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Darden Restaurants (DRI) Stock Price, News & Analysis

$154.14
+0.08 (+0.05%)
(As of 04:10 PM ET)
Today's Range
$152.44
$155.01
50-Day Range
$153.05
$175.91
52-Week Range
$133.36
$176.84
Volume
1.07 million shs
Average Volume
1.16 million shs
Market Capitalization
$18.40 billion
P/E Ratio
18.07
Dividend Yield
3.40%
Price Target
$178.85

Darden Restaurants MarketRank™ Stock Analysis

Analyst Rating
Moderate Buy
2.79 Rating Score
Upside/​Downside
15.9% Upside
$178.85 Price Target
Short Interest
Bearish
4.95% of Float Sold Short
Dividend Strength
Moderate
Based on Four Factors
Sustainability
-3.04
Upright™ Environmental Score
News Sentiment
0.68mentions of Darden Restaurants in the last 14 days
Based on 23 Articles This Week
Insider Trading
Selling Shares
$2.58 M Sold Last Quarter
Proj. Earnings Growth
8.25%
From $8.85 to $9.58 Per Share

Overall MarketRank

New Rank-Based ScoringMarketRank is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies.

4.83 out of 5 stars

Retail/Wholesale Sector

16th out of 197 stocks

Eating Places Industry

4th out of 41 stocks

DRI stock logo

About Darden Restaurants Stock (NYSE:DRI)

Darden Restaurants, Inc. is a prominent American multi-brand restaurant operator headquartered in Orlando, Florida. With a diverse portfolio of fine dining and casual dining restaurant chains, Darden has established itself as the world's largest full-service restaurant company. The company operates a range of well-known brands, including Ruth's Chris Steak House, Eddie V's, The Capital Grille, Olive Garden Italian Restaurant, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Yard House, and Cheddar's Scratch Kitchen. Darden is committed to providing exceptional dining experiences and warm hospitality to its customers across various restaurant industry segments.

Darden Restaurants' mission is to create memorable experiences by delighting guests with outstanding food, service, and hospitality. The company aims to be the leading full-service restaurant company in the world, driven by a passion for excellence and a dedication to its employees, guests, and communities.

The company's restaurant brands offer a wide range of culinary options, from upscale dining experiences to casual, family-friendly atmospheres. Ruth's Chris Steak House, Eddie V's, and The Capital Grille cater to discerning diners seeking exceptional fine dining experiences. Olive Garden Italian Restaurant, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Yard House, and Cheddar's Scratch Kitchen provide casual dining options with diverse menus and inviting atmospheres.

Darden Restaurants targets a broad market to serve customers across different demographic segments and dining preferences. Its brands cater to a wide range of customers, including families, couples, business professionals, and individuals looking for quality dining experiences.

Darden Restaurants boasts a talented and experienced leadership team that drives the company's success. Led by Chief Executive Officer and President Ricardo Cardenas, the management team brings a wealth of expertise and industry knowledge to the table. Ricardo Cardenas has a proven track record in the restaurant industry and oversees the company's strategic direction and overall performance.

Darden Restaurants has consistently delivered strong financial performance, showcasing its ability to navigate the competitive landscape of the restaurant industry. When analyzing the company's financials, it is important to consider long-term trends and broader industry benchmarks.

Over the past few years, Darden Restaurants has reported impressive revenue growth. This upward trend reflects the popularity and customer loyalty enjoyed by Darden's restaurant brands. Earnings metrics also demonstrate the company's solid financial performance. Darden's earnings metrics indicate favorable market sentiment and future growth expectations.

Profit margin metrics reveal Darden's ability to generate strong returns. The company has maintained a net profit margin of around 9%, showcasing its operational efficiency and effective cost management. Darden Restaurants maintains a healthy debt-to-equity ratio indicating a balanced approach to capital structure. This prudent debt management strategy contributes to the company's financial stability and resilience.

Darden Restaurants has enjoyed favorable stock performance recently, driven by its strong financial results and market positioning. While stock prices can fluctuate in response to market conditions and investor sentiment, Darden has demonstrated resilience and the ability to deliver shareholder value.

