Guggenheim Reiterates Buy Rating for Darden Restaurants (NYSE:DRI)

Darden Restaurants (NYSE:DRI)‘s stock had its “buy” rating restated by research analysts at Guggenheim in a research report issued on Friday, Benzinga reports. They currently have a $235.00 target price on the restaurant operator’s stock. Guggenheim’s price target indicates a potential upside of 16.14% from the company’s previous close.

A number of other equities analysts also recently commented on DRI. Robert W. Baird raised shares of Darden Restaurants from a “neutral” rating to an “outperform” rating and lifted their target price for the stock from $220.00 to $250.00 in a research note on Monday, August 24th. TD Cowen restated a “hold” rating and issued a $215.00 price objective on shares of Darden Restaurants in a report on Thursday. Morgan Stanley boosted their price target on shares of Darden Restaurants from $236.00 to $255.00 and gave the stock an “overweight” rating in a report on Monday, September 14th. Stephens reiterated an “equal weight” rating and set a $220.00 price target on shares of Darden Restaurants in a report on Friday. Finally, KeyCorp restated an “overweight” rating on shares of Darden Restaurants in a research report on Wednesday. Eighteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $232.38.

Darden Restaurants Stock Performance

DRI stock traded down $4.90 during midday trading on Friday, hitting $202.34. 659,220 shares of the stock traded hands, compared to its average volume of 1,337,392. The firm has a market cap of $23.08 billion, a P/E ratio of 19.51, a PEG ratio of 2.01 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.31 and a quick ratio of 0.21. The stock’s fifty day simple moving average is $212.01 and its 200-day simple moving average is $204.76. Darden Restaurants has a 1-year low of $169.00 and a 1-year high of $229.76.

Darden Restaurants (NYSE:DRI) last announced its earnings results on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.05. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The business had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.21 billion. During the same quarter last year, the business earned $1.97 earnings per share. The company’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. On average, analysts expect that Darden Restaurants will post 11.26 earnings per share for the current year.

Insider Buying and Selling at Darden Restaurants

In other news, CEO Ricardo Cardenas sold 39,134 shares of the stock in a transaction dated 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 transaction, the chief executive officer directly owned 86,146 shares in the company, valued at $18,009,682.76. This represents a 31.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Susan Connelly sold 9,930 shares of the stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $206.21, for a total transaction of $2,047,665.30. Following the transaction, the senior vice president owned 4,165 shares in the company, valued at approximately $858,864.65. The trade was a 70.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 70,185 shares of company stock worth $14,636,984. 0.67% of the stock is currently owned by insiders.

Institutional Trading of Darden Restaurants

Institutional investors and hedge funds have recently bought and sold shares of the business. Bell Investment Advisors Inc acquired a new stake in Darden Restaurants during the 2nd quarter worth approximately $28,000. Union Savings Bank acquired a new stake in Darden Restaurants during the 4th quarter worth approximately $28,000. Transamerica Financial Advisors LLC acquired a new stake in Darden Restaurants during the 2nd quarter worth approximately $34,000. HHM Wealth Advisors LLC increased its position in Darden Restaurants by 44.8% during the 1st quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator’s stock worth $35,000 after purchasing an additional 56 shares in the last quarter. Finally, Keating Financial Advisory Services Inc. acquired a new stake in Darden Restaurants during the 2nd quarter worth approximately $39,000. Institutional investors and hedge funds own 93.64% of the company’s stock.

Key Headlines Impacting Darden Restaurants

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

• Positive Sentiment: Darden reported revenue of $3.20 billion, up 5.1% year over year, while blended same-restaurant sales increased 3.1%. LongHorn Steakhouse and Yard House were key outperformers, helping offset more modest Olive Garden growth. Darden revenue rises but misses estimates in fiscal first quarter
• Positive Sentiment: Management reaffirmed fiscal 2027 adjusted EPS guidance of $11.10–$11.35 and maintained its broader outlook, suggesting the company views the earnings shortfall as manageable. Darden fiscal 2027 first-quarter results
• Positive Sentiment: Darden declared a quarterly dividend of $1.62 per share, equivalent to $6.48 annually and an approximately 3.1% yield. Analysts at Mizuho, Citi, Guggenheim, BTIG and Bernstein retained positive ratings, with 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 but providing little immediate earnings impact. Darden shareholders back board and governance status quo
• Negative Sentiment: Quarterly revenue of $3.20 billion fell short of the roughly $3.21 billion consensus estimate, while adjusted EPS of $2.05 was at best in line and slightly below some estimates. Darden stock falls as Olive Garden reports slower growth
• Negative Sentiment: Net income declined to $233.4 million from $257.8 million a year earlier as food, labor and other operating expenses pressured margins. Olive Garden same-restaurant sales rose only 1.1%, raising concerns about consumer traffic and the company’s largest brand. Darden profit slips on higher expenses
• Negative Sentiment: Some analysts characterized DRI as fairly valued, with underwhelming growth prospects amid macroeconomic and inflationary pressures. BMO lowered its target to $220 and Stephens maintained an equal-weight view, limiting the market’s enthusiasm despite the broader analyst support.

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.