Darden Restaurants (NYSE:DRI – Get Free Report) had its target price dropped by Citigroup from $248.00 to $247.00 in a note issued to investors on Friday, Benzinga reports. The brokerage presently has a “buy” rating on the restaurant operator’s stock. Citigroup’s price target would suggest a potential upside of 22.89% from the company’s previous close.
Other equities research analysts have also issued reports about the company. Weiss Ratings upgraded Darden Restaurants from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, September 17th. Robert W. Baird upgraded Darden Restaurants from a “neutral” rating to an “outperform” rating and increased their price objective for the stock from $220.00 to $250.00 in a report on Monday, August 24th. Argus raised their price objective on Darden Restaurants from $240.00 to $245.00 and gave the company a “buy” rating in a research report on Tuesday, June 30th. BTIG Research reaffirmed a “buy” rating and issued a $235.00 target price on shares of Darden Restaurants in a research report on Friday. Finally, KeyCorp reiterated an “overweight” rating on shares of Darden Restaurants in a research note on Wednesday. Eighteen analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $232.38.
Read Our Latest Stock Report on DRI
Darden Restaurants Trading Down 3.0%
Darden Restaurants (NYSE:DRI – Get Free Report) last posted its quarterly earnings data on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share for the quarter, meeting the consensus estimate of $2.05. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The business had revenue of $3.20 billion for the quarter, compared to analysts’ expectations of $3.21 billion. During the same period in the previous year, the firm posted $1.97 EPS. The business’s 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. Equities research analysts predict that Darden Restaurants will post 11.26 earnings per share for the current fiscal year.
Insider Activity
In other Darden Restaurants news, insider John W. Wilkerson sold 8,864 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $208.33, for a total value of $1,846,637.12. Following the completion of the sale, the insider owned 18,794 shares of the company’s stock, valued at approximately $3,915,354.02. The trade was a 32.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Susan M. Connelly sold 9,930 shares of Darden Restaurants stock in a transaction that occurred 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 completion of 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 position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 70,185 shares of company stock valued at $14,636,984 over the last three months. Corporate insiders own 0.67% of the company’s stock.
Hedge Funds Weigh In On Darden Restaurants
Several hedge funds and other institutional investors have recently modified their holdings of the company. Union Savings Bank purchased a new position in shares of Darden Restaurants in the 4th quarter worth $28,000. Bell Investment Advisors Inc purchased a new stake in Darden Restaurants during the second quarter valued at $28,000. Transamerica Financial Advisors LLC purchased a new stake in Darden Restaurants during the second quarter valued at $34,000. HHM Wealth Advisors LLC lifted its holdings in Darden Restaurants by 44.8% in the first quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator’s stock valued at $35,000 after acquiring an additional 56 shares during the period. Finally, Keating Financial Advisory Services Inc. bought a new position in Darden Restaurants in the second quarter valued at about $39,000. 93.64% of the stock is owned by institutional investors.
Key Headlines Impacting Darden Restaurants
Here are the key news stories impacting Darden Restaurants this week:
- Positive Sentiment: Analyst support remains strong: Mizuho raised its price target to $245 and assigned an “outperform” rating, while Guggenheim and BTIG reaffirmed “buy” ratings with $235 targets. Bernstein also maintained a “buy” rating and a $230 target, citing resilient operating trends and diversified concepts. Bernstein analyst rating
- Positive Sentiment: Darden reaffirmed fiscal 2027 adjusted EPS guidance of $11.10 to $11.35, broadly consistent with analyst expectations, and continued to point to sales growth, share repurchases and stable capital returns. Darden guidance and Yard House expansion
- Positive Sentiment: The company declared a quarterly dividend of $1.62 per share, or $6.48 annualized, representing a yield of roughly 3.1% based on the cited share price. Yard House also plans 13 openings, supporting longer-term unit growth.
- Neutral Sentiment: Analyst views were mixed: Stephens reiterated “equal weight” with a $220 target, while BMO lowered its target to $220 and maintained “market perform.” TD Cowen also kept a “hold” rating with a $215 target.
- Neutral Sentiment: Shareholders elected the board and approved the existing governance structure, removing a potential source of uncertainty but providing no immediate strategic change. Darden shareholder meeting
- Negative Sentiment: Revenue increased 5.1% year over year to $3.20 billion but fell slightly short of the roughly $3.21 billion consensus. Adjusted EPS of $2.05 was reported as meeting some estimates, though other data providers characterized it as a minor miss versus $2.06 expectations. CNBC Darden earnings report
- Negative Sentiment: Profitability weakened as higher food and labor costs pushed reported net income lower year over year. Portfolio same-restaurant sales rose 3.1%, but Olive Garden growth slowed to 1.1%, overshadowing stronger 6.2% growth at LongHorn Steakhouse.
Darden Restaurants Company Profile
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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