Callan Family Office LLC Invests $997,000 in Darden Restaurants, Inc. $DRI

Key Points

• Callan Family Office LLC purchased 4,840 Darden Restaurants shares worth approximately $997,000 in the second quarter. Institutional investors and hedge funds collectively own 93.64% of Darden’s stock.
• Darden reported quarterly EPS of $3.66, slightly beating estimates, while revenue rose 13.7% year over year to $3.72 billion. The company also increased its quarterly dividend to $1.62, equivalent to a 2.9% annual yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $230.12, while company insiders sold roughly $14.6 million in stock over the past 90 days.

Callan Family Office LLC purchased a new stake in Darden Restaurants, Inc. (NYSE:DRI - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 4,840 shares of the restaurant operator's stock, valued at approximately $997,000.

A number of other hedge funds have also modified their holdings of DRI. BlackRock Inc. bought a new stake in shares of Darden Restaurants in the second quarter worth about $2,015,109,000. Wellington Management Group LLP lifted its holdings in shares of Darden Restaurants by 81.0% during the 4th quarter. Wellington Management Group LLP now owns 8,077,567 shares of the restaurant operator's stock valued at $1,486,434,000 after purchasing an additional 3,613,781 shares in the last quarter. Bank of America Corp DE grew its position in shares of Darden Restaurants by 44.6% in the 1st quarter. Bank of America Corp DE now owns 3,212,283 shares of the restaurant operator's stock valued at $629,736,000 after purchasing an additional 991,230 shares during the period. Bank of New York Mellon Corp acquired a new position in shares of Darden Restaurants in the 2nd quarter valued at approximately $204,099,000. Finally, Norges Bank bought a new stake in Darden Restaurants during the 4th quarter worth approximately $144,483,000. 93.64% of the stock is currently owned by institutional investors and hedge funds.

Darden Restaurants Stock Up 1.8%

Shares of DRI stock opened at $225.56 on Tuesday. The firm's fifty day moving average price is $208.63 and its two-hundred day moving average price is $204.61. The company has a current ratio of 0.31, a quick ratio of 0.21 and a debt-to-equity ratio of 0.74. Darden Restaurants, Inc. has a 1 year low of $169.00 and a 1 year high of $229.76. The firm has a market capitalization of $25.73 billion, a P/E ratio of 21.73, a PEG ratio of 2.20 and a beta of 0.60.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced 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. The company had revenue of $3.72 billion during the quarter, compared to analysts' expectations of $3.73 billion. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.Darden Restaurants's revenue for the quarter was up 13.7% compared to the same quarter last year. During the same quarter last year, the company earned $2.98 EPS. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, equities analysts predict that Darden Restaurants, Inc. will post 11.28 EPS for the current fiscal year.

Darden Restaurants Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Friday, July 10th were issued a $1.62 dividend. This represents a $6.48 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend was Friday, July 10th. This is a boost from Darden Restaurants's previous quarterly dividend of $1.50. Darden Restaurants's payout ratio is currently 62.43%.

Insiders Place Their Bets

In other Darden Restaurants news, SVP Susan M. Connelly sold 9,930 shares of the stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $206.21, for a total value of $2,047,665.30. Following the completion of the sale, the senior vice president owned 4,165 shares in the company, valued at $858,864.65. This trade represents a 70.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Ricardo Cardenas sold 39,134 shares of the business's 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 transaction, the chief executive officer owned 86,146 shares in the company, valued at $18,009,682.76. This represents a 31.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 70,185 shares of company stock valued at $14,636,984 in the last ninety days. 0.67% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several brokerages have commented on DRI. Stephens raised their target price on shares of Darden Restaurants from $210.00 to $216.00 and gave the stock an "equal weight" rating in a report on Friday, June 26th. BTIG Research increased their price objective on shares of Darden Restaurants from $225.00 to $235.00 and gave the stock a "buy" rating in a research report on Friday, June 26th. Citigroup raised their price objective on shares of Darden Restaurants from $238.00 to $245.00 and gave the stock a "buy" rating in a report on Monday, June 15th. Bank of America boosted their price objective on shares of Darden Restaurants from $272.00 to $276.00 and gave the company a "buy" rating in a research report on Friday, June 5th. Finally, Oppenheimer reaffirmed an "outperform" rating and issued a $235.00 target price on shares of Darden Restaurants in a research note on Thursday, June 18th. Eighteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, Darden Restaurants currently has an average rating of "Moderate Buy" and an average price target of $230.12.

Darden Restaurants 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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