Zacks Research Issues Pessimistic Forecast for DRI Earnings

Darden Restaurants, Inc. (NYSE:DRI) – Research analysts at Zacks Research decreased their Q1 2027 EPS estimates for shares of Darden Restaurants in a research note issued on Thursday, July 9th. Zacks Research analyst Team now anticipates that the restaurant operator will post earnings per share of $2.07 for the quarter, down from their prior estimate of $2.08. The consensus estimate for Darden Restaurants’ current full-year earnings is $11.29 per share. Zacks Research also issued estimates for Darden Restaurants’ Q2 2027 earnings at $2.22 EPS, Q3 2027 earnings at $3.18 EPS, Q4 2027 earnings at $3.76 EPS, FY2027 earnings at $11.24 EPS, Q1 2028 earnings at $2.30 EPS, Q2 2028 earnings at $2.51 EPS, Q3 2028 earnings at $3.56 EPS, Q4 2028 earnings at $3.80 EPS, FY2028 earnings at $12.17 EPS and FY2029 earnings at $13.19 EPS.

A number of other analysts have also recently weighed in on DRI. Deutsche Bank Aktiengesellschaft increased their price target on Darden Restaurants from $230.00 to $236.00 and gave the stock a “buy” rating in a research report on Friday, June 26th. KeyCorp increased their target price on Darden Restaurants from $226.00 to $228.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 27th. Wells Fargo & Company raised their target price on Darden Restaurants from $200.00 to $210.00 and gave the company an “equal weight” rating in a research note on Friday, March 20th. BMO Capital Markets reissued a “market perform” rating on shares of Darden Restaurants in a report on Monday, June 22nd. Finally, Bank of America upped their price target on shares of Darden Restaurants from $272.00 to $276.00 and gave the stock a “buy” rating in a research report on Friday, June 5th. Seventeen analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, Darden Restaurants has an average rating of “Moderate Buy” and a consensus target price of $229.32.

Darden Restaurants Stock Performance

Shares of NYSE DRI opened at $202.00 on Friday. The company has a quick ratio of 0.21, a current ratio of 0.31 and a debt-to-equity ratio of 0.74. The firm’s 50-day moving average price is $202.62 and its two-hundred day moving average price is $202.30. Darden Restaurants has a 52-week low of $169.00 and a 52-week high of $220.65. The stock has a market capitalization of $23.14 billion, a P/E ratio of 19.46, a P/E/G ratio of 2.00 and a beta of 0.60.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings results on Thursday, June 25th. The restaurant operator reported $3.66 EPS for the quarter, beating the consensus estimate of $3.63 by $0.03. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The business had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.73 billion. During the same period in the previous year, the business posted $2.98 EPS. The company’s quarterly 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.

Darden Restaurants Increases Dividend

The business 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 is an increase from Darden Restaurants’s previous quarterly dividend of $1.50. This represents a $6.48 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Friday, July 10th. Darden Restaurants’s dividend payout ratio (DPR) is presently 57.80%.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, SVP Douglas J. Milanes sold 3,620 shares of the firm’s stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $202.16, for a total transaction of $731,819.20. Following the transaction, the senior vice president owned 274 shares of the company’s stock, valued at approximately $55,391.84. This trade represents a 92.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Susan M. Connelly sold 9,930 shares of the business’s stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $206.21, for a total transaction of $2,047,665.30. Following the sale, the senior vice president owned 4,165 shares in the company, valued at $858,864.65. This trade represents a 70.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.49% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Torren Management LLC bought a new stake in Darden Restaurants during the fourth quarter worth approximately $26,000. Union Savings Bank bought a new position in Darden Restaurants during the 4th quarter valued at $28,000. Thurston Springer Miller Herd & Titak Inc. boosted its stake in Darden Restaurants by 926.7% during the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator’s stock valued at $28,000 after purchasing an additional 139 shares in the last quarter. BOK Financial Private Wealth Inc. acquired a new position in shares of Darden Restaurants during the 4th quarter valued at $29,000. Finally, DV Equities LLC acquired a new position in shares of Darden Restaurants during the 4th quarter valued at $30,000. Institutional investors and hedge funds own 93.64% of the company’s stock.

Key Stories Impacting Darden Restaurants

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

• Positive Sentiment: Darden’s recent earnings beat, higher revenue, and dividend increase continue to support the stock. Darden Restaurants Has the Growth and Cash Flow to Hit New Highs
• Neutral Sentiment: Zacks Research made small upward revisions to some longer-term EPS estimates, including Q1 2028, Q2 2028, and Q3 2028, partially offsetting the negative forecast changes.
• Negative Sentiment: Zacks Research lowered several forward EPS estimates, including FY2027, FY2028, and Q4 2028, which may weigh on sentiment toward Darden Restaurants (NYSE: DRI).
• Negative Sentiment: Recent insider selling by SVP Susan Connelly may add a small amount of caution for investors. Susan Connelly Sells 9,930 Shares of Darden Restaurants (NYSE:DRI) 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.