Darden Restaurants (NYSE:DRI) Earns Buy Rating from Guggenheim

Darden Restaurants (NYSE:DRI)‘s stock had its “buy” rating reaffirmed by analysts at Guggenheim in a research note issued to investors on Friday, Benzinga reports. They presently have a $235.00 target price on the restaurant operator’s stock. Guggenheim’s target price would suggest a potential upside of 17.84% from the stock’s previous close.

Other research analysts have also issued reports about the company. Stephens reiterated an “equal weight” rating and issued a $220.00 target price on shares of Darden Restaurants in a report on Friday. Piper Sandler lifted their target price on Darden Restaurants from $208.00 to $212.00 and gave the company a “neutral” rating in a report on Friday, June 26th. Morgan Stanley lifted their target price on Darden Restaurants from $236.00 to $255.00 and gave the company an “overweight” rating in a report on Monday, September 14th. Mizuho lifted their target price on Darden Restaurants from $235.00 to $245.00 and gave the company an “outperform” rating in a report on Friday. Finally, BMO Capital Markets decreased their target price on Darden Restaurants from $225.00 to $220.00 and set a “market perform” rating for the company in a report on Friday. Eighteen investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $232.38.

Darden Restaurants Trading Down 3.8%

Darden Restaurants stock traded down $7.82 during mid-day trading on Friday, hitting $199.42. The company’s stock had a trading volume of 1,913,183 shares, compared to its average volume of 1,344,564. The firm has a market capitalization of $22.75 billion, a PE ratio of 19.21, a price-to-earnings-growth ratio of 2.01 and a beta of 0.60. Darden Restaurants has a 1 year low of $169.00 and a 1 year 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. The stock’s fifty day moving average is $212.01 and its two-hundred day moving average is $204.76.

Darden Restaurants (NYSE:DRI) last released its quarterly earnings results on Thursday, September 24th. The restaurant operator reported $2.05 EPS for the quarter, hitting the consensus estimate of $2.05. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.The business had revenue of $3.20 billion during the quarter, compared to analyst estimates of $3.21 billion. During the same period last year, the business posted $1.97 earnings per share. The company’s quarterly revenue was up 5.1% on a year-over-year basis. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. On average, analysts anticipate that Darden Restaurants will post 11.26 EPS for the current year.

Insider Buying and Selling at Darden Restaurants

In related news, SVP Susan M. Connelly sold 2,226 shares of the business’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $208.17, for a total value of $463,386.42. Following the transaction, the senior vice president owned 4,165 shares in the company, valued at $867,028.05. The trade was a 34.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Rajesh Vennam sold 8,478 shares of the business’s stock in a transaction dated 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 completion of the transaction, the chief financial officer owned 8,569 shares in the company, valued at $1,799,490. This trade represents a 49.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 70,185 shares of company stock valued at $14,636,984. 0.67% of the stock is owned by insiders.

Hedge Funds Weigh In On Darden Restaurants

Several institutional investors have recently added to or reduced their stakes in DRI. Union Savings Bank acquired a new position in Darden Restaurants in the 4th quarter valued at about $28,000. Bell Investment Advisors Inc acquired a new position in Darden Restaurants in the 2nd quarter valued at about $28,000. Transamerica Financial Advisors LLC acquired a new position in Darden Restaurants in the 2nd quarter valued at about $34,000. HHM Wealth Advisors LLC boosted its holdings in Darden Restaurants by 44.8% in the 1st quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator’s stock valued at $35,000 after purchasing an additional 56 shares in the last quarter. Finally, Keating Financial Advisory Services Inc. purchased a new stake in Darden Restaurants in the 2nd quarter valued at approximately $39,000. Institutional investors and hedge funds own 93.64% of the company’s stock.

Darden Restaurants News Roundup

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.