DRI · CIK 940944
What Darden Restaurants, Inc. told the SEC could break it.
Darden's disclosures sit between its costs and its customers. On the cost side, it is exposed to food-commodity prices like beef and seafood, which it manages partly with hedges; its aggregate one-year value-at-risk across commodity instruments, equity forwards, currencies and interest-rate exposures was about $63.3 million at fiscal year-end 2025. On the demand side, its full-service brands depend on discretionary dining, and in fiscal 2025 same-restaurant guest counts fell across several brands — Olive Garden down 2.3% and Fine Dining down 5.2% — with sales growth carried by higher average checks, leaving it exposed to a consumer pullback. It also operates under broad regulation: restaurant health, safety, fire and licensing rules, plus labor, tax and international trade and anti-corruption laws governing its dealings with overseas franchisees and vendors.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Commodity & input dependence
- food commodity costs (beef, seafood) and related hedgesmedium
Darden is exposed to food-commodity price risk (managed partly via commodity instruments); its aggregate one-year value-at-risk from equity forwards, commodity instruments, currencies and rates was ~$63.3 million at fiscal year-end 2025.
“At May 25, 2025, our potential losses in future net earnings resulting from changes in equity forwards, commodity instruments, currencies and floating rate and fixed rate debt interest rate exposures were approximately $63.3 million over a period of one year.”
Other disclosures
- consumer-discretionary demand and declining guest countsmedium
Darden's full-service brands rely on discretionary dining; in fiscal 2025 same-restaurant guest counts fell across several brands (Olive Garden -2.3%, Fine Dining -5.2%), with sales growth carried by price/average-check increases — leaving it exposed to consumer pullback.
“The decrease in same-restaurant sales in fiscal 2025 resulted from a 5.2 percent decrease in same-restaurant guest counts offset by a 2.3 percent increase in average check.”
SEC filing →As of 2025
Regulatory & policy
- restaurant licensing/health/safety, labor and international trade regulationmedium
Darden's restaurants must meet health/safety/fire/licensing requirements; it is also subject to antitrust, tax, import/export/customs, FCPA and anti-boycott regulations affecting dealings with international franchisees and vendors.
“Each of our restaurants must comply with licensing requirements and regulations by a number of governmental authorities, which include health, safety and fire agencies in the state or municipality in which a restaurant is located.”
SEC filing →As of 2025
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
Four Corners Property Trust, Inc.
“Olive Garden branded restaurants comprise approximately 23.8 % of our properties and approximately 31.7 % of the revenues received under leases.”
Cited →
In the MyPRIA app, this is checked against the companies you actually own.
← World Watch