Darling Ingredients Inc.·Consumer Defensive

DAR and TSN showcase contrasting food industry models as sustainability, protein demand and operational execution shape growth paths.

Darling Ingredients (DAR) is rated Buy, supported by a visible earnings recovery, improved margins, and a compelling forward valuation versus peers. Q1 2026 delivered sharply higher EBITDA ($406.8M), gross margin expansion to 26.1%, and a return to profitability, signaling the roughest period is likely over. Core Feed and Food Ingredients segments drove margin and EBITDA gains without major volume growth, while DGD's Q1 result was boosted by a non-recurring inventory benefit.

DAR shifts focus toward cash flow, operational efficiency and balance-sheet flexibility as renewable fuels conditions improve.

DAR is benefiting from rising demand for collagen products and expanding its focus on specialty nutrition ingredients.

The average of price targets set by Wall Street analysts indicates a potential upside of 25.2% in Darling (DAR). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.

Here is how Darling Ingredients (DAR) and Fomento Economico (FMX) have performed compared to their sector so far this year.
Darling Ingredients Inc. develops, produces, and sells natural ingredients from edible and inedible bio-nutrients. The company operates through three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. It offers ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries. The company also collects and transforms various animal by-product streams into useable and specialty ingredients, such as collagen, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstock, green energy, natural casings, and hides. In addition, it recovers and converts used cooking oil and animal fats, and residual bakery products into valuable feed and fuel ingredients. Further, the company provides environmental services, including grease trap collection and disposal services to food service establishments. It primarily operates under the Sonac, Dar Pro, Rothsay, Rousselot, Nature Safe, CleanStar, Peptan, Cookie Meal, Bakery Feeds, Ecoson, and Rendac brand names in North America, Europe, China, South America, Australia, and internationally. The company was formerly known as Darling International Inc. and changed its name to Darling Ingredients Inc. in May 2014. Darling Ingredients Inc. was founded in 1882 and is headquartered in Irving, Texas.
Consumer Defensive
Packaged Foods
15,500
1994-09-09
1.07