Q2 EPS Forecast for Darden Restaurants Lowered by Analyst

Darden Restaurants, Inc. (NYSE:DRI - Free Report) - Equities researchers at Zacks Research reduced their Q2 2026 earnings per share (EPS) estimates for shares of Darden Restaurants in a note issued to investors on Monday, September 29th. Zacks Research analyst Team now forecasts that the restaurant operator will post earnings of $2.10 per share for the quarter, down from their previous estimate of $2.16. The consensus estimate for Darden Restaurants' current full-year earnings is $9.52 per share. Zacks Research also issued estimates for Darden Restaurants' Q3 2026 earnings at $2.97 EPS, Q4 2026 earnings at $3.49 EPS, Q1 2027 earnings at $2.08 EPS, Q2 2027 earnings at $2.44 EPS, Q3 2027 earnings at $3.34 EPS, Q4 2027 earnings at $3.50 EPS, FY2027 earnings at $11.36 EPS, Q1 2028 earnings at $2.39 EPS and FY2028 earnings at $12.29 EPS.

Several other research analysts have also recently commented on the company. BTIG Research lowered their target price on Darden Restaurants from $235.00 to $225.00 and set a "buy" rating for the company in a research note on Friday, September 19th. TD Cowen reissued a "hold" rating and set a $235.00 target price on shares of Darden Restaurants in a research note on Thursday, September 18th. Wells Fargo & Company lowered their target price on Darden Restaurants from $225.00 to $200.00 and set an "equal weight" rating for the company in a research note on Friday, September 19th. Argus lowered their target price on Darden Restaurants from $260.00 to $220.00 and set a "buy" rating for the company in a research note on Friday, September 19th. Finally, UBS Group boosted their target price on Darden Restaurants from $225.00 to $245.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Eighteen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $225.96.

Darden Restaurants Trading Up 2.5%

DRI opened at $192.87 on Tuesday. Darden Restaurants has a 12 month low of $155.18 and a 12 month high of $228.27. The stock has a market capitalization of $22.49 billion, a price-to-earnings ratio of 20.67, a PEG ratio of 1.72 and a beta of 0.71. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.40 and a quick ratio of 0.27. The business has a fifty day moving average price of $203.95 and a 200 day moving average price of $206.17.

Darden Restaurants (NYSE:DRI - Get Free Report) last posted its quarterly earnings data on Thursday, September 18th. The restaurant operator reported $1.97 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.01 by ($0.04). The firm had revenue of $3.04 billion during the quarter, compared to analysts' expectations of $3.03 billion. Darden Restaurants had a net margin of 8.90% and a return on equity of 52.35%. Darden Restaurants's quarterly revenue was up 10.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.75 EPS. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS.

Institutional Trading of Darden Restaurants

A number of hedge funds and other institutional investors have recently modified their holdings of DRI. Twin Peaks Wealth Advisors LLC purchased a new stake in shares of Darden Restaurants during the second quarter worth about $26,000. Grove Bank & Trust increased its position in shares of Darden Restaurants by 171.4% during the first quarter. Grove Bank & Trust now owns 133 shares of the restaurant operator's stock worth $28,000 after acquiring an additional 84 shares during the last quarter. True Wealth Design LLC increased its position in shares of Darden Restaurants by 419.2% during the second quarter. True Wealth Design LLC now owns 135 shares of the restaurant operator's stock worth $29,000 after acquiring an additional 109 shares during the last quarter. Elevation Point Wealth Partners LLC purchased a new stake in shares of Darden Restaurants during the second quarter worth about $29,000. Finally, ORG Partners LLC increased its position in shares of Darden Restaurants by 108.8% during the first quarter. ORG Partners LLC now owns 142 shares of the restaurant operator's stock worth $30,000 after acquiring an additional 74 shares during the last quarter. 93.64% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, insider Laura B. Williamson sold 523 shares of Darden Restaurants stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $204.65, for a total transaction of $107,031.95. Following the sale, the insider directly owned 5,423 shares of the company's stock, valued at approximately $1,109,816.95. The trade was a 8.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold 2,013 shares of company stock worth $412,738 over the last 90 days. 0.49% of the stock is currently owned by insiders.

Darden Restaurants announced that its Board of Directors has initiated a share buyback program on Friday, June 20th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the restaurant operator to purchase up to 3.8% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board believes its shares are undervalued.

Darden Restaurants Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Friday, October 10th will be given a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, October 10th. Darden Restaurants's payout ratio is presently 64.31%.

About Darden Restaurants

Darden Restaurants, Inc, together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood, and Capital Burger brand names.

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