Analysts Set Darden Restaurants, Inc. (NYSE:DRI) Price Target at $231.87

Shares of Darden Restaurants, Inc. (NYSE:DRI) have been assigned an average rating of “Moderate Buy” from the twenty-seven research firms that are covering the firm, Marketbeat Ratings reports. Nine research analysts have rated the stock with a hold recommendation and eighteen have given a buy recommendation to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $232.8636.

A number of equities analysts have recently issued reports on DRI shares. BTIG Research increased their price objective on shares of Darden Restaurants from $225.00 to $235.00 and gave the stock a “buy” rating in a research report on Friday, June 26th. Evercore lowered Darden Restaurants from an “outperform” rating to an “in-line” rating and set a $230.00 target price for the company. in a research report on Tuesday, June 23rd. Robert W. Baird upgraded shares of Darden Restaurants from a “neutral” rating to an “outperform” rating and lifted their price objective for the company from $220.00 to $250.00 in a report on Monday, August 24th. Weiss Ratings raised shares of Darden Restaurants from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft raised their price target on shares of Darden Restaurants from $230.00 to $236.00 and gave the company a “buy” rating in a research report on Friday, June 26th.

Trending Headlines about Darden Restaurants

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

• Positive Sentiment: Darden recently increased its dividend by 8%, strengthening the investment case for income-oriented shareholders and signaling management confidence in cash generation. The comparison with McDonald’s also highlights Darden’s relatively attractive dividend outlook. Darden vs. McDonald’s: Which Restaurant Dividend Belongs in a Retirement Portfolio
• Positive Sentiment: Analyst sentiment remains supportive: DRI carries an average “Moderate Buy” rating, while Oppenheimer expects the stock to rise. Seaport Global also initiated coverage with a Buy rating, potentially adding buying interest. Darden Receives Moderate Buy Rating
• Neutral Sentiment: Wall Street expects earnings growth in the coming report, making same-restaurant sales, margins, new restaurant openings and productivity improvements important catalysts for the shares. Darden Prepares to Report Q1 Results
• Negative Sentiment: Inflation and affordability pressures could limit customer traffic and restaurant-level margins. A separate earnings preview cautions that Darden may not have the typical combination of factors needed for a quarterly earnings beat, increasing the risk of disappointment. Darden Reports Next Week

Darden Restaurants Stock Performance

Shares of DRI opened at $209.44 on Friday. 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 firm’s fifty day simple moving average is $210.90 and its two-hundred day simple moving average is $204.60. Darden Restaurants has a 12 month low of $169.00 and a 12 month high of $229.76. The stock has a market capitalization of $23.89 billion, a P/E ratio of 20.18, a price-to-earnings-growth ratio of 1.97 and a beta of 0.60.

Darden Restaurants (NYSE:DRI) last issued its earnings results on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share for the quarter, topping analysts’ consensus estimates of $3.63 by $0.03. The business had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.73 billion. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The firm’s revenue for the quarter was up 13.7% on a year-over-year basis. During the same period in the previous year, the company posted $2.98 earnings per share. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, analysts predict that Darden Restaurants will post 11.26 EPS for the current year.

Darden Restaurants Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 3rd. Shareholders of record on Friday, July 10th were given a $1.62 dividend. This is a positive change from Darden Restaurants’s previous quarterly dividend of $1.50. This represents a $6.48 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend was Friday, July 10th. Darden Restaurants’s payout ratio is presently 62.43%.

Insider Buying and Selling at Darden Restaurants

In other Darden Restaurants news, CFO Rajesh Vennam sold 8,478 shares of the company’s stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $210.00, for a total transaction of $1,780,380.00. Following the sale, the chief financial officer directly owned 8,569 shares of the company’s stock, valued at $1,799,490. This represents a 49.73% 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 link. Also, insider John W. Wilkerson sold 8,864 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $208.33, for a total transaction of $1,846,637.12. Following the transaction, the insider owned 18,794 shares of the company’s stock, valued at $3,915,354.02. This represents a 32.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 70,185 shares of company stock valued at $14,636,984 in the last quarter. Insiders own 0.67% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of Darden Restaurants in the second quarter valued at $2,015,109,000. Bank of America Corp DE purchased a new stake in shares of Darden Restaurants in the second quarter worth about $651,813,000. Bank of New York Mellon Corp bought a new position in shares of Darden Restaurants in the second quarter valued at approximately $204,099,000. Norges Bank purchased a new position in shares of Darden Restaurants during the 4th quarter valued at $144,483,000. Finally, Legal & General Group Plc bought a new position in shares of Darden Restaurants in the second quarter worth $118,824,000. 93.64% of the stock is currently owned by hedge funds and other institutional investors.

Darden Restaurants Company Profile

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.