 2026 include $375 million to $400 million for new restaurant development and $300 million to $325 million for maintenance, refresh, and technology initiatives.
• Darden plans to open 60 to 65 new restaurants in fiscal 2026.