Darden Restaurants (NYSE:DRI) Price Target Raised to $216.00 at Stephens

Key Points

• Stephens raised its price target on Darden Restaurants to $216 from $210 while keeping an equal weight rating, implying only modest upside from current levels.
• Darden’s latest quarterly results were solid, with EPS of $3.66 beating estimates and revenue rising 13.7% year over year, though revenue slightly missed expectations.
• The company is returning more cash to shareholders, increasing its quarterly dividend by 8% to $1.62 per share and authorizing a new $1.5 billion share repurchase program.

Darden Restaurants (NYSE:DRI - Get Free Report) had its price target lifted by equities researchers at Stephens from $210.00 to $216.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the restaurant operator's stock. Stephens' price objective indicates a potential upside of 1.56% from the stock's current price.

A number of other research analysts have also recently commented on the stock. BMO Capital Markets reaffirmed a "market perform" rating on shares of Darden Restaurants in a research report on Monday. Robert W. Baird lifted their price target on shares of Darden Restaurants from $210.00 to $220.00 and gave the company a "neutral" rating in a research report on Friday. Guggenheim boosted their price target on shares of Darden Restaurants from $230.00 to $235.00 and gave the company a "buy" rating in a research note on Wednesday. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Darden Restaurants from $222.00 to $230.00 and gave the stock a "buy" rating in a report on Friday, March 20th. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Darden Restaurants in a research report on Friday, March 13th. Seventeen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $228.33.

Darden Restaurants Trading Down 0.4%

Shares of Darden Restaurants stock opened at $212.69 on Friday. The stock has a 50 day moving average of $201.60 and a 200 day moving average of $200.89. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.25 and a current ratio of 0.39. 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. 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 posted its earnings results on Thursday, June 25th. The restaurant operator reported $3.66 EPS for the quarter, beating analysts' consensus estimates of $3.63 by $0.03. Darden Restaurants had a return on equity of 53.54% and a net margin of 8.66%.The company had revenue of $3.72 billion for the quarter, compared to the consensus estimate of $3.73 billion. During the same quarter in the previous year, the business earned $2.98 earnings per share. The company's revenue for the quarter was up 13.7% on a year-over-year basis. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, research analysts predict that Darden Restaurants will post 10.62 earnings per share for the current year.

Insider Transactions at Darden Restaurants

In other news, SVP Douglas J. Milanes sold 3,620 shares of the firm's stock in a transaction that occurred 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 owned 274 shares of the company's stock, valued at approximately $55,391.84. This trade represents a 92.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Lindsay L. Koren sold 300 shares of Darden Restaurants stock in a transaction that occurred 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 transaction, the senior vice president owned 1,617 shares of the company's stock, valued at $314,215.44. This trade represents a 15.65% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.49% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Darden Restaurants

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DRI. Torren Management LLC purchased a new stake in shares of Darden Restaurants during the fourth quarter worth $26,000. Thurston Springer Miller Herd & Titak Inc. boosted its holdings in Darden Restaurants by 926.7% in the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator's stock valued at $28,000 after purchasing an additional 139 shares during the period. Union Savings Bank purchased a new position in Darden Restaurants in the fourth quarter valued at $28,000. BOK Financial Private Wealth Inc. acquired a new position in Darden Restaurants during the 4th quarter worth $29,000. Finally, DV Equities LLC acquired a new position in Darden Restaurants during the 4th quarter worth $30,000. Hedge funds and other institutional investors own 93.64% of the company's stock.

Darden Restaurants News Summary

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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