Darden Restaurants operates in the broader eating places industry, encompassing a wide range of dining establishments. The industry is highly competitive, with numerous players vying for market share and consumer attention. However, Darden has carved out a distinctive position through its diverse brand portfolio and commitment to culinary excellence.

Darden's competitive advantages lie in its well-established restaurant brands, each catering to different customer segments and culinary preferences. The company's scale and industry expertise enables it to leverage economies of scale, drive operational efficiencies and maintain strong relationships with suppliers and partners.

Darden Restaurants has several growth opportunities at its disposal. The company can leverage its existing brand portfolio to expand into new markets and capitalize on emerging consumer trends. Additionally, Darden can pursue strategic acquisitions or partnerships to enhance its offerings and reach new customer segments.

As consumer preferences evolve, Darden can focus on culinary innovation, menu diversification, and providing exceptional guest experiences. By continuously adapting to changing market dynamics and consumer demands, Darden can secure its position as a leader in the multi-brand restaurant industry.

While Darden Restaurants has a strong market position, it faces certain risks and challenges inherent to the industry. The restaurant business is susceptible to economic downturns, shifts in consumer preferences, and labor market dynamics. Additionally, increasing food costs, regulatory changes, and competitive pressures can impact the company's profitability.

However, Darden has demonstrated effective risk management strategies to mitigate these challenges. The company's strong financial position, operational expertise, and focus on guest satisfaction provide a solid foundation for navigating potential headwinds and maintaining long-term success.

DRI Stock Price History

DRI Stock News Headlines

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Dave & Buster's is unleashing shareholder value and may see a significant price-multiple expansion boost shares by triple digits over the next few years.
Biden’s $374B Giveaway Into This Sector
Biden’s Climate Bill Could Send Your Retirement Accounts Soaring – Or Diving See what this $374B giveaway could mean for your retirement right here
Headwinds for Darden Restaurants are an Opportunity For Investors
Darden Restaurants is well-positioned to improve shareholder value and serve robust capital returns in 2024 and years into the future.
Headwinds for Darden Restaurants Are An Opportunity For Investors
Darden Restaurants NYSE: DRI operational quality drove solid business in Q3, setting the stock up to continue its uptrend. Today's opportunity is that results were largely aligned with expectations and provided no catalyst for the market.
Stock market today: Asian shares are mixed after another Wall Street record day
Stocks are mixed in Asia after Wall Street tapped fresh records, led by big gains in chipmakers
Biden’s $374B Giveaway Into This Sector
Biden’s Climate Bill Could Send Your Retirement Accounts Soaring – Or Diving See what this $374B giveaway could mean for your retirement right here
Darden Restaurants (NYSE:DRI) Given Buy Rating at TD Cowen
Beyond The Numbers: 19 Analysts Discuss Darden Restaurants Stock
See More Headlines
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Company Calendar

Ex-Dividend for 2/1 Dividend
1/09/2024
Dividend Payable
2/01/2024
Last Earnings
3/21/2024
Ex-Dividend for 5/1 Dividend
4/09/2024
Today
4/16/2024
Dividend Payable
5/01/2024
Fiscal Year End
5/31/2024
Next Earnings (Estimated)
6/27/2024

Industry, Sector and Symbol

Industry
Eating places
Sub-Industry
Restaurants
CUSIP
23719410
Employees
187,384
Year Founded
1968

Price Target and Rating

Average Stock Price Target
$178.85
High Stock Price Target
$198.00
Low Stock Price Target
$159.00
Potential Upside/Downside
+16.1%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.79
Research Coverage
19 Analysts

Profitability

Net Income
$981.90 million
Pretax Margin
10.43%

Debt

Sales & Book Value

Annual Sales
$10.49 billion
Cash Flow
$11.40 per share
Book Value
$18.18 per share

Miscellaneous

Free Float
118,344,000
Market Cap
$18.39 billion
Optionable
Optionable
Beta
1.25

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Should I Buy Darden Restaurants Stock? DRI Pros and Cons Explained

