Bank of America Corp DE Increases Holdings in Darden Restaurants, Inc. $DRI

Key Points

• Bank of America increased its Darden Restaurants stake by 44.6% in the first quarter, acquiring 991,230 additional shares and bringing its holdings to 3.21 million shares worth approximately $629.7 million.
• Darden reported adjusted quarterly EPS of $3.66, topping estimates, while revenue rose 13.7% year over year to $3.72 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $228.88, and the company raised its quarterly dividend to $1.62 per share.
• Several executives sold shares, including CEO Ricardo Cardenas, who sold approximately $8.2 million worth and reduced his holdings by about 31%. Investors also face risks from beef-cost inflation, cautious consumer spending and uneven brand performance, particularly weaker Olive Garden results.

Bank of America Corp DE increased its stake in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 44.6% during the first quarter, according to its most recent filing with the SEC. The institutional investor owned 3,212,283 shares of the restaurant operator's stock after purchasing an additional 991,230 shares during the period. Bank of America Corp DE owned 2.80% of Darden Restaurants worth $629,736,000 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in DRI. Torren Management LLC purchased a new stake in shares of Darden Restaurants in the fourth quarter worth about $26,000. Thurston Springer Miller Herd & Titak Inc. grew its stake in Darden Restaurants by 926.7% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator's stock valued at $28,000 after acquiring an additional 139 shares in the last quarter. Union Savings Bank purchased a new position in Darden Restaurants during the fourth quarter valued at approximately $28,000. BOK Financial Private Wealth Inc. bought a new stake in Darden Restaurants during the 4th quarter worth approximately $29,000. Finally, DV Equities LLC bought a new stake in Darden Restaurants during the 4th quarter worth approximately $30,000. Institutional investors own 93.64% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have commented on DRI shares. Citigroup raised their price target on shares of Darden Restaurants from $238.00 to $245.00 and gave the company a "buy" rating in a report on Monday, June 15th. Robert W. Baird upped their price target on shares of Darden Restaurants from $210.00 to $220.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. Deutsche Bank Aktiengesellschaft increased their price objective on Darden Restaurants from $230.00 to $236.00 and gave the stock a "buy" rating in a research report on Friday, June 26th. Bank of America lifted their price objective on Darden Restaurants from $272.00 to $276.00 and gave the company a "buy" rating in a research note on Friday, June 5th. Finally, UBS Group boosted their target price on Darden Restaurants from $230.00 to $240.00 and gave the stock a "buy" rating in a research report on Friday, June 26th. Seventeen investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, Darden Restaurants has an average rating of "Moderate Buy" and an average target price of $228.88.

Insider Buying and Selling at Darden Restaurants

In other Darden Restaurants news, CEO Ricardo Cardenas sold 39,134 shares of Darden Restaurants stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $209.06, for a total transaction of $8,181,354.04. Following the completion of the sale, the chief executive officer owned 86,146 shares of the company's stock, valued at $18,009,682.76. The trade was a 31.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Susan M. Connelly sold 2,226 shares of the company's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $208.17, for a total value of $463,386.42. Following the completion of the transaction, the senior vice president owned 4,165 shares of the company's stock, valued at $867,028.05. The trade was a 34.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 59,768 shares of company stock worth $12,472,786 over the last 90 days. Corporate insiders own 0.49% of the company's stock.

Key Stories Impacting Darden Restaurants

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

Darden Restaurants Price Performance

Shares of NYSE:DRI opened at $203.97 on Friday. The company's fifty day moving average price is $203.74 and its 200-day moving average price is $203.19. The firm has a market capitalization of $23.27 billion, a price-to-earnings ratio of 19.65, a PEG ratio of 2.03 and a beta of 0.60. Darden Restaurants, Inc. has a one year low of $169.00 and a one year high of $220.65. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.31 and a quick ratio of 0.21.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings data on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share for the quarter, beating the consensus estimate of $3.63 by $0.03. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The firm had revenue of $3.72 billion for the quarter, compared to analysts' expectations of $3.73 billion. During the same quarter last year, the company posted $2.98 EPS. The business's quarterly revenue was up 13.7% on a year-over-year basis. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, equities research analysts anticipate that Darden Restaurants, Inc. will post 11.28 earnings per share for the current fiscal year.

Darden Restaurants Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be given a dividend of $1.62 per share. The ex-dividend date is Friday, July 10th. This is a positive change from Darden Restaurants's previous quarterly dividend of $1.50. This represents a $6.48 dividend on an annualized basis and a yield of 3.2%. Darden Restaurants's dividend payout ratio (DPR) is 62.43%.

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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