DRI Stock Analysis: Buy, Sell, or Hold?

DRI - Darden Restaurants, Inc.

RETAIL-EATING PLACES
$221.60
3.65 (1.67%) ▲
5d: -1.62%
30d: +14.16%
90d: +12.45%
WAIT
LOW Confidence
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Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Sep 17, 2026 24d
Smart Money Accumulation

Options open interest is building while the stock consolidates - a pattern consistent with institutional accumulation. View Scanner →

Signal fired Aug 20, 2026 at $217.95 · last confirmed Aug 20, 2026

Strength: 3.5/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 MIXED SIGNALS: DRI shows conflicting indicators. Wait for confirmation before entering.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$265.99
Based on 5.6% avg growth
INTRINSIC VALUE TODAY
$165.16
Trading above historical range

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 17.8x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: DRI is currently trading at $221.60, which is considered extended relative to its 30-day fair value range of $196.17 to $216.97. The stock's valuation (Forward PE: 19.5) is in line with its historical norms (17.8). At these levels, the market is pricing in 3.0% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, DRI is in a uptrend. Immediate support is located at $212.47, while resistance sits at $229.76.

Market Sentiment: DRI scores 33/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $196.17 - $216.97
Company Quality Score 52/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 24.8%

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All Signals

  • BEARISH: Price extended above range
  • BEARISH: Weak technical setup (33/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($228.54)
  • NEUTRAL: Market pricing in 3.0% annual earnings growth - fairly valued
  • WARNING: Composite score 52/100 in the bottom quintile — this cohort historically lags the market

Trading Range Analysis

30-Day Trading Range $196.17 - $216.97
Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $212.47
Resistance Level $229.76
Current Trend Uptrend
Technical data as of Aug 21, 2026

Fundamental Context

Forward P/E (Next Year Est.) 19.47
Wall Street Target $228.54 (+3.1%)
Revenue Growth (YoY) 13.7%
Earnings Growth (YoY) 36.0%
Profit Margin 9.1%
Valuation Premium vs History +3.0% premium
PE vs Historical 19.5 vs 17.8 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +3.0% (market-implied from PE analysis)
1-Year Target $228.25 (+3%)
2-Year Target $235.10 (+6%)
3-Year Target $242.15 (+9%)
3-Yr Target (if PE normalizes) (PE: 19→18) PE COMPRESSION $221.40 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 20.1, Growth: 7.2%) $281.30 (+27%)
Base: (SPY PE: 19.5, Growth: 7.2%) $272.86 (+23%)
Bear: (PE: 16.5, Growth: 7.2%) $231.93 (+5%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (21x PE), but valuation improves significantly next year (19x PE) as earnings recover.
Trailing PE: 20.86 | Current EPS (TTM): $10.45
Bull Case $261.14 (+18%)
Analyst growth 8.9%, PE expands to 22.9
Base Case $237.40 (+7%)
Market implied 8.9%, PE stable at 20.9
Bear Case $148.21 (-33%)
Severe decline -20.0%, PE contracts to 17.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: August 22, 2026 9:46 PM ET
Data refreshes hourly during market hours. Next update: 10:46 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
3
Sells
Net
INSIDERS SELLING
Recent Transactions
Douglas J Milanes SELL 3620 shares 2026-04-17
Lindsay L Koren SELL 300 shares 2026-04-07
Ro Khanna SELL 2026-03-30

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Advanced DRI Option Strategies

Professional options setups generated by AI based on today's DRI price and gamma walls.

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