Darden Restaurants (NYSE:DRI) Given New $220.00 Price Target at Robert W. Baird

Key Points

• Robert W. Baird raised its price target on Darden Restaurants from $210 to $220 while keeping a neutral rating, implying modest upside from the current share price.
• Darden’s latest quarterly results beat EPS expectations with $3.66 per share and posted 13.7% revenue growth year over year, though revenue slightly missed estimates.
• The company boosted its quarterly dividend by 8% to $1.62 per share and authorized a new $1.5 billion share repurchase program, but its FY2027 EPS guidance came in below Street expectations.

Darden Restaurants (NYSE:DRI - Get Free Report) had its price target raised by equities researchers at Robert W. Baird from $210.00 to $220.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has a "neutral" rating on the restaurant operator's stock. Robert W. Baird's price target suggests a potential upside of 3.44% from the stock's current price.

Several other equities analysts have also issued reports on the stock. 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 report on Wednesday, May 27th. Weiss Ratings lowered Darden Restaurants from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday, June 11th. Stephens reissued an "equal weight" rating and issued a $210.00 target price on shares of Darden Restaurants in a research note on Thursday, June 18th. BTIG Research restated a "buy" rating and issued a $225.00 price target on shares of Darden Restaurants in a report on Friday, March 20th. Finally, Guggenheim raised their price target on Darden Restaurants from $230.00 to $235.00 and gave the stock a "buy" rating in a research report on Wednesday. Seventeen investment 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.com, the company presently has an average rating of "Moderate Buy" and an average price target of $228.33.

Darden Restaurants Stock Down 0.4%

Darden Restaurants stock opened at $212.69 on Friday. The firm has a market capitalization of $24.36 billion, a price-to-earnings ratio of 22.51, a PEG ratio of 1.91 and a beta of 0.60. The company's 50 day simple moving average is $201.60 and its 200 day simple moving average is $200.89. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.39 and a quick ratio of 0.25. Darden Restaurants has a fifty-two week low of $169.00 and a fifty-two 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, beating the consensus estimate of $3.63 by $0.03. The firm had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.73 billion. Darden Restaurants had a net margin of 8.66% and a return on equity of 53.54%. The business's quarterly revenue was up 13.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.98 earnings per share. 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 10.62 EPS for the current year.

Insider Buying and Selling at Darden Restaurants

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

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Torren Management LLC acquired a new stake in Darden Restaurants in the 4th quarter valued at approximately $26,000. Thurston Springer Miller Herd & Titak Inc. boosted its position in Darden Restaurants by 926.7% during the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator's stock worth $28,000 after acquiring an additional 139 shares during the last quarter. Union Savings Bank acquired a new position in Darden Restaurants during the 4th quarter worth approximately $28,000. BOK Financial Private Wealth Inc. bought a new position in shares of Darden Restaurants during the 4th quarter worth approximately $29,000. Finally, DV Equities LLC bought a new position in shares of Darden Restaurants during the 4th quarter worth approximately $30,000. 93.64% of the stock is currently owned by institutional investors.

Key Headlines 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

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.

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