Monitor Darden's upcoming quarterly earnings for any use of the revolver and leverage trends. The accordion feature signals potential M&A appetite, but no specific acquisition has been announced.
Price Chart
Executive Summary
Darden Restaurants upsized its revolving credit facility from $1.25B to $1.5B, extended the maturity to October 2031, and terminated the prior facility with no amounts outstanding. The new facility includes a $150M letter of credit sublimit and an accordion feature allowing up to $500M in additional commitments. This is a routine refinancing that improves liquidity and extends runway, with no financial data or guidance provided.
Key Financial Metrics
Key Facts
- New $1.5B unsecured revolving credit facility, maturing October 22, 2031
- Replaces prior $1.25B facility dated October 23, 2023 (as amended September 16, 2024)
- No amounts outstanding under prior facility at termination
- Includes $150M sublimit for standby letters of credit
- Includes option to increase commitments by up to $500M (accordion feature)
- Covenant: maximum consolidated net leverage ratio of 3.50x (step-up to 4.00x for four quarters following a covered acquisition over $500M)
- Pricing grid based on credit ratings: facility fee 0.080%-0.200%, Term SOFR margin 0.795%-1.300%
- Borrower: Darden Restaurants, Inc.; Administrative Agent: Bank of America, N.A.
Financial Impact
Facility upsized by $250M (from $1.25B to $1.5B); no borrowings outstanding at closing; no financial results or guidance disclosed
Risk Factors
- Increased debt capacity could fund dilutive or value-destructive acquisitions
- Leverage covenant step-up to 4.00x post-acquisition may allow aggressive balance sheet expansion
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000940944-26-000060 |
| Document: dri-20261022.htm | 0000940944-26-000060 |
| Document: 0000940944-26-000060-index-headers.html | 0000940944-26-000060 |
| Document: 0000940944-26-000060-index.html | 0000940944-26-000060 |
| Document: 0000940944-26-000060.txt | 0000940944-26-000060 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $212.40 | awaiting T+20 | — | $213.96 (+0.73%) |
Oct 6, 2026 21d ago | 144 | $201.49 | awaiting T+20 | — | $213.96 (+6.19%) |
Sep 24, 2026 4w ago | 8-K | $207.24 $217.56 | ▲ +4.98% | ▲ +5.40% | $213.96 (+3.24%) |
Sep 24, 2026 4w ago | Press Release | $207.24 $217.56 | ▲ +4.98% | ▲ +5.40% | $213.96 (+3.24%) |
Aug 27, 2026 8w ago | Press Release | $215.63 $197.02 | ▼ −8.63% | ▼ −8.89% | $213.96 (−0.77%) |
Aug 10, 2026 11w ago | DEFA14A | $217.97 $212.92 | ▼ −2.32% | ▼ −1.40% | $213.96 (−1.84%) |
Aug 7, 2026 11w ago | Insider Cluster | $213.76 $216.88 | ▼ −1.46% | ▼ −1.86% | $213.96 (−0.09%) |
Aug 4, 2026 12w ago | Insider Cluster | $204.57 $215.56 | ▲ +5.37% | ▲ +6.61% | $213.96 (+4.59%) |
Jul 30, 2026 12w ago | Insider Cluster | $203.58 $215.63 | ▲ +5.92% | ▲ +2.93% | $213.96 (+5.10%) |
Jul 21, 2026 14w ago | Institutional Cluster | $193.39 $218.86 | ▲ +13.17% | ▲ +10.61% | $213.96 (+10.64%) |
US Market Status
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