Darden Restaurants (NYSE:DRI) Stock Rating Reaffirmed as Buy by Guggenheim

Darden Restaurants (NYSE:DRI)‘s stock had its “buy” rating reiterated by analysts at Guggenheim in a report released on Friday, Benzinga reports. They presently have a $235.00 price objective on the restaurant operator’s stock. Guggenheim’s target price suggests a potential upside of 18.91% from the stock’s previous close.

Several other research analysts have also recently weighed in on DRI. Evercore cut shares of Darden Restaurants from an “outperform” rating to an “in-line” rating and set a $230.00 price target on the stock. in a research note on Tuesday, June 23rd. Argus lifted their price target on shares of Darden Restaurants from $240.00 to $245.00 and gave the stock a “buy” rating in a research note on Tuesday, June 30th. TD Cowen reiterated a “hold” rating and set a $215.00 price target on shares of Darden Restaurants in a research note on Thursday, September 24th. Seaport Research Partners started coverage on shares of Darden Restaurants in a research note on Wednesday, September 16th. They set a “buy” rating and a $240.00 price target on the stock. Finally, Morgan Stanley lifted their price target on shares of Darden Restaurants from $236.00 to $255.00 and gave the stock an “overweight” rating in a research note on Monday, September 14th. Eighteen analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, Darden Restaurants currently has a consensus rating of “Moderate Buy” and an average price target of $232.38.

Darden Restaurants Stock Performance

NYSE:DRI traded up $4.38 during trading hours on Friday, reaching $197.63. The company had a trading volume of 1,326,100 shares, compared to its average volume of 1,345,661. The company has a current ratio of 0.30, a quick ratio of 0.20 and a debt-to-equity ratio of 0.79. Darden Restaurants has a 52 week low of $169.00 and a 52 week high of $229.76. The firm has a market cap of $22.55 billion, a price-to-earnings ratio of 19.32, a PEG ratio of 1.83 and a beta of 0.60. The firm’s 50 day moving average price is $212.12 and its 200-day moving average price is $204.60.

Darden Restaurants (NYSE:DRI) last posted its earnings results on Thursday, September 24th. The restaurant operator reported $2.05 EPS for the quarter, hitting analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $3.21 billion. During the same quarter in the previous year, the firm posted $1.97 EPS. The firm’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, analysts forecast that Darden Restaurants will post 11.24 EPS for the current year.

Insider Buying and Selling

In related news, SVP Susan M. Connelly sold 9,930 shares of the company’s stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $206.21, for a total value of $2,047,665.30. Following the completion of the transaction, the senior vice president owned 4,165 shares of the company’s stock, valued at approximately $858,864.65. This represents a 70.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Laura B. Williamson sold 1,110 shares of the company’s stock in a transaction on Friday, July 31st. The stock was sold at an average price of $204.32, for a total transaction of $226,795.20. Following the completion of the transaction, the insider directly owned 10,754 shares of the company’s stock, valued at $2,197,257.28. This represents a 9.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 70,185 shares of company stock worth $14,636,984 in the last three months. Corporate insiders own 0.67% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of DRI. Union Savings Bank bought a new position in Darden Restaurants in the 4th quarter worth $28,000. Bell Investment Advisors Inc bought a new position in Darden Restaurants in the 2nd quarter worth $28,000. Transamerica Financial Advisors LLC bought a new position in Darden Restaurants in the 2nd quarter worth $34,000. HHM Wealth Advisors LLC boosted its holdings in Darden Restaurants by 44.8% in 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. bought a new position in Darden Restaurants in the 2nd quarter worth $39,000. Institutional investors own 93.64% of the company’s stock.

Darden Restaurants Company Profile

Darden Restaurants, Inc is a full-service restaurant company that owns and operates a portfolio of well-known dining brands. Its restaurants serve a range of cuisines and occasions, from Italian and American casual dining to seafood, steak, and upscale experiences.

The company’s portfolio includes Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, Ruth’s Chris Steak House, Seasons 52, Bahama Breeze, Eddie V’s, and The Capital Grille. In 2024, Darden expanded its brand portfolio through the acquisition of Chuy’s, a full-service Mexican restaurant concept.

Founded by William B.