Darden Restaurants, Inc. (NYSE:DRI) Sees Large Increase in Short Interest

Darden Restaurants, Inc. (NYSE:DRI) saw a significant growth in short interest in the month of December. As of December 31st, there was short interest totaling 5,391,787 shares, a growth of 45.2% from the December 15th total of 3,713,922 shares. Currently, 4.7% of the company’s stock are sold short. Based on an average daily trading volume, of 2,068,266 shares, the short-interest ratio is presently 2.6 days. Based on an average daily trading volume, of 2,068,266 shares, the short-interest ratio is presently 2.6 days. Currently, 4.7% of the company’s stock are sold short.

Darden Restaurants Stock Performance

NYSE DRI traded up $0.63 on Friday, reaching $214.96. The stock had a trading volume of 1,882,207 shares, compared to its average volume of 1,667,662. The company has a debt-to-equity ratio of 1.03, a current ratio of 0.39 and a quick ratio of 0.26. The company has a market cap of $24.75 billion, a P/E ratio of 22.53, a price-to-earnings-growth ratio of 2.06 and a beta of 0.64. The firm has a fifty day moving average of $185.35 and a two-hundred day moving average of $194.39. Darden Restaurants has a 1-year low of $169.00 and a 1-year high of $228.27.

Darden Restaurants (NYSE:DRI) last announced its earnings results on Thursday, December 18th. The restaurant operator reported $2.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.10 by ($0.02). Darden Restaurants had a net margin of 8.92% and a return on equity of 52.44%. The business had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.07 billion. During the same period in the previous year, the firm posted $2.03 EPS. The company’s revenue 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. On average, equities research analysts anticipate that Darden Restaurants will post 9.52 EPS for the current year.

Darden Restaurants Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, February 2nd. Stockholders of record on Friday, January 9th will be given a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Friday, January 9th. Darden Restaurants’s dividend payout ratio is presently 62.89%.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. Cowen reiterated a “hold” rating on shares of Darden Restaurants in a report on Friday, December 19th. Stephens reiterated an “equal weight” rating and set a $205.00 target price on shares of Darden Restaurants in a research note on Friday, December 19th. JPMorgan Chase & Co. decreased their target price on Darden Restaurants from $240.00 to $230.00 and set an “overweight” rating on the stock in a report on Monday, October 6th. Guggenheim cut their price target on Darden Restaurants from $235.00 to $230.00 and set a “buy” rating for the company in a report on Wednesday, December 17th. Finally, Raymond James Financial reaffirmed an “outperform” rating on shares of Darden Restaurants in a research report on Friday, December 19th. Nineteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $223.00.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, SVP Susan M. Connelly sold 2,635 shares of Darden Restaurants stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $207.36, for a total value of $546,393.60. Following the sale, the senior vice president directly owned 4,098 shares in the company, valued at approximately $849,761.28. The trade was a 39.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Todd Burrowes sold 7,103 shares of Darden Restaurants stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $207.12, for a total value of $1,471,173.36. Following the completion of the sale, the insider directly owned 44,252 shares in the company, valued at approximately $9,165,474.24. This represents a 13.83% decrease in their position. The SEC filing for this sale provides additional information. 0.49% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. MassMutual Private Wealth & Trust FSB increased its holdings in Darden Restaurants by 75.4% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 893 shares of the restaurant operator’s stock valued at $195,000 after buying an additional 384 shares during the period. Pallas Capital Advisors LLC boosted its position in shares of Darden Restaurants by 17.0% during the 2nd quarter. Pallas Capital Advisors LLC now owns 2,328 shares of the restaurant operator’s stock worth $507,000 after acquiring an additional 338 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd increased its stake in Darden Restaurants by 7.8% in the second quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 51,376 shares of the restaurant operator’s stock valued at $11,198,000 after acquiring an additional 3,719 shares during the last quarter. Wedmont Private Capital increased its stake in Darden Restaurants by 5.4% in the second quarter. Wedmont Private Capital now owns 1,178 shares of the restaurant operator’s stock valued at $254,000 after acquiring an additional 60 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC raised its position in Darden Restaurants by 236.0% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 51,169 shares of the restaurant operator’s stock valued at $11,271,000 after purchasing an additional 35,939 shares in the last quarter. Institutional investors and hedge funds own 93.64% of the company’s stock.

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.