CHB Investment Group LLC Buys Shares of 17,448 Darden Restaurants, Inc. $DRI

Key Points

• CHB Investment Group LLC acquired 17,448 shares of Darden Restaurants, Inc. valued at approximately $3.8 million, making it the firm's 14th largest holding.
• Darden recently declared a quarterly dividend of $1.50 per share, reflecting an annualized dividend of $6.00 and a yield of 3.2%.
• Despite a revenue increase of 10.4% year-over-year, Darden's quarterly earnings missed analysts' expectations by $0.04, reporting earnings of $1.97 per share.

CHB Investment Group LLC purchased a new stake in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 17,448 shares of the restaurant operator's stock, valued at approximately $3,803,000. Darden Restaurants comprises 1.9% of CHB Investment Group LLC's investment portfolio, making the stock its 14th biggest holding.

Other large investors have also added to or reduced their stakes in the company. Wealth Enhancement Advisory Services LLC grew its stake in Darden Restaurants by 31.8% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 15,230 shares of the restaurant operator's stock valued at $3,164,000 after purchasing an additional 3,677 shares during the last quarter. Choreo LLC grew its stake in Darden Restaurants by 46.0% during the 1st quarter. Choreo LLC now owns 16,248 shares of the restaurant operator's stock valued at $3,376,000 after purchasing an additional 5,119 shares during the last quarter. Principal Financial Group Inc. grew its stake in Darden Restaurants by 5.1% during the 1st quarter. Principal Financial Group Inc. now owns 162,340 shares of the restaurant operator's stock valued at $33,728,000 after purchasing an additional 7,902 shares during the last quarter. Golden State Wealth Management LLC grew its stake in Darden Restaurants by 12.4% during the 1st quarter. Golden State Wealth Management LLC now owns 924 shares of the restaurant operator's stock valued at $192,000 after purchasing an additional 102 shares during the last quarter. Finally, GAMMA Investing LLC grew its stake in Darden Restaurants by 124.2% during the 1st quarter. GAMMA Investing LLC now owns 4,471 shares of the restaurant operator's stock valued at $929,000 after purchasing an additional 2,477 shares during the last quarter. Hedge funds and other institutional investors own 93.64% of the company's stock.

Darden Restaurants Stock Performance

NYSE DRI opened at $186.47 on Wednesday. The company has a quick ratio of 0.27, a current ratio of 0.40 and a debt-to-equity ratio of 0.96. Darden Restaurants, Inc. has a 52-week low of $155.18 and a 52-week high of $228.27. The business's 50-day moving average price is $205.47 and its 200 day moving average price is $206.03. The firm has a market cap of $21.74 billion, a P/E ratio of 19.99, a P/E/G ratio of 1.70 and a beta of 0.71.

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

Darden Restaurants Dividend Announcement

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

Darden Restaurants declared that its Board of Directors has authorized a stock buyback plan on Friday, June 20th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the restaurant operator to repurchase up to 3.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts have weighed in on DRI shares. Raymond James Financial dropped their price target on Darden Restaurants from $230.00 to $210.00 and set an "outperform" rating on the stock in a research note on Friday, September 19th. Bank of America upped their price target on Darden Restaurants from $253.00 to $254.00 and gave the stock a "buy" rating in a report on Tuesday, September 16th. Citigroup increased their target price on Darden Restaurants from $245.00 to $253.00 and gave the company a "buy" rating in a report on Monday, June 23rd. BTIG Research dropped their price target on Darden Restaurants from $235.00 to $225.00 and set a "buy" rating for the company in a research report on Friday, September 19th. Finally, Wells Fargo & Company lowered their price objective on Darden Restaurants from $225.00 to $200.00 and set an "equal weight" rating for the company in a research report on Friday, September 19th. Eighteen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $225.96.

Insider Activity

In related news, insider Laura B. Williamson sold 523 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $204.65, for a total transaction of $107,031.95. Following the completion of the transaction, the insider directly owned 5,423 shares in the company, valued at $1,109,816.95. The trade was a 8.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Todd Burrowes sold 13,569 shares of Darden Restaurants stock in a transaction that occurred on Monday, June 30th. The stock was sold at an average price of $216.45, for a total value of $2,937,010.05. Following the transaction, the insider owned 46,327 shares of the company's stock, valued at $10,027,479.15. This represents a 22.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 23,264 shares of company stock worth $5,024,790. Company insiders own 0.49% of the company's stock.

About Darden Restaurants

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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