Darden Restaurants (NYSE:DRI) Announces FY 2027 Earnings Guidance

Darden Restaurants (NYSE:DRI) issued an update on its FY 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 11.100-11.350 for the period, compared to the consensus earnings per share estimate of 11.280. The company issued revenue guidance of -, compared to the consensus revenue estimate of $13.7 billion.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. Citigroup raised their target price on Darden Restaurants from $245.00 to $248.00 and gave the stock a “buy” rating in a research note on Friday, September 11th. KeyCorp restated an “overweight” rating on shares of Darden Restaurants in a research report on Wednesday. Oppenheimer boosted their target price on shares of Darden Restaurants from $235.00 to $245.00 and gave the company an “outperform” rating in a report on Tuesday, September 15th. TD Cowen reaffirmed a “hold” rating and issued a $215.00 target price on shares of Darden Restaurants in a research report on Thursday. Finally, Evercore downgraded shares of Darden Restaurants from an “outperform” rating to an “in-line” rating and set a $230.00 target price for the company. in a report on Tuesday, June 23rd. Eighteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $232.09.

Darden Restaurants Stock Down 3.2%

Shares of NYSE DRI opened at $206.83 on Friday. Darden Restaurants has a 12-month low of $169.00 and a 12-month high of $229.76. The stock has a market cap of $23.60 billion, a P/E ratio of 19.93, a PEG 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. The business’s fifty day simple moving average is $212.01 and its 200-day simple moving average is $204.76.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings results on Thursday, September 24th. The restaurant operator reported $2.05 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.05. The company had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.21 billion. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%.Darden Restaurants’s revenue for the quarter was up 5.1% compared to the same quarter last year. During the same quarter last year, the company earned $1.97 EPS. Darden Restaurants has set its FY 2027 guidance at 11.100-11.350 EPS. As a group, equities analysts predict that Darden Restaurants will post 11.26 EPS for the current fiscal year.

Darden Restaurants Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Friday, October 9th will be issued a $1.62 dividend. This represents a $6.48 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Friday, October 9th. Darden Restaurants’s payout ratio is presently 62.43%.

Insider Activity

In other Darden Restaurants news, insider John Wilkerson sold 8,864 shares of Darden Restaurants stock in a transaction that occurred on 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 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Laura Williamson sold 1,110 shares of the 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 sale, the insider owned 10,754 shares of the company’s stock, valued at approximately $2,197,257.28. This represents a 9.36% 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 worth $14,636,984 over the last ninety days. 0.67% of the stock is owned by corporate insiders.

Darden Restaurants News Roundup

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

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.