Darden Restaurants (NYSE:DRI) Stock Gets Price Target Boost from Mizuho

Darden Restaurants (NYSE:DRI) had its price objective raised by equities research analysts at Mizuho from $235.00 to $245.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has an “outperform” rating on the restaurant operator’s stock. Mizuho’s target price suggests a potential upside of 18.45% from the company’s previous close.

A number of other equities research analysts also recently issued reports on the stock. Argus increased their price objective 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. Guggenheim increased their price target on shares of Darden Restaurants from $230.00 to $235.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. UBS Group restated a “buy” rating on shares of Darden Restaurants in a research report on Friday, September 11th. Robert W. Baird raised Darden Restaurants from a “neutral” rating to an “outperform” rating and raised their target price for the company from $220.00 to $250.00 in a report on Monday, August 24th. Finally, Weiss Ratings raised Darden Restaurants from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, September 17th. Eighteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Darden Restaurants presently has an average rating of “Moderate Buy” and an average price target of $232.52.

Darden Restaurants Trading Down 3.2%

Shares of DRI stock opened at $206.83 on Friday. The stock has a market cap of $23.60 billion, a P/E ratio of 19.93, a price-to-earnings-growth ratio of 2.01 and a beta of 0.60. Darden Restaurants has a 1 year low of $169.00 and a 1 year high of $229.76. 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 stock has a 50 day simple moving average of $212.01 and a 200 day simple moving average of $204.76.

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

Insiders Place Their Bets

In related news, insider John Wilkerson sold 8,864 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, August 5th. The shares were 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 in the company, valued at $3,915,354.02. This trade represents a 32.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Rajesh Vennam sold 8,478 shares of the business’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $210.00, for a total transaction of $1,780,380.00. Following the sale, the chief financial officer directly owned 8,569 shares in the company, valued at $1,799,490. The trade was a 49.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 70,185 shares of company stock worth $14,636,984 over the last quarter. 0.67% of the stock is currently owned by corporate insiders.

Institutional Trading of Darden Restaurants

Several institutional investors have recently modified their holdings of DRI. Nicholas Investment Partners LP acquired a new position in Darden Restaurants during the 2nd quarter worth about $923,000. Empowered Funds LLC bought a new stake in shares of Darden Restaurants in the 2nd quarter valued at about $3,313,000. BNP Paribas Financial Markets increased its stake in shares of Darden Restaurants by 22.3% in the fourth quarter. BNP Paribas Financial Markets now owns 293,895 shares of the restaurant operator’s stock valued at $54,083,000 after buying an additional 53,549 shares during the period. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Darden Restaurants in the fourth quarter valued at about $44,190,000. Finally, United Capital Financial Advisors LLC bought a new position in shares of Darden Restaurants during the second quarter worth about $3,280,000. Institutional investors own 93.64% of the company’s stock.

Key Headlines Impacting Darden Restaurants

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.