Amundi Increases Stake in Darden Restaurants, Inc. $DRI

Key Points

• Amundi increased its Darden Restaurants stake by 20.6% in the first quarter, adding 67,352 shares to reach 393,541 shares valued at approximately $77.1 million. Institutional investors collectively own 93.64% of Darden’s stock.
• Darden reported quarterly earnings of $3.66 per share, topping estimates, while revenue rose 13.7% year over year to $3.72 billion. The company also raised its quarterly dividend from $1.50 to $1.62 per share, producing an annualized yield of about 3.2%.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $228.88, but investors face risks from heavy insider selling, uneven brand performance and potential beef-cost inflation that could pressure margins and consumer demand.

Amundi boosted its position in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 20.6% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 393,541 shares of the restaurant operator's stock after acquiring an additional 67,352 shares during the period. Amundi owned 0.34% of Darden Restaurants worth $77,149,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in DRI. Meridian Wealth Management LLC purchased a new position in Darden Restaurants during the fourth quarter worth about $2,404,000. Sanctuary Advisors LLC grew its stake in Darden Restaurants by 33.0% in the 4th quarter. Sanctuary Advisors LLC now owns 23,473 shares of the restaurant operator's stock worth $4,319,000 after buying an additional 5,830 shares in the last quarter. Concurrent Investment Advisors LLC raised its position in shares of Darden Restaurants by 313.9% during the 4th quarter. Concurrent Investment Advisors LLC now owns 13,598 shares of the restaurant operator's stock valued at $2,502,000 after buying an additional 10,313 shares in the last quarter. Vanguard Group Inc. raised its position in shares of Darden Restaurants by 0.3% during the 4th quarter. Vanguard Group Inc. now owns 14,063,355 shares of the restaurant operator's stock valued at $2,587,939,000 after buying an additional 43,965 shares in the last quarter. Finally, Fortis Capital Advisors LLC bought a new stake in shares of Darden Restaurants during the 4th quarter worth $1,007,000. Institutional investors own 93.64% of the company's stock.

Insider Activity at Darden Restaurants

In related news, SVP Susan M. Connelly sold 9,930 shares of the company's stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $206.21, for a total transaction of $2,047,665.30. Following the completion of the transaction, the senior vice president owned 4,165 shares in the company, valued at $858,864.65. This represents a 70.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Rajesh Vennam sold 8,478 shares of the firm's stock in a transaction 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 directly owned 8,569 shares of the company's stock, valued at $1,799,490. The trade was a 49.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 59,768 shares of company stock worth $12,472,786 over the last quarter. 0.49% of the stock is owned by corporate insiders.

Darden Restaurants Trading Down 1.5%

NYSE:DRI opened at $203.97 on Friday. The company has a fifty day moving average of $203.74 and a 200 day moving average of $203.19. Darden Restaurants, Inc. has a 52 week low of $169.00 and a 52 week high of $220.65. The firm has a market capitalization of $23.27 billion, a P/E ratio of 19.65, a P/E/G ratio of 2.03 and a beta of 0.60. The company has a quick ratio of 0.21, a current ratio of 0.31 and a debt-to-equity ratio of 0.74.

Darden Restaurants (NYSE:DRI - Get Free Report) last issued its quarterly earnings data 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 9.13% and a return on equity of 57.44%. The company's quarterly revenue was up 13.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.98 earnings per share. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, research analysts predict that Darden Restaurants, Inc. will post 11.28 earnings per share for the current year.

Darden Restaurants Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be paid a dividend of $1.62 per share. This represents a $6.48 annualized dividend and a dividend yield of 3.2%. This is a boost from Darden Restaurants's previous quarterly dividend of $1.50. The ex-dividend date of this dividend is Friday, July 10th. Darden Restaurants's payout ratio is presently 62.43%.

Darden Restaurants News Roundup

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

• Positive Sentiment: Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $228.88. Deutsche Bank, Guggenheim, Stephens and Bank of America recently raised their price targets, signaling continued confidence in Darden’s longer-term growth prospects. Darden Receives Moderate Buy Recommendation
• Positive Sentiment: Darden’s latest quarterly results showed adjusted earnings of $3.66 per share, ahead of the $3.63 consensus estimate, while revenue increased 13.7% year over year to $3.72 billion. The company also reaffirmed fiscal 2027 earnings guidance of $11.10 to $11.35 per share. Darden Results Analysis
• Positive Sentiment: Darden increased its quarterly dividend to $1.62 from $1.50, bringing the annualized payout to $6.48 and the yield to approximately 3.1%. The higher shareholder return may support the stock’s income appeal. Darden Dividend Increase
• Neutral Sentiment: LongHorn Steakhouse reportedly posted 9.5% sales growth, but Olive Garden lagged, underscoring uneven performance across Darden’s brands. This leaves investors assessing whether higher-growth concepts can offset softness at the company’s largest chain. Darden Brand Performance
• Negative Sentiment: CEO Ricardo Cardenas sold 39,134 shares for approximately $8.2 million after exercising options, reducing his direct holdings by about 31%. CFO Rajesh Vennam sold 8,478 shares worth about $1.8 million, cutting his direct stake nearly in half, while SVP Susan Connelly sold 2,226 shares. The cluster of executive sales is likely weighing on near-term sentiment, although the CEO’s transaction was tied to an option exercise. Darden Insider Sales
• Negative Sentiment: Potential beef-cost inflation and cautious consumer spending remain risks to restaurant margins and traffic, particularly if price increases pressure demand at Olive Garden and other value-oriented concepts. Darden CFO Sale and Beef Inflation

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. Deutsche Bank Aktiengesellschaft increased their target price on Darden Restaurants from $230.00 to $236.00 and gave the company a "buy" rating in a research note on Friday, June 26th. Evercore lowered Darden Restaurants from an "outperform" rating to an "in-line" rating and set a $230.00 price objective on the stock. in a research report on Tuesday, June 23rd. UBS Group raised their price objective on Darden Restaurants from $230.00 to $240.00 and gave the company a "buy" rating in a report on Friday, June 26th. Bank of America boosted their target price on Darden Restaurants from $272.00 to $276.00 and gave the stock a "buy" rating in a research report on Friday, June 5th. Finally, Stephens increased their price target on shares of Darden Restaurants from $210.00 to $216.00 and gave the company an "equal weight" rating in a research report on Friday, June 26th. Seventeen research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat, Darden Restaurants has an average rating of "Moderate Buy" and an average target price of $228.88.

Darden Restaurants Company Profile

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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