NYSE Shariah screener · October 2026
Is Darden Restaurants, Inc. (DRI) Halal?
Darden Restaurants, Inc. · NYSE: DRI · Consumer Discretionary
The short answer
Darden Restaurants (NYSE: DRI) fails this Shariah screener: alcoholic beverages account for 10.0% of its sales, as disclosed in its FY2026 10-K, so the business fails the first screen. Its interest-bearing debt is about 10.4% of market cap (under the 33% ceiling) and its separately disclosed interest income is about 0.02% of revenue (under the 5% ceiling), so the debt and income screens both pass.
Gate 1 — Business activity: FAIL
Darden Restaurants, Inc. (NYSE: DRI), headquartered in Orlando, Florida, is a full-service restaurant company. As of May 31, 2026, it owned and operated 2,202 restaurants in the United States (Olive Garden 949; LongHorn Steakhouse 618; Cheddar’s Scratch Kitchen 184; Yard House 110; Ruth’s Chris Steak House 93; The Capital Grille 83; Chuy’s 74; Seasons 52 44; Eddie V’s 31; Bahama Breeze 13; The Capital Burger 3), with another 167 restaurants franchised (FY2026 Form 10-K, fiscal year ended May 31, 2026, filed July 24, 2026). Business-screen implication (factual): the 10-K states that “During fiscal 2026, 10.0 percent of our sales were attributable to the sale of alcoholic beverages.” Brand-level disclosure shows alcohol shares of sales of 28.9% at Yard House (described as known for “over 100 draft beer offerings”), 26.4% at Eddie V’s, 25.6% at The Capital Grille, 21.3% at Seasons 52, 19.0% at Bahama Breeze, 18.7% at Ruth’s Chris, 11.4% at Chuy’s, 8.1% at LongHorn Steakhouse, 6.4% at Cheddar’s, and 4.1% at Olive Garden. Alcohol is on this screener’s haram list, and a 10.0% company-wide alcohol revenue share is a material haram business line. Gate 1 fails. Facts only.
Gate 2 — Debt and cash: PASS
Gate 2 compares interest-bearing debt to market cap against a 33% ceiling. Darden’s FY2026 10-K consolidated balance sheet (May 31, 2026) reports short-term debt and current portion of long-term debt of $693.6M and long-term debt of $1,637.7M, for total interest-bearing debt of $2,331.3M. Operating leases ($3,722.3M noncurrent operating lease liabilities) are excluded, per this screener’s method. Finnhub market data on Oct 2, 2026 shows DRI with a market cap of about $22.48B (price $197.41, NYSE/XNYS). $2,331.3M / $22,480M = ~10.4%, under the 33% ceiling. Cash and cash equivalents were $219.5M (~1.0% of market cap). Gate 2 passes.
Gate 3 — Non-compliant income: PASS
Gate 3 compares separately disclosed interest income to revenue against a 5% ceiling. Darden’s FY2026 10-K income statement shows only “Interest, net” ($194.2M expense), but the notes break “Interest, net” into its components: interest expense $126.5M, imputed interest on finance leases $78.2M, capitalized interest $(8.4)M, and interest income $(2.1)M — a separately disclosed interest income line of $2.1M. FY2026 sales were $13,210.9M. $2.1M / $13,210.9M = ~0.02%, under the 5% ceiling. (The Q1 FY2027 10-Q had not been filed as of Oct 2, 2026; the FY2026 10-K is the most recent primary filing with the full interest breakout.) Gate 3 passes.
Key figures used
- Business: Darden Restaurants, Inc. (Orlando, FL); full-service restaurant company — 2,202 company-owned and operated U.S. restaurants as of May 31, 2026, plus 167 franchised restaurants. Brands: Olive Garden (949), LongHorn Steakhouse (618), Cheddar’s Scratch Kitchen (184), Yard House (110), Ruth’s Chris Steak House (93), The Capital Grille (83), Chuy’s (74), Seasons 52 (44), Eddie V’s (31), Bahama Breeze (13), The Capital Burger (3).
- Gate 1: alcohol is 10.0% of FY2026 company sales (“During fiscal 2026, 10.0 percent of our sales were attributable to the sale of alcoholic beverages” — 10-K). Brand-level alcohol share of sales: Yard House 28.9% (“over 100 draft beer offerings”), Eddie V’s 26.4%, The Capital Grille 25.6%, Seasons 52 21.3%, Bahama Breeze 19.0%, Ruth’s Chris 18.7%, Chuy’s 11.4%, LongHorn Steakhouse 8.1%, Cheddar’s 6.4%, Olive Garden 4.1%. Alcohol is on this screener’s haram list → FAIL.
