Darden Restaurants, Inc. (NYSE:DRI) Receives Consensus Rating of “Moderate Buy” from Analysts

Shares of Darden Restaurants, Inc. (NYSE:DRI) have earned a consensus rating of “Moderate Buy” from the twenty-seven ratings firms that are currently covering the company, Marketbeat reports. Ten analysts have rated the stock with a hold recommendation and seventeen have issued a buy recommendation on the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $229.32.

A number of research firms have weighed in on DRI. BTIG Research increased their price target on shares of Darden Restaurants from $225.00 to $235.00 and gave the stock a “buy” rating in a research note on Friday, June 26th. Deutsche Bank Aktiengesellschaft lifted their target price on Darden Restaurants from $230.00 to $236.00 and gave the company a “buy” rating in a report on Friday, June 26th. Piper Sandler upped their price target on Darden Restaurants from $208.00 to $212.00 and gave the stock a “neutral” rating in a research note on Friday, June 26th. Oppenheimer reiterated an “outperform” rating and set a $235.00 target price on shares of Darden Restaurants in a report on Thursday, June 18th. Finally, Guggenheim lifted their target price on shares of Darden Restaurants from $230.00 to $235.00 and gave the company a “buy” rating in a report on Wednesday, June 24th.

More Darden Restaurants News

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

• Positive Sentiment: Zacks Research raised its estimates for several future quarters, including Q1 2028, Q2 2028, Q3 2028, and FY2029, suggesting improving longer-term earnings power for Darden. DRI stock page
• Positive Sentiment: The latest commentary still implies solid profitability ahead, with FY2028 EPS projected at $12.17 and FY2029 EPS at $13.19, which supports the bullish case for the restaurant operator. DRI stock page
• Neutral Sentiment: The company recently reported quarterly earnings that slightly beat EPS expectations, while revenue was just below estimates; that results mix is not a major new catalyst but continues to show steady operating performance. DRI stock page
• Negative Sentiment: Zacks trimmed some near-term forecasts, including Q1 2027, Q2 2027, Q3 2027, Q4 2027, FY2027, FY2028 Q4, and Q4 2028 EPS, which could weigh on sentiment because it suggests some earnings pressure in the nearer horizon. DRI stock page
• Negative Sentiment: Insider selling by SVP Susan Connelly, who sold 9,930 shares, may also be a small headwind for investor sentiment, even though it does not change the company’s fundamentals. Article on insider sale

Insiders Place Their Bets

In related news, SVP Douglas J. Milanes sold 3,620 shares of the business’s stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $202.16, for a total value of $731,819.20. Following the transaction, the senior vice president owned 274 shares in the company, valued at approximately $55,391.84. The trade was a 92.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Susan M. Connelly sold 9,930 shares of Darden Restaurants stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $206.21, for a total value 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 represents a 70.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.49% of the stock is currently owned by company insiders.

Institutional Trading of Darden Restaurants

A number of hedge funds and other institutional investors have recently made changes to their positions in DRI. Tema ETFs LLC raised its stake in shares of Darden Restaurants by 5.7% in the 2nd quarter. Tema ETFs LLC now owns 2,675 shares of the restaurant operator’s stock valued at $551,000 after purchasing an additional 145 shares in the last quarter. Fulton Bank N.A. grew its stake in Darden Restaurants by 20.6% in the second quarter. Fulton Bank N.A. now owns 20,886 shares of the restaurant operator’s stock worth $4,303,000 after purchasing an additional 3,574 shares in the last quarter. Harrell Investment Partners LLC raised its stake in Darden Restaurants by 0.9% during the second quarter. Harrell Investment Partners LLC now owns 27,125 shares of the restaurant operator’s stock valued at $5,588,000 after buying an additional 237 shares in the last quarter. First Bank & Trust acquired a new stake in Darden Restaurants during the second quarter valued at approximately $581,000. Finally, Focus Financial Network Inc. bought a new position in Darden Restaurants during the 2nd quarter worth approximately $226,000. Institutional investors own 93.64% of the company’s stock.

Darden Restaurants Trading Up 1.1%

DRI stock traded up $2.29 during trading on Friday, hitting $204.21. The company had a trading volume of 1,554,121 shares, compared to its average volume of 1,531,505. The company has a quick ratio of 0.21, a current ratio of 0.31 and a debt-to-equity ratio of 0.74. The firm has a 50-day moving average price of $202.77 and a 200-day moving average price of $202.32. Darden Restaurants has a 12 month low of $169.00 and a 12 month high of $220.65. The stock has a market cap of $23.39 billion, a price-to-earnings ratio of 19.67, a PEG ratio of 2.03 and a beta of 0.60.

Darden Restaurants (NYSE:DRI) last announced its quarterly earnings data on Thursday, June 25th. The restaurant operator reported $3.66 EPS for the quarter, beating analysts’ consensus estimates of $3.63 by $0.03. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The firm had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.73 billion. During the same period last year, the company earned $2.98 EPS. The business’s quarterly revenue was up 13.7% compared to the same quarter last year. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, analysts predict that Darden Restaurants will post 11.28 earnings per share for the current year.

Darden Restaurants Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Friday, July 10th will be paid a $1.62 dividend. This represents a $6.48 dividend on an annualized basis and a dividend yield of 3.2%. This is an increase from Darden Restaurants’s previous quarterly dividend of $1.50. The ex-dividend date is Friday, July 10th. Darden Restaurants’s payout ratio is 57.80%.

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.