Darden Restaurants’ (DRI) Equal Weight Rating Reiterated at Stephens

Stephens reaffirmed their equal weight rating on shares of Darden Restaurants (NYSE:DRI) in a research note published on Friday,Benzinga reports. Stephens currently has a $220.00 price target on the restaurant operator’s stock.

DRI has been the topic of a number of other reports. Morgan Stanley lifted their price objective on Darden Restaurants from $236.00 to $255.00 and gave the company an “overweight” rating in a research report on Monday, September 14th. Argus increased their price objective on shares of Darden Restaurants from $240.00 to $245.00 and gave the company a “buy” rating in a report on Tuesday, June 30th. UBS Group reissued a “buy” rating on shares of Darden Restaurants in a report on Friday, September 11th. KeyCorp reiterated an “overweight” rating on shares of Darden Restaurants in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Darden Restaurants from $230.00 to $236.00 and gave the company a “buy” rating in a research report on Friday, June 26th. Eighteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $232.38.

Darden Restaurants Stock Performance

Shares of DRI opened at $199.42 on Friday. Darden Restaurants has a one year low of $169.00 and a one year high of $229.76. The business has a fifty day moving average of $212.04 and a 200 day moving average of $204.74. The company has a debt-to-equity ratio of 0.79, a current ratio of 0.30 and a quick ratio of 0.20. The firm has a market capitalization of $22.75 billion, a P/E ratio of 19.49, a PEG ratio of 1.88 and a beta of 0.60.

Darden Restaurants (NYSE:DRI) last announced its earnings results on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.05. The business had revenue of $3.20 billion for the quarter, compared to analysts’ expectations of $3.21 billion. Darden Restaurants had a return on equity of 58.64% and a net margin of 8.85%.The business’s revenue for the quarter was up 5.1% on a year-over-year basis. During the same period last year, the firm posted $1.97 earnings per share. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, sell-side analysts anticipate that Darden Restaurants will post 11.25 EPS for the current year.

Darden Restaurants Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 9th will be paid a dividend of $1.62 per share. This represents a $6.48 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Friday, October 9th. Darden Restaurants’s payout ratio is currently 63.34%.

Insider Transactions at Darden Restaurants

In related news, SVP Susan M. Connelly sold 9,930 shares of Darden Restaurants stock in a transaction dated 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 completion of 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 position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider John W. Wilkerson sold 8,864 shares of the business’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $208.33, for a total transaction of $1,846,637.12. Following the completion of the sale, the insider directly owned 18,794 shares of the company’s stock, valued at approximately $3,915,354.02. This trade represents a 32.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 70,185 shares of company stock valued at $14,636,984. Company insiders own 0.67% of the company’s stock.

Hedge Funds Weigh In On Darden Restaurants

A number of institutional investors have recently modified their holdings of the stock. QRG Capital Management Inc. increased its position in shares of Darden Restaurants by 881.2% during the second quarter. QRG Capital Management Inc. now owns 47,136 shares of the restaurant operator’s stock worth $9,710,000 after acquiring an additional 42,332 shares during the period. Envestnet Portfolio Solutions Inc. boosted its holdings in shares of Darden Restaurants by 118.1% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 6,122 shares of the restaurant operator’s stock valued at $1,261,000 after purchasing an additional 3,315 shares during the period. Tidal Investments LLC grew its stake in Darden Restaurants by 34.9% in the second quarter. Tidal Investments LLC now owns 26,408 shares of the restaurant operator’s stock worth $5,440,000 after purchasing an additional 6,830 shares in the last quarter. National Pension Service grew its stake in Darden Restaurants by 637.5% in the second quarter. National Pension Service now owns 249,346 shares of the restaurant operator’s stock worth $51,368,000 after purchasing an additional 215,537 shares in the last quarter. Finally, WINTON GROUP Ltd purchased a new position in Darden Restaurants during the 2nd quarter worth $1,355,000. 93.64% of the stock is owned by hedge funds and other institutional investors.

Darden Restaurants News Roundup

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

• Positive Sentiment: Fiscal 2027 first-quarter revenue rose 5.1% year over year to $3.20 billion, while blended same-restaurant sales increased 3.1%. LongHorn Steakhouse and Yard House were cited as stronger performers, and management said it continues to gain market share. Darden revenue rises but misses estimates in fiscal first quarter
• Positive Sentiment: Darden reaffirmed fiscal 2027 adjusted EPS guidance of $11.10–$11.35 and maintained its broader full-year outlook. The company also highlighted plans for 13 new Yard House locations, supporting its longer-term growth strategy. Darden reaffirms fiscal 2027 guidance
• Positive Sentiment: Darden declared a quarterly dividend of $1.62 per share, equal to $6.48 annually and an approximately 3.1% yield. Analysts at Mizuho, Bernstein, Guggenheim and BTIG remained constructive, with price targets generally above the current trading level.
• Neutral Sentiment: Shareholders approved the board and maintained the company’s existing governance structure, removing a potential source of uncertainty. Darden shareholders back board and governance status quo
• Negative Sentiment: Adjusted EPS of $2.05 was roughly in line with estimates but revenue narrowly missed forecasts of about $3.21 billion. Reported net income declined to approximately $233.4 million from $257.8 million a year earlier as higher food and labor expenses compressed profitability. Darden stock falls as Olive Garden reports slower growth
• Negative Sentiment: Olive Garden, Darden’s largest brand, delivered only 1.1% same-store sales growth, raising concerns about slowing customer traffic and consumer sensitivity in casual dining. Analysts also described the stock as fairly valued, limiting the upside from an otherwise resilient quarter. Darden is winning share but stock is fairly priced

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.