Zacks Research Issues Negative Outlook for DRI Earnings

Darden Restaurants, Inc. (NYSE:DRI) – Equities researchers at Zacks Research reduced their Q1 2027 earnings estimates for Darden Restaurants in a research report issued on Thursday, April 2nd. Zacks Research analyst Team now expects that the restaurant operator will post earnings per share of $2.08 for the quarter, down from their prior estimate of $2.10. The consensus estimate for Darden Restaurants’ current full-year earnings is $9.52 per share. Zacks Research also issued estimates for Darden Restaurants’ FY2027 earnings at $11.35 EPS, Q3 2028 earnings at $3.51 EPS and FY2028 earnings at $12.26 EPS.

Darden Restaurants (NYSE:DRI) last announced its earnings results on Thursday, March 19th. The restaurant operator reported $2.95 earnings per share for the quarter, beating analysts’ consensus estimates of $2.94 by $0.01. Darden Restaurants had a net margin of 8.66% and a return on equity of 53.54%. The business had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same quarter last year, the firm earned $2.80 earnings per share. The business’s revenue for the quarter was up 5.9% on a year-over-year basis.

A number of other equities analysts also recently weighed in on DRI. Jefferies Financial Group decreased their target price on shares of Darden Restaurants from $210.00 to $200.00 and set a “hold” rating for the company in a research note on Monday, December 15th. Stephens raised their target price on shares of Darden Restaurants from $205.00 to $210.00 and gave the company an “equal weight” rating in a research note on Friday, March 20th. Raymond James Financial reaffirmed a “market perform” rating on shares of Darden Restaurants in a research note on Wednesday, January 21st. Wells Fargo & Company raised their target price on shares of Darden Restaurants from $200.00 to $210.00 and gave the company an “equal weight” rating in a research note on Friday, March 20th. Finally, Melius Research raised shares of Darden Restaurants from a “hold” rating to a “buy” rating in a research note on Friday, January 23rd. Eighteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $226.24.

Darden Restaurants Price Performance

Shares of NYSE DRI opened at $190.69 on Tuesday. Darden Restaurants has a fifty-two week low of $169.00 and a fifty-two week high of $228.27. The company has a 50 day simple moving average of $205.37 and a two-hundred day simple moving average of $193.50. The company has a market capitalization of $21.84 billion, a price-to-earnings ratio of 20.18, a P/E/G ratio of 1.86 and a beta of 0.64. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.26 and a current ratio of 0.39.

Darden Restaurants Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Friday, April 10th will be given a dividend of $1.50 per share. The ex-dividend date of this dividend is Friday, April 10th. This represents a $6.00 annualized dividend and a dividend yield of 3.1%. Darden Restaurants’s dividend payout ratio (DPR) is 63.49%.

Insider Activity

In related news, CFO Rajesh Vennam sold 6,774 shares of the firm’s stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $214.12, for a total transaction of $1,450,448.88. Following the completion of the sale, the chief financial officer owned 9,040 shares of the company’s stock, valued at $1,935,644.80. This trade represents a 42.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Todd Burrowes sold 7,103 shares of the firm’s stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $207.12, for a total transaction of $1,471,173.36. Following the sale, the insider directly owned 44,252 shares of the company’s stock, valued at $9,165,474.24. This trade represents a 13.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 18,770 shares of company stock worth $3,948,970 over the last three months. 0.49% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Darden Restaurants

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Torren Management LLC purchased a new stake in Darden Restaurants in the fourth quarter worth approximately $26,000. Quent Capital LLC purchased a new stake in Darden Restaurants in the third quarter worth approximately $27,000. Thurston Springer Miller Herd & Titak Inc. boosted its holdings in Darden Restaurants by 926.7% in the fourth quarter. Thurston Springer Miller Herd & Titak Inc. now owns 154 shares of the restaurant operator’s stock worth $28,000 after purchasing an additional 139 shares during the last quarter. Union Savings Bank purchased a new stake in Darden Restaurants in the fourth quarter worth approximately $28,000. Finally, BOK Financial Private Wealth Inc. purchased a new stake in Darden Restaurants in the fourth quarter worth approximately $29,000. Hedge funds and other institutional investors 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.