Darden Restaurants (NYSE:DRI) Raised to "Strong-Buy" at Seaport Research Partners

Key Points

• Seaport Research Partners upgraded Darden Restaurants to “strong buy.” The broader analyst outlook remains positive, with 18 Buy ratings, nine Holds, and a consensus “Moderate Buy” rating with a $232 price target.
• Darden reported quarterly EPS of $3.66, slightly above estimates, while revenue rose 13.7% year over year to $3.72 billion. Analysts expect the company to reaffirm its fiscal 2027 outlook, with improving Olive Garden trends viewed as a potential catalyst.
• Shares opened at $208.57, below the 52-week high of $229.76. While institutional investors own 93.64% of the stock, insiders sold approximately $14.6 million worth of shares in the past quarter, adding a note of caution.

Darden Restaurants (NYSE:DRI - Get Free Report) was upgraded by investment analysts at Seaport Research Partners to a "strong-buy" rating in a report released on Tuesday, Zacks reports.

A number of other analysts have also recently weighed in on the stock. Guggenheim raised their target price on shares of Darden Restaurants from $230.00 to $235.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. Piper Sandler increased their price objective on Darden Restaurants from $208.00 to $212.00 and gave the company a "neutral" rating in a research report on Friday, June 26th. BTIG Research raised their price objective on Darden Restaurants from $225.00 to $235.00 and gave the stock a "buy" rating in a research note on Friday, June 26th. Bank of America lifted their target price on Darden Restaurants from $272.00 to $276.00 and gave the stock a "buy" rating in a report on Friday, June 5th. Finally, Citigroup boosted their target price on Darden Restaurants from $245.00 to $248.00 and gave the stock a "buy" rating in a research report on Friday, September 11th. Eighteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat, Darden Restaurants presently has a consensus rating of "Moderate Buy" and a consensus target price of $232.00.

Darden Restaurants Price Performance

Shares of Darden Restaurants stock opened at $208.57 on Tuesday. 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 company's 50-day moving average price is $210.70 and its two-hundred day moving average price is $204.65. Darden Restaurants has a 52 week low of $169.00 and a 52 week high of $229.76. The stock has a market cap of $23.79 billion, a PE ratio of 20.09, a price-to-earnings-growth ratio of 1.97 and a beta of 0.60.

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, beating the consensus estimate of $3.63 by $0.03. The company had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.73 billion. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The business's revenue for the quarter was up 13.7% on a year-over-year basis. During the same quarter last year, the firm posted $2.98 EPS. 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 fiscal year.

Insiders Place Their Bets

In related news, CFO Rajesh Vennam sold 8,478 shares of the firm's stock in a transaction that occurred 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 transaction, the chief financial officer owned 8,569 shares of the company's stock, valued at approximately $1,799,490. This trade represents a 49.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Susan Connelly sold 2,226 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $208.17, for a total transaction of $463,386.42. Following the completion of the sale, the senior vice president owned 4,165 shares of the company's stock, valued at $867,028.05. This trade represents a 34.83% 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 quarter. Corporate insiders own 0.67% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Nicholas Investment Partners LP acquired a new stake in shares of Darden Restaurants during the second quarter worth approximately $923,000. Integrity Alliance LLC. boosted its holdings in shares of Darden Restaurants by 2,139.4% in the 4th quarter. Integrity Alliance LLC. now owns 59,837 shares of the restaurant operator's stock worth $11,011,000 after acquiring an additional 57,165 shares in the last quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new position in shares of Darden Restaurants in the 4th quarter worth approximately $1,657,000. Northwestern Mutual Wealth Management Co. grew its position in Darden Restaurants by 224.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 8,910 shares of the restaurant operator's stock worth $1,640,000 after acquiring an additional 6,166 shares during the last quarter. Finally, BNP Paribas Financial Markets grew its holdings in Darden Restaurants by 22.3% during the 4th quarter. BNP Paribas Financial Markets now owns 293,895 shares of the restaurant operator's stock worth $54,083,000 after acquiring an additional 53,549 shares during the last quarter. Institutional investors and hedge funds own 93.64% of the company's stock.

Key Darden Restaurants News

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

• Positive Sentiment: Oppenheimer raised its price target on Darden from $235 to $245 and maintained an “outperform” rating, implying approximately 17.5% upside from the referenced price. The firm expects Olive Garden trends to improve and Darden to reaffirm its fiscal 2027 guidance. Darden's Earnings Trajectory Seen Improving as Olive Garden Trends Accelerate, Oppenheimer Says
• Positive Sentiment: Morgan Stanley expects Darden to exceed Wall Street’s first-quarter estimates despite a continuing drag from Olive Garden, while also forecasting that the company will reiterate its fiscal 2027 outlook. Darden to Beat First Quarter Street Estimates Despite Olive Garden Drag, Morgan Stanley Says
• Positive Sentiment: Morgan Stanley analyst coverage also points to upside potential for DRI, adding to the constructive analyst outlook ahead of earnings. Darden Restaurants Stock Price Expected to Rise, Morgan Stanley Analyst Says
• Neutral Sentiment: Options traders are pricing in roughly an 8% potential move around the September 24 earnings release, signaling elevated event risk rather than a clear directional prediction. Darden Restaurants Set to Serve Up an 8% Move After Q1 Earnings
• Neutral Sentiment: Gordon Haskett lifted its Darden price target from $225 to $230 but kept a “hold” rating, reflecting modest valuation upside alongside some caution. Gordon Haskett Adjusts Darden Restaurants Price Target

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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