BTIG Research Forecasts Strong Price Appreciation for Darden Restaurants (NYSE:DRI) Stock

Key Points

• BTIG Research raised its price target on Darden Restaurants (NYSE: DRI) from $225 to $235 and kept a buy rating, implying about 10.5% upside from the prior close.
• The broader analyst view remains constructive: Darden now has an average Moderate Buy rating with a consensus price target of $228.33, and several firms recently lifted their targets.
• Darden also reported solid quarterly results, with EPS of $3.66 topping estimates and revenue up 13.7% year over year, while management increased the dividend and authorized a $1.5 billion share repurchase program.

Darden Restaurants (NYSE:DRI - Get Free Report) had its price target raised by BTIG Research from $225.00 to $235.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the restaurant operator's stock. BTIG Research's price target points to a potential upside of 10.49% from the company's previous close.

Other analysts have also issued research reports about the stock. BMO Capital Markets reaffirmed a "market perform" rating on shares of Darden Restaurants in a report on Monday. KeyCorp boosted their price target on shares of Darden Restaurants from $226.00 to $228.00 and gave the company an "overweight" rating in a research report on Wednesday, May 27th. Citigroup upped their price target on shares of Darden Restaurants from $238.00 to $245.00 and gave the stock a "buy" rating in a report on Monday, June 15th. UBS Group reiterated a "buy" rating and issued a $230.00 price objective on shares of Darden Restaurants in a research report on Tuesday, March 10th. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on Darden Restaurants from $222.00 to $230.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Seventeen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $228.33.

Darden Restaurants Stock Performance

Shares of DRI opened at $212.69 on Friday. The stock's 50-day simple moving average is $201.60 and its 200 day simple moving average is $200.89. The stock has a market capitalization of $24.36 billion, a price-to-earnings ratio of 22.51, a price-to-earnings-growth ratio of 1.91 and a beta of 0.60. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.25 and a current ratio of 0.39. Darden Restaurants has a 52-week low of $169.00 and a 52-week high of $222.56.

Darden Restaurants (NYSE:DRI - Get Free Report) last issued its earnings results on Thursday, June 25th. The restaurant operator reported $3.66 EPS for the quarter, topping the consensus estimate of $3.63 by $0.03. Darden Restaurants had a return on equity of 53.54% and a net margin of 8.66%.The business had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.73 billion. During the same quarter last year, the company earned $2.98 EPS. The firm's revenue 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. Research analysts forecast that Darden Restaurants will post 10.62 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, SVP Lindsay L. Koren sold 300 shares of Darden Restaurants stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $194.32, for a total transaction of $58,296.00. Following the completion of the sale, the senior vice president directly owned 1,617 shares of the company's stock, valued at approximately $314,215.44. The trade was a 15.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Douglas J. Milanes sold 3,620 shares of the company's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $202.16, for a total transaction of $731,819.20. Following the completion of the transaction, the senior vice president owned 274 shares of the company's stock, valued at $55,391.84. This trade represents a 92.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.49% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Darden Restaurants

Several hedge funds have recently added to or reduced their stakes in DRI. 1620 Investment Advisors Inc. boosted its holdings in shares of Darden Restaurants by 2.4% in the 4th quarter. 1620 Investment Advisors Inc. now owns 2,190 shares of the restaurant operator's stock worth $403,000 after purchasing an additional 51 shares in the last quarter. Cary Street Partners Investment Advisory LLC raised its holdings in shares of Darden Restaurants by 4.7% during the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 1,144 shares of the restaurant operator's stock valued at $211,000 after buying an additional 51 shares in the last quarter. New York Life Investment Management LLC raised its holdings in shares of Darden Restaurants by 0.3% during the 4th quarter. New York Life Investment Management LLC now owns 15,983 shares of the restaurant operator's stock valued at $2,941,000 after buying an additional 55 shares in the last quarter. HHM Wealth Advisors LLC lifted its position in Darden Restaurants by 44.8% in the 1st quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator's stock worth $35,000 after buying an additional 56 shares during the last quarter. Finally, Glenview Trust co lifted its position in Darden Restaurants by 4.9% in the 2nd quarter. Glenview Trust co now owns 1,308 shares of the restaurant operator's stock worth $285,000 after buying an additional 61 shares during the last quarter. Institutional investors own 93.64% of the company's stock.

Key Stories Impacting Darden Restaurants

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

• Positive Sentiment: Darden raised its quarterly dividend to $1.62 per share, an 8% increase, signaling confidence in cash flow and shareholder returns. Article Title
• Positive Sentiment: The board authorized a new $1.5 billion share repurchase program, which should help support earnings per share over time. Article Title
• Positive Sentiment: Results were driven by brand strength, especially LongHorn Steakhouse, and management highlighted comparable-sales momentum and record-year performance. Article Title
• Neutral Sentiment: Darden’s revenue missed expectations by a small margin, and some commentary noted weaker-than-expected same-store sales at Olive Garden and fine-dining locations. Article Title
• Negative Sentiment: FY2027 EPS guidance of $11.10 to $11.35 came in below the Street’s estimate, suggesting margin or cost pressure ahead. Article Title

Darden Restaurants Company Profile

Darden Restaurants, Inc is a multi-brand, full-service restaurant company headquartered in Orlando, Florida. The company owns and operates a portfolio of casual and fine-dining concepts that together serve millions of guests through company-owned and franchised locations. Its well-known brands include Olive Garden and LongHorn Steakhouse, alongside other dining concepts that span Italian, American, steakhouse and upscale casual formats.

Darden's restaurants provide a range of guest-facing services including dine-in, takeout, delivery and catering, and feature menus tailored to each brand's positioning—Italian-American fare at Olive Garden, steaks and grilled items at LongHorn, and more premium steakhouse and chef-driven offerings at its upscale concepts.

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