What is Zacks Research’s Forecast for DRI FY2027 Earnings?

Darden Restaurants, Inc. (NYSE:DRI) – Equities researchers at Zacks Research cut their FY2027 earnings per share estimates for shares of Darden Restaurants in a report issued on Wednesday, October 7th. Zacks Research analyst Team now expects that the restaurant operator will earn $11.21 per share for the year, down from their prior estimate of $11.24. The consensus estimate for Darden Restaurants’ current full-year earnings is $11.24 per share. Zacks Research also issued estimates for Darden Restaurants’ Q4 2027 earnings at $3.69 EPS, Q2 2028 earnings at $2.59 EPS, Q3 2028 earnings at $3.68 EPS, Q1 2029 earnings at $2.53 EPS and FY2029 earnings at $13.15 EPS.

A number of other equities analysts have also commented on the stock. UBS Group restated a “buy” rating on shares of Darden Restaurants in a research report on Friday, September 11th. Evercore lowered shares of Darden Restaurants from an “outperform” rating to an “in-line” rating and set a $230.00 target price on the stock. in a report on Tuesday, June 23rd. Guggenheim reiterated a “buy” rating and issued a $235.00 target price on shares of Darden Restaurants in a research note on Friday, September 25th. BMO Capital Markets lowered their target price on shares of Darden Restaurants from $225.00 to $220.00 and set a “market perform” rating on the stock in a research note on Friday, September 25th. Finally, Oppenheimer raised their price target on shares of Darden Restaurants from $235.00 to $245.00 and gave the company an “outperform” rating in a report on Tuesday, September 15th. Seventeen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $232.48.

Darden Restaurants Trading Down 1.0%

Shares of DRI opened at $201.08 on Thursday. Darden Restaurants has a twelve month low of $169.00 and a twelve month high of $229.76. The stock has a market cap of $22.75 billion, a PE ratio of 19.66, a P/E/G ratio of 1.90 and a beta of 0.63. The company has a quick ratio of 0.20, a current ratio of 0.30 and a debt-to-equity ratio of 0.79. The business’s 50-day moving average price is $211.89 and its 200-day moving average price is $204.49.

Darden Restaurants (NYSE:DRI) last issued its earnings results on Thursday, September 24th. The restaurant operator reported $2.05 EPS for the quarter, hitting the consensus estimate of $2.05. The business had revenue of $3.20 billion during the quarter, compared to the consensus estimate of $3.21 billion. Darden Restaurants had a return on equity of 58.64% and a net margin of 8.85%.The firm’s revenue was up 5.1% compared to the same quarter last year. During the same quarter last year, the company earned $1.97 EPS. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS.

Hedge Funds Weigh In On Darden Restaurants

A number of institutional investors have recently made changes to their positions in DRI. Venture Visionary Partners LLC grew its position in Darden Restaurants by 5.6% in the third quarter. Venture Visionary Partners LLC now owns 1,990 shares of the restaurant operator’s stock worth $385,000 after acquiring an additional 106 shares in the last quarter. Elevation Wealth Partners LLC raised its position in Darden Restaurants by 15.7% during the third quarter. Elevation Wealth Partners LLC now owns 442 shares of the restaurant operator’s stock valued at $85,000 after purchasing an additional 60 shares in the last quarter. Moody National Bank Trust Division raised its position in Darden Restaurants by 14.2% during the third quarter. Moody National Bank Trust Division now owns 6,612 shares of the restaurant operator’s stock valued at $1,278,000 after purchasing an additional 823 shares in the last quarter. Iowa State Bank bought a new stake in Darden Restaurants during the third quarter worth about $1,433,000. Finally, Polaris Financial Partners bought a new stake in Darden Restaurants during the third quarter worth about $133,000. Institutional investors own 93.64% of the company’s stock.

Insider Activity

In related news, CFO Rajesh Vennam sold 8,478 shares of the firm’s 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 sale, the chief financial officer directly owned 8,569 shares of the company’s stock, valued at $1,799,490. This trade represents a 49.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Ricardo Cardenas sold 39,134 shares of Darden Restaurants stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $209.06, for a total transaction of $8,181,354.04. Following the sale, the chief executive officer owned 86,146 shares of the company’s stock, valued at approximately $18,009,682.76. The trade was a 31.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 60,255 shares of company stock worth $12,589,319. Company insiders own 0.67% of the company’s stock.

Darden Restaurants Announces Dividend

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

About Darden Restaurants

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.