Darden Restaurants, Inc. (NYSE:DRI) Given Average Rating of “Moderate Buy” by Analysts

Darden Restaurants, Inc. (NYSE:DRI) has earned an average recommendation of “Moderate Buy” from the twenty-seven research firms that are currently covering the company, Marketbeat Ratings reports. Nine analysts have rated the stock with a hold recommendation and eighteen have given a buy recommendation to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $232.8636.

DRI has been the topic of several research reports. Robert W. Baird upgraded Darden Restaurants from a “neutral” rating to an “outperform” rating and raised their price objective for the stock from $220.00 to $250.00 in a report on Monday, August 24th. Stephens increased their price target on Darden Restaurants from $216.00 to $220.00 and gave the stock an “equal weight” rating in a research report on Friday, September 11th. Citigroup raised their price target on Darden Restaurants from $245.00 to $248.00 and gave the company a “buy” rating in a research note on Friday, September 11th. Argus lifted their price objective on Darden Restaurants from $240.00 to $245.00 and gave the company a “buy” rating in a report on Tuesday, June 30th. Finally, Piper Sandler upped their price objective on shares of Darden Restaurants from $208.00 to $212.00 and gave the stock a “neutral” rating in a research note on Friday, June 26th.

Darden Restaurants Trading Up 0.9%

DRI stock opened at $213.30 on Friday. Darden Restaurants has a 12 month low of $169.00 and a 12 month high of $229.76. The firm’s 50-day moving average is $211.55 and its 200 day moving average is $204.68. The company has a market capitalization of $24.33 billion, a PE ratio of 20.55, a P/E/G ratio of 1.99 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.31 and a quick ratio of 0.21.

Darden Restaurants (NYSE:DRI) last released its quarterly earnings data on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.63 by $0.03. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The company had revenue of $3.72 billion during the quarter, compared to analysts’ expectations of $3.73 billion. During the same period in the previous year, the company earned $2.98 EPS. The firm’s quarterly revenue was up 13.7% on a year-over-year basis. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, research analysts anticipate that Darden Restaurants will post 11.26 EPS for the current year.

Darden Restaurants Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Friday, July 10th were issued a $1.62 dividend. The ex-dividend date was Friday, July 10th. This represents a $6.48 annualized dividend and a dividend yield of 3.0%. This is an increase from Darden Restaurants’s previous quarterly dividend of $1.50. Darden Restaurants’s dividend payout ratio (DPR) is presently 62.43%.

Insider Transactions at Darden Restaurants

In related news, CEO Ricardo Cardenas sold 39,134 shares of the business’s stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $209.06, for a total value of $8,181,354.04. Following the completion of the transaction, the chief executive officer owned 86,146 shares of the company’s stock, valued at $18,009,682.76. The trade was a 31.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Susan M. Connelly sold 2,226 shares of the stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $208.17, for a total value of $463,386.42. Following the sale, the senior vice president directly owned 4,165 shares in the company, valued at $867,028.05. This trade represents a 34.83% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 70,185 shares of company stock worth $14,636,984. Insiders own 0.67% of the company’s stock.

Institutional Trading of Darden Restaurants

Institutional investors have recently modified their holdings of the company. Bell Investment Advisors Inc purchased a new position in Darden Restaurants in the 2nd quarter worth approximately $28,000. Union Savings Bank purchased a new stake in shares of Darden Restaurants in the fourth quarter valued at approximately $28,000. BOK Financial Private Wealth Inc. acquired a new stake in shares of Darden Restaurants in the fourth quarter valued at approximately $29,000. Transamerica Financial Advisors LLC purchased a new position in Darden Restaurants during the second quarter worth approximately $34,000. Finally, HHM Wealth Advisors LLC lifted its position in Darden Restaurants by 44.8% during the first quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator’s stock worth $35,000 after buying an additional 56 shares in the last quarter. 93.64% of the stock is currently owned by institutional investors.

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.