Westport Asset Management Inc. Makes New $7.21 Million Investment in Darden Restaurants, Inc. $DRI

Key Points

• Westport Asset Management initiated a $7.21 million position in Darden Restaurants during the second quarter, purchasing 35,000 shares. The investment represents about 2.9% of the fund’s portfolio, while institutional investors collectively own 93.64% of Darden’s stock.
• Darden reported quarterly EPS of $3.66, exceeding estimates of $3.63, while revenue rose 13.7% year over year to $3.72 billion. The company also increased its quarterly dividend from $1.50 to $1.62 per share, giving it an annualized yield of approximately 2.9%.
• Analysts maintain a generally positive view, with 17 Buy ratings and 10 Hold ratings and an average price target of $228.88. The stock recently traded at $222, while insiders have sold more than 70,000 shares worth approximately $14.6 million over the past 90 days.

Westport Asset Management Inc. bought a new position in Darden Restaurants, Inc. (NYSE:DRI - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 35,000 shares of the restaurant operator's stock, valued at approximately $7,210,000. Darden Restaurants comprises about 2.9% of Westport Asset Management Inc.'s investment portfolio, making the stock its 11th largest position.

A number of other institutional investors have also modified their holdings of the stock. Meridian Wealth Management LLC acquired a new position in shares of Darden Restaurants in the 4th quarter worth approximately $2,404,000. Sanctuary Advisors LLC raised its position in shares of Darden Restaurants by 33.0% during the 4th quarter. Sanctuary Advisors LLC now owns 23,473 shares of the restaurant operator's stock valued at $4,319,000 after acquiring an additional 5,830 shares in the last quarter. Vanguard Group Inc. raised its position in shares of Darden Restaurants by 0.3% during the 4th quarter. Vanguard Group Inc. now owns 14,063,355 shares of the restaurant operator's stock valued at $2,587,939,000 after acquiring an additional 43,965 shares in the last quarter. Concurrent Investment Advisors LLC lifted its stake in Darden Restaurants by 313.9% during the fourth quarter. Concurrent Investment Advisors LLC now owns 13,598 shares of the restaurant operator's stock worth $2,502,000 after purchasing an additional 10,313 shares during the last quarter. Finally, Truist Financial Corp lifted its stake in Darden Restaurants by 9.5% during the fourth quarter. Truist Financial Corp now owns 61,922 shares of the restaurant operator's stock worth $11,395,000 after purchasing an additional 5,348 shares during the last quarter. Institutional investors and hedge funds own 93.64% of the company's stock.

Darden Restaurants Stock Up 1.4%

DRI opened at $222.00 on Thursday. The stock's 50 day moving average price is $207.95 and its 200 day moving average price is $204.19. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.31 and a quick ratio of 0.21. The stock has a market cap of $25.33 billion, a P/E ratio of 21.39, a P/E/G ratio of 2.18 and a beta of 0.60. Darden Restaurants, Inc. has a 12 month low of $169.00 and a 12 month high of $229.76.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its quarterly earnings results on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.63 by $0.03. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The company had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.73 billion. During the same quarter in the previous year, the firm posted $2.98 EPS. The firm's quarterly revenue was up 13.7% on a year-over-year basis. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, research analysts predict that Darden Restaurants, Inc. will post 11.28 earnings per share for the current year.

Darden Restaurants Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Investors of record on Friday, July 10th were paid a dividend of $1.62 per share. This is an increase from Darden Restaurants's previous quarterly dividend of $1.50. This represents a $6.48 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Friday, July 10th. Darden Restaurants's dividend payout ratio (DPR) is presently 62.43%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Oppenheimer reaffirmed an "outperform" rating and issued a $235.00 price objective on shares of Darden Restaurants in a report on Thursday, June 18th. KeyCorp increased their target price on shares of Darden Restaurants from $226.00 to $228.00 and gave the stock an "overweight" rating in a report on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft raised their price target on shares of Darden Restaurants from $230.00 to $236.00 and gave the stock a "buy" rating in a research report on Friday, June 26th. Weiss Ratings lowered shares of Darden Restaurants from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, July 28th. Finally, Piper Sandler boosted their price objective on shares of Darden Restaurants from $208.00 to $212.00 and gave the company a "neutral" rating in a research report on Friday, June 26th. Seventeen equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $228.88.

Insiders Place Their Bets

In other Darden Restaurants news, insider John W. Wilkerson sold 8,864 shares of the firm's stock in a transaction dated 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 owned 18,794 shares of the company's stock, valued at approximately $3,915,354.02. This trade represents a 32.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Susan M. Connelly sold 2,226 shares of the firm's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $208.17, for a total transaction of $463,386.42. Following the transaction, the senior vice president directly owned 4,165 shares in the company, valued at approximately $867,028.05. The trade was a 34.83% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 70,185 shares of company stock valued at $14,636,984. Corporate insiders own 0.67% of the company's stock.

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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