Is Darden Restaurants Stock Underperforming the S&P 500?

Core Insights - Darden Restaurants, Inc. operates multiple well-known dining brands in North America, including Olive Garden and LongHorn Steakhouse, with a market capitalization of $20.83 billion [1] Stock Performance - Darden's stock reached a 52-week high of $228.27 in June but has since declined by 19.7%, with a 14.1% drop over the past three months, while the S&P 500 Index gained 4.8% during the same period [2] - Over the past 52 weeks, Darden's stock has gained 9.2%, but it has declined 15.8% over the past six months, contrasting with the S&P 500's gains of 13.4% and 14.6% respectively [4] Financial Results - For the first quarter of fiscal 2026, Darden reported sales of $3.04 billion, a 10.4% year-over-year increase, meeting market expectations, with same-restaurant sales up 4.7% [5] - The adjusted EPS for the quarter was $1.97, a 12.6% increase from the previous year, but it missed the Wall Street estimate of $2, leading to a 7.7% intraday stock drop on the earnings report date [6] - The company anticipates adjusted EPS for fiscal 2026 to be between $10.50 and $10.70 [6] Competitive Comparison - Darden has outperformed Yum! Brands, Inc. over the past 52 weeks, gaining 9.2% compared to Yum's 6.9%, but has underperformed over the past six months [7]