Pros

Here are some ways that investors could benefit from investing in Darden Restaurants, Inc.:

  • Darden Restaurants, Inc. operates under well-known and established brand names like Olive Garden and LongHorn Steakhouse, providing a sense of stability and customer loyalty in the competitive restaurant industry.
  • The company has a diversified portfolio of restaurant brands, which helps mitigate risks associated with relying on a single brand's performance.
  • Recent analyst recommendations and price targets for Darden Restaurants, Inc. indicate positive sentiment and potential growth in the stock price, making it an attractive investment opportunity.
  • Darden Restaurants, Inc. has a strong presence in both the United States and Canada, offering geographic diversification and exposure to different consumer markets.
  • The company's focus on full-service restaurants caters to a wide range of dining preferences, attracting a broad customer base and potentially driving revenue growth.

Cons

Investors should be bearish about investing in Darden Restaurants, Inc. for these reasons:

  • The restaurant industry is highly competitive and sensitive to economic conditions, which could impact Darden Restaurants, Inc.'s financial performance during economic downturns.
  • Changes in consumer preferences and dining trends may pose challenges for Darden Restaurants, Inc. in adapting its menu offerings and marketing strategies to meet evolving demands.
  • Fluctuations in commodity prices, such as food and labor costs, can affect the company's profit margins and overall financial health.
  • Regulatory changes, including food safety regulations and labor laws, could increase operating costs for Darden Restaurants, Inc. and impact its bottom line.
  • Investors should consider the current stock price of Darden Restaurants, Inc. and evaluate whether it aligns with their investment goals and risk tolerance before making investment decisions.
These pros and cons were generated based on recent news and financial data from MarketBeat in order to provide readers with the fastest and most accurate insights. They were last updated on Saturday, April 13, 2024. Please send any questions or comments about these Darden Restaurants pros and cons to contact@marketbeat.com.

DRI Stock Analysis - Frequently Asked Questions

Should I buy or sell Darden Restaurants stock right now?

19 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Darden Restaurants in the last year. There are currently 4 hold ratings and 15 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should "moderate buy" DRI shares.
View DRI analyst ratings
or view top-rated stocks.

What is Darden Restaurants' stock price target for 2024?

19 equities research analysts have issued twelve-month target prices for Darden Restaurants' shares. Their DRI share price targets range from $159.00 to $198.00. On average, they anticipate the company's share price to reach $178.85 in the next twelve months. This suggests a possible upside of 15.9% from the stock's current price.
View analysts price targets for DRI
or view top-rated stocks among Wall Street analysts.

How have DRI shares performed in 2024?

Darden Restaurants' stock was trading at $164.30 on January 1st, 2024. Since then, DRI shares have decreased by 6.1% and is now trading at $154.31.
View the best growth stocks for 2024 here
.

Are investors shorting Darden Restaurants?

Darden Restaurants saw a increase in short interest during the month of March. As of March 31st, there was short interest totaling 5,890,000 shares, an increase of 8.3% from the March 15th total of 5,440,000 shares. Based on an average daily volume of 1,150,000 shares, the days-to-cover ratio is presently 5.1 days. Currently, 5.0% of the company's stock are short sold.
View Darden Restaurants' Short Interest
.

When is Darden Restaurants' next earnings date?

The company is scheduled to release its next quarterly earnings announcement on Thursday, June 27th 2024.
View our DRI earnings forecast
.

How were Darden Restaurants' earnings last quarter?

Darden Restaurants, Inc. (NYSE:DRI) issued its quarterly earnings data on Thursday, March, 21st. The restaurant operator reported $2.62 EPS for the quarter, missing the consensus estimate of $2.63 by $0.01. The restaurant operator had revenue of $2.97 billion for the quarter, compared to analysts' expectations of $3.02 billion. Darden Restaurants had a trailing twelve-month return on equity of 49.94% and a net margin of 9.24%. The firm's revenue for the quarter was up 6.8% on a year-over-year basis. During the same period in the prior year, the firm earned $2.34 EPS.
Read the conference call transcript
.

