Q2 EPS Forecast for Darden Restaurants Lifted by Analyst

Key Points

• Zacks Research raised Darden’s Q2 2027 EPS forecast to $2.27 from $2.22, while projecting full-year 2028 EPS of $12.33.
• Darden’s latest quarter matched analysts’ expectations at $2.05 EPS, with revenue rising 5.1% year over year to $3.20 billion. Management maintained FY2027 EPS guidance of $11.10–$11.35.
• Analysts maintain a broadly positive outlook, with a “Moderate Buy” consensus and an average price target of $232.48; Darden also declared a quarterly dividend of $1.62, representing a 3.2% annualized yield.

Darden Restaurants, Inc. (NYSE:DRI - Free Report) - Analysts at Zacks Research boosted their Q2 2027 earnings estimates for shares of Darden Restaurants in a research report issued on Wednesday, October 7th. Zacks Research analyst Team now anticipates that the restaurant operator will post earnings per share of $2.27 for the quarter, up from their prior estimate of $2.22. The consensus estimate for Darden Restaurants' current full-year earnings is $11.24 per share. Zacks Research also issued estimates for Darden Restaurants' Q3 2027 earnings at $3.20 EPS, Q1 2028 earnings at $2.22 EPS, Q4 2028 earnings at $3.85 EPS and FY2028 earnings at $12.33 EPS.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings data on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.05. Darden Restaurants had a net margin of 8.85% and a return on equity of 58.64%. The business had revenue of $3.20 billion for the quarter, compared to the consensus estimate of $3.21 billion. During the same period last year, the firm posted $1.97 earnings per share. The company's revenue was up 5.1% compared to the same quarter last year. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS.

DRI has been the topic of several other reports. Citigroup lowered their price objective on Darden Restaurants from $248.00 to $247.00 and set a "buy" rating on the stock in a report on Friday, September 25th. Robert W. Baird upgraded Darden Restaurants from a "neutral" rating to an "outperform" rating and raised their target price for the company from $220.00 to $250.00 in a research report on Monday, August 24th. Deutsche Bank Aktiengesellschaft lifted their price target on Darden Restaurants from $230.00 to $236.00 and gave the stock a "buy" rating in a research note on Friday, June 26th. UBS Group reiterated a "buy" rating on shares of Darden Restaurants in a research report on Friday, September 11th. Finally, BMO Capital Markets reduced their price objective on Darden Restaurants from $225.00 to $220.00 and set a "market perform" rating for the company in a research note on Friday, September 25th. Seventeen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $232.48.

Darden Restaurants Stock Down 0.4%

DRI stock opened at $200.60 on Friday. Darden Restaurants has a 52 week low of $169.00 and a 52 week high of $229.76. The company has a quick ratio of 0.20, a current ratio of 0.30 and a debt-to-equity ratio of 0.79. The firm has a 50-day simple moving average of $211.76 and a 200-day simple moving average of $204.48. The stock has a market capitalization of $22.70 billion, a P/E ratio of 19.61, a P/E/G ratio of 1.89 and a beta of 0.63.

Darden Restaurants Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be paid a $1.62 dividend. This represents a $6.48 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Friday, October 9th. Darden Restaurants's dividend payout ratio (DPR) is 63.34%.

Insider Buying and Selling at Darden Restaurants

In related news, CFO Rajesh Vennam sold 8,478 shares of the stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $210.00, for a total value of $1,780,380.00. Following the completion of the sale, the chief financial officer owned 8,569 shares of the company's stock, valued at approximately $1,799,490. This trade represents a 49.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Susan M. Connelly sold 2,226 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $208.17, for a total value of $463,386.42. Following the transaction, the senior vice president owned 4,165 shares in the company, valued at approximately $867,028.05. The trade was a 34.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 60,255 shares of company stock worth $12,589,319. 0.67% of the stock is owned by company insiders.

Institutional Trading of Darden Restaurants

Several large investors have recently added to or reduced their stakes in DRI. Union Savings Bank acquired a new position in shares of Darden Restaurants during the 4th quarter valued at about $28,000. Bell Investment Advisors Inc purchased a new stake in shares of Darden Restaurants in the second quarter valued at about $28,000. Transamerica Financial Advisors LLC acquired a new stake in Darden Restaurants during the second quarter worth about $34,000. HHM Wealth Advisors LLC increased its position in Darden Restaurants by 44.8% during the first quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator's stock worth $35,000 after purchasing an additional 56 shares during the last quarter. Finally, Keating Financial Advisory Services Inc. purchased a new position in Darden Restaurants during the second quarter worth about $39,000. 93.64% of the stock is currently owned by hedge funds and other institutional investors.

Darden Restaurants News Summary

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

• Positive Sentiment: Higher FY2028 expectations: Zacks Research raised its FY2028 EPS forecast to $12.33 from $12.17. It also increased estimates for Darden’s second and third quarters of FY2027 and fourth quarter of FY2028, suggesting expectations for improving earnings momentum.
• Positive Sentiment: Longer-term quarterly upgrades: Zacks lifted estimates for FY2028’s second and third quarters and FY2029’s first and third quarters. These upward revisions indicate some confidence in Darden’s ability to generate earnings growth across its restaurant portfolio.
• Neutral Sentiment: Analyst outlook remains broadly mixed: Zacks raised several quarterly estimates but trimmed its FY2027 forecast to $11.21 from $11.24, cut fourth-quarter FY2027 EPS to $3.69 from $3.76, and reduced FY2029 EPS to $13.15 from $13.19. The revisions are small and do not represent a significant change to the overall outlook.
• Negative Sentiment: Insider selling may weigh on sentiment: A Darden insider sold shares valued at approximately $447,565, according to a recent SEC filing. The filing does not establish the reason for the transaction, but insider selling can create a modest overhang for investors. Darden Restaurants Insider Sold Shares Worth $447,565, According to a Recent SEC Filing

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.

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.