Darden Restaurants (NYSE:DRI) Price Target Raised to $255.00

Darden Restaurants (NYSE:DRI) had its target price upped by Morgan Stanley from $236.00 to $255.00 in a research note issued to investors on Monday,Benzinga reports. Morgan Stanley currently has an overweight rating on the restaurant operator’s stock.

Several other research analysts have also recently weighed in on the company. Deutsche Bank Aktiengesellschaft raised their target price on Darden Restaurants from $230.00 to $236.00 and gave the company a “buy” rating in a research note on Friday, June 26th. Oppenheimer reiterated an “outperform” rating and issued a $235.00 target price on shares of Darden Restaurants in a report on Thursday, June 18th. Argus upped their price target on Darden Restaurants from $240.00 to $245.00 and gave the company a “buy” rating in a report on Tuesday, June 30th. Bank of America lifted their target price on shares of Darden Restaurants from $272.00 to $276.00 and gave the stock a “buy” rating in a research report on Friday, June 5th. Finally, BTIG Research lifted their target price on Darden Restaurants from $225.00 to $235.00 and gave the company a “buy” rating in a research note on Friday, June 26th. 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, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $232.00.

Darden Restaurants Stock Down 0.3%

DRI stock opened at $208.57 on Monday. The firm’s 50-day moving average is $210.70 and its two-hundred day moving average is $204.65. The company has a market capitalization of $23.79 billion, a price-to-earnings ratio of 20.09, a price-to-earnings-growth ratio of 1.97 and a beta of 0.60. Darden Restaurants has a 52 week low of $169.00 and a 52 week high of $229.76. The company has a current ratio of 0.31, a quick ratio of 0.21 and a debt-to-equity ratio of 0.74.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings data on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts’ expectations of $3.73 billion. During the same period last year, the firm posted $2.98 earnings per share. The business’s revenue was up 13.7% on a year-over-year basis. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, analysts forecast that Darden Restaurants will post 11.25 earnings per share for the current fiscal year.

Darden Restaurants Increases Dividend

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

Insider Activity

In other news, SVP Susan M. Connelly sold 9,930 shares of the firm’s stock in a transaction dated 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 directly owned 4,165 shares of the company’s stock, valued at approximately $858,864.65. This trade represents a 70.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Laura B. Williamson sold 1,110 shares of Darden Restaurants stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $204.32, for a total value of $226,795.20. Following the completion of the transaction, the insider owned 10,754 shares in the company, valued at $2,197,257.28. The trade was a 9.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 70,185 shares of company stock worth $14,636,984. Insiders own 0.67% of the company’s stock.

Institutional Trading of Darden Restaurants

Several hedge funds have recently added to or reduced their stakes in DRI. Cary Street Partners Investment Advisory LLC increased its holdings in shares of Darden Restaurants by 4.7% in the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 1,144 shares of the restaurant operator’s stock worth $211,000 after purchasing an additional 51 shares during the period. New York Life Investment Management LLC boosted its stake in Darden Restaurants by 0.3% during the fourth quarter. New York Life Investment Management LLC now owns 15,983 shares of the restaurant operator’s stock valued at $2,941,000 after buying an additional 55 shares during the period. HHM Wealth Advisors LLC boosted its stake in Darden Restaurants by 44.8% during the first quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator’s stock valued at $35,000 after buying an additional 56 shares during the period. Cullen Frost Bankers Inc. boosted its stake in Darden Restaurants by 7.0% during the fourth quarter. Cullen Frost Bankers Inc. now owns 950 shares of the restaurant operator’s stock valued at $175,000 after buying an additional 62 shares during the period. Finally, Moody National Bank Trust Division grew its position in Darden Restaurants by 1.1% during the second quarter. Moody National Bank Trust Division now owns 5,789 shares of the restaurant operator’s stock worth $1,193,000 after buying an additional 62 shares in the last quarter. Institutional investors own 93.64% of the company’s stock.

Trending Headlines about Darden Restaurants

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

• Positive Sentiment: Oppenheimer raised its price target on Darden from $235 to $245 and maintained an “outperform” rating, implying approximately 17.5% upside from the referenced price. The firm expects Olive Garden trends to improve and Darden to reaffirm its fiscal 2027 guidance. Darden’s Earnings Trajectory Seen Improving as Olive Garden Trends Accelerate, Oppenheimer Says
• Positive Sentiment: Morgan Stanley expects Darden to exceed Wall Street’s first-quarter estimates despite a continuing drag from Olive Garden, while also forecasting that the company will reiterate its fiscal 2027 outlook. Darden to Beat First Quarter Street Estimates Despite Olive Garden Drag, Morgan Stanley Says
• Positive Sentiment: Morgan Stanley analyst coverage also points to upside potential for DRI, adding to the constructive analyst outlook ahead of earnings. Darden Restaurants Stock Price Expected to Rise, Morgan Stanley Analyst Says
• Neutral Sentiment: Options traders are pricing in roughly an 8% potential move around the September 24 earnings release, signaling elevated event risk rather than a clear directional prediction. Darden Restaurants Set to Serve Up an 8% Move After Q1 Earnings
• Neutral Sentiment: Gordon Haskett lifted its Darden price target from $225 to $230 but kept a “hold” rating, reflecting modest valuation upside alongside some caution. Gordon Haskett Adjusts Darden Restaurants Price Target

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.