OP Asset Management Ltd Makes New Investment in Darden Restaurants, Inc. $DRI

Key Points

• OP Asset Management Ltd opened a new position in Darden Restaurants, buying 12,265 shares worth about $2.4 million in the first quarter. Institutional ownership remains very high, with hedge funds and other investors holding 93.64% of the stock.
• Darden posted a strong quarterly update, with EPS of $3.66 beating estimates and revenue up 13.7% year over year to $3.72 billion. The company also raised its quarterly dividend by 8% and authorized a new $1.5 billion share repurchase program.
• Analysts remain broadly positive: firms including UBS and Deutsche Bank lifted price targets after the results, and Darden now has a consensus rating of Moderate Buy with an average price target of $228.32. However, fiscal 2027 guidance came in slightly below Wall Street expectations, tempering some of the post-earnings enthusiasm.

OP Asset Management Ltd purchased a new position in shares of Darden Restaurants, Inc. (NYSE:DRI - Free Report) in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 12,265 shares of the restaurant operator's stock, valued at approximately $2,404,000.

A number of other hedge funds have also made changes to their positions in the stock. Torren Management LLC acquired a new stake in Darden Restaurants in the 4th quarter worth approximately $26,000. Thurston Springer Miller Herd & Titak Inc. grew its holdings in Darden Restaurants by 926.7% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator's stock valued at $28,000 after purchasing an additional 139 shares during the last quarter. Union Savings Bank acquired a new position in Darden Restaurants during the fourth quarter valued at approximately $28,000. BOK Financial Private Wealth Inc. bought a new position in shares of Darden Restaurants in the fourth quarter valued at approximately $29,000. Finally, DV Equities LLC bought a new position in shares of Darden Restaurants in the fourth quarter valued at approximately $30,000. Institutional investors and hedge funds own 93.64% of the company's stock.

Darden Restaurants News Summary

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

• Positive Sentiment: UBS raised its price target on Darden to $240 from $230 and reiterated a buy rating, signaling confidence in additional upside after the quarter. UBS price target increase on Darden Restaurants
• Positive Sentiment: Deutsche Bank lifted its target to $236 from $230 and kept a buy rating, citing room for continued gains. Deutsche Bank price target increase on Darden Restaurants
• Positive Sentiment: BTIG, Stephens, Piper Sandler, Robert W. Baird and others also raised targets after reviewing the quarter, which reinforces the market’s view that Darden’s brand strength and long-term earnings power remain intact. Analysts boost forecasts after Darden Q4 results
• Positive Sentiment: The company beat fiscal Q4 EPS estimates, reported 13.7% year-over-year revenue growth, raised its quarterly dividend 8%, and authorized a new $1.5 billion share repurchase program, all of which are supportive for shareholder returns. Darden fiscal 2026 results and capital return actions
• Neutral Sentiment: Management’s fiscal 2027 guidance was slightly below Wall Street’s EPS expectations and revenue came in just under forecasts, which tempers the post-earnings enthusiasm. Darden earnings coverage from CNBC
• Negative Sentiment: Some reports noted that Olive Garden and other comparable sales trends were mixed, suggesting that not all brands are accelerating evenly despite LongHorn Steakhouse’s strength. Mixed Q4 results and brand performance for Darden

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, SVP Lindsay L. Koren sold 300 shares of the firm's stock in a transaction dated Tuesday, April 7th. The shares were sold at an average price of $194.32, for a total transaction of $58,296.00. Following the completion of the transaction, the senior vice president owned 1,617 shares in the company, valued at $314,215.44. This trade represents a 15.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Douglas J. Milanes sold 3,620 shares of Darden Restaurants stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $202.16, for a total value of $731,819.20. Following the sale, the senior vice president directly owned 274 shares in the company, valued at $55,391.84. The trade was a 92.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.49% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

DRI has been the subject of a number of analyst reports. Wells Fargo & Company boosted their price objective on shares of Darden Restaurants from $200.00 to $210.00 and gave the stock an "equal weight" rating in a research note on Friday, March 20th. Sanford C. Bernstein reiterated an "outperform" rating on shares of Darden Restaurants in a report on Friday, March 13th. Guggenheim boosted their target price on shares of Darden Restaurants from $230.00 to $235.00 and gave the stock a "buy" rating in a research report on Wednesday. BTIG Research boosted their target price on shares of Darden Restaurants from $225.00 to $235.00 and gave the stock a "buy" rating in a research report on Friday. Finally, UBS Group upped their price target on shares of Darden Restaurants from $230.00 to $240.00 and gave the company a "buy" rating in a report on Friday. Seventeen investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $228.32.

Darden Restaurants Price Performance

Shares of DRI stock opened at $213.79 on Friday. Darden Restaurants, Inc. has a 12 month low of $169.00 and a 12 month high of $222.56. The company has a market capitalization of $24.49 billion, a P/E ratio of 20.60, a P/E/G ratio of 1.92 and a beta of 0.60. The stock has a 50 day moving average of $201.89 and a two-hundred day moving average of $200.98. The company has a current ratio of 0.31, a quick ratio of 0.25 and a debt-to-equity ratio of 0.74.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings results on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share for the quarter, topping analysts' consensus estimates of $3.63 by $0.03. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The firm had revenue of $3.72 billion for the quarter, compared to the consensus estimate of $3.73 billion. During the same quarter in the previous year, the company earned $2.98 earnings per share. The business's revenue was up 13.7% compared to the same quarter last year. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, equities analysts expect that Darden Restaurants, Inc. will post 11.3 EPS for the current year.

Darden Restaurants Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be given a $1.62 dividend. This represents a $6.48 annualized dividend and a yield of 3.0%. This is a boost from Darden Restaurants's previous quarterly dividend of $1.50. The ex-dividend date of this dividend is Friday, July 10th. Darden Restaurants's dividend payout ratio (DPR) is currently 57.80%.

About Darden Restaurants

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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