Darden Restaurants, Inc. (NYSE:DRI) Stock Now Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts rate Darden Restaurants a “Moderate Buy”: Seventeen of 26 analysts recommend buying the stock, while nine rate it a hold. The average 12-month price target is $232.48.
• Darden reported quarterly earnings of $2.05 per share, matching estimates, while revenue reached $3.20 billion and increased 5.1% year over year.
• The company declared a quarterly dividend of $1.62 per share, equivalent to an annualized $6.48 payout and a 3.3% yield. Insiders have recently sold shares, while institutional investors own 93.64% of the stock.

Darden Restaurants, Inc. (NYSE:DRI - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the twenty-six analysts that are covering the company, MarketBeat.com reports. Nine investment analysts have rated the stock with a hold rating and seventeen have issued a buy rating on the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $232.48.

Several equities analysts have commented on the company. Evercore downgraded Darden Restaurants from an "outperform" rating to an "in-line" rating and set a $230.00 target price for the company. in a research report on Tuesday, June 23rd. Citigroup reduced their price target on Darden Restaurants from $248.00 to $247.00 and set a "buy" rating on the stock in a report on Friday, September 25th. KeyCorp reaffirmed an "overweight" rating on shares of Darden Restaurants in a research note on Wednesday, September 23rd. UBS Group reiterated a "buy" rating on shares of Darden Restaurants in a report on Friday, September 11th. Finally, Argus lifted their target price on shares of Darden Restaurants from $240.00 to $245.00 and gave the stock a "buy" rating in a research report on Tuesday, June 30th.

Insider Activity

In other news, CFO Rajesh Vennam sold 8,478 shares of Darden Restaurants 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 transaction, the chief financial officer owned 8,569 shares in the company, valued at approximately $1,799,490. The trade was a 49.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Susan Connelly sold 2,226 shares of Darden Restaurants stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $208.17, for a total transaction of $463,386.42. Following the transaction, the senior vice president owned 4,165 shares in the company, valued at approximately $867,028.05. This trade represents a 34.83% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 60,255 shares of company stock valued at $12,589,319. 0.67% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Bell Investment Advisors Inc acquired a new position in shares of Darden Restaurants in the 2nd quarter worth approximately $28,000. Union Savings Bank bought a new stake in shares of Darden Restaurants in the 4th quarter valued at $28,000. Transamerica Financial Advisors LLC bought a new stake in shares of Darden Restaurants in the 2nd quarter valued at $34,000. HHM Wealth Advisors LLC boosted its stake in shares of 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 purchasing an additional 56 shares during the last quarter. Finally, Keating Financial Advisory Services Inc. acquired a new stake in shares of Darden Restaurants during the second quarter worth $39,000. 93.64% of the stock is owned by institutional investors and hedge funds.

Darden Restaurants Stock Up 0.9%

Shares of DRI opened at $199.36 on Tuesday. Darden Restaurants has a 52 week low of $169.00 and a 52 week high of $229.76. The stock has a market capitalization of $22.56 billion, a price-to-earnings ratio of 19.49, a PEG ratio of 1.85 and a beta of 0.63. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.20 and a current ratio of 0.30. The stock has a fifty day moving average of $211.49 and a 200-day moving average of $204.48.

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, meeting the consensus estimate 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 58.64% and a net margin of 8.85%. Darden Restaurants's revenue for the quarter was up 5.1% on a year-over-year basis. During the same quarter last year, the business posted $1.97 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 11.24 earnings per share for the current fiscal year.

Darden Restaurants Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be given a $1.62 dividend. This represents a $6.48 annualized dividend and a yield of 3.3%. The ex-dividend date is Friday, October 9th. Darden Restaurants's dividend payout ratio is 63.34%.

About Darden Restaurants

Darden Restaurants, Inc is a full-service restaurant company that owns and operates a portfolio of well-known dining brands. Its restaurants serve a range of cuisines and occasions, from Italian and American casual dining to seafood, steak, and upscale experiences.

The company's portfolio includes Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, Ruth's Chris Steak House, Seasons 52, Bahama Breeze, Eddie V's, and The Capital Grille. In 2024, Darden expanded its brand portfolio through the acquisition of Chuy's, a full-service Mexican restaurant concept.

Founded by William B.

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