How often does Darden Restaurants pay dividends? What is the dividend yield for Darden Restaurants?

Darden Restaurants announced a quarterly dividend on Thursday, March 21st. Shareholders of record on Wednesday, April 10th will be paid a dividend of $1.31 per share on Wednesday, May 1st. This represents a $5.24 annualized dividend and a yield of 3.40%. The ex-dividend date is Tuesday, April 9th.
Read our dividend analysis for DRI
.

Is Darden Restaurants a good dividend stock?

Darden Restaurants (NYSE:DRI) pays an annual dividend of $5.24 per share and currently has a dividend yield of 3.42%. The company has been increasing its dividend for 3 consecutive year(s), indicating that it does not yet have a strong track record of dividend growth. The dividend payout ratio is 61.43%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, DRI will have a dividend payout ratio of 54.70% next year. This indicates that the company will be able to sustain or increase its dividend.
Read our dividend analysis for DRI.

How will Darden Restaurants' stock buyback program work?

Darden Restaurants announced that its Board of Directors has approved a share buyback plan on Thursday, March 21st 2024, which permits the company to repurchase $1,000,000,000.00 in outstanding shares, according to EventVestor. This repurchase authorization permits the company to reacquire up to 5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's management believes its shares are undervalued.

What guidance has Darden Restaurants issued on next quarter's earnings?

Darden Restaurants issued an update on its FY 2024 earnings guidance on Thursday, March, 21st. The company provided EPS guidance of 8.800-8.900 for the period, compared to the consensus earnings per share estimate of 8.860. The company issued revenue guidance of $11.4 billion-$11.4 billion, compared to the consensus revenue estimate of $11.5 billion.

What is Gene Lee's approval rating as Darden Restaurants' CEO?

333 employees have rated Darden Restaurants Chief Executive Officer Gene Lee on Glassdoor.com. Gene Lee has an approval rating of 88% among the company's employees.

What other stocks do shareholders of Darden Restaurants own?

Based on aggregate information from My MarketBeat watchlists, some companies that other Darden Restaurants investors own include NVIDIA (NVDA), Boeing (BA), Walt Disney (DIS), Home Depot (HD), Intel (INTC), Johnson & Johnson (JNJ), Micron Technology (MU), PayPal (PYPL), Alibaba Group (BABA) and JPMorgan Chase & Co. (JPM).

Who are Darden Restaurants' major shareholders?

Darden Restaurants' stock is owned by a variety of institutional and retail investors. Top institutional investors include Congress Asset Management Co. MA (1.17%), Los Angeles Capital Management LLC (0.09%), Running Oak Capital LLC (0.05%), First Financial Bank Trust Division (0.04%), Royal Fund Management LLC (0.03%) and Cullen Investment Group LTD. (0.02%). Insiders that own company stock include Daniel J Kiernan, Douglas J Milanes, Douglas J Milanes, Eugene I Lee Jr, Eugene I Lee, Jr, John W Madonna, Juliana L Chugg, M Shan Atkins, Matthew R Broad, Melvin John Martin, Nana Mensah, Rajesh Vennam, Ricardo Cardenas, Richard L Renninger, Sarah H King, Susan M Connelly, Timothy J Wilmott, Todd Burrowes and William S Simon.
View institutional ownership trends
.

How do I buy shares of Darden Restaurants?

Shares of DRI stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Does Darden Restaurants have any subsidiaries?
The following companies are subsidiares of Darden Restaurants: Bahama Breeze Holdings, Capital Grille Holdings, Cheddar's Restaurant Holding Corp., Cheddar's Scratch Kitchen, Cheddar’s Casual Café, Darden Corporation, Eddie V’s Holdings, Florida SE, GMRI, N and D Restaurants, Olive Garden Holdings, Olive Garden of Texas, Rare Hospitality International, Rare Hospitality Management, Rare Hospitality Management LLC, Seasons 52 Holdings, Yard House, and Yard House USA.
Read More
This page (NYSE:DRI) was last updated on 4/16/2024 by MarketBeat.com Staff

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