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

Darden Restaurants (NYSE:DRI)‘s stock had its “buy” rating reaffirmed by equities researchers at Guggenheim in a research note issued to investors on Friday, Benzinga reports. They currently have a $235.00 price objective on the restaurant operator’s stock. Guggenheim’s target price points to a potential upside of 16.31% from the stock’s current price.

Other research analysts have also issued reports about the company. Robert W. Baird upgraded Darden Restaurants from a “neutral” rating to an “outperform” rating and increased their price objective for the stock from $220.00 to $250.00 in a research note on Monday, August 24th. BTIG Research reissued a “buy” rating and issued a $235.00 target price on shares of Darden Restaurants in a research note on Friday. KeyCorp restated an “overweight” rating on shares of Darden Restaurants in a report on Wednesday. Argus increased their target price on Darden Restaurants from $240.00 to $245.00 and gave the company a “buy” rating in a research note on Tuesday, June 30th. Finally, Mizuho lifted their price target on shares of Darden Restaurants from $235.00 to $245.00 and gave the stock an “outperform” rating in a research report on Friday. Eighteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, Darden Restaurants has an average rating of “Moderate Buy” and a consensus price target of $232.38.

Darden Restaurants Stock Performance

DRI traded down $5.19 on Friday, hitting $202.05. 691,419 shares of the stock traded hands, compared to its average volume of 1,337,789. The firm has a market capitalization of $23.05 billion, a PE ratio of 19.47, a P/E/G ratio of 2.01 and a beta of 0.60. The company has a current ratio of 0.31, a quick ratio of 0.21 and a debt-to-equity ratio of 0.74. Darden Restaurants has a 52 week low of $169.00 and a 52 week high of $229.76. The business has a fifty day moving average price of $212.01 and a two-hundred day moving average price of $204.76.

Darden Restaurants (NYSE:DRI) last issued its earnings results on Thursday, September 24th. The restaurant operator reported $2.05 EPS for the quarter, meeting analysts’ consensus estimates 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 in the prior year, the company posted $1.97 earnings per share. Darden Restaurants’s 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, research analysts predict that Darden Restaurants will post 11.26 EPS for the current fiscal year.

Insider Buying and Selling at Darden Restaurants

In other Darden Restaurants news, CFO Rajesh Vennam sold 8,478 shares of the stock in a transaction 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 completion of the sale, 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider John W. Wilkerson sold 8,864 shares of Darden Restaurants stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $208.33, for a total value of $1,846,637.12. Following the transaction, the insider owned 18,794 shares of the company’s stock, valued at $3,915,354.02. The trade was a 32.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 70,185 shares of company stock valued at $14,636,984 in the last ninety days. Insiders own 0.67% of the company’s stock.

Hedge Funds Weigh In On Darden Restaurants

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Capital World Investors boosted its holdings in shares of Darden Restaurants by 2.2% during the 4th quarter. Capital World Investors now owns 15,161,277 shares of the restaurant operator’s stock worth $2,790,128,000 after buying an additional 322,079 shares during the period. BlackRock Inc. acquired a new position in Darden Restaurants in the second quarter valued at about $2,015,109,000. Bank of America Corp DE acquired a new position in Darden Restaurants in the second quarter valued at about $651,813,000. JPMorgan Chase & Co. lifted its position in Darden Restaurants by 9.4% during the fourth quarter. JPMorgan Chase & Co. now owns 2,918,165 shares of the restaurant operator’s stock worth $537,001,000 after purchasing an additional 251,246 shares during the period. Finally, Dimensional Fund Advisors LP lifted its position in Darden Restaurants by 2.8% during the first quarter. Dimensional Fund Advisors LP now owns 1,265,473 shares of the restaurant operator’s stock worth $248,083,000 after purchasing an additional 33,965 shares during the period. 93.64% of the stock is owned by institutional investors.

More Darden Restaurants News

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.

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.