Darden Restaurants (DRI) News Today

Darden Restaurants, Inc. (NYSE:DRI) shares declined after the company reported fiscal Q1 2026 results with adjusted EPS of $1.97, missing consensus by $0.03, while revenue of $3.04 billion was roughly in line. Management reaffirmed EPS guidance of $10.50–10.70 and raised its revenue growth outlook, but investors focused on the earnings miss and margin pressures.

Despite the sell-off, many analysts view the pullback as a buying opportunity, citing DRI’s strong cash flow, nearly 2.9% dividend yield and ongoing share repurchases. Below are the key news items influencing the stock today:

• Positive Sentiment: Analysts call it a buy-the-dip opportunity, forecasting a 20% rebound and highlighting robust cash flow and steady dividends. Darden Restaurants: A Textbook Buy-the-Dip Opportunity
• Positive Sentiment: Morgan Stanley raised its price target from $235 to $238 and kept an “overweight” rating, implying a 28.8% upside. Read More
• Positive Sentiment: Deutsche Bank maintained a “buy” rating with a $220 target, signaling a 19% upside. Read More
• Positive Sentiment: Raymond James cut its target to $210 but kept an “outperform” rating, indicating a 13.6% upside. Read More
• Positive Sentiment: Evercore ISI lowered its target to $240 and maintained “outperform,” pointing to a 29.8% upside. Read More
• Positive Sentiment: BMO Capital Markets set a $205 price target with a “market perform” rating, about 10.9% above current levels. Read More
• Positive Sentiment: Darden declared a quarterly dividend of $1.50 per share, yielding roughly 2.9%, supporting income investors. Darden Restaurants, Inc. Declares Quarterly Dividend of $1.50
• Neutral Sentiment: The board approved a special equity grant for the CEO, aligning management incentives with performance. Darden Restaurants Approves Special Equity Grant for CEO
• Neutral Sentiment: Darden has underperformed other consumer-cyclical peers over the past year, though analysts remain moderately optimistic. How Is Darden Restaurants' Stock Performance Compared to Other Consumer Cyclical Stocks?
• Neutral Sentiment: Stephens and TD Cowen reaffirmed equal weight/hold ratings with targets of $215 and $235, reflecting mixed near-term views. Equal Weight Rating Reaffirmed at Stephens TD Cowen Reiterates Hold Rating
• Negative Sentiment: Darden missed Q1 EPS by $0.03 ($1.97 vs. $2.00), driving shares down ~10%. Quarterly Earnings Miss
• Negative Sentiment: Shares fell 7.7% after the earnings report, reflecting investor concerns over profitability. Falls 7.7% on Missed Earnings Estimates
• Negative Sentiment: Shares gapped down in early trading following the weak Q1 results, signaling heightened selling pressure. Shares Gap Down After Weak Earnings