Darden Restaurants (NYSE:DRI) Rating Increased to Buy at Melius Research

Melius Research upgraded shares of Darden Restaurants (NYSE:DRI) from a hold rating to a buy rating in a research report sent to investors on Friday, MarketBeat reports.

A number of other equities analysts have also weighed in on the stock. Truist Financial reissued a “hold” rating and issued a $207.00 price objective (down previously from $240.00) on shares of Darden Restaurants in a research report on Thursday, January 8th. Evercore ISI reiterated an “outperform” rating on shares of Darden Restaurants in a report on Friday, December 19th. BMO Capital Markets raised their price objective on Darden Restaurants from $205.00 to $220.00 and gave the stock a “market perform” rating in a report on Tuesday, January 6th. Weiss Ratings raised Darden Restaurants from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, January 12th. Finally, JPMorgan Chase & Co. reduced their target price on Darden Restaurants from $240.00 to $230.00 and set an “overweight” rating on the stock in a research report on Monday, October 6th. Twenty equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $224.78.

Darden Restaurants Stock Performance

NYSE DRI opened at $205.93 on Friday. Darden Restaurants has a fifty-two week low of $169.00 and a fifty-two week high of $228.27. The stock has a market cap of $23.71 billion, a price-to-earnings ratio of 21.59, a price-to-earnings-growth ratio of 1.97 and a beta of 0.64. The business has a fifty day moving average of $188.79 and a 200-day moving average of $194.37. The company has a quick ratio of 0.26, a current ratio of 0.39 and a debt-to-equity ratio of 1.03.

Darden Restaurants (NYSE:DRI) last posted its quarterly earnings data on Thursday, December 18th. The restaurant operator reported $2.08 EPS for the quarter, missing analysts’ consensus estimates of $2.10 by ($0.02). Darden Restaurants had a net margin of 8.92% and a return on equity of 52.44%. The company had revenue of $3.10 billion for the quarter, compared to analyst estimates of $3.07 billion. During the same period in the previous year, the business earned $2.03 EPS. The firm’s revenue was up 7.3% on a year-over-year basis. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. As a group, analysts predict that Darden Restaurants will post 9.52 earnings per share for the current fiscal year.

Darden Restaurants Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, February 2nd. Investors of record on Friday, January 9th will be given a dividend of $1.50 per share. The ex-dividend date of this dividend is Friday, January 9th. This represents a $6.00 annualized dividend and a yield of 2.9%. Darden Restaurants’s payout ratio is 62.89%.

Insider Activity

In related news, insider John W. Wilkerson sold 2,258 shares of the firm’s stock in a transaction on Friday, January 16th. The shares were sold at an average price of $213.00, for a total transaction of $480,954.00. Following the completion of the sale, the insider directly owned 17,784 shares of the company’s stock, valued at approximately $3,787,992. This trade represents a 11.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Rajesh Vennam sold 6,774 shares of the business’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $214.12, for a total transaction of $1,450,448.88. Following the completion of the transaction, the chief financial officer owned 9,040 shares in the company, valued at $1,935,644.80. This represents a 42.84% 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. Insiders own 0.49% of the company’s stock.

Institutional Trading of Darden Restaurants

A number of hedge funds and other institutional investors have recently modified their holdings of DRI. Midwest Trust Co bought a new position in Darden Restaurants during the 2nd quarter valued at $2,441,000. Generali Asset Management SPA SGR lifted its position in shares of Darden Restaurants by 74.5% during the third quarter. Generali Asset Management SPA SGR now owns 17,195 shares of the restaurant operator’s stock worth $3,273,000 after purchasing an additional 7,342 shares during the last quarter. SteelPeak Wealth LLC bought a new position in shares of Darden Restaurants during the third quarter worth about $2,816,000. Nisa Investment Advisors LLC grew its stake in Darden Restaurants by 12.7% in the second quarter. Nisa Investment Advisors LLC now owns 42,550 shares of the restaurant operator’s stock worth $9,275,000 after purchasing an additional 4,804 shares in the last quarter. Finally, Westpac Banking Corp increased its holdings in Darden Restaurants by 754.0% in the second quarter. Westpac Banking Corp now owns 2,246 shares of the restaurant operator’s stock valued at $490,000 after buying an additional 1,983 shares during the last quarter. 93.64% of the stock is owned by hedge funds and other institutional investors.

Darden Restaurants News Roundup

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

• Positive Sentiment: Mizuho upgraded DRI from Neutral to Outperform and raised its price target to $235 (from $195), citing Olive Garden strength and implying meaningful upside vs. the current price. Mizuho upgrades Darden Restaurants (DRI)
• Positive Sentiment: Melius Research moved its rating from Hold to Buy, adding to analyst bullishness that can support upward momentum in the stock. Melius Research upgrade (Finviz link)
• Positive Sentiment: Company fundamentals and shareholder returns remain supportive: FY2026 guidance was set at $10.50–$10.70 EPS and the firm announced a $1.50 quarterly dividend (annualized $6.00). Those items underpin earnings visibility and yield appeal for income-focused investors. MarketBeat Darden Restaurants coverage
• Neutral Sentiment: Raymond James reiterated a Market Perform rating, signaling some analysts remain cautious and limiting consensus conviction despite upgrades. Raymond James Reiterates Market Perform for Darden
• Neutral Sentiment: Valuation discussion: recent coverage (Yahoo Finance) highlights mixed share performance vs. fundamentals — investors are weighing the higher multiple against steady cash flow and brand strength. A Look At Darden Restaurants (DRI) Valuation
• Negative Sentiment: Insider selling: Director John Wilkerson sold 2,258 shares at roughly $213, reducing his stake ~11%. While insider sales can be routine, they can pressure sentiment if they repeat. John Wilkerson insider sale
• Negative Sentiment: Another insider, Rajesh Vennam, sold 6,774 shares — additional insider exits add to short-term headwinds for sentiment. Rajesh Vennam Sells DRI Shares

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.