111 Capital Purchases Shares of 2,893 Darden Restaurants, Inc. $DRI

Key Points

• 111 Capital has acquired 2,893 shares of Darden Restaurants, Inc. (NYSE: DRI), valued at approximately $631,000, as per its recent 13F filing.
• The company reported $1.97 earnings per share for the latest quarter, missing expectations of $2.01, but achieving a revenue of $3.04 billion, which is up 10.4% year-over-year.
• Darden recently announced a quarterly dividend of $1.50 per share, with a projected annual yield of 3.1%, alongside a $1 billion share buyback program indicating confidence in its stock value.

111 Capital purchased a new position in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 2,893 shares of the restaurant operator's stock, valued at approximately $631,000.

Several other hedge funds and other institutional investors have also recently modified their holdings of DRI. Nuveen LLC acquired a new position in Darden Restaurants during the 1st quarter valued at approximately $84,801,000. 1832 Asset Management L.P. acquired a new position in shares of Darden Restaurants in the 1st quarter valued at $53,760,000. Charles Schwab Investment Management Inc. raised its stake in Darden Restaurants by 6.6% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 3,998,200 shares of the restaurant operator's stock worth $830,666,000 after acquiring an additional 247,542 shares during the last quarter. Woodline Partners LP lifted its position in Darden Restaurants by 3,824.2% during the 1st quarter. Woodline Partners LP now owns 177,217 shares of the restaurant operator's stock worth $36,819,000 after acquiring an additional 172,701 shares during the period. Finally, Raymond James Financial Inc. grew its stake in Darden Restaurants by 4.6% during the 1st quarter. Raymond James Financial Inc. now owns 3,601,340 shares of the restaurant operator's stock valued at $748,215,000 after purchasing an additional 157,305 shares during the last quarter. 93.64% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Barclays reduced their price objective on Darden Restaurants from $255.00 to $230.00 and set an "overweight" rating for the company in a research note on Friday, September 19th. Morgan Stanley upped their price objective on shares of Darden Restaurants from $235.00 to $238.00 and gave the company an "overweight" rating in a report on Friday, September 19th. Melius Research raised shares of Darden Restaurants to a "hold" rating in a report on Monday, July 14th. TD Cowen reaffirmed a "hold" rating and issued a $235.00 price target on shares of Darden Restaurants in a report on Thursday, September 18th. Finally, Robert W. Baird cut their price target on Darden Restaurants from $230.00 to $208.00 and set a "neutral" rating on the stock in a research report on Friday, September 19th. Nineteen research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $225.96.

Darden Restaurants Stock Performance

Shares of NYSE:DRI opened at $193.33 on Monday. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.40 and a quick ratio of 0.27. Darden Restaurants, Inc. has a 1 year low of $155.18 and a 1 year high of $228.27. The firm has a market capitalization of $22.49 billion, a PE ratio of 20.72, a P/E/G ratio of 1.77 and a beta of 0.77. The business's 50 day moving average price is $202.83 and its 200-day moving average price is $206.22.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its quarterly earnings data on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share for the quarter, missing analysts' consensus estimates of $2.01 by ($0.04). Darden Restaurants had a net margin of 8.90% and a return on equity of 52.35%. The firm had revenue of $3.04 billion during the quarter, compared to analysts' expectations of $3.03 billion. During the same quarter in the previous year, the business posted $1.75 EPS. The company's revenue for the quarter was up 10.4% on a year-over-year basis. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. As a group, equities research analysts expect that Darden Restaurants, Inc. will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Friday, October 10th will be issued a $1.50 dividend. The ex-dividend date is Friday, October 10th. This represents a $6.00 dividend on an annualized basis and a yield of 3.1%. Darden Restaurants's dividend payout ratio is presently 64.31%.

Darden Restaurants declared that its board has authorized a share buyback program on Friday, June 20th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the restaurant operator to reacquire up to 3.8% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In other news, insider Laura B. Williamson sold 1,157 shares of the business's stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $204.70, for a total transaction of $236,837.90. Following the transaction, the insider directly owned 10,632 shares in the company, valued at $2,176,370.40. The trade was a 9.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Over the last 90 days, insiders have sold 2,013 shares of company stock valued at $412,738. Company insiders own 0.49% of the company's stock.

Darden Restaurants Profile

Darden Restaurants, Inc, together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood, and Capital Burger brand names.

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