Darden Restaurants (NYSE:DRI) Earns Buy Rating from Analysts at Seaport Research Partners

Seaport Research Partners initiated coverage on shares of Darden Restaurants (NYSE:DRI) in a report published on Wednesday, Marketbeat Ratings reports. The brokerage issued a buy rating and a $240.00 target price on the restaurant operator’s stock.

Several other brokerages have also recently issued reports on DRI. Bank of America upped their price objective on Darden Restaurants from $272.00 to $276.00 and gave the company a “buy” rating in a research note on Friday, June 5th. Weiss Ratings lowered Darden Restaurants from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, July 28th. Evercore downgraded 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. Citigroup upped their price target on Darden Restaurants from $245.00 to $248.00 and gave the company a “buy” rating in a research report on Friday, September 11th. Finally, UBS Group restated a “buy” rating on shares of Darden Restaurants in a research note on Friday, September 11th. Eighteen investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Darden Restaurants presently has an average rating of “Moderate Buy” and an average price target of $232.86.

Darden Restaurants Price Performance

Shares of DRI stock opened at $209.44 on Wednesday. The firm has a market cap of $23.89 billion, a P/E ratio of 20.18, a P/E/G ratio of 1.95 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.31 and a quick ratio of 0.21. Darden Restaurants has a 1-year low of $169.00 and a 1-year high of $229.76. The firm has a fifty day moving average of $210.90 and a two-hundred day moving average of $204.64.

Darden Restaurants (NYSE:DRI) last issued its earnings results on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.63 by $0.03. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The business had revenue of $3.72 billion for the quarter, compared to analyst estimates of $3.73 billion. During the same quarter in the prior year, the business posted $2.98 EPS. The company’s revenue for the quarter was up 13.7% 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 anticipate that Darden Restaurants will post 11.26 earnings per share for the current fiscal year.

Darden Restaurants Increases Dividend

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

Insider Activity at Darden Restaurants

In other news, CFO Rajesh Vennam sold 8,478 shares of the company’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $210.00, for a total transaction of $1,780,380.00. Following the completion of the transaction, the chief financial officer directly owned 8,569 shares of the company’s stock, valued at approximately $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 can be accessed through the SEC website. Also, insider John Wilkerson sold 8,864 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $208.33, for a total value of $1,846,637.12. Following the completion of the sale, the insider directly owned 18,794 shares in the company, valued at approximately $3,915,354.02. This trade represents a 32.05% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 70,185 shares of company stock valued at $14,636,984. 0.67% of the stock is owned by insiders.

Hedge Funds Weigh In On Darden Restaurants

Several hedge funds and other institutional investors have recently modified their holdings of DRI. Union Savings Bank acquired a new stake in shares of Darden Restaurants in the 4th quarter worth about $28,000. Bell Investment Advisors Inc acquired a new position in Darden Restaurants during the 2nd quarter valued at about $28,000. BOK Financial Private Wealth Inc. bought a new position in Darden Restaurants in the 4th quarter worth about $29,000. Transamerica Financial Advisors LLC bought a new position in Darden Restaurants in the 2nd quarter worth about $34,000. Finally, HHM Wealth Advisors LLC increased its stake in shares of Darden Restaurants by 44.8% in 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. Institutional investors and hedge funds 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: 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

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.