Key Points
- SVP Susan Connelly sold 2,226 Darden Restaurants shares at an average price of $208.17, totaling approximately $463,386. After the transaction, her holdings declined 34.83% to 4,165 shares.
- Darden reported quarterly earnings of $3.66 per share, exceeding estimates by $0.03, while revenue rose 13.7% year over year to $3.72 billion. The company also increased its quarterly dividend to $1.62, implying a 3.1% annual yield.
- Analysts maintain a “Moderate Buy” consensus, with an average price target of $228.88 versus the stock’s reported price of $207.09. However, additional insider selling and weaker performance at Olive Garden compared with LongHorn Steakhouse may weigh on sentiment.
Darden Restaurants, Inc. (NYSE:DRI - Get Free Report) SVP Susan Connelly sold 2,226 shares of the firm's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $208.17, for a total transaction of $463,386.42. Following the completion of the sale, the senior vice president owned 4,165 shares in the company, valued at $867,028.05. This represents a 34.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.
Darden Restaurants Stock Performance
NYSE:DRI opened at $207.09 on Friday. The firm's 50-day moving average is $203.73 and its 200-day moving average is $203.18. Darden Restaurants, Inc. has a 52-week low of $169.00 and a 52-week high of $220.65. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.21 and a current ratio of 0.31. The company has a market cap of $23.62 billion, a price-to-earnings ratio of 19.95, a PEG ratio of 2.11 and a beta of 0.60.
Darden Restaurants (NYSE:DRI - Get Free Report) last released its earnings results on Thursday, June 25th. The restaurant operator reported $3.66 earnings per share 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 quarter last year, the company earned $2.98 earnings per share. The firm'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. Equities research analysts anticipate that Darden Restaurants, Inc. will post 11.28 earnings per share for the current year.
Darden Restaurants Increases Dividend
The company also recently declared a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be issued a $1.62 dividend. This is a positive change from Darden Restaurants's previous quarterly dividend of $1.50. The ex-dividend date of this dividend is Friday, July 10th. This represents a $6.48 annualized dividend and a yield of 3.1%. Darden Restaurants's payout ratio is currently 62.43%.
Wall Street Analysts Forecast Growth
A number of analysts have recently issued reports on the company. Deutsche Bank Aktiengesellschaft boosted their price objective on Darden Restaurants from $230.00 to $236.00 and gave the company a "buy" rating in a research report on Friday, June 26th. Guggenheim raised their target price on Darden Restaurants from $230.00 to $235.00 and gave the stock a "buy" rating in a research report on Wednesday, June 24th. Weiss Ratings downgraded shares of Darden Restaurants from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday. Stephens boosted their price target on shares of Darden Restaurants from $210.00 to $216.00 and gave the company an "equal weight" rating in a report on Friday, June 26th. Finally, Bank of America boosted their price target on shares of Darden Restaurants from $272.00 to $276.00 and gave the company a "buy" rating in a report on Friday, June 5th. Seventeen research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $228.88.
Read Our Latest Stock Report on Darden Restaurants
Key Darden Restaurants News
Here are the key news stories impacting Darden Restaurants this week:
- Positive Sentiment: Brokerages maintain a consensus “Moderate Buy” recommendation, suggesting analysts generally view Darden’s long-term outlook favorably. Darden Receives Moderate Buy Recommendation
- Positive Sentiment: LongHorn Steakhouse reportedly delivered strong momentum, with sales jumping 9.5%, supporting Darden’s strategy of relying on higher-growth brands to drive expansion. Darden CEO Sold Shares as LongHorn Jumped and Olive Garden Lagged
- Neutral Sentiment: Darden is pursuing a leaner growth path, which could improve efficiency and returns but may also signal a more measured expansion strategy. Darden Tests a Leaner Growth Path
- Negative Sentiment: CEO Ricardo Cardenas sold 39,134 shares for approximately $8.2 million after exercising options, reducing his direct holdings by about 31%. While the option-related structure may make the sale less concerning, the sizable transaction can weigh on sentiment. CEO Form 4 Filing
- Negative Sentiment: CFO Rajesh Vennam sold 8,478 shares worth about $1.8 million, cutting his position nearly 50%, while SVP Susan Connelly sold 2,226 shares. Multiple senior-executive sales may reinforce near-term selling pressure. Darden Insider Transactions
- Negative Sentiment: Olive Garden, Darden’s largest brand, lagged LongHorn, highlighting uneven brand performance and potential concerns about traffic and growth at the company’s core business. Brand Performance Report
Institutional Trading of Darden Restaurants
A number of large investors have recently bought and sold shares of DRI. Capital World Investors raised its stake 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 worth $2,790,128,000 after acquiring an additional 322,079 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of Darden Restaurants by 0.3% in the 4th quarter. Vanguard Group Inc. now owns 14,063,355 shares of the restaurant operator's stock valued at $2,587,939,000 after purchasing an additional 43,965 shares in the last quarter. Wellington Management Group LLP boosted its stake in shares of Darden Restaurants by 81.0% in the 4th quarter. Wellington Management Group LLP now owns 8,077,567 shares of the restaurant operator's stock valued at $1,486,434,000 after purchasing an additional 3,613,781 shares in the last quarter. Charles Schwab Investment Management Inc. grew its holdings in shares of Darden Restaurants by 1.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 4,189,868 shares of the restaurant operator's stock worth $771,020,000 after purchasing an additional 68,245 shares during the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of Darden Restaurants by 44.6% in the 1st quarter. Bank of America Corp DE now owns 3,212,283 shares of the restaurant operator's stock worth $629,736,000 after purchasing an additional 991,230 shares during the last quarter. 93.64% of the stock is currently owned by institutional investors.
About Darden Restaurants
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Get Free Report)
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.
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