Darden Restaurants (NYSE:DRI) Issues Quarterly Earnings Results

Darden Restaurants (NYSE:DRI) released its quarterly earnings results on Thursday. The restaurant operator reported $2.95 EPS for the quarter, topping the consensus estimate of $2.94 by $0.01, FiscalAI reports. Darden Restaurants had a return on equity of 52.44% and a net margin of 8.92%.The firm had revenue of $3.35 billion for the quarter, compared to analyst estimates of $3.33 billion. During the same period in the previous year, the company posted $2.80 EPS. Darden Restaurants’s revenue for the quarter was up 5.9% on a year-over-year basis.

Darden Restaurants Stock Up 1.3%

Shares of Darden Restaurants stock traded up $2.56 during trading on Thursday, hitting $203.27. 540,809 shares of the stock traded hands, compared to its average volume of 1,450,312. The stock has a market cap of $23.40 billion, a P/E ratio of 21.35, a PEG ratio of 1.98 and a beta of 0.61. The company has a fifty day moving average price of $208.05 and a two-hundred day moving average price of $194.62. Darden Restaurants has a twelve month low of $169.00 and a twelve month high of $228.27. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.26 and a current ratio of 0.39.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on DRI shares. Morgan Stanley lowered their price target on Darden Restaurants from $238.00 to $236.00 and set an “overweight” rating for the company in a report on Friday, December 12th. Mizuho raised Darden Restaurants from a “neutral” rating to an “outperform” rating and lifted their price target for the company from $195.00 to $235.00 in a report on Friday, January 23rd. Melius Research raised shares of Darden Restaurants from a “hold” rating to a “buy” rating in a report on Friday, January 23rd. Evercore reaffirmed an “outperform” rating on shares of Darden Restaurants in a research note on Friday, December 19th. Finally, Guggenheim lowered their price objective on shares of Darden Restaurants from $235.00 to $230.00 and set a “buy” rating on the stock in a research note on Wednesday, December 17th. Twenty analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $224.63.

Insider Buying and Selling at Darden Restaurants

In other Darden Restaurants news, insider John W. Wilkerson sold 2,258 shares of the stock in a transaction that occurred on Friday, January 16th. The stock was sold at an average price of $213.00, for a total transaction of $480,954.00. Following the transaction, the insider owned 17,784 shares in the company, valued at $3,787,992. This trade represents a 11.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Rajesh Vennam sold 6,774 shares of the firm’s stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $214.12, for a total transaction of $1,450,448.88. Following the completion of the transaction, the chief financial officer owned 9,040 shares in the company, valued at $1,935,644.80. The trade was a 42.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 18,770 shares of company stock valued at $3,948,970. 0.49% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. DV Equities LLC acquired a new position in shares of Darden Restaurants in the 4th quarter worth approximately $30,000. Zions Bancorporation National Association UT boosted its stake in Darden Restaurants by 63.3% in the 4th quarter. Zions Bancorporation National Association UT now owns 196 shares of the restaurant operator’s stock valued at $36,000 after buying an additional 76 shares in the last quarter. Wealth Watch Advisors INC bought a new stake in Darden Restaurants in the third quarter valued at $39,000. Garton & Associates Financial Advisors LLC acquired a new position in Darden Restaurants during the fourth quarter worth $42,000. Finally, Triumph Capital Management acquired a new position in Darden Restaurants during the third quarter worth $48,000. Institutional investors and hedge funds own 93.64% of the company’s stock.

More Darden Restaurants News

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

• Positive Sentiment: Q3 results: Darden reported $2.95 EPS (in line with/just above consensus) and revenue of $3.35B, up 5.9% year-over-year; reported net margin (~8.9%) and very strong ROE (52.4%). The company also declared a quarterly dividend and updated its fiscal‑2026 outlook in the same release — all of which support the case for steady cash flow and shareholder returns. Darden Restaurants Reports Fiscal 2026 Third Quarter Results; Declares Quarterly Dividend; And Updates Fiscal 2026 Financial Outlook
• Positive Sentiment: Brand-level strength: Sales growth was led by LongHorn Steakhouse, indicating that Darden’s portfolio and unit-level performance are driving top-line resilience. This helps explain the revenue beat and supports same-store sales momentum. Darden Sales Rise, Boosted by LongHorn Steakhouse
• Positive Sentiment: Analyst upgrade bias: Bank of America boosted its price target to $262, a bullish signal that some Street analysts see further upside versus peers. That lift in sentiment can support the stock if results and guidance remain constructive. Bank of America Boosts Darden Restaurants (NYSE:DRI) Price Target to $262.00
• Neutral Sentiment: Mixed Street positioning: Stephens reaffirmed an “equal weight” rating with a $205 target (a modest upside projection), reflecting cautious positioning despite the beat. That tempers upside from more bullish notes. Benzinga
• Neutral Sentiment: Analyst previews were mixed heading into the print, with consensus EPS/revenue expectations close to what Darden delivered — the quarter largely reflected steady execution rather than a big surprise. Darden Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts
• Neutral Sentiment: Relative performance note: Coverage pieces point out DRI has lagged the Nasdaq over the last year even as fundamentals remain solid; this frames investor expectations on multiple expansion versus operational improvement. Is Darden Restaurants Stock Underperforming the Nasdaq?
• Negative Sentiment: Operational/macroeconomic risks: Rising gas prices and a strike at a major meatpacking plant are cited as potential headwinds for Olive Garden and overall food costs — factors that could pressure traffic or margins if sustained. Investors will watch commodity and labor cost trends in upcoming quarters. The spike in gas prices might affect Olive Garden sales, but not in the way you’d expect

Darden Restaurants Company Profile

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.