Citigroup Cuts Darden Restaurants (NYSE:DRI) Price Target to $247.00

Darden Restaurants (NYSE:DRI) had its price target lowered by Citigroup from $248.00 to $247.00 in a research note issued to investors on Friday morning,Benzinga reports. The firm currently has a buy rating on the restaurant operator’s stock.

A number of other equities analysts have also issued reports on the stock. Bank of America upped their target price on shares of Darden Restaurants from $272.00 to $276.00 and gave the stock a “buy” rating in a research report on Friday, June 5th. Weiss Ratings raised shares of Darden Restaurants from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, September 17th. UBS Group restated a “buy” rating on shares of Darden Restaurants in a research report on Friday, September 11th. Oppenheimer upped their price objective on Darden Restaurants from $235.00 to $245.00 and gave the stock an “outperform” rating in a report on Tuesday, September 15th. Finally, BTIG Research reiterated a “buy” rating and issued a $235.00 price objective on shares of Darden Restaurants in a research report on Friday. Eighteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat, Darden Restaurants has an average rating of “Moderate Buy” and a consensus target price of $232.38.

Darden Restaurants Stock Performance

Shares of NYSE:DRI opened at $199.42 on Friday. The business has a fifty day moving average of $212.04 and a 200-day moving average of $204.74. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.20 and a current ratio of 0.30. Darden Restaurants has a twelve month low of $169.00 and a twelve month high of $229.76. The firm has a market cap of $22.75 billion, a PE ratio of 19.49, a price-to-earnings-growth ratio of 1.88 and a beta of 0.60.

Darden Restaurants (NYSE:DRI) last issued its quarterly earnings results on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.05. Darden Restaurants had a net margin of 8.85% and a return on equity of 58.64%. The business had revenue of $3.20 billion for the quarter, compared to the consensus estimate of $3.21 billion. During the same quarter in the prior year, the company earned $1.97 EPS. The firm’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, equities research analysts predict that Darden Restaurants will post 11.25 EPS for the current fiscal year.

Darden Restaurants Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 9th will be given a dividend of $1.62 per share. The ex-dividend date is Friday, October 9th. This represents a $6.48 annualized dividend and a dividend yield of 3.2%. Darden Restaurants’s payout ratio is currently 63.34%.

Insider Buying and Selling at Darden Restaurants

In other Darden Restaurants news, CFO Rajesh Vennam sold 8,478 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 8,569 shares of the company’s stock, valued at approximately $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 Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Laura B. Williamson sold 443 shares of the company’s stock in a transaction on Friday, July 31st. The shares were sold at an average price of $204.89, for a total transaction of $90,766.27. Following the sale, the insider owned 5,536 shares of the company’s stock, valued at $1,134,271.04. The trade was a 7.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 70,185 shares of company stock valued at $14,636,984 over the last 90 days. Company insiders own 0.67% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bell Investment Advisors Inc bought a new stake in Darden Restaurants in the second quarter valued at about $28,000. Union Savings Bank bought a new position in Darden Restaurants during the fourth quarter worth about $28,000. Transamerica Financial Advisors LLC bought a new position in Darden Restaurants during the second quarter worth about $34,000. HHM Wealth Advisors LLC grew its position in shares of 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 buying an additional 56 shares during the period. Finally, Keating Financial Advisory Services Inc. acquired a new position in shares of Darden Restaurants during the 2nd quarter worth about $39,000. 93.64% of the stock is currently owned by institutional investors.

Key Stories Impacting Darden Restaurants

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

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.