Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Darden Restaurants (NYSE:DRI) has received the distressing two-star ranking. While one-star stocks have been the worst performers, our data has shown that two-star stocks still lag the market by a significant margin and should be approached with caution; conversely, highly-rated stocks have outperformed the S&P.

With that in mind, let's take a closer look at Darden's business, and see what CAPS investors are saying about the stock right now.

Darden facts

Headquarters (founded)

Orlando, Florida (1968)

Market Cap

$3.34 billion

Industry

Restaurants

TTM Revenue

$7.08 billion

Management

CEO Clarence Otis, Jr. (since 2004)
COO Andrew Madsen (since 2004)

Restaurants

Red Lobster, Olive Garden, Bahama Breeze, LongHorn Steakhouse

Return on Equity (average, last eight quarters and most recent quarter)

28.6% and 16.7%

Competitors

Brinker International (NYSE:EAT)
DineEquity (NYSE:DIN)

CAPS members bearish on DRI also bearish on

Citigroup (NYSE:C)
General Motors (NYSE:GM)

CAPS members bullish on DRI also bullish on

Altria Group (NYSE:MO)
Google (NASDAQ:GOOG)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 54 of the 111 All-Star members who have rated Darden -- some 49% -- believe the stock will underperform the S&P 500 going forward. These bears include OtherOracleOfOMA and threepaweddog, both of whom are ranked in the top 2% of our community.

Two days ago, OtherOracleOfOMA explained why Darden is a classic value trap: "You know that "E" in the P/E ratio? Well that's going bye-bye."

In an earlier pitch from October, threepaweddog elaborates on that very bearish prediction:

Don't get me wrong, I'd eat breakfast, lunch, and dinner at Bahama Breeze if I could, but the ability of people to eat out, particularly in middle range restaurants like [Darden Restaurants], is going to be declining for the next year or two. They are in the unenviable position of being loaded up with debt, little cash, and likely declining same store sales figures. This could be one going to near zero if the economy really tanks.

What do you think about Darden, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Google is a Motley Fool Rule Breakers pick. The Fool's disclosure policy always gets a perfect score.