Darden Restaurants, Inc. $DRI Stock: International Assets Investment Management LLC Grows Stake

Key Points

• International Assets Investment Management LLC increased its Darden Restaurants stake by 13,052.1% in the third quarter, ending with 300,000 shares valued at approximately $58 million. Institutional investors collectively own 93.64% of the company.
• Darden reported quarterly earnings of $2.05 per share, matching analyst expectations, while revenue rose 5.1% year over year to $3.20 billion. The company also declared a quarterly dividend of $1.62 per share, representing a 2.9% yield.
• Analysts maintain a generally favorable outlook, with a consensus “Moderate Buy” rating and an average price target of $232.82, compared with the stock’s reported opening price of $219.92.

International Assets Investment Management LLC boosted its holdings in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) by 13,052.1% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 300,000 shares of the restaurant operator's stock after purchasing an additional 297,719 shares during the period. International Assets Investment Management LLC owned approximately 0.27% of Darden Restaurants worth $57,975,000 at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of Darden Restaurants in the second quarter valued at $2,015,109,000. Bank of America Corp DE boosted its stake in shares of Darden Restaurants by 44.6% during the 1st quarter. Bank of America Corp DE now owns 3,212,283 shares of the restaurant operator's stock worth $629,736,000 after acquiring an additional 991,230 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Darden Restaurants by 2.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,265,473 shares of the restaurant operator's stock worth $248,083,000 after acquiring an additional 33,965 shares in the last quarter. Bank of New York Mellon Corp raised its stake in shares of Darden Restaurants by 0.5% in the 1st quarter. Bank of New York Mellon Corp now owns 1,010,169 shares of the restaurant operator's stock valued at $198,033,000 after acquiring an additional 5,318 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Darden Restaurants by 14.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 685,636 shares of the restaurant operator's stock valued at $141,248,000 after acquiring an additional 89,157 shares in the last quarter. 93.64% of the stock is currently owned by institutional investors.

Darden Restaurants Price Performance

Shares of DRI stock opened at $219.92 on Friday. The stock's fifty day moving average is $210.60 and its 200-day moving average is $205.87. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.20 and a current ratio of 0.30. The stock has a market capitalization of $24.88 billion, a PE ratio of 21.50, a PEG ratio of 2.06 and a beta of 0.63. 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 announced its earnings results on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share for the quarter, meeting analysts' consensus estimates of $2.05. The company had revenue of $3.20 billion during the quarter, compared to analyst estimates of $3.21 billion. Darden Restaurants had a return on equity of 58.64% and a net margin of 8.85%. The firm's quarterly revenue was up 5.1% compared to the same quarter last year. During the same period last year, the company posted $1.97 earnings per share. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. Equities research analysts expect that Darden Restaurants, Inc. will post 11.24 EPS for the current fiscal year.

Darden Restaurants Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be paid a $1.62 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $6.48 dividend on an annualized basis and a dividend yield of 2.9%. Darden Restaurants's payout ratio is currently 63.34%.

Insider Activity

In other news, insider John Wilkerson sold 8,864 shares of the company's stock in a transaction that occurred 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 transaction, the insider directly owned 18,794 shares in the company, valued at approximately $3,915,354.02. This represents a 32.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.67% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on DRI. Robert W. Baird raised Darden Restaurants from a "neutral" rating to an "outperform" rating and upped their target price for the stock from $220.00 to $250.00 in a research report on Monday, August 24th. BMO Capital Markets reduced their price target on shares of Darden Restaurants from $225.00 to $220.00 and set a "market perform" rating on the stock in a research report on Friday, September 25th. TD Cowen reaffirmed a "hold" rating and set a $215.00 price objective on shares of Darden Restaurants in a research note on Thursday, September 24th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $230.00 price objective on shares of Darden Restaurants in a research note on Friday, September 25th. Finally, Stephens reaffirmed an "equal weight" rating and set a $220.00 price objective on shares of Darden Restaurants in a report on Friday, September 25th. Sixteen investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $232.82.

Darden Restaurants Profile

Darden Restaurants, Inc is a full-service restaurant company that owns and operates a portfolio of dining brands in the United States. Its restaurants offer a range of cuisines and dining formats, including Italian-American, steakhouse, seafood, casual dining and polished casual concepts.

The company's portfolio includes Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, Ruth's Chris Steak House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V's. These brands serve meals prepared for on-premises dining, as well as takeout and other off-premises occasions.

Darden traces its history to 1968, when founder William “Bill” Darden opened the first Red Lobster restaurant in Lakeland, Florida.

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