How Is Darden Restaurants' Stock Performance Compared to Other Consumer Cyclical Stocks?

Company Overview - Darden Restaurants, Inc. (DRI) has a market cap of $22.5 billion and operates over 1,700 locations in North America under brands like Olive Garden and LongHorn Steakhouse [1][2] Stock Performance - Darden's shares have decreased 16.4% over the past three months, underperforming the Consumer Discretionary Select Sector SPDR Fund (XLY), which increased by 14.7% in the same period [3] - Year-to-date, DRI stock is down slightly, while XLY has risen by 7.6% [4] - Over the past 52 weeks, Darden's shares gained 8.1%, compared to XLY's 22.5% return [4] Recent Financial Results - In Q1 2026, Darden reported adjusted EPS of $1.97, missing Wall Street estimates, while quarterly sales of $3.04 billion met forecasts [5] - Operating costs surged by 8.8% to $2.71 billion, influenced by higher ingredient and marketing expenses [5] - Management raised its annual sales growth outlook to 7.5% - 8.5%, but the midpoint fell slightly below analysts' expectations, affecting investor sentiment [5] Competitive Landscape - Rival Yum! Brands, Inc. (YUM) has outperformed DRI, with shares increasing by 11.5% over the past 52 weeks and 8.9% year-to-date [6] - Despite Darden's underperformance, analysts maintain a "Moderate Buy" consensus rating, with a mean price target of $234.64, indicating a potential upside of 26.2% from current levels [6]