BTIG Research reissued their buy rating on shares of Darden Restaurants (NYSE:DRI – Free Report) in a research report sent to investors on Friday,Benzinga reports. BTIG Research currently has a $235.00 price target on the restaurant operator’s stock.
Several other equities research analysts also recently weighed in on DRI. Stephens upped their target price on shares of Darden Restaurants from $216.00 to $220.00 and gave the stock an “equal weight” rating in a research note on Friday, September 11th. KeyCorp reissued an “overweight” rating on shares of Darden Restaurants in a research report on Wednesday. Piper Sandler upped their price objective on Darden Restaurants from $208.00 to $212.00 and gave the stock a “neutral” rating in a research report on Friday, June 26th. BMO Capital Markets reiterated a “market perform” rating on shares of Darden Restaurants in a research note on Monday, June 22nd. Finally, Argus lifted their target price on Darden Restaurants from $240.00 to $245.00 and gave the company a “buy” rating in a report on Tuesday, June 30th. Eighteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $232.38.
Read Our Latest Stock Analysis on Darden Restaurants
Darden Restaurants Stock Performance
Darden Restaurants (NYSE:DRI – Get Free Report) last issued its quarterly 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 net margin of 8.85% and a return on equity of 58.64%. The business had revenue of $3.20 billion for the quarter, compared to analysts’ expectations of $3.21 billion. During the same quarter in the prior year, the company earned $1.97 earnings per share. The business’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, analysts anticipate that Darden Restaurants will post 11.25 EPS for the current year.
Darden Restaurants Announces Dividend
The company also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be paid a $1.62 dividend. The ex-dividend date is Friday, October 9th. This represents a $6.48 dividend on an annualized basis and a yield of 3.2%. Darden Restaurants’s payout ratio is currently 63.34%.
Insider Activity at Darden Restaurants
In other news, CFO Rajesh Vennam sold 8,478 shares of the firm’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $210.00, for a total value of $1,780,380.00. Following the sale, the chief financial officer directly owned 8,569 shares in the company, valued at approximately $1,799,490. This trade represents a 49.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Susan M. Connelly sold 9,930 shares of Darden Restaurants stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $206.21, for a total transaction of $2,047,665.30. Following the sale, the senior vice president directly owned 4,165 shares of the company’s stock, valued at approximately $858,864.65. This trade represents a 70.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 70,185 shares of company stock worth $14,636,984 over the last ninety days. 0.67% of the stock is currently owned by insiders.
Hedge Funds Weigh In On Darden Restaurants
A number of institutional investors and hedge funds have recently modified their holdings of DRI. Nicholas Investment Partners LP purchased a new stake in Darden Restaurants during the 2nd quarter worth about $923,000. Empowered Funds LLC acquired a new position in shares of Darden Restaurants during the 2nd quarter worth about $3,313,000. BNP Paribas Financial Markets increased its holdings in shares of Darden Restaurants by 22.3% in the 4th quarter. BNP Paribas Financial Markets now owns 293,895 shares of the restaurant operator’s stock valued at $54,083,000 after acquiring an additional 53,549 shares during the last quarter. Eurizon Capital SGR S.p.A. purchased a new position in shares of Darden Restaurants in the 4th quarter valued at about $44,190,000. Finally, Canada Pension Plan Investment Board acquired a new stake in shares of Darden Restaurants during the 2nd quarter worth about $661,000. Institutional investors and hedge funds own 93.64% of the company’s stock.
Trending Headlines about Darden Restaurants
Here are the key news stories impacting Darden Restaurants this week:
- Positive Sentiment: Fiscal 2027 first-quarter revenue rose 5.1% year over year to $3.20 billion, while blended same-restaurant sales increased 3.1%. LongHorn Steakhouse and Yard House were cited as stronger performers, and management said it continues to gain market share. Darden revenue rises but misses estimates in fiscal first quarter
- Positive Sentiment: Darden reaffirmed fiscal 2027 adjusted EPS guidance of $11.10–$11.35 and maintained its broader full-year outlook. The company also highlighted plans for 13 new Yard House locations, supporting its longer-term growth strategy. Darden reaffirms fiscal 2027 guidance
- Positive Sentiment: Darden declared a quarterly dividend of $1.62 per share, equal to $6.48 annually and an approximately 3.1% yield. Analysts at Mizuho, Bernstein, Guggenheim and BTIG remained constructive, with price 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. Darden shareholders back board and governance status quo
- Negative Sentiment: Adjusted EPS of $2.05 was roughly in line with estimates but revenue narrowly missed forecasts of about $3.21 billion. Reported net income declined to approximately $233.4 million from $257.8 million a year earlier as higher food and labor expenses compressed profitability. Darden stock falls as Olive Garden reports slower growth
- Negative Sentiment: Olive Garden, Darden’s largest brand, delivered only 1.1% same-store sales growth, raising concerns about slowing customer traffic and consumer sensitivity in casual dining. Analysts also described the stock as fairly valued, limiting the upside from an otherwise resilient quarter. Darden is winning share but stock is fairly priced
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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