Darden Restaurants (NYSE:DRI) Price Target Raised to $245.00

Darden Restaurants (NYSE:DRI) had its price objective increased by Mizuho from $235.00 to $245.00 in a research note published on Friday morning, MarketBeat.com reports. Mizuho currently has an outperform rating on the restaurant operator’s stock.

A number of other brokerages have also recently issued reports on DRI. Seaport Research Partners assumed coverage on Darden Restaurants in a research note on Wednesday, September 16th. They issued a “buy” rating and a $240.00 price objective on the stock. KeyCorp restated an “overweight” rating on shares of Darden Restaurants in a research note on Wednesday. BTIG Research restated a “buy” rating and set a $235.00 price objective on shares of Darden Restaurants in a research report on Friday. Bank of America raised their price objective on Darden Restaurants from $272.00 to $276.00 and gave the company a “buy” rating in a report on Friday, June 5th. Finally, Robert W. Baird raised shares of Darden Restaurants from a “neutral” rating to an “outperform” rating and boosted their price target for the stock from $220.00 to $250.00 in a research note on Monday, August 24th. Eighteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $232.38.

Darden Restaurants Stock Down 0.2%

DRI stock opened at $199.42 on Friday. Darden Restaurants has a 1-year low of $169.00 and a 1-year high of $229.76. The stock has a market cap of $22.75 billion, a P/E ratio of 19.49, a P/E/G ratio of 1.88 and a beta of 0.60. The stock’s fifty day simple moving average is $212.04 and its two-hundred day simple moving average is $204.74. The company has a current ratio of 0.30, a quick ratio of 0.20 and a debt-to-equity ratio of 0.79.

Darden Restaurants (NYSE:DRI) last released its earnings results on Thursday, September 24th. The restaurant operator reported $2.05 EPS for the quarter, hitting analysts’ consensus estimates of $2.05. Darden Restaurants had a return on equity of 58.64% and a net margin of 8.85%.The company had revenue of $3.20 billion for the quarter, compared to analysts’ expectations of $3.21 billion. During the same period in the previous year, the business posted $1.97 EPS. The business’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. Analysts expect that Darden Restaurants will post 11.25 EPS for the current year.

Darden Restaurants Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 9th will be issued a dividend of $1.62 per share. The ex-dividend date is Friday, October 9th. This represents a $6.48 annualized dividend and a dividend yield of 3.2%. Darden Restaurants’s dividend payout ratio (DPR) is presently 63.34%.

Insiders Place Their Bets

In other Darden Restaurants news, SVP Susan Connelly sold 9,930 shares of Darden Restaurants stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $206.21, for a total value of $2,047,665.30. Following the completion of the transaction, the senior vice president directly owned 4,165 shares of the company’s stock, valued at approximately $858,864.65. The trade was a 70.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Laura Williamson sold 1,110 shares of the company’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $204.32, for a total value of $226,795.20. Following the completion of the transaction, the insider directly owned 10,754 shares in the company, valued at $2,197,257.28. This trade represents a 9.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 company insiders.

Hedge Funds Weigh In On Darden Restaurants

A number of institutional investors and hedge funds have recently modified their holdings of DRI. Capital World Investors grew its position in Darden Restaurants by 2.2% during the fourth quarter. Capital World Investors now owns 15,161,277 shares of the restaurant operator’s stock valued at $2,790,128,000 after buying an additional 322,079 shares during the period. BlackRock Inc. purchased a new stake in Darden Restaurants in the 2nd quarter worth $2,015,109,000. Bank of America Corp DE bought a new stake in Darden Restaurants during the 2nd quarter valued at approximately $651,813,000. JPMorgan Chase & Co. raised its position in shares of Darden Restaurants by 9.4% during the fourth quarter. JPMorgan Chase & Co. now owns 2,918,165 shares of the restaurant operator’s stock valued at $537,001,000 after buying an additional 251,246 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in Darden Restaurants by 2.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,265,473 shares of the restaurant operator’s stock valued at $248,083,000 after acquiring an additional 33,965 shares during the last quarter. 93.64% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Darden Restaurants

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

• Positive Sentiment: Fiscal 2027 first-quarter revenue rose 5.1% year over year to $3.20 billion, while blended same-restaurant sales increased 3.1%. LongHorn Steakhouse and Yard House were cited as stronger performers, and management said it continues to gain market share. Darden revenue rises but misses estimates in fiscal first quarter
• Positive Sentiment: Darden reaffirmed fiscal 2027 adjusted EPS guidance of $11.10–$11.35 and maintained its broader full-year outlook. The company also highlighted plans for 13 new Yard House locations, supporting its longer-term growth strategy. Darden reaffirms fiscal 2027 guidance
• Positive Sentiment: Darden declared a quarterly dividend of $1.62 per share, equal to $6.48 annually and an approximately 3.1% yield. Analysts at Mizuho, Bernstein, Guggenheim and BTIG remained constructive, with price targets generally above the current trading level.
• Neutral Sentiment: Shareholders approved the board and maintained the company’s existing governance structure, removing a potential source of uncertainty. Darden shareholders back board and governance status quo
• Negative Sentiment: Adjusted EPS of $2.05 was roughly in line with estimates but revenue narrowly missed forecasts of about $3.21 billion. Reported net income declined to approximately $233.4 million from $257.8 million a year earlier as higher food and labor expenses compressed profitability. Darden stock falls as Olive Garden reports slower growth
• Negative Sentiment: Olive Garden, Darden’s largest brand, delivered only 1.1% same-store sales growth, raising concerns about slowing customer traffic and consumer sensitivity in casual dining. Analysts also described the stock as fairly valued, limiting the upside from an otherwise resilient quarter. Darden is winning share but stock is fairly priced

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.