Darden Restaurants' (DRI) Hold Rating Reiterated at TD Cowen

Key Points

• TD Cowen reaffirmed its “hold” rating on Darden Restaurants, maintaining a $215 price target, which implies only about 0.72% upside from the stock’s current price.
• Analyst sentiment is more positive overall: Darden has an average “Moderate Buy” rating and a consensus price target of $232.09, with 18 Buy ratings versus nine Holds.
• Darden met quarterly earnings expectations at $2.05 per share and guided to fiscal 2027 EPS of $11.10–$11.35, while insiders sold roughly $14.6 million of shares over the past quarter.

Darden Restaurants (NYSE:DRI - Get Free Report)'s stock had its "hold" rating reaffirmed by analysts at TD Cowen in a research report issued on Thursday, Benzinga reports. They currently have a $215.00 target price on the restaurant operator's stock. TD Cowen's target price points to a potential upside of 0.72% from the company's current price.

DRI has been the subject of several other research reports. BTIG Research lifted their price objective on Darden Restaurants from $225.00 to $235.00 and gave the stock a "buy" rating in a report on Friday, June 26th. KeyCorp reissued an "overweight" rating on shares of Darden Restaurants in a research note on Wednesday. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Darden Restaurants from $230.00 to $236.00 and gave the stock a "buy" rating in a research note on Friday, June 26th. Bank of America increased their price target on shares of Darden Restaurants from $272.00 to $276.00 and gave the company a "buy" rating in a research report on Friday, June 5th. Finally, Robert W. Baird upgraded shares of Darden Restaurants from a "neutral" rating to an "outperform" rating and increased their target price for the stock from $220.00 to $250.00 in a report on Monday, August 24th. Eighteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $232.09.

Darden Restaurants Price Performance

DRI stock opened at $213.46 on Thursday. 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 has a market cap of $24.35 billion, a price-to-earnings ratio of 20.56, a PEG ratio of 2.01 and a beta of 0.60. The company's fifty day simple moving average is $211.90 and its 200 day simple moving average is $204.73. Darden Restaurants has a 12-month low of $169.00 and a 12-month high of $229.76.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings data on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share for the quarter, hitting the consensus estimate of $2.05. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, analysts expect that Darden Restaurants will post 11.26 earnings per share for the current year.

Insider Activity

In related news, CEO Ricardo Cardenas sold 39,134 shares of the business's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $209.06, for a total value of $8,181,354.04. Following the completion of the transaction, the chief executive officer directly owned 86,146 shares in the company, valued at $18,009,682.76. The trade was a 31.24% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Susan Connelly sold 2,226 shares of the stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $208.17, for a total value of $463,386.42. Following the sale, the senior vice president owned 4,165 shares in the company, valued at approximately $867,028.05. This represents a 34.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 70,185 shares of company stock valued at $14,636,984. Company insiders own 0.67% of the company's stock.

Institutional Investors Weigh In On Darden Restaurants

Several large investors have recently bought and sold shares of the business. Bell Investment Advisors Inc purchased a new stake in shares of Darden Restaurants during the 2nd quarter valued at about $28,000. Union Savings Bank purchased a new stake in Darden Restaurants during the 4th quarter valued at $28,000. Transamerica Financial Advisors LLC purchased a new stake in Darden Restaurants during the 2nd quarter valued at $34,000. HHM Wealth Advisors LLC lifted its holdings in shares of Darden Restaurants by 44.8% during 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. purchased a new position in shares of Darden Restaurants in the 2nd quarter worth $39,000. 93.64% of the stock is currently owned by institutional investors.

More Darden Restaurants News

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

• Positive Sentiment: Darden reported fiscal 2027 first-quarter results, declared its quarterly dividend and reaffirmed its full-year outlook. The combination of ongoing profitability and shareholder returns provides reassurance ahead of the company’s broader fiscal-year performance. Darden Restaurants Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Bank of America raised its estimate for LongHorn’s first-quarter same-store sales growth to 6.5% from 4.2%, citing sustained market-share gains and stronger category trends. This suggests LongHorn remains a key growth engine for Darden. Darden sales momentum strengthens despite casual-dining slowdown
• Neutral Sentiment: Darden updated fiscal 2027 EPS guidance to $11.10–$11.35, compared with the $11.28 consensus estimate. The range broadly brackets expectations, but its $11.225 midpoint is slightly below consensus, limiting the upside surprise.
• Neutral Sentiment: The stock had already been trading above both its 50-day and 200-day moving averages, indicating relatively strong momentum but also leaving investors focused on whether the earnings report and outlook justify its valuation.
• Negative Sentiment: Analysts lowered their Olive Garden expectations amid a broader casual-dining slowdown. Since Olive Garden is a major Darden brand, weaker performance there could offset LongHorn’s market-share gains. Darden sales momentum strengthens despite casual-dining slowdown

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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