Darden Restaurants, Inc. (NYSE:DRI) Shareholders to Collect $1.62 Quarterly Dividend

Darden Restaurants, Inc. (NYSE:DRI) declared a quarterly dividend on Wednesday, September 23rd. Shareholders of record on Friday, October 9th will be given a dividend of $1.62 per share by the restaurant operator on Monday, November 2nd. This represents a $6.48 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend is Friday, October 9th.

Darden Restaurants has raised its dividend by an average of 0.3%per year over the last three years and has increased its dividend annually for the last 4 consecutive years. Darden Restaurants has a payout ratio of 56.3% meaning its dividend is sufficiently covered by earnings. Research analysts expect Darden Restaurants to earn $12.40 per share next year, which means the company should continue to be able to cover its $6.48 annual dividend with an expected future payout ratio of 52.3%.

Darden Restaurants Price Performance

Shares of NYSE DRI traded down $2.96 during mid-day trading on Monday, reaching $196.79. 579,839 shares of the company were exchanged, compared to its average volume of 1,340,081. Darden Restaurants has a 52 week low of $169.00 and a 52 week high of $229.76. The company has a quick ratio of 0.20, a current ratio of 0.30 and a debt-to-equity ratio of 0.79. The stock has a market capitalization of $22.45 billion, a PE ratio of 19.23, a PEG ratio of 1.88 and a beta of 0.60. The company’s 50 day moving average price is $212.04 and its 200 day moving average price is $204.74.

Darden Restaurants (NYSE:DRI) last announced its earnings results on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.05. The business had revenue of $3.20 billion during the quarter, compared to the consensus estimate of $3.21 billion. Darden Restaurants had a net margin of 8.85% and a return on equity of 58.64%. The business’s revenue for the quarter was up 5.1% on a year-over-year basis. During the same quarter last year, the firm earned $1.97 earnings per share. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. Sell-side analysts forecast that Darden Restaurants will post 11.25 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Rajesh Vennam sold 8,478 shares of the stock in a transaction dated Wednesday, July 29th. The stock was 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 directly owned 8,569 shares of the company’s stock, valued at approximately $1,799,490. This represents a 49.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Laura Williamson sold 443 shares of the business’s stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $204.89, for a total transaction of $90,766.27. Following the completion of the sale, the insider directly owned 5,536 shares of the company’s stock, valued at $1,134,271.04. This represents a 7.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 70,185 shares of company stock worth $14,636,984. Company insiders own 0.67% of the company’s stock.

Hedge Funds Weigh In On Darden Restaurants

A number of hedge funds have recently made changes to their positions in DRI. Union Savings Bank acquired a new position in shares of Darden Restaurants in the 4th quarter valued at $28,000. Bell Investment Advisors Inc acquired a new position in shares of Darden Restaurants in the 2nd quarter valued at $28,000. Transamerica Financial Advisors LLC acquired a new position in shares of Darden Restaurants in the 2nd quarter valued at $34,000. HHM Wealth Advisors LLC increased 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 purchasing an additional 56 shares in the last quarter. Finally, Keating Financial Advisory Services Inc. acquired a new stake in shares of Darden Restaurants during the 2nd quarter worth about $39,000. Institutional investors and hedge funds own 93.64% of the company’s stock.

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.