Zacks Research Has Negative Estimate for DRI Q3 Earnings

Darden Restaurants, Inc. (NYSE:DRI) – Analysts at Zacks Research reduced their Q3 2026 earnings estimates for shares of Darden Restaurants in a note issued to investors on Wednesday, December 31st. Zacks Research analyst Team now expects that the restaurant operator will earn $2.96 per share for the quarter, down from their previous estimate of $2.97. The consensus estimate for Darden Restaurants’ current full-year earnings is $9.52 per share. Zacks Research also issued estimates for Darden Restaurants’ Q4 2026 earnings at $3.55 EPS, FY2026 earnings at $10.56 EPS, Q1 2027 earnings at $2.10 EPS, Q2 2027 earnings at $2.26 EPS, Q3 2027 earnings at $3.30 EPS, Q4 2027 earnings at $3.62 EPS, FY2027 earnings at $11.29 EPS, Q1 2028 earnings at $2.16 EPS and Q2 2028 earnings at $2.62 EPS.

A number of other equities research analysts have also recently weighed in on DRI. Mizuho raised their price target on Darden Restaurants from $185.00 to $195.00 and gave the company a “neutral” rating in a report on Monday, December 22nd. Robert W. Baird decreased their price target on Darden Restaurants from $230.00 to $208.00 and set a “neutral” rating on the stock in a report on Friday, September 19th. Cowen reiterated a “hold” rating on shares of Darden Restaurants in a research report on Friday, December 19th. Citigroup cut their target price on shares of Darden Restaurants from $239.00 to $232.00 and set a “buy” rating on the stock in a research report on Wednesday, December 3rd. Finally, Morgan Stanley reduced their target price on shares of Darden Restaurants from $238.00 to $236.00 and set an “overweight” rating on the stock in a research note on Friday, December 12th. Nineteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat, Darden Restaurants presently has an average rating of “Moderate Buy” and a consensus price target of $224.29.

Darden Restaurants Stock Performance

DRI opened at $200.26 on Monday. The stock’s 50 day simple moving average is $180.87 and its 200-day simple moving average is $195.03. The stock has a market cap of $23.06 billion, a PE ratio of 20.99, a P/E/G ratio of 1.85 and a beta of 0.64. Darden Restaurants has a 1 year low of $169.00 and a 1 year high of $228.27. The company has a current ratio of 0.39, a quick ratio of 0.26 and a debt-to-equity ratio of 1.03.

Darden Restaurants (NYSE:DRI) last released its earnings results on Thursday, December 18th. The restaurant operator reported $2.08 EPS for the quarter, missing analysts’ consensus estimates of $2.10 by ($0.02). Darden Restaurants had a return on equity of 52.44% and a net margin of 8.92%.The business had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.07 billion. During the same quarter in the previous year, the firm earned $2.03 earnings per share. The firm’s revenue for the quarter was up 7.3% compared to the same quarter last year. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS.

Darden Restaurants Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, February 2nd. Investors of record on Friday, January 9th will be issued a dividend of $1.50 per share. The ex-dividend date is Friday, January 9th. This represents a $6.00 dividend on an annualized basis and a yield of 3.0%. Darden Restaurants’s payout ratio is currently 62.89%.

Institutional Investors Weigh In On Darden Restaurants

Several hedge funds have recently bought and sold shares of the company. JPMorgan Chase & Co. grew its holdings in shares of Darden Restaurants by 78.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 2,666,919 shares of the restaurant operator’s stock valued at $507,675,000 after buying an additional 1,171,890 shares during the period. Wellington Management Group LLP lifted its holdings in Darden Restaurants by 32.8% during the third quarter. Wellington Management Group LLP now owns 4,463,786 shares of the restaurant operator’s stock worth $849,726,000 after acquiring an additional 1,102,211 shares in the last quarter. Marshall Wace LLP lifted its holdings in Darden Restaurants by 820.4% during the second quarter. Marshall Wace LLP now owns 706,416 shares of the restaurant operator’s stock worth $153,977,000 after acquiring an additional 629,669 shares in the last quarter. Invesco Ltd. grew its stake in Darden Restaurants by 45.2% in the second quarter. Invesco Ltd. now owns 1,917,398 shares of the restaurant operator’s stock valued at $417,935,000 after acquiring an additional 596,863 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its stake in Darden Restaurants by 192.6% in the second quarter. Arrowstreet Capital Limited Partnership now owns 880,765 shares of the restaurant operator’s stock valued at $191,980,000 after acquiring an additional 579,759 shares during the period. 93.64% of the stock is currently owned by institutional investors and hedge funds.

Darden Restaurants Company Profile

Darden Restaurants, Inc is a multi-brand, full-service restaurant company headquartered in Orlando, Florida. The company owns and operates a portfolio of casual and fine-dining concepts that together serve millions of guests through company-owned and franchised locations. Its well-known brands include Olive Garden and LongHorn Steakhouse, alongside other dining concepts that span Italian, American, steakhouse and upscale casual formats.

Darden’s restaurants provide a range of guest-facing services including dine-in, takeout, delivery and catering, and feature menus tailored to each brand’s positioning—Italian-American fare at Olive Garden, steaks and grilled items at LongHorn, and more premium steakhouse and chef-driven offerings at its upscale concepts.