Darden Restaurants, Inc. (NYSE:DRI) Stock Has Average Target Price of $231.87 According to Brokerages

Darden Restaurants, Inc. (NYSE:DRI) has been assigned an average rating of “Moderate Buy” from the twenty-seven brokerages that are covering the company, MarketBeat Ratings reports. Nine research analysts have rated the stock with a hold recommendation and eighteen have given a buy recommendation to the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $232.52.

Several research analysts recently commented on DRI shares. UBS Group reiterated a “buy” rating on shares of Darden Restaurants in a report on Friday, September 11th. Robert W. Baird raised Darden Restaurants from a “neutral” rating to an “outperform” rating and raised their price target for the company from $220.00 to $250.00 in a research report on Monday, August 24th. Oppenheimer lifted their price objective on Darden Restaurants from $235.00 to $245.00 and gave the stock an “outperform” rating in a research note on Tuesday, September 15th. BMO Capital Markets cut their price objective on Darden Restaurants from $225.00 to $220.00 and set a “market perform” rating for the company in a research report on Friday. Finally, Mizuho increased their target price on Darden Restaurants from $235.00 to $245.00 and gave the company an “outperform” rating in a research note on Friday.

Key Headlines Impacting Darden Restaurants

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

• Positive Sentiment: Darden reported fiscal Q1 2027 revenue of approximately $3.20 billion, up 5.1% year over year, while adjusted earnings of $2.05 per share were broadly in line with expectations. Same-restaurant sales rose 3.1% across the portfolio. Darden fiscal 2027 first-quarter results
• Positive Sentiment: Management reaffirmed fiscal 2027 adjusted EPS guidance of $11.10 to $11.35, close to the analyst consensus of $11.28, reducing the risk of a broader outlook reset. Darden also said Yard House plans to open 13 locations. Darden reaffirms fiscal 2027 guidance
• Positive Sentiment: The board declared a quarterly dividend of $1.62 per share, or $6.48 annualized, representing a yield of about 3.1%. Shareholders also backed the existing board and governance structure at the annual meeting. Darden shareholder meeting results
• Neutral Sentiment: LongHorn Steakhouse remained a relative bright spot, posting 6.2% same-store sales growth, while management continues to benefit from sales growth across its restaurant segments.
• Negative Sentiment: Revenue fell short of the roughly $3.21 billion consensus estimate, and higher food and labor costs pressured profits. Reported net income declined to about $233 million from $258 million a year earlier. Darden profit declines on higher expenses
• Negative Sentiment: Olive Garden’s same-store sales growth slowed to 1.1%, raising concerns about consumer traffic and the durability of growth at Darden’s flagship brand. The combination of the revenue miss, weaker Olive Garden momentum and margin pressure is driving the negative investor reaction despite the reaffirmed outlook. Darden stock falls as Olive Garden growth slows

Darden Restaurants Trading Down 3.2%

Shares of DRI stock opened at $206.83 on Friday. Darden Restaurants has a 12 month low of $169.00 and a 12 month high of $229.76. The company has a market cap of $23.60 billion, a PE ratio of 19.93, a price-to-earnings-growth ratio of 2.01 and a beta of 0.60. 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 business’s 50 day moving average is $212.01 and its two-hundred day moving average is $204.76.

Darden Restaurants (NYSE:DRI) last issued its quarterly earnings data on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share for the quarter, hitting analysts’ consensus estimates of $2.05. The business had revenue of $3.20 billion during the quarter, compared to analysts’ expectations of $3.21 billion. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. Darden Restaurants’s revenue for the quarter was up 5.1% on a year-over-year basis. During the same period in the previous year, the company earned $1.97 earnings per share. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. Equities analysts predict that Darden Restaurants will post 11.26 EPS for the current year.

Darden Restaurants Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 9th will be paid a $1.62 dividend. The ex-dividend date is Friday, October 9th. This represents a $6.48 annualized dividend and a dividend yield of 3.1%. Darden Restaurants’s dividend payout ratio (DPR) is presently 62.43%.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, CFO Rajesh Vennam sold 8,478 shares of the firm’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $210.00, for a total value 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 position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Laura Williamson sold 443 shares of the business’s stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $204.89, for a total transaction of $90,766.27. Following the transaction, the insider owned 5,536 shares in the company, valued at approximately $1,134,271.04. The trade was a 7.41% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 70,185 shares of company stock worth $14,636,984. 0.67% of the stock is currently owned by insiders.

Institutional Trading of Darden Restaurants

A number of institutional investors and hedge funds have recently modified their holdings of the company. Capital World Investors lifted its position in Darden Restaurants by 2.2% in the fourth quarter. Capital World Investors now owns 15,161,277 shares of the restaurant operator’s stock worth $2,790,128,000 after purchasing an additional 322,079 shares during the period. BlackRock Inc. acquired a new stake in shares of Darden Restaurants during the 2nd quarter valued at about $2,015,109,000. Bank of America Corp DE increased its stake in Darden Restaurants by 44.6% in the first quarter. Bank of America Corp DE now owns 3,212,283 shares of the restaurant operator’s stock valued at $629,736,000 after acquiring an additional 991,230 shares during the period. JPMorgan Chase & Co. increased its stake in Darden Restaurants by 9.4% in the fourth quarter. JPMorgan Chase & Co. now owns 2,918,165 shares of the restaurant operator’s stock valued at $537,001,000 after acquiring an additional 251,246 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in Darden Restaurants by 2.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,265,473 shares of the restaurant operator’s stock worth $248,083,000 after purchasing an additional 33,965 shares in the last quarter. 93.64% of the stock is currently owned by institutional investors.

About Darden Restaurants

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.