Darden Restaurants, Inc. (NYSE:DRI) Short Interest Up 22.5% in January

Darden Restaurants, Inc. (NYSE:DRI) saw a significant increase in short interest during the month of January. As of January 15th, there was short interest totaling 6,603,379 shares, an increase of 22.5% from the December 31st total of 5,391,787 shares. Approximately 5.8% of the company’s shares are sold short. Based on an average daily trading volume, of 1,985,809 shares, the days-to-cover ratio is currently 3.3 days. Based on an average daily trading volume, of 1,985,809 shares, the days-to-cover ratio is currently 3.3 days. Approximately 5.8% of the company’s shares are sold short.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on DRI shares. Jefferies Financial Group dropped their target price on Darden Restaurants from $210.00 to $200.00 and set a “hold” rating for the company in a research report on Monday, December 15th. Melius Research upgraded Darden Restaurants from a “hold” rating to a “buy” rating in a report on Friday, January 23rd. Weiss Ratings raised Darden Restaurants from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, January 12th. TD Cowen reiterated a “hold” rating on shares of Darden Restaurants in a research note on Friday, December 19th. Finally, UBS Group reissued a “buy” rating on shares of Darden Restaurants in a research note on Friday, December 19th. Twenty equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $224.78.

Darden Restaurants Stock Up 2.3%

Shares of DRI stock traded up $4.54 during mid-day trading on Tuesday, hitting $205.44. The stock had a trading volume of 1,449,648 shares, compared to its average volume of 1,612,738. Darden Restaurants has a 12-month low of $169.00 and a 12-month high of $228.27. The company has a debt-to-equity ratio of 1.03, a current ratio of 0.39 and a quick ratio of 0.26. The firm’s 50-day moving average is $192.50 and its two-hundred day moving average is $193.57. The firm has a market capitalization of $23.65 billion, a P/E ratio of 21.53, a price-to-earnings-growth ratio of 1.93 and a beta of 0.64.

Darden Restaurants (NYSE:DRI) last announced its quarterly earnings results on Thursday, December 18th. The restaurant operator reported $2.08 EPS for the quarter, missing the consensus estimate of $2.10 by ($0.02). Darden Restaurants had a net margin of 8.92% and a return on equity of 52.44%. The firm had revenue of $3.10 billion for the quarter, compared to analysts’ expectations of $3.07 billion. During the same quarter in the prior year, the business posted $2.03 EPS. The business’s quarterly revenue was up 7.3% on a year-over-year basis. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. On average, analysts predict that Darden Restaurants will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, February 2nd. Stockholders of record on Friday, January 9th were given a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend was Friday, January 9th. Darden Restaurants’s dividend payout ratio is presently 62.89%.

Insider Activity

In other news, CFO Rajesh Vennam sold 6,774 shares of the firm’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $214.12, for a total value of $1,450,448.88. Following the completion of the sale, the chief financial officer owned 9,040 shares in the company, valued at approximately $1,935,644.80. This trade represents a 42.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider John W. Wilkerson sold 2,258 shares of the company’s stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $213.00, for a total transaction of $480,954.00. Following the transaction, the insider owned 17,784 shares in the company, valued at $3,787,992. The trade was a 11.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 18,770 shares of company stock valued at $3,948,970 over the last ninety days. 0.49% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Darden Restaurants

A number of large investors have recently bought and sold shares of the business. Twin Peaks Wealth Advisors LLC bought a new stake in Darden Restaurants during the 2nd quarter valued at $26,000. Torren Management LLC purchased a new stake in shares of Darden Restaurants during the 4th quarter worth $26,000. Quent Capital LLC bought a new stake in Darden Restaurants during the third quarter valued at about $27,000. Thurston Springer Miller Herd & Titak Inc. boosted its position in Darden Restaurants by 926.7% during the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator’s stock valued at $28,000 after purchasing an additional 139 shares in the last quarter. Finally, True Wealth Design LLC grew its stake in Darden Restaurants by 419.2% in the second quarter. True Wealth Design LLC now owns 135 shares of the restaurant operator’s stock valued at $29,000 after purchasing an additional 109 shares during the last quarter. Institutional investors own 93.64% of the company’s stock.

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.