- Gate 2: interest-bearing debt $2,331.3M (short-term debt and current portion of long-term debt $693.6M + long-term debt $1,637.7M; operating leases excluded) vs ~$22.48B market cap (Finnhub, Oct 2, 2026) = ~10.4% (ceiling 33%) → PASS; cash and cash equivalents $219.5M (~1.0% of market cap).
- Gate 3: interest income $2.1M — separately disclosed in the notes breakdown of “Interest, net” — divided by FY2026 sales $13,210.9M = ~0.02% (ceiling 5%) → PASS; “Interest, net” on the income statement is a $194.2M expense.
- Third-party screeners: Zoya covers DRI and rates it “not Shariah-compliant”; Musaffa covers DRI and classifies it “NOT HALAL” (AAOIFI methodology, Oct 2026); no ShariaPortfolio coverage of DRI was found.
Frequently asked questions
Is Darden Restaurants (DRI) stock halal?
In this screener, DRI fails: alcoholic beverages account for 10.0% of Darden’s sales, as disclosed in its FY2026 10-K, so the business does not clear the first screen. Its debt (~10.4% of market cap) and interest income (~0.02% of revenue) both clear their ceilings. This is a financial screen, not a religious ruling — consider consulting a qualified scholar for personal guidance.
Why does Darden Restaurants fail the business screen?
Darden’s FY2026 10-K states that 10.0% of company sales were attributable to alcoholic beverages, and brand-level disclosure shows alcohol shares as high as 28.9% of sales at Yard House (known for over 100 draft beer offerings), 26.4% at Eddie V’s, and 25.6% at The Capital Grille. Alcohol is on this screener’s haram list, and a 10.0% company-wide share is treated as a material haram business line, consistent with this screener’s treatment of restaurants with material alcohol or pork revenue.
What is Darden Restaurants’ debt ratio in this screener?
About 10.4%: interest-bearing debt of $2,331.3M (short-term debt and current portion of long-term debt $693.6M plus long-term debt $1,637.7M from the FY2026 10-K balance sheet; operating leases excluded) divided by a market cap of about $22.48B (Finnhub, Oct 2, 2026). That is under the 33% ceiling, so the debt screen passes. Cash and cash equivalents were $219.5M, about 1.0% of market cap.
Does Darden Restaurants earn interest income?
Yes, but very little: the FY2026 10-K notes separately disclose interest income of $2.1M within the “Interest, net” breakdown. Against FY2026 sales of $13,210.9M that is about 0.02% of revenue, well under the 5% ceiling, so the income screen passes. “Interest, net” on the income statement is overall a $194.2M expense.
What do Zoya and Musaffa say about DRI?
Both cover Darden Restaurants: Zoya rates DRI “not Shariah-compliant,” and Musaffa classifies DRI “NOT HALAL” under its AAOIFI methodology (both as of October 2026). No ShariaPortfolio coverage of DRI was found. This site’s screener is independent of those services and applies its own three-gate method.
Sources
- Darden Restaurants, Inc. — FY2026 Form 10-K (filed 2026-07-24; fiscal year ended May 31, 2026): Item 1 Business (2,202 owned restaurants; brand list; alcohol share of sales: company 10.0%, Yard House 28.9%, Eddie V’s 26.4%, Capital Grille 25.6%, Seasons 52 21.3%, Bahama Breeze 19.0%, Ruth’s Chris 18.7%, Chuy’s 11.4%, LongHorn 8.1%, Cheddar’s 6.4%, Olive Garden 4.1%), consolidated statements of earnings (sales $13,210.9M; Interest, net $194.2M), balance sheets (short-term debt and current portion of long-term debt $693.6M; long-term debt $1,637.7M; cash and cash equivalents $219.5M), notes (Interest, net breakdown: interest income $(2.1)M), MD&A (short-term debt $694.0M; long-term debt $1,689.1M excl. discounts)
- Finnhub — DRI financial market data (market cap $22.48B; price $197.41; exchange XNYS; accessed 2026-10-02)
- Zoya — Darden Restaurants (DRI) Shariah compliance page (rates DRI “not Shariah-compliant”; accessed 2026-10-02)
- Musaffa — Darden Restaurants Inc (DRI) stock page (AAOIFI methodology; classifies DRI “NOT HALAL” as of October 2026; accessed 2026-10-02)
- Kalkine Media — Darden Restaurants files fiscal Q1 2027 results via Form 8-K (quarter ended Aug 30, 2026; full 10-Q not yet filed as of Oct 2, 2026)
Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).