Darden Restaurants

Summary

Largest full-service restaurant company in the US, operating Olive Garden, LongHorn Steakhouse, and 10+ brands across 1,900+ locations.

History Timeline

1938: Red Lobster founded. 1968: First Olive Garden opens. 1995: Darden spun off from General Mills. 2007: Acquired Capital Grille and Eddie V's. 2014: Sold Red Lobster for $2.1B. 2017: Acquired Seasons 52 and Yard House. 2020: Closed 200+ locations during pandemic. 2022: Revenue recovered to $9.4B. 2024: Continued acquisition of upscale casual brands.

Business Model

Operates restaurant brands across casual dining (Olive Garden, LongHorn Steakhouse, Seasons 52), upscale dining (The Capital Grille, Eddie V's), and fast-casual (Yard House, Ruth's Chris). Revenue from restaurant operations (approximately 95%) and franchise fees. Olive Garden alone generates approximately 25% of total revenue.

Moat Analysis

Massive scale (1,900+ locations) provides purchasing power with food suppliers. Real estate portfolio is valuable. Multi-brand strategy diversifies risk across price points. Olive Garden is the number 1 full-service restaurant chain in the US by revenue.

Key Data

Approximately $10B annual revenue, 1,900+ restaurants, approximately 190,000 employees. Olive Garden generates approximately $4B alone. Stock trades under ticker DRI on NYSE.

Interesting Facts

Olive Garden serves over 100 million pounds of pasta and 50 million liters of salad dressing annually, enough to fill a football field 2 feet deep. The unlimited breadsticks and salad combo is the most profitable part of the business because the cost per serving is under $1.