BMO Capital Markets Cuts Darden Restaurants (NYSE:DRI) Price Target to $220.00

Darden Restaurants (NYSE:DRI) had its target price decreased by BMO Capital Markets from $225.00 to $220.00 in a research note released on Friday morning, Marketbeat.com reports. BMO Capital Markets currently has a market perform rating on the restaurant operator’s stock.

Other equities research analysts have also recently issued reports about the company. KeyCorp restated an “overweight” rating on shares of Darden Restaurants in a report on Wednesday. BTIG Research reaffirmed a “buy” rating and set a $235.00 target price on shares of Darden Restaurants in a research note on Friday. Seaport Research Partners assumed coverage on Darden Restaurants in a research note on Wednesday, September 16th. They issued a “buy” rating and a $240.00 price target on the stock. Piper Sandler raised their target price on shares of Darden Restaurants from $208.00 to $212.00 and gave the company a “neutral” rating in a research note on Friday, June 26th. Finally, 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 report on Tuesday, September 15th. Eighteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $232.38.

Darden Restaurants Stock Performance

NYSE DRI opened at $199.42 on Friday. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.20 and a current ratio of 0.30. The company has a fifty day moving average of $212.04 and a 200-day moving average of $204.74. Darden Restaurants has a 52-week low of $169.00 and a 52-week high of $229.76. The company has a market capitalization of $22.75 billion, a P/E ratio of 19.49, a P/E/G ratio of 1.88 and a beta of 0.60.

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

Darden Restaurants Dividend Announcement

The company also recently declared 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 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Friday, October 9th. Darden Restaurants’s dividend payout ratio is presently 63.34%.

Insider Buying and Selling

In other news, SVP Susan M. Connelly sold 9,930 shares of Darden Restaurants stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $206.21, for a total transaction of $2,047,665.30. Following the sale, the senior vice president owned 4,165 shares in the company, valued at $858,864.65. This trade represents a 70.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Laura B. Williamson sold 1,110 shares of Darden Restaurants stock in a transaction on Friday, July 31st. The shares were sold at an average price of $204.32, for a total transaction of $226,795.20. Following the completion of the sale, the insider owned 10,754 shares in the company, valued at approximately $2,197,257.28. This represents a 9.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 70,185 shares of company stock worth $14,636,984 in the last three months. Corporate insiders own 0.67% of the company’s stock.

Institutional Trading of Darden Restaurants

A number of large investors have recently added to or reduced their stakes in DRI. Bell Investment Advisors Inc purchased a new stake in Darden Restaurants during the second quarter valued at $28,000. Union Savings Bank bought a new stake in Darden Restaurants in the fourth quarter worth about $28,000. Transamerica Financial Advisors LLC bought a new stake in shares of Darden Restaurants during the 2nd quarter worth approximately $34,000. HHM Wealth Advisors LLC boosted its stake in shares of Darden Restaurants by 44.8% during the first quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator’s stock valued at $35,000 after purchasing an additional 56 shares during the period. Finally, Keating Financial Advisory Services Inc. bought a new position in Darden Restaurants in the 2nd quarter worth about $39,000. Institutional investors own 93.64% of the company’s stock.

Key Darden Restaurants News

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.