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

Darden Restaurants (NYSE:DRI) announced its earnings results on Thursday. The restaurant operator reported $3.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.63 by $0.03, Briefing.com reports. The firm had revenue of $3.72 billion for the quarter, compared to analysts’ expectations of $3.73 billion. Darden Restaurants had a net margin of 8.66% and a return on equity of 53.54%. The business’s revenue was up 13.7% compared to the same quarter last year. During the same period in the prior year, the company 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 Stock Performance

Shares of DRI stock opened at $212.69 on Friday. Darden Restaurants has a 52-week low of $169.00 and a 52-week high of $222.56. The company has a quick ratio of 0.25, a current ratio of 0.39 and a debt-to-equity ratio of 1.02. The stock has a market cap of $24.36 billion, a PE ratio of 22.51, a price-to-earnings-growth ratio of 1.91 and a beta of 0.60. The business has a 50-day simple moving average of $201.60 and a 200-day simple moving average of $200.89.

Darden Restaurants Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 3rd. Shareholders of record on Friday, July 10th will be paid a dividend of $1.62 per share. This represents a $6.48 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date is Friday, July 10th. This is an increase from Darden Restaurants’s previous quarterly dividend of $1.50. Darden Restaurants’s dividend payout ratio (DPR) is 63.49%.

Analyst Upgrades and Downgrades

Several research analysts recently commented on DRI shares. UBS Group reaffirmed a “buy” rating and issued a $230.00 price target on shares of Darden Restaurants in a research note on Tuesday, March 10th. Robert W. Baird upped their price objective on shares of Darden Restaurants from $208.00 to $215.00 and gave the stock a “neutral” rating in a research note on Friday, March 20th. Bank of America boosted their price target on shares of Darden Restaurants from $272.00 to $276.00 and gave the company a “buy” rating in a report on Friday, June 5th. Stephens reaffirmed an “equal weight” rating and issued a $210.00 price target on shares of Darden Restaurants in a research report on Thursday, June 18th. Finally, Oppenheimer restated an “outperform” rating and set a $235.00 price objective on shares of Darden Restaurants in a research note on Thursday, June 18th. Seventeen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, Darden Restaurants presently has an average rating of “Moderate Buy” and a consensus target price of $227.46.

Insider Activity

In related news, SVP Douglas J. Milanes sold 3,620 shares of Darden Restaurants stock in a transaction that occurred 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 directly owned 274 shares in the company, valued at approximately $55,391.84. This trade represents a 92.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Lindsay L. Koren sold 300 shares of the business’s stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $194.32, for a total value of $58,296.00. Following the completion of the transaction, the senior vice president directly owned 1,617 shares of the company’s stock, valued at $314,215.44. The trade was a 15.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.49% of the stock is owned by company insiders.

Institutional Investors Weigh In On Darden Restaurants

Several institutional investors and hedge funds have recently added to or reduced their stakes in DRI. Wellington Management Group LLP boosted its holdings in Darden Restaurants by 81.0% in the 4th quarter. Wellington Management Group LLP now owns 8,077,567 shares of the restaurant operator’s stock worth $1,486,434,000 after buying an additional 3,613,781 shares during the last quarter. Alyeska Investment Group L.P. purchased a new position in shares of Darden Restaurants in the fourth quarter valued at approximately $113,301,000. Invesco Ltd. boosted its stake in shares of Darden Restaurants by 42.6% in the fourth quarter. Invesco Ltd. now owns 1,884,339 shares of the restaurant operator’s stock worth $346,756,000 after acquiring an additional 563,237 shares during the last quarter. AQR Capital Management LLC raised its stake in Darden Restaurants by 239.4% in the 2nd quarter. AQR Capital Management LLC now owns 722,529 shares of the restaurant operator’s stock valued at $157,490,000 after purchasing an additional 509,655 shares during the last quarter. Finally, Victory Capital Management Inc. raised its stake in Darden Restaurants by 198.1% in the 4th quarter. Victory Capital Management Inc. now owns 582,585 shares of the restaurant operator’s stock valued at $107,207,000 after purchasing an additional 387,130 shares during the last quarter. Hedge funds and other institutional investors own 93.64% of the company’s stock.

Key Stories Impacting Darden Restaurants

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

• Positive Sentiment: Darden raised its quarterly dividend to $1.62 per share, an 8% increase, signaling confidence in cash flow and shareholder returns. Article Title
• Positive Sentiment: The board authorized a new $1.5 billion share repurchase program, which should help support earnings per share over time. Article Title
• Positive Sentiment: Results were driven by brand strength, especially LongHorn Steakhouse, and management highlighted comparable-sales momentum and record-year performance. Article Title
• Neutral Sentiment: Darden’s revenue missed expectations by a small margin, and some commentary noted weaker-than-expected same-store sales at Olive Garden and fine-dining locations. Article Title
• Negative Sentiment: FY2027 EPS guidance of $11.10 to $11.35 came in below the Street’s estimate, suggesting margin or cost pressure ahead. Article Title

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.