Darden Restaurants, Inc. $DRI Shares Acquired by Harrell Investment Partners LLC

Key Points

• Harrell Investment Partners LLC increased its stake in Darden Restaurants by 15.6%, making it the 21st largest position in their portfolio, with holdings worth approximately $5.8 million as of the latest SEC filing.
• Several other institutional investors, including Charles Schwab and JPMorgan Chase, have also raised their stakes in Darden Restaurants, resulting in 93.64% of the company's shares owned by institutional investors and hedge funds.
• The company announced a quarterly dividend of $1.50 per share, which will be paid on November 3rd, indicating a 3.2% dividend yield and a strong commitment to returning value to shareholders.

Harrell Investment Partners LLC grew its holdings in Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 15.6% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 26,634 shares of the restaurant operator's stock after acquiring an additional 3,601 shares during the period. Darden Restaurants comprises approximately 1.5% of Harrell Investment Partners LLC's portfolio, making the stock its 21st largest position. Harrell Investment Partners LLC's holdings in Darden Restaurants were worth $5,805,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of the business. Charles Schwab Investment Management Inc. grew its stake in shares of Darden Restaurants by 6.6% in the first quarter. Charles Schwab Investment Management Inc. now owns 3,998,200 shares of the restaurant operator's stock worth $830,666,000 after acquiring an additional 247,542 shares in the last quarter. Raymond James Financial Inc. grew its stake in shares of Darden Restaurants by 4.6% in the first quarter. Raymond James Financial Inc. now owns 3,601,340 shares of the restaurant operator's stock worth $748,215,000 after acquiring an additional 157,305 shares in the last quarter. GAMMA Investing LLC grew its stake in shares of Darden Restaurants by 46,484.5% in the first quarter. GAMMA Investing LLC now owns 928,895 shares of the restaurant operator's stock worth $192,987,000 after acquiring an additional 926,901 shares in the last quarter. Hamlin Capital Management LLC grew its stake in shares of Darden Restaurants by 17.6% in the first quarter. Hamlin Capital Management LLC now owns 913,398 shares of the restaurant operator's stock worth $189,768,000 after acquiring an additional 136,382 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Darden Restaurants by 6.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 625,449 shares of the restaurant operator's stock worth $129,943,000 after acquiring an additional 37,878 shares in the last quarter. Institutional investors and hedge funds own 93.64% of the company's stock.

Insider Transactions at Darden Restaurants

In other news, insider Todd Burrowes sold 13,569 shares of the stock in a transaction dated Monday, June 30th. The shares were sold at an average price of $216.45, for a total transaction of $2,937,010.05. Following the completion of the sale, the insider owned 46,327 shares in the company, valued at approximately $10,027,479.15. This represents a 22.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Laura B. Williamson sold 523 shares of the stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $204.65, for a total transaction of $107,031.95. Following the sale, the insider owned 5,423 shares of the company's stock, valued at $1,109,816.95. This trade represents a 8.80% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 23,264 shares of company stock worth $5,024,790. Company insiders own 0.49% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Stephens reissued an "equal weight" rating and issued a $215.00 target price on shares of Darden Restaurants in a report on Thursday, September 18th. Wells Fargo & Company dropped their target price on Darden Restaurants from $225.00 to $200.00 and set an "equal weight" rating on the stock in a report on Friday, September 19th. JPMorgan Chase & Co. increased their target price on Darden Restaurants from $218.00 to $240.00 and gave the company an "overweight" rating in a report on Wednesday, June 25th. BMO Capital Markets dropped their target price on Darden Restaurants from $215.00 to $205.00 and set a "market perform" rating on the stock in a report on Friday, September 19th. Finally, Argus dropped their target price on Darden Restaurants from $260.00 to $220.00 and set a "buy" rating on the stock in a 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 data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $225.96.

Darden Restaurants Stock Performance

NYSE DRI opened at $186.86 on Thursday. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.40 and a quick ratio of 0.27. Darden Restaurants, Inc. has a 1 year low of $155.18 and a 1 year high of $228.27. The company has a market capitalization of $21.79 billion, a PE ratio of 20.03, a P/E/G ratio of 1.71 and a beta of 0.71. The company has a fifty day moving average of $205.05 and a two-hundred day moving average of $205.90.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings data 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). Darden Restaurants had a net margin of 8.90% and a return on equity of 52.35%. The company had revenue of $3.04 billion during the quarter, compared to analyst estimates of $3.03 billion. During the same quarter in the prior year, the company earned $1.75 EPS. The business's revenue was up 10.4% on a year-over-year basis. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. As a group, analysts expect that Darden Restaurants, Inc. will post 9.52 earnings per share for the current year.

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

Darden Restaurants Announces Dividend

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

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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