Darden Restaurants (NYSE:DRI) Upgraded at Melius Research

Melius Research upgraded shares of Darden Restaurants (NYSE:DRI) from a hold rating to a buy rating in a report published on Friday morning, MarketBeat reports.

Several other analysts have also weighed in on the stock. Citigroup lowered their price objective on shares of Darden Restaurants from $239.00 to $232.00 and set a “buy” rating for the company in a research note on Wednesday, December 3rd. Evercore ISI reaffirmed an “outperform” rating on shares of Darden Restaurants in a research note on Friday, December 19th. Weiss Ratings upgraded shares of Darden Restaurants from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, January 12th. Stephens restated an “equal weight” rating and issued a $205.00 target price on shares of Darden Restaurants in a research note on Friday, December 19th. Finally, BMO Capital Markets boosted their target price on Darden Restaurants from $205.00 to $220.00 and gave the company a “market perform” rating in a research report on Tuesday, January 6th. Twenty analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $224.78.

Darden Restaurants Stock Up 0.4%

Shares of NYSE:DRI opened at $205.93 on Friday. The company has a market capitalization of $23.71 billion, a price-to-earnings ratio of 21.59, a P/E/G ratio of 1.98 and a beta of 0.64. 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 business’s 50-day moving average is $188.79 and its 200-day moving average is $194.06. Darden Restaurants has a 1 year low of $169.00 and a 1 year high of $228.27.

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

Darden Restaurants Announces Dividend

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

Insider Buying and Selling

In other news, CFO Rajesh Vennam sold 6,774 shares of the firm’s stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $214.12, for a total value of $1,450,448.88. Following the transaction, the chief financial officer owned 9,040 shares in the company, valued at $1,935,644.80. This trade represents a 42.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider John W. Wilkerson sold 2,258 shares of Darden Restaurants stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $213.00, for a total value of $480,954.00. Following the transaction, the insider directly owned 17,784 shares in the company, valued at approximately $3,787,992. The trade was a 11.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 18,770 shares of company stock worth $3,948,970 over the last 90 days. Company insiders own 0.49% of the company’s stock.

Hedge Funds Weigh In On Darden Restaurants

Several large investors have recently bought and sold shares of the stock. Farther Finance Advisors LLC boosted its holdings in Darden Restaurants by 116.7% during the 4th quarter. Farther Finance Advisors LLC now owns 3,376 shares of the restaurant operator’s stock worth $621,000 after acquiring an additional 1,818 shares during the last quarter. Tectonic Advisors LLC raised its holdings in shares of Darden Restaurants by 23.6% in the fourth quarter. Tectonic Advisors LLC now owns 8,103 shares of the restaurant operator’s stock valued at $1,491,000 after purchasing an additional 1,545 shares during the last quarter. Running Oak Capital LLC lifted its position in shares of Darden Restaurants by 2.1% during the fourth quarter. Running Oak Capital LLC now owns 81,132 shares of the restaurant operator’s stock valued at $14,930,000 after purchasing an additional 1,669 shares in the last quarter. Diversify Advisory Services LLC purchased a new position in Darden Restaurants during the fourth quarter worth about $196,000. Finally, Carnegie Investment Counsel bought a new stake in Darden Restaurants in the 4th quarter worth about $282,000. 93.64% of the stock is currently owned by institutional investors.

Darden Restaurants News Roundup

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

• Positive Sentiment: Mizuho upgraded DRI from Neutral to Outperform and raised its price target to $235 (from $195), citing Olive Garden strength and implying meaningful upside vs. the current price. Mizuho upgrades Darden Restaurants (DRI)
• Positive Sentiment: Melius Research moved its rating from Hold to Buy, adding to analyst bullishness that can support upward momentum in the stock. Melius Research upgrade (Finviz link)
• Positive Sentiment: Company fundamentals and shareholder returns remain supportive: FY2026 guidance was set at $10.50–$10.70 EPS and the firm announced a $1.50 quarterly dividend (annualized $6.00). Those items underpin earnings visibility and yield appeal for income-focused investors. MarketBeat Darden Restaurants coverage
• Neutral Sentiment: Raymond James reiterated a Market Perform rating, signaling some analysts remain cautious and limiting consensus conviction despite upgrades. Raymond James Reiterates Market Perform for Darden
• Neutral Sentiment: Valuation discussion: recent coverage (Yahoo Finance) highlights mixed share performance vs. fundamentals — investors are weighing the higher multiple against steady cash flow and brand strength. A Look At Darden Restaurants (DRI) Valuation
• Negative Sentiment: Insider selling: Director John Wilkerson sold 2,258 shares at roughly $213, reducing his stake ~11%. While insider sales can be routine, they can pressure sentiment if they repeat. John Wilkerson insider sale
• Negative Sentiment: Another insider, Rajesh Vennam, sold 6,774 shares — additional insider exits add to short-term headwinds for sentiment. Rajesh Vennam Sells DRI Shares

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.