Darden Restaurants, Inc. (NYSE:DRI) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Twenty-seven analysts give Darden Restaurants a consensus “Moderate Buy” rating, with 17 buys and 10 holds. The average 12-month price target is $228.88.
• Darden exceeded quarterly earnings expectations, reporting $3.66 in EPS versus the $3.63 consensus, while revenue rose 13.7% year over year to $3.72 billion. Analysts expect full-year EPS of approximately $11.28.
• The company raised its quarterly dividend to $1.62 per share, equal to an annualized $6.48 and a 2.9% yield. Meanwhile, insiders sold about $14.6 million of stock over the past three months.

Darden Restaurants, Inc. (NYSE:DRI - Get Free Report) has received a consensus rating of "Moderate Buy" from the twenty-seven analysts that are presently covering the stock, Marketbeat reports. Ten investment analysts have rated the stock with a hold recommendation and seventeen have issued a buy recommendation on the company. The average 12-month price objective among brokers that have covered the stock in the last year is $228.8750.

Several research analysts have commented on the stock. UBS Group raised their price target on shares of Darden Restaurants from $230.00 to $240.00 and gave the company a "buy" rating in a report on Friday, June 26th. Guggenheim increased their price objective on Darden Restaurants from $230.00 to $235.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. Evercore lowered Darden Restaurants from an "outperform" rating to an "in-line" rating and set a $230.00 price objective for the company. in a research note on Tuesday, June 23rd. Citigroup raised their price target on Darden Restaurants from $238.00 to $245.00 and gave the company a "buy" rating in a report on Monday, June 15th. Finally, BMO Capital Markets reiterated a "market perform" rating on shares of Darden Restaurants in a research report on Monday, June 22nd.

Darden Restaurants Stock Performance

NYSE:DRI opened at $221.81 on Monday. The business's fifty day moving average is $208.30 and its 200 day moving average is $204.47. The firm has a market cap of $25.30 billion, a price-to-earnings ratio of 21.37, a PEG ratio of 2.20 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.21 and a current ratio of 0.31. Darden Restaurants has a 52-week low of $169.00 and a 52-week high of $229.76.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its earnings results on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share for the quarter, beating analysts' consensus estimates of $3.63 by $0.03. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The business had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.73 billion. During the same quarter in the previous year, the firm earned $2.98 EPS. The company's quarterly 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 predict that Darden Restaurants will post 11.28 EPS for the current year.

Darden Restaurants Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Friday, July 10th were given a dividend of $1.62 per share. The ex-dividend date was Friday, July 10th. This is a positive change from Darden Restaurants's previous quarterly dividend of $1.50. This represents a $6.48 dividend on an annualized basis and a yield of 2.9%. Darden Restaurants's dividend payout ratio (DPR) is 62.43%.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, insider John W. Wilkerson sold 8,864 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $208.33, for a total transaction of $1,846,637.12. Following the transaction, the insider directly owned 18,794 shares in the company, valued at $3,915,354.02. This trade represents a 32.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Rajesh Vennam sold 8,478 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $210.00, for a total transaction of $1,780,380.00. Following the transaction, the chief financial officer directly owned 8,569 shares in the company, valued at $1,799,490. This trade represents a 49.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 70,185 shares of company stock worth $14,636,984. Company insiders own 0.67% of the company's stock.

Institutional Trading of Darden Restaurants

Hedge funds have recently added to or reduced their stakes in the business. Bell Investment Advisors Inc bought a new position in shares of Darden Restaurants in the second quarter worth approximately $28,000. Torren Management LLC purchased a new position in Darden Restaurants during the 4th quarter valued at about $26,000. Union Savings Bank bought a new position in Darden Restaurants during the 4th quarter valued at approximately $28,000. BOK Financial Private Wealth Inc. bought a new position in shares of Darden Restaurants during the fourth quarter valued at approximately $29,000. Finally, DV Equities LLC purchased a new stake in Darden Restaurants in the fourth quarter worth $30,000. 93.64% of the stock is owned by institutional investors.

About Darden Restaurants

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source