Darden Restaurants (NYSE:DRI) Stock Price Target Lowered at Citigroup

Darden Restaurants (NYSE:DRI) had its target price cut by investment analysts at Citigroup from $248.00 to $247.00 in a report issued on Friday, Benzinga reports. The firm currently has a “buy” rating on the restaurant operator’s stock. Citigroup’s price target points to a potential upside of 22.89% from the stock’s current price.

A number of other equities analysts have also recently commented on the company. Morgan Stanley raised their target price on Darden Restaurants from $236.00 to $255.00 and gave the stock an “overweight” rating in a report on Monday, September 14th. UBS Group reissued a “buy” rating on shares of Darden Restaurants in a report on Friday, September 11th. BTIG Research restated a “buy” rating and issued a $235.00 price target on shares of Darden Restaurants in a research report on Friday. KeyCorp reaffirmed an “overweight” rating on shares of Darden Restaurants in a research note on Wednesday. Finally, Robert W. Baird raised Darden Restaurants from a “neutral” rating to an “outperform” rating and lifted their price objective for the company from $220.00 to $250.00 in a research report on Monday, August 24th. Eighteen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $232.38.

Darden Restaurants Stock Performance

DRI stock traded down $6.25 during midday trading on Friday, reaching $200.99. 365,463 shares of the company’s stock traded hands, compared to its average volume of 1,335,696. Darden Restaurants has a 52-week low of $169.00 and a 52-week high of $229.76. The stock has a market cap of $22.93 billion, a P/E ratio of 19.38, 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 stock’s 50-day moving average is $212.01 and its 200 day moving average is $204.76.

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

Insider Transactions at Darden Restaurants

In related news, SVP Susan Connelly sold 9,930 shares of the stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $206.21, for a total transaction of $2,047,665.30. Following the completion of the sale, the senior vice president owned 4,165 shares in the company, valued at approximately $858,864.65. This trade represents a 70.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Rajesh Vennam sold 8,478 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $210.00, for a total value 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. This trade represents a 49.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 70,185 shares of company stock valued at $14,636,984. 0.67% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Darden Restaurants

A number of institutional investors have recently added to or reduced their stakes in the stock. QRG Capital Management Inc. raised its position in shares of Darden Restaurants by 881.2% during the second quarter. QRG Capital Management Inc. now owns 47,136 shares of the restaurant operator’s stock valued at $9,710,000 after buying an additional 42,332 shares during the last quarter. Envestnet Portfolio Solutions Inc. boosted its position in shares of Darden Restaurants by 118.1% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 6,122 shares of the restaurant operator’s stock worth $1,261,000 after acquiring an additional 3,315 shares during the last quarter. Tidal Investments LLC boosted its position in shares of Darden Restaurants by 34.9% during the second quarter. Tidal Investments LLC now owns 26,408 shares of the restaurant operator’s stock worth $5,440,000 after acquiring an additional 6,830 shares during the last quarter. National Pension Service grew its stake in Darden Restaurants by 637.5% during the second quarter. National Pension Service now owns 249,346 shares of the restaurant operator’s stock valued at $51,368,000 after acquiring an additional 215,537 shares in the last quarter. Finally, WINTON GROUP Ltd purchased a new position in Darden Restaurants during the second quarter valued at $1,355,000. 93.64% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Darden Restaurants

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

• Positive Sentiment: Analyst support remains strong: Mizuho raised its price target to $245 and assigned an “outperform” rating, while Guggenheim and BTIG reaffirmed “buy” ratings with $235 targets. Bernstein also maintained a “buy” rating and a $230 target, citing resilient operating trends and diversified concepts. Bernstein analyst rating
• Positive Sentiment: Darden reaffirmed fiscal 2027 adjusted EPS guidance of $11.10 to $11.35, broadly consistent with analyst expectations, and continued to point to sales growth, share repurchases and stable capital returns. Darden guidance and Yard House expansion
• Positive Sentiment: The company declared a quarterly dividend of $1.62 per share, or $6.48 annualized, representing a yield of roughly 3.1% based on the cited share price. Yard House also plans 13 openings, supporting longer-term unit growth.
• Neutral Sentiment: Analyst views were mixed: Stephens reiterated “equal weight” with a $220 target, while BMO lowered its target to $220 and maintained “market perform.” TD Cowen also kept a “hold” rating with a $215 target.
• Neutral Sentiment: Shareholders elected the board and approved the existing governance structure, removing a potential source of uncertainty but providing no immediate strategic change. Darden shareholder meeting
• Negative Sentiment: Revenue increased 5.1% year over year to $3.20 billion but fell slightly short of the roughly $3.21 billion consensus. Adjusted EPS of $2.05 was reported as meeting some estimates, though other data providers characterized it as a minor miss versus $2.06 expectations. CNBC Darden earnings report
• Negative Sentiment: Profitability weakened as higher food and labor costs pushed reported net income lower year over year. Portfolio same-restaurant sales rose 3.1%, but Olive Garden growth slowed to 1.1%, overshadowing stronger 6.2% growth at LongHorn Steakhouse.

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.