Darden Restaurants (NYSE:DRI) Releases FY 2027 Earnings Guidance

Darden Restaurants (NYSE:DRI) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 11.100-11.350 for the period, compared to the consensus estimate of 11.380. The company issued revenue guidance of $13.6 billion-$13.8 billion, compared to the consensus revenue estimate of $13.7 billion.

Darden Restaurants Trading Up 0.5%

Shares of DRI opened at $213.79 on Friday. Darden Restaurants has a fifty-two week low of $169.00 and a fifty-two week high of $222.56. The firm has a market cap of $24.49 billion, a price-to-earnings ratio of 20.60, a PEG ratio of 1.92 and a beta of 0.60. The firm has a 50 day moving average price of $201.89 and a 200-day moving average price of $200.98. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.25 and a current ratio of 0.31.

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, topping the consensus estimate of $3.63 by $0.03. The firm had revenue of $3.72 billion for the quarter, compared to analysts’ expectations of $3.73 billion. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The business’s revenue was up 13.7% on a year-over-year basis. During the same quarter last year, the business earned $2.98 earnings per share. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, equities research analysts forecast that Darden Restaurants will post 11.28 earnings per share for the current year.

Darden Restaurants Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be paid a $1.62 dividend. This represents a $6.48 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, July 10th. This is a positive change from Darden Restaurants’s previous quarterly dividend of $1.50. Darden Restaurants’s dividend payout ratio (DPR) is 57.80%.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. Wells Fargo & Company boosted their price target on Darden Restaurants from $200.00 to $210.00 and gave the stock an “equal weight” rating in a research note on Friday, March 20th. Robert W. Baird upped their price target on shares of Darden Restaurants from $210.00 to $220.00 and gave the stock a “neutral” rating in a research report on Friday. Bank of America lifted their target price on shares of Darden Restaurants from $272.00 to $276.00 and gave the company a “buy” rating in a research note on Friday, June 5th. Piper Sandler increased 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. Finally, Barclays raised their price target on Darden Restaurants from $227.00 to $232.00 and gave the company an “overweight” rating in a report on Friday, March 20th. Seventeen investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $228.32.

Insiders Place Their Bets

In other news, SVP Douglas J. Milanes sold 3,620 shares of the stock in a transaction on Friday, April 17th. The shares were sold at an average price of $202.16, for a total value of $731,819.20. Following the sale, the senior vice president owned 274 shares of the company’s stock, valued at approximately $55,391.84. This represents a 92.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Lindsay L. Koren sold 300 shares of Darden Restaurants stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $194.32, for a total transaction of $58,296.00. Following the transaction, the senior vice president directly owned 1,617 shares of the company’s stock, valued at approximately $314,215.44. This represents a 15.65% 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 owned by company insiders.

Darden Restaurants News Summary

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

• Positive Sentiment: UBS raised its price target on Darden to $240 from $230 and reiterated a buy rating, signaling confidence in additional upside after the quarter. UBS price target increase on Darden Restaurants
• Positive Sentiment: Deutsche Bank lifted its target to $236 from $230 and kept a buy rating, citing room for continued gains. Deutsche Bank price target increase on Darden Restaurants
• Positive Sentiment: BTIG, Stephens, Piper Sandler, Robert W. Baird and others also raised targets after reviewing the quarter, which reinforces the market’s view that Darden’s brand strength and long-term earnings power remain intact. Analysts boost forecasts after Darden Q4 results
• Positive Sentiment: The company beat fiscal Q4 EPS estimates, reported 13.7% year-over-year revenue growth, raised its quarterly dividend 8%, and authorized a new $1.5 billion share repurchase program, all of which are supportive for shareholder returns. Darden fiscal 2026 results and capital return actions
• Neutral Sentiment: Management’s fiscal 2027 guidance was slightly below Wall Street’s EPS expectations and revenue came in just under forecasts, which tempers the post-earnings enthusiasm. Darden earnings coverage from CNBC
• Negative Sentiment: Some reports noted that Olive Garden and other comparable sales trends were mixed, suggesting that not all brands are accelerating evenly despite LongHorn Steakhouse’s strength. Mixed Q4 results and brand performance for Darden

Hedge Funds Weigh In On Darden Restaurants

Several hedge funds have recently bought and sold shares of DRI. DV Equities LLC purchased a new stake in Darden Restaurants in the fourth quarter worth $30,000. Zions Bancorporation National Association UT grew its holdings in shares of Darden Restaurants by 63.3% in the fourth quarter. Zions Bancorporation National Association UT now owns 196 shares of the restaurant operator’s stock worth $36,000 after purchasing an additional 76 shares during the last quarter. Wealth Watch Advisors INC purchased a new position in Darden Restaurants in the 3rd quarter worth about $39,000. Garton & Associates Financial Advisors LLC bought a new stake in Darden Restaurants during the 4th quarter valued at about $42,000. Finally, Triumph Capital Management purchased a new stake in Darden Restaurants in the 3rd quarter valued at about $48,000. Institutional investors own 93.64% of the company’s stock.

Darden Restaurants Company Profile

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.