Darden Restaurants (NYSE:DRI) Releases FY 2027 Earnings Guidance

Darden Restaurants (NYSE:DRI) issued an update on its FY 2027 earnings guidance on Thursday. The company provided EPS guidance of 11.100-11.350 for the period, compared to the consensus estimate of 11.380. The company issued revenue guidance of $13.6 billion-$13.8 billion, compared to the consensus revenue estimate of $13.7 billion.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Barclays upped their price target on shares of Darden Restaurants from $227.00 to $232.00 and gave the company an “overweight” rating in a report on Friday, March 20th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Darden Restaurants in a report on Friday, March 13th. Deutsche Bank Aktiengesellschaft raised their price target on Darden Restaurants from $222.00 to $230.00 and gave the stock a “buy” rating in a research note on Friday, March 20th. Guggenheim upped their price objective on Darden Restaurants from $230.00 to $235.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, Stephens reaffirmed an “equal weight” rating and issued a $210.00 price target on shares of Darden Restaurants in a research note on Thursday, June 18th. Seventeen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, Darden Restaurants currently has a consensus rating of “Moderate Buy” and a consensus target price of $227.46.

Darden Restaurants Stock Down 0.4%

NYSE:DRI opened at $212.69 on Friday. Darden Restaurants has a 1-year low of $169.00 and a 1-year high of $222.56. The company has a 50-day moving average of $201.60 and a 200 day moving average of $200.89. The firm has a market cap of $24.36 billion, a PE ratio of 22.51, a price-to-earnings-growth ratio of 1.91 and a beta of 0.60. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.39 and a quick ratio of 0.25.

Darden Restaurants (NYSE:DRI) last posted its 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. Darden Restaurants had a net margin of 8.66% and a return on equity of 53.54%. The business had revenue of $3.72 billion for the quarter, compared to the consensus estimate of $3.73 billion. During the same quarter last year, the firm posted $2.98 EPS. The company’s revenue for the quarter 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 anticipate that Darden Restaurants will post 10.62 EPS for the current fiscal year.

Darden Restaurants Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be issued a dividend of $1.62 per share. The ex-dividend date of this dividend is Friday, July 10th. This is a positive change from Darden Restaurants’s previous quarterly dividend of $1.50. This represents a $6.48 annualized dividend and a yield of 3.0%. Darden Restaurants’s dividend payout ratio is 63.49%.

Insiders Place Their Bets

In related news, SVP Douglas J. Milanes sold 3,620 shares of the firm’s stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $202.16, for a total transaction of $731,819.20. Following the sale, the senior vice president owned 274 shares of the company’s stock, valued at $55,391.84. This trade represents a 92.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Lindsay L. Koren sold 300 shares of Darden Restaurants stock in a transaction dated Tuesday, April 7th. The shares were sold at an average price of $194.32, for a total value of $58,296.00. Following the completion of the transaction, the senior vice president owned 1,617 shares in the company, valued at $314,215.44. This trade represents a 15.65% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.49% of the stock is owned by corporate insiders.

Darden Restaurants News Summary

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

• Positive Sentiment: Darden raised its quarterly dividend to $1.62 per share, an 8% increase, signaling confidence in cash flow and shareholder returns. Article Title
• Positive Sentiment: The board authorized a new $1.5 billion share repurchase program, which should help support earnings per share over time. Article Title
• Positive Sentiment: Results were driven by brand strength, especially LongHorn Steakhouse, and management highlighted comparable-sales momentum and record-year performance. Article Title
• Neutral Sentiment: Darden’s revenue missed expectations by a small margin, and some commentary noted weaker-than-expected same-store sales at Olive Garden and fine-dining locations. Article Title
• Negative Sentiment: FY2027 EPS guidance of $11.10 to $11.35 came in below the Street’s estimate, suggesting margin or cost pressure ahead. Article Title

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. DV Equities LLC purchased a new position in Darden Restaurants in the fourth quarter worth $30,000. Zions Bancorporation National Association UT grew its stake in Darden Restaurants by 63.3% during the 4th quarter. Zions Bancorporation National Association UT now owns 196 shares of the restaurant operator’s stock worth $36,000 after buying an additional 76 shares during the last quarter. Wealth Watch Advisors INC purchased a new position in Darden Restaurants during the 3rd quarter worth $39,000. Garton & Associates Financial Advisors LLC acquired a new position in Darden Restaurants during the 4th quarter valued at about $42,000. Finally, Triumph Capital Management acquired a new position in Darden Restaurants during the 3rd quarter valued at about $48,000. Institutional investors own 93.64% of the company’s stock.

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.