Wealthfront Advisers LLC Makes New $3.52 Million Investment in Darden Restaurants, Inc. $DRI

Key Points

• Wealthfront Advisers acquired 17,097 shares of Darden Restaurants valued at approximately $3.52 million during the second quarter. Institutional investors collectively own 93.64% of Darden’s outstanding stock.
• Darden reported quarterly earnings of $3.66 per share, slightly beating analyst estimates, while revenue rose 13.7% year over year to $3.72 billion. The company issued fiscal 2027 EPS guidance of $11.10–$11.35.
• Darden increased its quarterly dividend from $1.50 to $1.62 per share, representing a $6.48 annualized payout and a 3.0% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $228.88.

Wealthfront Advisers LLC acquired a new stake in Darden Restaurants, Inc. (NYSE:DRI - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 17,097 shares of the restaurant operator's stock, valued at approximately $3,522,000.

Several other hedge funds have also made changes to their positions in the business. BlackRock Inc. acquired a new position in Darden Restaurants in the 2nd quarter valued at about $2,015,109,000. Wellington Management Group LLP lifted its position in Darden Restaurants by 81.0% during the 4th quarter. Wellington Management Group LLP now owns 8,077,567 shares of the restaurant operator's stock worth $1,486,434,000 after acquiring an additional 3,613,781 shares during the period. Bank of America Corp DE lifted its position in 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 during the period. Bank of New York Mellon Corp purchased a new position in shares of Darden Restaurants in the 2nd quarter valued at approximately $204,099,000. Finally, Norges Bank purchased a new position in shares of Darden Restaurants in the 4th quarter valued at approximately $144,483,000. Institutional investors and hedge funds own 93.64% of the company's stock.

Darden Restaurants Trading Down 1.8%

Shares of DRI opened at $217.89 on Friday. The company has a current ratio of 0.31, a quick ratio of 0.21 and a debt-to-equity ratio of 0.74. The firm's 50-day moving average is $208.09 and its two-hundred day moving average is $204.32. Darden Restaurants, Inc. has a twelve month low of $169.00 and a twelve month high of $229.76. The firm has a market capitalization of $24.86 billion, a P/E ratio of 20.99, a PEG ratio of 2.21 and a beta of 0.60.

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 (EPS) for the quarter, beating analysts' consensus estimates of $3.63 by $0.03. The company had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.73 billion. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The company's revenue for the quarter was up 13.7% on a year-over-year basis. During the same period last year, the firm earned $2.98 EPS. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, research analysts predict that Darden Restaurants, Inc. will post 11.28 earnings per share for the current fiscal year.

Darden Restaurants Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Friday, July 10th were issued a dividend of $1.62 per share. This is a boost from Darden Restaurants's previous quarterly dividend of $1.50. This represents a $6.48 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Friday, July 10th. Darden Restaurants's payout ratio is presently 62.43%.

Wall Street Analyst Weigh In

DRI has been the subject of several recent analyst reports. Argus raised their target price on shares of Darden Restaurants from $240.00 to $245.00 and gave the stock a "buy" rating in a research note on Tuesday, June 30th. Oppenheimer reissued an "outperform" rating and set a $235.00 target price on shares of Darden Restaurants in a research note on Thursday, June 18th. UBS Group raised their price target on Darden Restaurants from $230.00 to $240.00 and gave the company a "buy" rating in a report on Friday, June 26th. Guggenheim lifted their price target on Darden Restaurants from $230.00 to $235.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Finally, Robert W. Baird upped their price objective on Darden Restaurants from $210.00 to $220.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. Seventeen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $228.88.

Insider Activity at Darden Restaurants

In other Darden Restaurants news, SVP Susan M. Connelly sold 2,226 shares of the company's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $208.17, for a total value of $463,386.42. Following the sale, the senior vice president owned 4,165 shares of the company's stock, valued at approximately $867,028.05. This represents a 34.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Laura B. Williamson sold 443 shares of the firm's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $204.89, for a total value of $90,766.27. Following the completion of the transaction, the insider owned 5,536 shares of the company's stock, valued at approximately $1,134,271.04. This represents a 7.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 70,185 shares of company stock valued at $14,636,984 in the last 90 days. 0.67% of the stock is owned by corporate insiders.

Darden Restaurants Company Profile

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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