Darden Restaurants, Inc. $DRI Shares Acquired by QRG Capital Management Inc.

Key Points

• QRG Capital Management increased its Darden Restaurants stake by 881.2% in the second quarter, owning 47,136 shares valued at approximately $9.7 million. Institutional investors and hedge funds collectively hold 93.64% of Darden’s stock.
• Darden reported first-quarter revenue of $3.20 billion, up 5.1% year over year, and adjusted EPS of $2.05, in line with estimates. Management reaffirmed fiscal 2027 adjusted EPS guidance of $11.10–$11.35 and declared a quarterly dividend of $1.62 per share.
• Shares opened at $206.83 after declining 3.2%, as higher food and labor costs reduced net income and Olive Garden same-store sales growth slowed to 1.1%. Analysts maintain a “Moderate Buy” consensus with an average price target of $232.09.

QRG Capital Management Inc. increased its position in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 881.2% during the second quarter, according to its most recent Form 13F filing with the SEC. The firm owned 47,136 shares of the restaurant operator's stock after buying an additional 42,332 shares during the period. QRG Capital Management Inc.'s holdings in Darden Restaurants were worth $9,710,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in DRI. Capital World Investors increased its position in shares of Darden Restaurants by 2.2% in the 4th quarter. Capital World Investors now owns 15,161,277 shares of the restaurant operator's stock valued at $2,790,128,000 after purchasing an additional 322,079 shares during the last quarter. BlackRock Inc. acquired a new position in shares of Darden Restaurants during the second quarter worth $2,015,109,000. Bank of America Corp DE purchased a new position in Darden Restaurants in the second quarter valued at $651,813,000. JPMorgan Chase & Co. increased its holdings in Darden Restaurants by 9.4% in the fourth quarter. JPMorgan Chase & Co. now owns 2,918,165 shares of the restaurant operator's stock valued at $537,001,000 after buying an additional 251,246 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in Darden Restaurants by 2.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,265,473 shares of the restaurant operator's stock valued at $248,083,000 after buying an additional 33,965 shares in the last quarter. Institutional investors and hedge funds own 93.64% of the company's stock.

Key Headlines Impacting Darden Restaurants

Here are the key news stories impacting Darden Restaurants this week:

• Positive Sentiment: Darden reported first-quarter revenue of approximately $3.20 billion, up 5.1% year over year, while adjusted EPS of $2.05 was broadly in line with Wall Street expectations. Same-restaurant sales increased 3.1% across the portfolio. Darden fiscal 2027 first-quarter results
• Positive Sentiment: Management reaffirmed fiscal 2027 adjusted EPS guidance of $11.10 to $11.35 and its broader sales outlook, reducing the risk of a near-term guidance cut. Darden also highlighted continued expansion, including a target of 13 new Yard House locations. Darden reaffirms fiscal 2027 guidance
• Positive Sentiment: Darden declared a quarterly dividend of $1.62 per share, or $6.48 annualized, representing a yield of roughly 3.1% based on the reported stock price. Shareholders of record on October 9 will be paid on November 2.
• Positive Sentiment: LongHorn Steakhouse remained a bright spot, with same-store sales growth of 6.2%, and shareholders voted to retain the existing board and governance structure. Darden sales momentum and brand performance
• Neutral Sentiment: Analyst TD Cowen reaffirmed a “Hold” rating and maintained a $215 price target, signaling limited conviction immediately following the results.
• Negative Sentiment: Revenue fell short of the approximately $3.21 billion consensus estimate, and reported net income declined to about $233.4 million from $257.8 million a year earlier. Higher food and labor expenses pressured profitability. Darden profit declines on higher expenses
• Negative Sentiment: Olive Garden, Darden’s largest brand, posted only 1.1% same-store sales growth. The slowdown raised concerns about traffic and discretionary consumer spending in casual dining. Darden stock falls as Olive Garden growth slows

Darden Restaurants Stock Down 3.2%

Shares of NYSE DRI opened at $206.83 on Friday. The business has a 50-day moving average price of $212.01 and a 200 day moving average price of $204.76. The stock has a market cap of $23.60 billion, a PE ratio of 19.93, a price-to-earnings-growth ratio of 2.01 and a beta of 0.60. The company has a quick ratio of 0.21, a current ratio of 0.31 and a debt-to-equity ratio of 0.74. Darden Restaurants, Inc. has a 52-week low of $169.00 and a 52-week high of $229.76.

Darden Restaurants (NYSE:DRI - Get Free Report) last released its quarterly earnings results on Thursday, September 24th. The restaurant operator reported $2.05 EPS for the quarter, hitting the consensus estimate of $2.05. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The company had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.21 billion. During the same quarter in the previous year, the company posted $1.97 earnings per share. The firm's revenue was up 5.1% compared to the same quarter last year. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. Equities research analysts forecast that Darden Restaurants, Inc. will post 11.26 earnings per share for the current year.

Darden Restaurants Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 9th will be issued a $1.62 dividend. This represents a $6.48 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, October 9th. Darden Restaurants's payout ratio is presently 62.43%.

Analysts Set New Price Targets

DRI has been the subject of a number of recent analyst reports. Guggenheim lifted their price target on Darden Restaurants from $230.00 to $235.00 and gave the stock a "buy" rating in a report on Wednesday, June 24th. Bank of America raised their target price on Darden Restaurants from $272.00 to $276.00 and gave the stock a "buy" rating in a research report on Friday, June 5th. UBS Group restated a "buy" rating on shares of Darden Restaurants in a research note on Friday, September 11th. Argus boosted their target price on Darden Restaurants from $240.00 to $245.00 and gave the stock a "buy" rating in a research note on Tuesday, June 30th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on Darden Restaurants from $230.00 to $236.00 and gave the company a "buy" rating in a report on Friday, June 26th. Eighteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, Darden Restaurants has an average rating of "Moderate Buy" and an average target price of $232.09.

Insiders Place Their Bets

In related news, insider John Wilkerson sold 8,864 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $208.33, for a total transaction of $1,846,637.12. Following the completion of the sale, the insider owned 18,794 shares in the company, valued at $3,915,354.02. This represents a 32.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Ricardo Cardenas sold 39,134 shares of the firm's stock in a transaction on 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 directly owned 86,146 shares in the company, valued at $18,009,682.76. The trade was a 31.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 70,185 shares of company stock worth $14,636,984. Corporate insiders own 0.67% of the company's stock.

Darden Restaurants Company Profile

Darden Restaurants, Inc NYSE: DRI is a full-service restaurant company headquartered in Orlando, Florida. It operates and franchises a portfolio of dining brands serving a range of cuisines, price points and occasions, with restaurants primarily located in the United States and select international markets.

Its restaurant portfolio includes Olive Garden, an Italian-American dining chain; LongHorn Steakhouse; Cheddar's Scratch Kitchen; Yard House; The Capital Grille; Seasons 52; Bahama Breeze; Eddie V's; Ruth's Chris Steak House; and Chuy's.

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