BMO Capital Markets Cuts Darden Restaurants (NYSE:DRI) Price Target to $220.00

Key Points

• BMO Capital Markets lowered Darden Restaurants’ price target to $220 from $225 while maintaining a “market perform” rating, implying 6.37% upside from the prior close. Analysts collectively rate the stock “Moderate Buy,” with a consensus target of $232.09.
• Darden’s fiscal Q1 2027 revenue rose 5.1% year over year to $3.20 billion, and EPS of $2.05 matched expectations. Management reaffirmed full-year adjusted EPS guidance of $11.10–$11.35, while same-store sales increased 3.1%.
• Despite the stable outlook, higher food and labor costs reduced net income, revenue slightly missed estimates, and Olive Garden’s same-store sales growth slowed to 1.1%. Insiders sold about $14.6 million of stock during the last quarter.

Darden Restaurants (NYSE:DRI - Get Free Report) had its price objective reduced by analysts at BMO Capital Markets from $225.00 to $220.00 in a research report issued on Friday, Benzinga reports. The firm presently has a "market perform" rating on the restaurant operator's stock. BMO Capital Markets' price objective suggests a potential upside of 6.37% from the company's previous close.

DRI has been the subject of several other research reports. Piper Sandler raised their price objective on shares of Darden Restaurants from $208.00 to $212.00 and gave the company a "neutral" rating in a research report on Friday, June 26th. Deutsche Bank Aktiengesellschaft raised their target price on shares of Darden Restaurants from $230.00 to $236.00 and gave the stock a "buy" rating in a report on Friday, June 26th. KeyCorp reaffirmed an "overweight" rating on shares of Darden Restaurants in a report on Wednesday. Evercore downgraded Darden Restaurants from an "outperform" rating to an "in-line" rating and set a $230.00 price objective for the company. in a research report on Tuesday, June 23rd. Finally, Stephens restated an "equal weight" rating and issued a $220.00 target price on shares of Darden Restaurants in a report on Friday. Eighteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, Darden Restaurants presently has a consensus rating of "Moderate Buy" and a consensus target price of $232.09.

Darden Restaurants Stock Performance

DRI opened at $206.83 on Friday. The company has a market capitalization of $23.60 billion, a price-to-earnings ratio of 19.93, a price-to-earnings-growth ratio of 2.01 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.31 and a quick ratio of 0.21. Darden Restaurants has a 1-year low of $169.00 and a 1-year high of $229.76. The business has a 50 day moving average price of $212.01 and a two-hundred day moving average price of $204.76.

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

Insiders Place Their Bets

In related news, insider Laura Williamson sold 443 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $204.89, for a total value of $90,766.27. Following the completion of the transaction, the insider owned 5,536 shares of the company's stock, valued at approximately $1,134,271.04. This trade represents a 7.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Rajesh Vennam sold 8,478 shares of the business's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $210.00, for a total transaction of $1,780,380.00. Following the sale, the chief financial officer directly owned 8,569 shares in the company, valued at approximately $1,799,490. This trade represents a 49.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 70,185 shares of company stock worth $14,636,984 in the last quarter. Corporate insiders own 0.67% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of DRI. Bell Investment Advisors Inc acquired a new stake in Darden Restaurants during the 2nd quarter worth about $28,000. Union Savings Bank acquired a new stake in shares of Darden Restaurants during the fourth quarter worth approximately $28,000. Transamerica Financial Advisors LLC purchased a new position in Darden Restaurants during the second quarter valued at approximately $34,000. HHM Wealth Advisors LLC increased its stake in Darden Restaurants by 44.8% in the 1st quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator's stock valued at $35,000 after buying an additional 56 shares during the period. Finally, Keating Financial Advisory Services Inc. acquired a new position in Darden Restaurants in the 2nd quarter valued at approximately $39,000. 93.64% of the stock is owned by institutional investors and hedge funds.

Key Stories 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

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.

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