Darden Restaurants (NYSE:DRI) Receives Hold Rating from TD Cowen

Darden Restaurants (NYSE:DRI)‘s stock had its “hold” rating reaffirmed by TD Cowen in a research report issued to clients and investors on Thursday, Benzinga reports. They presently have a $215.00 price target on the restaurant operator’s stock. TD Cowen’s target price indicates a potential upside of 3.95% from the company’s current price.

Other research analysts also recently issued reports about the stock. Morgan Stanley increased their price objective on shares of Darden Restaurants from $236.00 to $255.00 and gave the company an “overweight” rating in a research note on Monday, September 14th. KeyCorp reiterated an “overweight” rating on shares of Darden Restaurants in a research note on Wednesday. Seaport Research Partners started coverage on shares of Darden Restaurants in a research note on Wednesday, September 16th. They set a “buy” rating and a $240.00 price objective on the stock. Oppenheimer increased their price objective on shares of Darden Restaurants from $235.00 to $245.00 and gave the company an “outperform” rating in a research note on Tuesday, September 15th. Finally, Piper Sandler raised their price target on shares of Darden Restaurants from $208.00 to $212.00 and gave the stock a “neutral” rating in a research report on Friday, June 26th. Eighteen investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $232.09.

Darden Restaurants Stock Down 3.2%

NYSE DRI traded down $6.86 during trading hours on Thursday, reaching $206.83. 1,953,615 shares of the company traded hands, compared to its average volume of 1,341,457. Darden Restaurants has a 12 month low of $169.00 and a 12 month high of $229.76. 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 has a market capitalization of $23.59 billion, a PE ratio of 19.93, a PEG ratio of 2.01 and a beta of 0.60. The company has a 50 day moving average of $211.90 and a two-hundred day moving average of $204.73.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings data on Thursday, September 24th. The restaurant operator reported $2.05 EPS for the quarter, meeting analysts’ consensus estimates of $2.05. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The firm had revenue of $3.20 billion for the quarter, compared to the consensus estimate of $3.21 billion. During the same period in the prior year, the firm posted $1.97 EPS. The firm’s revenue was up 5.1% compared to the same quarter last year. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, equities analysts expect that Darden Restaurants will post 11.26 earnings per share for the current year.

Insider Buying and Selling

In other news, insider John 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 value of $1,846,637.12. Following the transaction, the insider directly owned 18,794 shares in the company, 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 SEC, which can be accessed through the SEC website. Also, CFO Rajesh Vennam sold 8,478 shares of the firm’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $210.00, for a total transaction of $1,780,380.00. Following the completion of the transaction, the chief financial officer owned 8,569 shares in the company, valued at approximately $1,799,490. The trade was a 49.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 70,185 shares of company stock worth $14,636,984. Company insiders own 0.67% of the company’s stock.

Institutional Trading of Darden Restaurants

A number of large investors have recently modified their holdings of DRI. Union Savings Bank acquired a new stake in shares of Darden Restaurants in the 4th quarter worth about $28,000. Bell Investment Advisors Inc acquired a new stake in shares of Darden Restaurants in the 2nd quarter worth about $28,000. Transamerica Financial Advisors LLC acquired a new stake in shares of Darden Restaurants in the 2nd quarter worth about $34,000. HHM Wealth Advisors LLC increased its holdings in shares of Darden Restaurants by 44.8% in the 1st quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator’s stock worth $35,000 after acquiring an additional 56 shares during the period. Finally, Keating Financial Advisory Services Inc. acquired a new stake in shares of Darden Restaurants in the 2nd quarter worth about $39,000. Institutional investors and hedge funds own 93.64% of the company’s stock.

Darden Restaurants News Summary

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

• Positive Sentiment: Darden reaffirmed its fiscal 2027 outlook, including adjusted EPS guidance of $11.10 to $11.35, broadly consistent with analyst expectations. The company also declared its quarterly dividend, supporting the investment case for income-oriented shareholders. Darden fiscal 2027 first-quarter results
• Positive Sentiment: Fiscal first-quarter revenue increased 5.1% year over year to approximately $3.20 billion, while adjusted EPS rose to $2.05 from $1.97 a year earlier. Darden also highlighted continued expansion, with Yard House targeting 13 openings. Darden reports fiscal first-quarter results
• Neutral Sentiment: Same-restaurant sales grew 3.1% across the portfolio. LongHorn Steakhouse was a standout, posting 6.2% comparable-sales growth, while the company’s broader sales trends remained positive despite a more challenging casual-dining environment.
• Negative Sentiment: Revenue narrowly missed the roughly $3.21 billion consensus estimate, and EPS was either in line with the $2.05 consensus or slightly below estimates citing $2.06. The small misses reduced the market’s enthusiasm for an otherwise decent quarter. Darden revenue misses expectations
• Negative Sentiment: Net profit declined year over year to about $233 million as higher food, labor, and other operating expenses pressured margins. This earnings deterioration outweighed the reported sales growth. Darden profit slips on higher expenses
• Negative Sentiment: Olive Garden, Darden’s largest brand, delivered only 1.1% same-store sales growth, signaling softer customer traffic and raising concerns about the company’s key growth engine. Olive Garden reports slower growth

About Darden Restaurants

Darden Restaurants, Inc (NYSE: DRI) is a full-service restaurant company headquartered in Orlando, Florida. It operates and franchises a portfolio of dining brands serving a range of cuisines, price points and occasions, with restaurants primarily located in the United States and select international markets.

Its restaurant portfolio includes Olive Garden, an Italian-American dining chain; LongHorn Steakhouse; Cheddar’s Scratch Kitchen; Yard House; The Capital Grille; Seasons 52; Bahama Breeze; Eddie V’s; Ruth’s Chris Steak House; and Chuy’s.