Darden Restaurants’ (DRI) “Buy” Rating Reiterated at Guggenheim

Guggenheim restated their buy rating on shares of Darden Restaurants (NYSE:DRI) in a research report report published on Friday,Benzinga reports. Guggenheim currently has a $235.00 price objective on the restaurant operator’s stock.

A number of other analysts have also recently issued reports on the company. BMO Capital Markets lowered their price objective on Darden Restaurants from $225.00 to $220.00 and set a “market perform” rating on the stock in a research report on Friday. Stephens reiterated an “equal weight” rating and set a $220.00 price target on shares of Darden Restaurants in a research note on Friday. Argus increased their price objective on shares of Darden Restaurants from $240.00 to $245.00 and gave the company a “buy” rating in a research note on Tuesday, June 30th. Bank of America raised their price objective on shares of Darden Restaurants from $272.00 to $276.00 and gave the stock a “buy” rating in a report on Friday, June 5th. Finally, Seaport Research Partners began coverage on shares of Darden Restaurants in a research report on Wednesday, September 16th. They set a “buy” rating and a $240.00 target price on the stock. Eighteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $232.38.

Darden Restaurants Trading Down 0.2%

Shares of DRI opened at $199.42 on Friday. Darden Restaurants has a 12-month low of $169.00 and a 12-month high of $229.76. The company has a quick ratio of 0.20, a current ratio of 0.30 and a debt-to-equity ratio of 0.79. The firm has a market capitalization of $22.75 billion, a price-to-earnings ratio of 19.49, a P/E/G ratio of 1.88 and a beta of 0.60. The stock’s 50-day moving average price is $212.04 and its 200 day moving average price is $204.74.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings results on Thursday, September 24th. The restaurant operator reported $2.05 EPS for the quarter, meeting the consensus estimate of $2.05. Darden Restaurants had a return on equity of 58.64% and a net margin of 8.85%.The firm had revenue of $3.20 billion during the quarter, compared to analysts’ expectations of $3.21 billion. During the same quarter in the prior year, the firm posted $1.97 EPS. The company’s revenue for the quarter was up 5.1% on a year-over-year basis. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, research analysts predict that Darden Restaurants will post 11.25 earnings per share for the current year.

Darden Restaurants Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be given a $1.62 dividend. This represents a $6.48 annualized dividend and a yield of 3.2%. The ex-dividend date is Friday, October 9th. Darden Restaurants’s dividend payout ratio (DPR) is presently 63.34%.

Insider Transactions at Darden Restaurants

In other news, insider John W. Wilkerson sold 8,864 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $208.33, for a total transaction 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 represents a 32.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Laura B. Williamson sold 443 shares of the stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $204.89, for a total transaction of $90,766.27. Following the sale, the insider directly owned 5,536 shares in the company, valued at $1,134,271.04. This trade represents a 7.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 70,185 shares of company stock worth $14,636,984. Corporate insiders own 0.67% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Nicholas Investment Partners LP bought a new position in Darden Restaurants in the 2nd quarter valued at $923,000. Empowered Funds LLC bought a new stake in shares of Darden Restaurants during the second quarter worth $3,313,000. BNP Paribas Financial Markets raised its position in shares of Darden Restaurants by 22.3% during the fourth quarter. BNP Paribas Financial Markets now owns 293,895 shares of the restaurant operator’s stock worth $54,083,000 after acquiring an additional 53,549 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new position in shares of Darden Restaurants during the fourth quarter valued at $44,190,000. Finally, Canada Pension Plan Investment Board acquired a new position in shares of Darden Restaurants during the second quarter valued at $661,000. Institutional investors 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: Fiscal 2027 first-quarter revenue rose 5.1% year over year to $3.20 billion, while blended same-restaurant sales increased 3.1%. LongHorn Steakhouse and Yard House were cited as stronger performers, and management said it continues to gain market share. Darden revenue rises but misses estimates in fiscal first quarter
• Positive Sentiment: Darden reaffirmed fiscal 2027 adjusted EPS guidance of $11.10–$11.35 and maintained its broader full-year outlook. The company also highlighted plans for 13 new Yard House locations, supporting its longer-term growth strategy. Darden reaffirms fiscal 2027 guidance
• Positive Sentiment: Darden declared a quarterly dividend of $1.62 per share, equal to $6.48 annually and an approximately 3.1% yield. Analysts at Mizuho, Bernstein, Guggenheim and BTIG remained constructive, with price targets generally above the current trading level.
• Neutral Sentiment: Shareholders approved the board and maintained the company’s existing governance structure, removing a potential source of uncertainty. Darden shareholders back board and governance status quo
• Negative Sentiment: Adjusted EPS of $2.05 was roughly in line with estimates but revenue narrowly missed forecasts of about $3.21 billion. Reported net income declined to approximately $233.4 million from $257.8 million a year earlier as higher food and labor expenses compressed profitability. Darden stock falls as Olive Garden reports slower growth
• Negative Sentiment: Olive Garden, Darden’s largest brand, delivered only 1.1% same-store sales growth, raising concerns about slowing customer traffic and consumer sensitivity in casual dining. Analysts also described the stock as fairly valued, limiting the upside from an otherwise resilient quarter. Darden is winning share but stock is fairly priced

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.