Darden Restaurants, Inc. (NYSE:DRI) Stock Has Average Target Price of $232.48

Darden Restaurants, Inc. (NYSE:DRI) has been given an average recommendation of “Moderate Buy” by the twenty-six ratings firms that are currently covering the firm, MarketBeat reports. Nine equities research analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company. The average 12 month price target among brokers that have covered the stock in the last year is $232.48.

DRI has been the topic of a number of recent research reports. TD Cowen restated a “hold” rating and issued a $215.00 target price on shares of Darden Restaurants in a research note on Thursday, September 24th. Deutsche Bank Aktiengesellschaft upped their target price on Darden Restaurants from $230.00 to $236.00 and gave the stock a “buy” rating in a research report on Friday, June 26th. Robert W. Baird raised Darden Restaurants from a “neutral” rating to an “outperform” rating and raised their price target for the stock from $220.00 to $250.00 in a research note on Monday, August 24th. Sanford C. Bernstein reiterated an “outperform” rating and set a $230.00 price target on shares of Darden Restaurants in a report on Friday, September 25th. Finally, Evercore lowered Darden Restaurants from an “outperform” rating to an “in-line” rating and set a $230.00 price target for the company. in a report on Tuesday, June 23rd.

Darden Restaurants Trading Up 0.9%

Shares of NYSE:DRI opened at $216.27 on Tuesday. The firm has a fifty day moving average of $211.66 and a two-hundred day moving average of $204.82. The company has a quick ratio of 0.20, a current ratio of 0.30 and a debt-to-equity ratio of 0.79. Darden Restaurants has a 12-month low of $169.00 and a 12-month high of $229.76. The firm has a market capitalization of $24.47 billion, a P/E ratio of 21.14, a price-to-earnings-growth ratio of 2.03 and a beta of 0.63.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings results on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share for the quarter, hitting analysts’ consensus estimates of $2.05. Darden Restaurants had a net margin of 8.85% and a return on equity of 58.64%. The business had revenue of $3.20 billion for the quarter, compared to the consensus estimate of $3.21 billion. During the same period in the prior year, the business posted $1.97 earnings per share. Darden Restaurants’s revenue for the quarter was up 5.1% compared to the same quarter last year. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, equities analysts expect that Darden Restaurants will post 11.24 EPS for the current fiscal year.

Darden Restaurants Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Friday, October 9th will be issued a $1.62 dividend. The ex-dividend date is Friday, October 9th. This represents a $6.48 dividend on an annualized basis and a yield of 3.0%. Darden Restaurants’s dividend payout ratio is currently 63.34%.

Insider Activity

In other Darden Restaurants news, CFO Rajesh Vennam sold 8,478 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $210.00, for a total value of $1,780,380.00. Following the completion of the sale, the chief financial officer directly owned 8,569 shares in the company, valued at $1,799,490. The trade was a 49.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider John Wilkerson sold 8,864 shares of Darden Restaurants 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 completion of the sale, the insider owned 18,794 shares of the company’s stock, valued at $3,915,354.02. This trade represents a 32.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 60,255 shares of company stock valued at $12,589,319. 0.67% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of DRI. IFP Advisors Inc increased its position in Darden Restaurants by 16.6% during the third quarter. IFP Advisors Inc now owns 5,833 shares of the restaurant operator’s stock worth $1,127,000 after buying an additional 832 shares during the last quarter. Vontobel Holding Ltd. raised its holdings in Darden Restaurants by 7.6% during the third quarter. Vontobel Holding Ltd. now owns 4,302 shares of the restaurant operator’s stock valued at $831,000 after buying an additional 303 shares in the last quarter. Pension & Wealth Management Advisors Inc. raised its holdings in Darden Restaurants by 173.7% during the third quarter. Pension & Wealth Management Advisors Inc. now owns 1,724 shares of the restaurant operator’s stock valued at $333,000 after buying an additional 1,094 shares in the last quarter. Ellsworth Advisors LLC lifted its position in shares of Darden Restaurants by 4.2% in the third quarter. Ellsworth Advisors LLC now owns 37,992 shares of the restaurant operator’s stock worth $7,342,000 after buying an additional 1,546 shares during the last quarter. Finally, V Square Quantitative Management LLC lifted its position in shares of Darden Restaurants by 8.2% in the third quarter. V Square Quantitative Management LLC now owns 3,641 shares of the restaurant operator’s stock worth $704,000 after buying an additional 276 shares during the last quarter. Institutional investors own 93.64% of the company’s stock.

Darden Restaurants Company Profile

Darden Restaurants, Inc is a full-service restaurant company that owns and operates a portfolio of well-known dining brands. Its restaurants serve a range of cuisines and occasions, from Italian and American casual dining to seafood, steak, and upscale experiences.

The company’s portfolio includes Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, Ruth’s Chris Steak House, Seasons 52, Bahama Breeze, Eddie V’s, and The Capital Grille. In 2024, Darden expanded its brand portfolio through the acquisition of Chuy’s, a full-service Mexican restaurant concept.

Founded by William B.