Darden Restaurants (NYSE:DRI) Rating Increased to Strong-Buy at Seaport Research Partners

Darden Restaurants (NYSE:DRI) was upgraded by stock analysts at Seaport Research Partners to a “strong-buy” rating in a report released on Tuesday, Zacks reports.

Several other equities research analysts also recently commented on the stock. Bank of America upped their target price on shares of Darden Restaurants from $272.00 to $276.00 and gave the company a “buy” rating in a research note on Friday, June 5th. Oppenheimer upped their price objective on shares of Darden Restaurants from $235.00 to $245.00 and gave the company an “outperform” rating in a research report on Tuesday. Argus raised their price objective on Darden Restaurants from $240.00 to $245.00 and gave the stock a “buy” rating in a research note on Tuesday, June 30th. UBS Group reiterated a “buy” rating on shares of Darden Restaurants in a report on Friday, September 11th. Finally, KeyCorp increased their price target on Darden Restaurants from $228.00 to $237.00 and gave the stock an “overweight” rating in a report on Thursday, August 27th. Eighteen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $232.00.

Darden Restaurants Price Performance

Shares of DRI opened at $208.57 on Tuesday. The stock has a market cap of $23.79 billion, a P/E ratio of 20.09, a price-to-earnings-growth ratio of 1.97 and a beta of 0.60. Darden Restaurants has a 1 year low of $169.00 and a 1 year high of $229.76. The stock’s 50-day moving average price is $210.70 and its two-hundred day moving average price is $204.65. The company has a current ratio of 0.31, a quick ratio of 0.21 and a debt-to-equity ratio of 0.74.

Darden Restaurants (NYSE:DRI) last announced its quarterly earnings results on Thursday, June 25th. The restaurant operator reported $3.66 EPS for the quarter, beating analysts’ consensus estimates of $3.63 by $0.03. The company had revenue of $3.72 billion during the quarter, compared to analysts’ expectations of $3.73 billion. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.Darden Restaurants’s revenue was up 13.7% on a year-over-year basis. During the same period in the prior year, the business posted $2.98 EPS. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, equities analysts predict that Darden Restaurants will post 11.25 earnings per share for the current year.

Insider Activity at Darden Restaurants

In other news, CEO Ricardo Cardenas sold 39,134 shares of Darden Restaurants stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $209.06, for a total transaction of $8,181,354.04. Following the completion of the sale, the chief executive officer owned 86,146 shares of the company’s stock, valued at approximately $18,009,682.76. This trade represents a 31.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Susan M. Connelly sold 9,930 shares of the business’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 completion of the sale, the senior vice president owned 4,165 shares of the company’s stock, valued at approximately $858,864.65. This trade represents a 70.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 70,185 shares of company stock valued at $14,636,984 in the last 90 days. Corporate insiders own 0.67% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Nicholas Investment Partners LP bought a new position in shares of Darden Restaurants in the 2nd quarter valued at $923,000. Integrity Alliance LLC. raised its position in Darden Restaurants by 2,139.4% in the fourth quarter. Integrity Alliance LLC. now owns 59,837 shares of the restaurant operator’s stock valued at $11,011,000 after purchasing an additional 57,165 shares during the last quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new position in Darden Restaurants in the fourth quarter valued at about $1,657,000. Northwestern Mutual Wealth Management Co. boosted its position in Darden Restaurants by 224.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 8,910 shares of the restaurant operator’s stock worth $1,640,000 after buying an additional 6,166 shares during the period. Finally, BNP Paribas Financial Markets increased its holdings in Darden Restaurants by 22.3% in the fourth quarter. BNP Paribas Financial Markets now owns 293,895 shares of the restaurant operator’s stock valued at $54,083,000 after purchasing an additional 53,549 shares during the period. Institutional investors own 93.64% of the company’s stock.

Darden Restaurants News Roundup

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

• Positive Sentiment: Oppenheimer raised its price target on Darden from $235 to $245 and maintained an “outperform” rating, implying approximately 17.5% upside from the referenced price. The firm expects Olive Garden trends to improve and Darden to reaffirm its fiscal 2027 guidance. Darden’s Earnings Trajectory Seen Improving as Olive Garden Trends Accelerate, Oppenheimer Says
• Positive Sentiment: Morgan Stanley expects Darden to exceed Wall Street’s first-quarter estimates despite a continuing drag from Olive Garden, while also forecasting that the company will reiterate its fiscal 2027 outlook. Darden to Beat First Quarter Street Estimates Despite Olive Garden Drag, Morgan Stanley Says
• Positive Sentiment: Morgan Stanley analyst coverage also points to upside potential for DRI, adding to the constructive analyst outlook ahead of earnings. Darden Restaurants Stock Price Expected to Rise, Morgan Stanley Analyst Says
• Neutral Sentiment: Options traders are pricing in roughly an 8% potential move around the September 24 earnings release, signaling elevated event risk rather than a clear directional prediction. Darden Restaurants Set to Serve Up an 8% Move After Q1 Earnings
• Neutral Sentiment: Gordon Haskett lifted its Darden price target from $225 to $230 but kept a “hold” rating, reflecting modest valuation upside alongside some caution. Gordon Haskett Adjusts Darden Restaurants Price Target

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.