Darden Restaurants (NYSE:DRI) Issues Earnings Results, Beats Estimates By $0.03 EPS

Darden Restaurants (NYSE:DRI) released its quarterly earnings results on Thursday. The restaurant operator reported $3.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.63 by $0.03, Briefing.com reports. The business had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.73 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 13.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.98 EPS. Darden Restaurants updated its FY 2027 guidance to 11.100-11.350 EPS.

Here are the key takeaways from Darden Restaurants’ conference call:

• Darden said fiscal 2026 was a strong year, with same-restaurant sales up 4.5%, total sales topping $13 billion for the first time, and adjusted EPS rising 11.4% to $10.64.
• Olive Garden, LongHorn, and Yard House all posted positive comp sales for the fifth consecutive year, with LongHorn again standing out on especially strong traffic and sales momentum.
• Management highlighted Darden’s scale, supply chain, technology, and data/insights as key competitive advantages that help support traffic, margins, and guest satisfaction across the portfolio.
• For fiscal 2027, Darden guided to same-restaurant sales growth of 2.5% to 3.5%, EPS of $11.10 to $11.35, and total sales of $13.6 billion to $13.75 billion, while expecting about 3% inflation and 75-80 new restaurant openings.
• The board approved an 8% increase in the quarterly dividend to $1.52 per share, signaling confidence in cash generation and capital returns.

Darden Restaurants Price Performance

Darden Restaurants stock opened at $213.79 on Friday. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.25 and a current ratio of 0.31. Darden Restaurants has a 1 year low of $169.00 and a 1 year high of $222.56. The company has a market capitalization of $24.49 billion, a price-to-earnings ratio of 20.60, a price-to-earnings-growth ratio of 1.92 and a beta of 0.60. The company’s 50 day simple moving average is $201.89 and its 200-day simple moving average is $200.98.

Darden Restaurants Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be given a dividend of $1.62 per share. The ex-dividend date is Friday, July 10th. This is an increase from Darden Restaurants’s previous quarterly dividend of $1.50. This represents a $6.48 annualized dividend and a yield of 3.0%. Darden Restaurants’s dividend payout ratio (DPR) is 57.80%.

Trending Headlines about Darden Restaurants

Here are the key news stories impacting Darden Restaurants this week:

• Positive Sentiment: UBS raised its price target on Darden to $240 from $230 and reiterated a buy rating, signaling confidence in additional upside after the quarter. UBS price target increase on Darden Restaurants
• Positive Sentiment: Deutsche Bank lifted its target to $236 from $230 and kept a buy rating, citing room for continued gains. Deutsche Bank price target increase on Darden Restaurants
• Positive Sentiment: BTIG, Stephens, Piper Sandler, Robert W. Baird and others also raised targets after reviewing the quarter, which reinforces the market’s view that Darden’s brand strength and long-term earnings power remain intact. Analysts boost forecasts after Darden Q4 results
• Positive Sentiment: The company beat fiscal Q4 EPS estimates, reported 13.7% year-over-year revenue growth, raised its quarterly dividend 8%, and authorized a new $1.5 billion share repurchase program, all of which are supportive for shareholder returns. Darden fiscal 2026 results and capital return actions
• Neutral Sentiment: Management’s fiscal 2027 guidance was slightly below Wall Street’s EPS expectations and revenue came in just under forecasts, which tempers the post-earnings enthusiasm. Darden earnings coverage from CNBC
• Negative Sentiment: Some reports noted that Olive Garden and other comparable sales trends were mixed, suggesting that not all brands are accelerating evenly despite LongHorn Steakhouse’s strength. Mixed Q4 results and brand performance for Darden

Analyst Ratings Changes

A number of research firms have recently commented on DRI. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Darden Restaurants from $230.00 to $236.00 and gave the company a “buy” rating in a research report on Friday. Wells Fargo & Company upped their target price on Darden Restaurants from $200.00 to $210.00 and gave the stock an “equal weight” rating in a report on Friday, March 20th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Darden Restaurants in a research report on Friday, March 13th. BTIG Research boosted their target price on Darden Restaurants from $225.00 to $235.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Bank of America boosted their target price on shares of Darden Restaurants from $272.00 to $276.00 and gave the company a “buy” rating in a research report on Friday, June 5th. Seventeen investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $228.32.

Insider Buying and Selling

In other Darden Restaurants news, SVP Douglas J. Milanes sold 3,620 shares of the firm’s stock in a transaction on Friday, April 17th. The stock was sold at an average price of $202.16, for a total transaction of $731,819.20. Following the completion of the transaction, the senior vice president owned 274 shares of the company’s stock, valued at approximately $55,391.84. This trade represents a 92.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP Lindsay L. Koren sold 300 shares of the company’s stock in a transaction that occurred on Tuesday, April 7th. The stock was sold at an average price of $194.32, for a total transaction of $58,296.00. Following the transaction, the senior vice president directly owned 1,617 shares of the company’s stock, valued at $314,215.44. This trade represents a 15.65% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.49% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. DV Equities LLC bought a new stake in Darden Restaurants in the fourth quarter worth about $30,000. Zions Bancorporation National Association UT raised its stake in Darden Restaurants by 63.3% during the 4th quarter. Zions Bancorporation National Association UT now owns 196 shares of the restaurant operator’s stock valued at $36,000 after purchasing an additional 76 shares during the last quarter. Wealth Watch Advisors INC acquired a new position in shares of Darden Restaurants in the third quarter valued at $39,000. Garton & Associates Financial Advisors LLC bought a new stake in Darden Restaurants in the fourth quarter valued at $42,000. Finally, Triumph Capital Management acquired a new stake in shares of Darden Restaurants in the third quarter valued at $48,000. Institutional investors and hedge funds own 93.64% of the company’s stock.

About Darden Restaurants

Darden Restaurants, Inc is a multi-brand, full-service restaurant company headquartered in Orlando, Florida. The company owns and operates a portfolio of casual and fine-dining concepts that together serve millions of guests through company-owned and franchised locations. Its well-known brands include Olive Garden and LongHorn Steakhouse, alongside other dining concepts that span Italian, American, steakhouse and upscale casual formats.

Darden’s restaurants provide a range of guest-facing services including dine-in, takeout, delivery and catering, and feature menus tailored to each brand’s positioning—Italian-American fare at Olive Garden, steaks and grilled items at LongHorn, and more premium steakhouse and chef-driven offerings at its upscale concepts.