Citigroup Issues Positive Forecast for Darden Restaurants (NYSE:DRI) Stock Price

Key Points

• Citigroup raised Darden Restaurants’ price target from $245 to $248 and maintained a “buy” rating, implying 18.51% upside from the prior close. Analysts overall assign the stock a “Moderate Buy” consensus, with a $230.79 average target.
• Darden reported quarterly EPS of $3.66, slightly above the $3.63 consensus, while revenue rose 13.7% year over year to $3.72 billion. The company issued fiscal 2027 EPS guidance of $11.10–$11.35.
• DRI shares traded at $209.26, within a 12-month range of $169.00 to $229.76. Insiders have sold approximately $14.6 million worth of stock over the past 90 days, while institutional investors own 93.64% of the company.

Darden Restaurants (NYSE:DRI - Get Free Report) had its price objective boosted by equities research analysts at Citigroup from $245.00 to $248.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the restaurant operator's stock. Citigroup's price target would suggest a potential upside of 18.51% from the stock's previous close.

Other analysts have also recently issued research reports about the stock. Guggenheim raised their price objective on shares of Darden Restaurants from $230.00 to $235.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. BTIG Research increased their target price on Darden Restaurants from $225.00 to $235.00 and gave the company a "buy" rating in a research note on Friday, June 26th. Bank of America lifted their price target on Darden Restaurants from $272.00 to $276.00 and gave the stock a "buy" rating in a research note on Friday, June 5th. UBS Group reiterated a "buy" rating on shares of Darden Restaurants in a research report on Friday. Finally, Weiss Ratings cut Darden Restaurants from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, July 28th. Eighteen analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $230.79.

Darden Restaurants Price Performance

Shares of DRI traded up $1.73 during trading hours on Friday, reaching $209.26. 281,596 shares of the company's stock traded hands, compared to its average volume of 1,328,052. Darden Restaurants has a 12 month low of $169.00 and a 12 month high of $229.76. The company has a current ratio of 0.31, a quick ratio of 0.21 and a debt-to-equity ratio of 0.74. The stock has a market cap of $23.87 billion, a PE ratio of 20.17, a price-to-earnings-growth ratio of 1.97 and a beta of 0.60. The firm's 50 day simple moving average is $210.02 and its 200-day simple moving average is $204.71.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings data on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share for the quarter, topping 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 company had revenue of $3.72 billion for the quarter, compared to analysts' expectations of $3.73 billion. During the same period in the prior year, the business earned $2.98 earnings per share. Darden Restaurants's revenue for the quarter was up 13.7% compared to the same quarter last year. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. Equities analysts expect that Darden Restaurants will post 11.25 EPS for the current year.

Insider Buying and Selling

In other Darden Restaurants news, insider John Wilkerson sold 8,864 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $208.33, for a total value of $1,846,637.12. Following the completion of the sale, the insider owned 18,794 shares in the company, valued at approximately $3,915,354.02. The trade was a 32.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Laura Williamson sold 443 shares of the company's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $204.89, for a total transaction of $90,766.27. Following the sale, the insider owned 5,536 shares of the company's stock, valued at $1,134,271.04. This represents a 7.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 70,185 shares of company stock worth $14,636,984 in the last 90 days. 0.67% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Darden Restaurants

Large investors have recently modified their holdings of the stock. Bell Investment Advisors Inc bought a new position in Darden Restaurants in the 2nd quarter worth about $28,000. Union Savings Bank purchased a new stake in shares of Darden Restaurants during the fourth quarter valued at approximately $28,000. BOK Financial Private Wealth Inc. purchased a new stake in shares of Darden Restaurants during the fourth quarter valued at approximately $29,000. DV Equities LLC bought a new stake in shares of Darden Restaurants during the fourth quarter valued at approximately $30,000. Finally, Transamerica Financial Advisors LLC bought a new stake in shares of Darden Restaurants during the second quarter valued at approximately $34,000. Institutional investors own 93.64% of the company's stock.

Darden Restaurants Company Profile

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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