Darden Restaurants (NYSE:DRI – Get Free Report)‘s stock had its “equal weight” rating reaffirmed by investment analysts at Stephens in a research report issued on Friday, Benzinga reports. They presently have a $220.00 price objective on the restaurant operator’s stock. Stephens’ target price suggests a potential upside of 8.77% from the stock’s current price.
Other equities analysts have also issued reports about the stock. UBS Group reissued a “buy” rating on shares of Darden Restaurants in a report on Friday, September 11th. Robert W. Baird raised shares of Darden Restaurants from a “neutral” rating to an “outperform” rating and lifted their price objective for the company from $220.00 to $250.00 in a research note on Monday, August 24th. Argus boosted their price objective on shares of Darden Restaurants from $240.00 to $245.00 and gave the company a “buy” rating in a research report on Tuesday, June 30th. Deutsche Bank Aktiengesellschaft upped their target price on Darden Restaurants from $230.00 to $236.00 and gave the stock a “buy” rating in a research note on Friday, June 26th. Finally, TD Cowen reaffirmed a “hold” rating and issued a $215.00 target price on shares of Darden Restaurants in a report on Thursday. Eighteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $232.38.
Read Our Latest Stock Analysis on Darden Restaurants
Darden Restaurants Price Performance
Darden Restaurants (NYSE:DRI – Get Free Report) last released its earnings results on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.05. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The company had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.21 billion. During the same period in the prior year, the firm posted $1.97 EPS. Darden Restaurants’s quarterly revenue was up 5.1% on a year-over-year basis. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, equities research analysts expect that Darden Restaurants will post 11.26 earnings per share for the current fiscal year.
Insider Activity at Darden Restaurants
In other news, CFO Rajesh Vennam sold 8,478 shares of Darden Restaurants stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $210.00, for a total transaction of $1,780,380.00. Following the sale, the chief financial officer directly owned 8,569 shares of the company’s stock, valued at approximately $1,799,490. This trade represents a 49.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Laura B. Williamson sold 443 shares of the business’s stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $204.89, for a total value of $90,766.27. Following the sale, the insider owned 5,536 shares in the company, valued at approximately $1,134,271.04. This trade represents a 7.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 70,185 shares of company stock worth $14,636,984 over the last 90 days. 0.67% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On Darden Restaurants
Several hedge funds have recently added to or reduced their stakes in DRI. BlackRock Inc. acquired a new stake in Darden Restaurants during the 2nd quarter valued at approximately $2,015,109,000. Bank of America Corp DE bought a new stake in shares of Darden Restaurants in the 2nd quarter valued at $651,813,000. Bank of New York Mellon Corp bought a new stake in shares of Darden Restaurants in the 2nd quarter valued at $204,099,000. Norges Bank acquired a new stake in shares of Darden Restaurants during the fourth quarter worth $144,483,000. Finally, Legal & General Group Plc bought a new position in Darden Restaurants during the second quarter worth $118,824,000. 93.64% of the stock is currently owned by institutional investors and hedge funds.
More Darden Restaurants News
Here are the key news stories impacting Darden Restaurants this week:
- Positive Sentiment: Darden reported revenue of $3.20 billion, up 5.1% year over year, while blended same-restaurant sales increased 3.1%. LongHorn Steakhouse and Yard House were key outperformers, helping offset more modest Olive Garden growth. Darden revenue rises but misses estimates in fiscal first quarter
- Positive Sentiment: Management reaffirmed fiscal 2027 adjusted EPS guidance of $11.10–$11.35 and maintained its broader outlook, suggesting the company views the earnings shortfall as manageable. Darden fiscal 2027 first-quarter results
- Positive Sentiment: Darden declared a quarterly dividend of $1.62 per share, equivalent to $6.48 annually and an approximately 3.1% yield. Analysts at Mizuho, Citi, Guggenheim, BTIG and Bernstein retained positive ratings, with targets generally above the current trading level.
- Neutral Sentiment: Shareholders approved the board and maintained the company’s existing governance structure, removing a potential source of uncertainty but providing little immediate earnings impact. Darden shareholders back board and governance status quo
- Negative Sentiment: Quarterly revenue of $3.20 billion fell short of the roughly $3.21 billion consensus estimate, while adjusted EPS of $2.05 was at best in line and slightly below some estimates. Darden stock falls as Olive Garden reports slower growth
- Negative Sentiment: Net income declined to $233.4 million from $257.8 million a year earlier as food, labor and other operating expenses pressured margins. Olive Garden same-restaurant sales rose only 1.1%, raising concerns about consumer traffic and the company’s largest brand. Darden profit slips on higher expenses
- Negative Sentiment: Some analysts characterized DRI as fairly valued, with underwhelming growth prospects amid macroeconomic and inflationary pressures. BMO lowered its target to $220 and Stephens maintained an equal-weight view, limiting the market’s enthusiasm despite the broader analyst support.
About Darden Restaurants
Darden Restaurants, Inc (NYSE: DRI) is a full-service restaurant company headquartered in Orlando, Florida. It operates and franchises a portfolio of dining brands serving a range of cuisines, price points and occasions, with restaurants primarily located in the United States and select international markets.
Its restaurant portfolio includes Olive Garden, an Italian-American dining chain; LongHorn Steakhouse; Cheddar’s Scratch Kitchen; Yard House; The Capital Grille; Seasons 52; Bahama Breeze; Eddie V’s; Ruth’s Chris Steak House; and Chuy’s.
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