Allstate Corp Grows Stake in Darden Restaurants, Inc. $DRI

Key Points

• Allstate Corp increased its stake in Darden Restaurants by 66.5% in the first quarter, owning 5,722 shares now valued at approximately $1.19 million.
• Darden Restaurants recently declared a $1.50 quarterly dividend, raising its annualized dividend to $6.00, reflecting a yield of 2.9%.
• The company's earnings report showed a profit of $2.98 per share, exceeding analyst expectations and resulted in a revenue of $3.27 billion for the quarter.

Allstate Corp lifted its position in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 66.5% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 5,722 shares of the restaurant operator's stock after buying an additional 2,285 shares during the period. Allstate Corp's holdings in Darden Restaurants were worth $1,189,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of DRI. GAMMA Investing LLC boosted its stake in shares of Darden Restaurants by 46,484.5% in the 1st quarter. GAMMA Investing LLC now owns 928,895 shares of the restaurant operator's stock worth $192,987,000 after buying an additional 926,901 shares during the last quarter. Nuveen LLC purchased a new position in shares of Darden Restaurants in the 1st quarter worth $84,801,000. Junto Capital Management LP purchased a new position in shares of Darden Restaurants in the 4th quarter worth $48,919,000. 1832 Asset Management L.P. purchased a new position in shares of Darden Restaurants in the 1st quarter worth $53,760,000. Finally, Charles Schwab Investment Management Inc. boosted its stake in shares of 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 buying an additional 247,542 shares during the last quarter. 93.64% of the stock is currently owned by hedge funds and other institutional investors.

Darden Restaurants Trading Up 0.9%

Shares of DRI stock opened at $208.49 on Friday. Darden Restaurants, Inc. has a 12-month low of $153.74 and a 12-month high of $228.27. The company has a current ratio of 0.42, a quick ratio of 0.28 and a debt-to-equity ratio of 0.92. The stock's 50-day moving average price is $211.11 and its 200-day moving average price is $204.48. The stock has a market capitalization of $24.31 billion, a price-to-earnings ratio of 23.48, a price-to-earnings-growth ratio of 1.92 and a beta of 0.75.

Darden Restaurants (NYSE:DRI - Get Free Report) last issued its earnings results on Friday, June 20th. The restaurant operator reported $2.98 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.97 by $0.01. Darden Restaurants had a return on equity of 51.81% and a net margin of 8.69%.The firm had revenue of $3.27 billion for the quarter, compared to analysts' expectations of $3.25 billion. During the same period in the previous year, the firm posted $2.65 earnings per share. The business's revenue was up 10.6% compared to the same quarter last year. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Equities research analysts predict that Darden Restaurants, Inc. will post 9.52 EPS for the current fiscal year.

Darden Restaurants announced that its Board of Directors has authorized a stock 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 purchase up to 3.8% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Darden Restaurants Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 1st. Stockholders of record on Thursday, July 10th were issued a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.9%. This is a positive change from Darden Restaurants's previous quarterly dividend of $1.40. The ex-dividend date of this dividend was Thursday, July 10th. Darden Restaurants's payout ratio is presently 67.57%.

Insider Transactions at Darden Restaurants

In other news, insider Laura B. Williamson sold 523 shares of Darden Restaurants stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $204.65, for a total value of $107,031.95. Following the sale, the insider directly owned 5,423 shares of the company's stock, valued at approximately $1,109,816.95. The trade was a 8.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Matthew R. Broad sold 733 shares of Darden Restaurants stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $218.50, for a total value of $160,160.50. Following the completion of the sale, the senior vice president directly owned 14,367 shares in the company, valued at $3,139,189.50. This trade represents a 4.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 45,727 shares of company stock valued at $10,022,232. 0.49% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on DRI. Melius began coverage on Darden Restaurants in a research report on Monday, July 14th. They set a "hold" rating and a $240.00 target price on the stock. TD Securities reiterated a "hold" rating and set a $215.00 target price on shares of Darden Restaurants in a research report on Friday, June 20th. BMO Capital Markets lifted their target price on Darden Restaurants from $190.00 to $215.00 and gave the company a "market perform" rating in a research report on Wednesday, June 25th. Wells Fargo & Company lifted their target price on Darden Restaurants from $200.00 to $225.00 and gave the company an "equal weight" rating in a research report on Tuesday, June 17th. Finally, Bank of America lifted their target price on Darden Restaurants from $252.00 to $253.00 and gave the company a "buy" rating in a research report on Monday, June 23rd. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, Darden Restaurants presently has an average rating of "Moderate Buy" and an average price target of $225.19.

Darden Restaurants Company 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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