10 High Growth Food Stocks to Buy

8. Darden Restaurants, Inc. (NYSE:DRI)

Number of Hedge Funds Holders: 27

5-year Revenue CAGR: 9.90%

Darden Restaurants, Inc. (NYSE:DRI) is a key player in the North American full-service restaurant industry. It manages iconic brands, such as Olive Garden, LongHorn Steakhouse, and Yard House.

Darden Restaurants, Inc. (NYSE:DRI) reported strong results in Q2 2025 ended November 24, 2024. The company reported sales of $2.9 billion, marking a 6% year-over-year increase. Same-restaurant sales increased by 2.4%, driven by strong performances from its flagship brands, including Olive Garden, LongHorn Steakhouse, and Yard House.

Furthermore, the company’s success is reflected in a 10% increase in adjusted diluted net earnings per share, which reached $2.03 per share, backed by an adjusted EBITDA of $445 million. Olive Garden maintained strong margins of 21.4%, whereas LongHorn Steakhouse outperformed with a 7.5% same-restaurant sales growth rate, surpassing industry averages.

Moreover, a considerable step for Darden Restaurants, Inc. (NYSE:DRI) was the acquisition of Chuy’s in October 2024, adding 103 restaurants to its holdings. Looking ahead, this acquisition is expected to generate $17 million in synergies, with $2 million projected to be realized in fiscal 2025 and the remainder in 2026. The company also announced an updated proprietary point-of-sale system, designed to streamline operations and improve data analytics, demonstrating its commitment to operational efficiency.

Despite difficulties, such as the hurricanes that affected particular regions, Darden’s back-to-basics approach, emphasizing food quality, service, and atmosphere, has proven effective in maintaining customer loyalty. Sales were boosted by promotions such as Olive Garden’s extended Never-Ending Pasta Bowl and LongHorn’s emphasis on steak quality. Yard House and Cheddar’s Scratch Kitchen also used unique menu offerings and strategic pricing to maintain a steady flow of customers.

Thus, Darden Restaurants, Inc. (NYSE:DRI)’s financial position remains strong with a disciplined approach to capital allocation. The company plans $650 million in capital expenditures, demonstrating its commitment to growth and expansion. Moreover, investor sentiment has been particularly strong, as shown by the stock price’s 25.12% increase over the last six months. Accordingly, 27 hedge funds held a stake in the company as of Q4 2024, indicating confidence in its long-term prospects.