Darden Restaurants (NYSE:DRI) Issues Earnings Results

Darden Restaurants (NYSE:DRI) issued its quarterly earnings data on Thursday. The restaurant operator reported $2.05 EPS for the quarter, hitting analysts’ consensus estimates of $2.05, Zacks reports. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%. Darden Restaurants updated its FY 2027 guidance to 11.100-11.350 EPS.

Darden Restaurants Price Performance

NYSE:DRI opened at $213.46 on Thursday. The firm has a market capitalization of $24.35 billion, a price-to-earnings ratio of 20.56, a P/E/G ratio of 2.01 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.21 and a current ratio of 0.31. The stock has a fifty day moving average of $211.90 and a 200 day moving average of $204.73. Darden Restaurants has a 52-week low of $169.00 and a 52-week high of $229.76.

Insider Buying and Selling

In related news, SVP Susan Connelly sold 9,930 shares of the firm’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $206.21, for a total value of $2,047,665.30. Following the sale, the senior vice president directly owned 4,165 shares of the company’s stock, valued at $858,864.65. This trade represents a 70.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider John Wilkerson sold 8,864 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $208.33, for a total transaction of $1,846,637.12. Following the transaction, the insider owned 18,794 shares in the company, valued at $3,915,354.02. The trade was a 32.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 70,185 shares of company stock valued at $14,636,984 in the last 90 days. 0.67% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

DRI has been the topic of a number of analyst reports. BMO Capital Markets reaffirmed a “market perform” rating on shares of Darden Restaurants in a report on Monday, June 22nd. UBS Group reissued a “buy” rating on shares of Darden Restaurants in a research report on Friday, September 11th. Citigroup upped their price objective on Darden Restaurants from $245.00 to $248.00 and gave the company a “buy” rating in a research note on Friday, September 11th. Oppenheimer lifted their price objective on shares of Darden Restaurants from $235.00 to $245.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 15th. Finally, Argus raised their target price on Darden Restaurants from $240.00 to $245.00 and gave the stock a “buy” rating in a research report on Tuesday, June 30th. Eighteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, Darden Restaurants currently has an average rating of “Moderate Buy” and an average price target of $232.09.

Darden Restaurants News Summary

Here are the key news stories impacting Darden Restaurants this week:

• Positive Sentiment: Darden reported fiscal 2027 first-quarter results, declared its quarterly dividend and reaffirmed its full-year outlook. The combination of ongoing profitability and shareholder returns provides reassurance ahead of the company’s broader fiscal-year performance. Darden Restaurants Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Bank of America raised its estimate for LongHorn’s first-quarter same-store sales growth to 6.5% from 4.2%, citing sustained market-share gains and stronger category trends. This suggests LongHorn remains a key growth engine for Darden. Darden sales momentum strengthens despite casual-dining slowdown
• Neutral Sentiment: Darden updated fiscal 2027 EPS guidance to $11.10–$11.35, compared with the $11.28 consensus estimate. The range broadly brackets expectations, but its $11.225 midpoint is slightly below consensus, limiting the upside surprise.
• Neutral Sentiment: The stock had already been trading above both its 50-day and 200-day moving averages, indicating relatively strong momentum but also leaving investors focused on whether the earnings report and outlook justify its valuation.
• Negative Sentiment: Analysts lowered their Olive Garden expectations amid a broader casual-dining slowdown. Since Olive Garden is a major Darden brand, weaker performance there could offset LongHorn’s market-share gains. Darden sales momentum strengthens despite casual-dining slowdown

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.