Blue Trust Inc. Acquires 4,630 Shares of Darden Restaurants, Inc. $DRI

Key Points

• Blue Trust Inc. increased its holdings in Darden Restaurants by 39.2%, acquiring an additional 4,630 shares, bringing its total to 16,432 shares valued at approximately $3.58 million.
• Darden Restaurants reported a quarterly earnings per share (EPS) of $1.97, missing the consensus estimate of $2.01, while its revenue reached $3.04 billion, slightly above analysts' expectations.
• The company announced a quarterly dividend of $1.50, which will be paid on November 3rd, yielding an annualized rate of 3.2% based on a payout ratio of 64.31%.

Blue Trust Inc. increased its holdings in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 39.2% in the second quarter, according to its most recent disclosure with the SEC. The firm owned 16,432 shares of the restaurant operator's stock after purchasing an additional 4,630 shares during the period. Blue Trust Inc.'s holdings in Darden Restaurants were worth $3,582,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Grove Bank & Trust boosted its holdings in shares of Darden Restaurants by 171.4% during the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock worth $28,000 after acquiring an additional 84 shares during the period. ORG Partners LLC boosted its holdings in shares of Darden Restaurants by 108.8% during the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock worth $30,000 after acquiring an additional 74 shares during the period. Centennial Bank AR bought a new stake in shares of Darden Restaurants during the first quarter worth approximately $31,000. Alpine Bank Wealth Management bought a new stake in shares of Darden Restaurants during the first quarter worth approximately $34,000. Finally, SouthState Corp bought a new stake in shares of Darden Restaurants during the first quarter worth approximately $36,000. Institutional investors own 93.64% of the company's stock.

Darden Restaurants Stock Down 0.7%

Shares of NYSE:DRI opened at $186.63 on Friday. The company has a fifty day moving average of $201.80 and a 200-day moving average of $205.79. The company has a market capitalization of $21.71 billion, a PE ratio of 20.00, a price-to-earnings-growth ratio of 1.72 and a beta of 0.77. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.27 and a current ratio of 0.40. Darden Restaurants, Inc. has a 52-week low of $155.18 and a 52-week high of $228.27.

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

Darden Restaurants Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Investors of record on Friday, October 10th will be issued a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Friday, October 10th. Darden Restaurants's dividend payout ratio is presently 64.31%.

Darden Restaurants announced that its Board of Directors has approved a share buyback plan on Friday, June 20th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the restaurant operator to buy up to 3.8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on DRI. JPMorgan Chase & Co. reduced their price objective on Darden Restaurants from $240.00 to $230.00 and set an "overweight" rating for the company in a report on Monday. Melius assumed coverage on shares of Darden Restaurants in a research report on Monday, July 14th. They issued a "hold" rating and a $240.00 price target for the company. Evercore ISI dropped their price target on shares of Darden Restaurants from $245.00 to $240.00 and set an "outperform" rating for the company in a research report on Friday, September 19th. Melius Research upgraded shares of Darden Restaurants to a "hold" rating in a research report on Monday, July 14th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Darden Restaurants in a research report on Wednesday. Nineteen analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to MarketBeat, Darden Restaurants currently has a consensus rating of "Moderate Buy" and a consensus target price of $225.59.

Insiders Place Their Bets

In related news, SVP Matthew R. Broad sold 5,661 shares of the stock in a transaction on Monday, October 6th. The stock was sold at an average price of $193.40, for a total value of $1,094,837.40. Following the completion of the sale, the senior vice president directly owned 13,916 shares in the company, valued at $2,691,354.40. This represents a 28.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Laura B. Williamson sold 523 shares of the stock in a transaction on Wednesday, July 30th. The shares were sold at an average price of $204.65, for a total value of $107,031.95. Following the completion of the sale, the insider owned 5,423 shares of the company's stock, valued at $1,109,816.95. The trade was a 8.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 7,674 shares of company stock valued at $1,507,575 over the last 90 days. 0.49% of the stock is currently owned by company insiders.

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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