Q1 EPS Forecast for Darden Restaurants Decreased by Analyst

Key Points

• Zacks Research trimmed its Q1 2027 EPS estimate for Darden Restaurants slightly to $2.07 from $2.08, while also lowering several forward-year earnings forecasts, including FY2027 and FY2028.
• Analyst sentiment remains broadly positive: Darden still carries a “Moderate Buy” consensus, with 17 Buy ratings and 10 Hold ratings, and an average price target of $229.32.
• The company recently posted solid quarterly results, beating EPS expectations and boosting revenue 13.7% year over year, while also raising its quarterly dividend to $1.62 per share.

Darden Restaurants, Inc. (NYSE:DRI - Free Report) - Equities research analysts at Zacks Research cut their Q1 2027 EPS estimates for Darden Restaurants in a note issued to investors on Thursday, July 9th. Zacks Research analyst Team now expects that the restaurant operator will post earnings of $2.07 per share for the quarter, down from their prior estimate of $2.08. The consensus estimate for Darden Restaurants' current full-year earnings is $11.29 per share. Zacks Research also issued estimates for Darden Restaurants' Q2 2027 earnings at $2.22 EPS, Q3 2027 earnings at $3.18 EPS, Q4 2027 earnings at $3.76 EPS, FY2027 earnings at $11.24 EPS, Q1 2028 earnings at $2.30 EPS, Q2 2028 earnings at $2.51 EPS, Q3 2028 earnings at $3.56 EPS, Q4 2028 earnings at $3.80 EPS, FY2028 earnings at $12.17 EPS and FY2029 earnings at $13.19 EPS.

Other equities analysts have also issued reports about the company. BMO Capital Markets reaffirmed a "market perform" rating on shares of Darden Restaurants in a research note on Monday, June 22nd. Guggenheim lifted their price target on shares of Darden Restaurants from $230.00 to $235.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. BTIG Research boosted their price objective on shares of Darden Restaurants from $225.00 to $235.00 and gave the stock a "buy" rating in a research note on Friday, June 26th. KeyCorp increased their price objective on shares of Darden Restaurants from $226.00 to $228.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 27th. Finally, Barclays lifted their target price on shares of Darden Restaurants from $227.00 to $232.00 and gave the company an "overweight" rating in a report on Friday, March 20th. Seventeen investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $229.32.

Darden Restaurants Trading Up 0.4%

Shares of DRI opened at $202.00 on Friday. Darden Restaurants has a twelve month low of $169.00 and a twelve month high of $220.65. The firm has a market capitalization of $23.14 billion, a P/E ratio of 19.46, a price-to-earnings-growth ratio of 2.00 and a beta of 0.60. 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 stock's fifty day simple moving average is $202.62 and its 200 day simple moving average is $202.30.

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 for the quarter, beating 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 company had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.73 billion. During the same quarter last year, the business earned $2.98 EPS. Darden Restaurants's revenue for the quarter was up 13.7% on a year-over-year basis. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS.

Institutional Trading of Darden Restaurants

Hedge funds and other institutional investors have recently modified their holdings of the business. Torren Management LLC acquired a new stake in Darden Restaurants during the 4th quarter valued at approximately $26,000. Thurston Springer Miller Herd & Titak Inc. boosted its stake in shares of Darden Restaurants by 926.7% during the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator's stock valued at $28,000 after buying an additional 139 shares during the last quarter. Union Savings Bank acquired a new stake in shares of Darden Restaurants during the fourth quarter worth approximately $28,000. BOK Financial Private Wealth Inc. acquired a new stake in shares of Darden Restaurants during the fourth quarter worth approximately $29,000. Finally, DV Equities LLC bought a new stake in shares of Darden Restaurants in the fourth quarter worth $30,000. 93.64% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, SVP Douglas J. Milanes sold 3,620 shares of Darden Restaurants stock in a transaction on Friday, April 17th. The shares were sold at an average price of $202.16, for a total transaction of $731,819.20. Following the sale, the senior vice president owned 274 shares of the company's stock, valued at $55,391.84. The trade was a 92.96% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Susan M. Connelly sold 9,930 shares of the business's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $206.21, for a total transaction of $2,047,665.30. Following the completion of the transaction, the senior vice president owned 4,165 shares in the company, valued at $858,864.65. This represents a 70.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.49% of the company's stock.

Darden Restaurants Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be 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 3.2%. The ex-dividend date is Friday, July 10th. Darden Restaurants's payout ratio is 57.80%.

Trending Headlines about Darden Restaurants

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

• Positive Sentiment: Darden’s recent earnings beat, higher revenue, and dividend increase continue to support the stock. Darden Restaurants Has the Growth and Cash Flow to Hit New Highs
• Neutral Sentiment: Zacks Research made small upward revisions to some longer-term EPS estimates, including Q1 2028, Q2 2028, and Q3 2028, partially offsetting the negative forecast changes.
• Negative Sentiment: Zacks Research lowered several forward EPS estimates, including FY2027, FY2028, and Q4 2028, which may weigh on sentiment toward Darden Restaurants NYSE: DRI.
• Negative Sentiment: Recent insider selling by SVP Susan Connelly may add a small amount of caution for investors. Susan Connelly Sells 9,930 Shares of Darden Restaurants NYSE: DRI 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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