California State Teachers Retirement System Trims Stock Position in Darden Restaurants, Inc. $DRI

California State Teachers Retirement System reduced its stake in shares of Darden Restaurants, Inc. (NYSE:DRI) by 3.6% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 139,335 shares of the restaurant operator’s stock after selling 5,259 shares during the period. California State Teachers Retirement System’s holdings in Darden Restaurants were worth $27,315,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of the stock. Torren Management LLC acquired a new position in Darden Restaurants during the fourth quarter valued at approximately $26,000. Thurston Springer Miller Herd & Titak Inc. grew its stake in Darden Restaurants by 926.7% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator’s stock worth $28,000 after buying an additional 139 shares during the period. Union Savings Bank acquired a new stake in shares of Darden Restaurants in the fourth quarter worth $28,000. BOK Financial Private Wealth Inc. acquired a new stake in shares of Darden Restaurants in the fourth quarter worth $29,000. Finally, DV Equities LLC acquired a new stake in shares of Darden Restaurants in the fourth quarter worth $30,000. 93.64% of the stock is owned by institutional investors and hedge funds.

Darden Restaurants Trading Down 1.5%

NYSE DRI opened at $203.97 on Friday. Darden Restaurants, Inc. has a 12 month low of $169.00 and a 12 month high of $220.65. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.31 and a quick ratio of 0.21. The company has a market capitalization of $23.27 billion, a price-to-earnings ratio of 19.65, a price-to-earnings-growth ratio of 2.03 and a beta of 0.60. The company’s fifty day moving average price is $203.74 and its two-hundred day moving average price is $203.19.

Darden Restaurants (NYSE:DRI) last issued its earnings results on Thursday, June 25th. The restaurant operator reported $3.66 EPS for the quarter, topping the consensus estimate of $3.63 by $0.03. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The company had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.73 billion. During the same quarter last year, the firm earned $2.98 EPS. The business’s 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. As a group, research analysts predict that Darden Restaurants, Inc. will post 11.28 earnings per share for the current fiscal year.

Darden Restaurants Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be paid a dividend of $1.62 per share. This represents a $6.48 annualized dividend and a yield of 3.2%. This is a boost from Darden Restaurants’s previous quarterly dividend of $1.50. The ex-dividend date is Friday, July 10th. Darden Restaurants’s dividend payout ratio (DPR) is 62.43%.

Insiders Place Their Bets

In other Darden Restaurants news, SVP Susan M. Connelly sold 9,930 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $206.21, for a total transaction of $2,047,665.30. Following the sale, the senior vice president directly owned 4,165 shares of the company’s stock, valued at approximately $858,864.65. This represents a 70.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Rajesh Vennam sold 8,478 shares of the stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $210.00, for a total transaction of $1,780,380.00. Following the sale, the chief financial officer directly owned 8,569 shares in the company, valued at $1,799,490. This trade represents a 49.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 59,768 shares of company stock valued at $12,472,786 over the last 90 days. 0.49% of the stock is owned by company insiders.

Key Headlines Impacting Darden Restaurants

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

• Positive Sentiment: Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $228.88. Deutsche Bank, Guggenheim, Stephens and Bank of America recently raised their price targets, signaling continued confidence in Darden’s longer-term growth prospects. Darden Receives Moderate Buy Recommendation
• Positive Sentiment: Darden’s latest quarterly results showed adjusted earnings of $3.66 per share, ahead of the $3.63 consensus estimate, while revenue increased 13.7% year over year to $3.72 billion. The company also reaffirmed fiscal 2027 earnings guidance of $11.10 to $11.35 per share. Darden Results Analysis
• Positive Sentiment: Darden increased its quarterly dividend to $1.62 from $1.50, bringing the annualized payout to $6.48 and the yield to approximately 3.1%. The higher shareholder return may support the stock’s income appeal. Darden Dividend Increase
• Neutral Sentiment: LongHorn Steakhouse reportedly posted 9.5% sales growth, but Olive Garden lagged, underscoring uneven performance across Darden’s brands. This leaves investors assessing whether higher-growth concepts can offset softness at the company’s largest chain. Darden Brand Performance
• Negative Sentiment: CEO Ricardo Cardenas sold 39,134 shares for approximately $8.2 million after exercising options, reducing his direct holdings by about 31%. CFO Rajesh Vennam sold 8,478 shares worth about $1.8 million, cutting his direct stake nearly in half, while SVP Susan Connelly sold 2,226 shares. The cluster of executive sales is likely weighing on near-term sentiment, although the CEO’s transaction was tied to an option exercise. Darden Insider Sales
• Negative Sentiment: Potential beef-cost inflation and cautious consumer spending remain risks to restaurant margins and traffic, particularly if price increases pressure demand at Olive Garden and other value-oriented concepts. Darden CFO Sale and Beef Inflation

Analyst Ratings Changes

Several equities analysts recently weighed in on the stock. Citigroup lifted their target price on shares of Darden Restaurants from $238.00 to $245.00 and gave the company a “buy” rating in a report on Monday, June 15th. Stephens increased their price target on Darden Restaurants from $210.00 to $216.00 and gave the company an “equal weight” rating in a report on Friday, June 26th. BTIG Research raised their price objective on Darden Restaurants from $225.00 to $235.00 and gave the company a “buy” rating in a research report on Friday, June 26th. Robert W. Baird raised their price objective on Darden Restaurants from $210.00 to $220.00 and gave the company a “neutral” rating in a research report on Friday, June 26th. Finally, Piper Sandler boosted their price objective on Darden Restaurants from $208.00 to $212.00 and gave the stock a “neutral” rating in a research note on Friday, June 26th. Seventeen investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, Darden Restaurants has an average rating of “Moderate Buy” and an average price target of $228.88.

About Darden Restaurants

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.