BMO Capital Markets Has Lowered Expectations for Darden Restaurants (NYSE:DRI) Stock Price

Darden Restaurants (NYSE:DRI) had its price target reduced by stock analysts at BMO Capital Markets from $225.00 to $220.00 in a report released on Friday, Benzinga reports. The brokerage currently has a “market perform” rating on the restaurant operator’s stock. BMO Capital Markets’ price objective would indicate a potential upside of 6.37% from the company’s previous close.

Several other analysts also recently commented on DRI. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Darden Restaurants from $230.00 to $236.00 and gave the stock a “buy” rating in a research report on Friday, June 26th. Stephens restated an “equal weight” rating and set a $220.00 price target on shares of Darden Restaurants in a report on Friday. Evercore lowered shares of Darden Restaurants from an “outperform” rating to an “in-line” rating and set a $230.00 price objective for the company. in a research note on Tuesday, June 23rd. Guggenheim upped their price objective on shares of Darden Restaurants from $230.00 to $235.00 and gave the stock a “buy” rating in a report on Wednesday, June 24th. Finally, KeyCorp reissued an “overweight” rating on shares of Darden Restaurants in a research report on Wednesday. Eighteen analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $232.09.

Darden Restaurants Stock Down 3.2%

DRI opened at $206.83 on Friday. The company has a market capitalization of $23.60 billion, a PE ratio of 19.93, a price-to-earnings-growth ratio of 2.01 and a beta of 0.60. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.31 and a quick ratio of 0.21. Darden Restaurants has a fifty-two week low of $169.00 and a fifty-two week high of $229.76. The business has a 50-day moving average of $212.01 and a 200-day moving average of $204.76.

Darden Restaurants (NYSE:DRI) last announced its quarterly earnings results on Thursday, September 24th. The restaurant operator reported $2.05 EPS for the quarter, meeting the consensus estimate 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 analysts’ expectations of $3.21 billion. During the same quarter in the previous year, the business posted $1.97 EPS. The firm’s quarterly revenue was up 5.1% compared to the same quarter last year. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. Equities research analysts forecast that Darden Restaurants will post 11.26 EPS for the current fiscal year.

Insider Buying and Selling at Darden Restaurants

In related news, 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 transaction of $1,846,637.12. Following the sale, the insider directly owned 18,794 shares of the company’s stock, valued at $3,915,354.02. This trade represents a 32.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Ricardo Cardenas sold 39,134 shares of the business’s stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $209.06, for a total value of $8,181,354.04. Following the transaction, the chief executive officer owned 86,146 shares in the company, valued at $18,009,682.76. This represents a 31.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 70,185 shares of company stock valued at $14,636,984 in the last three months. 0.67% of the stock is owned by insiders.

Institutional Trading of Darden Restaurants

A number of hedge funds have recently modified their holdings of the company. Union Savings Bank bought a new stake in shares of Darden Restaurants during the fourth quarter valued at approximately $28,000. Bell Investment Advisors Inc bought a new position in Darden Restaurants in the second quarter worth $28,000. Transamerica Financial Advisors LLC bought a new position in Darden Restaurants in the second quarter worth $34,000. HHM Wealth Advisors LLC boosted its stake in Darden Restaurants by 44.8% during the first quarter. HHM Wealth Advisors LLC now owns 181 shares of the restaurant operator’s stock worth $35,000 after buying an additional 56 shares in the last quarter. Finally, Keating Financial Advisory Services Inc. acquired a new stake in Darden Restaurants during the second quarter worth $39,000. Institutional investors 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: Darden reported fiscal Q1 2027 revenue of approximately $3.20 billion, up 5.1% year over year, while adjusted earnings of $2.05 per share were broadly in line with expectations. Same-restaurant sales rose 3.1% across the portfolio. Darden fiscal 2027 first-quarter results
• Positive Sentiment: Management reaffirmed fiscal 2027 adjusted EPS guidance of $11.10 to $11.35, close to the analyst consensus of $11.28, reducing the risk of a broader outlook reset. Darden also said Yard House plans to open 13 locations. Darden reaffirms fiscal 2027 guidance
• Positive Sentiment: The board declared a quarterly dividend of $1.62 per share, or $6.48 annualized, representing a yield of about 3.1%. Shareholders also backed the existing board and governance structure at the annual meeting. Darden shareholder meeting results
• Neutral Sentiment: LongHorn Steakhouse remained a relative bright spot, posting 6.2% same-store sales growth, while management continues to benefit from sales growth across its restaurant segments.
• Negative Sentiment: Revenue fell short of the roughly $3.21 billion consensus estimate, and higher food and labor costs pressured profits. Reported net income declined to about $233 million from $258 million a year earlier. Darden profit declines on higher expenses
• Negative Sentiment: Olive Garden’s same-store sales growth slowed to 1.1%, raising concerns about consumer traffic and the durability of growth at Darden’s flagship brand. The combination of the revenue miss, weaker Olive Garden momentum and margin pressure is driving the negative investor reaction despite the reaffirmed outlook. Darden stock falls as Olive Garden growth slows

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.