KeyCorp Forecasts Strong Price Appreciation for Darden Restaurants (NYSE:DRI) Stock

Darden Restaurants (NYSE:DRI) had its target price increased by investment analysts at KeyCorp from $225.00 to $226.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has an “overweight” rating on the restaurant operator’s stock. KeyCorp’s target price points to a potential upside of 11.33% from the company’s previous close.

Several other research firms have also issued reports on DRI. Robert W. Baird raised their price target on shares of Darden Restaurants from $208.00 to $215.00 and gave the stock a “neutral” rating in a report on Friday. Evercore reaffirmed an “outperform” rating on shares of Darden Restaurants in a research note on Friday, December 19th. TD Cowen reiterated a “hold” rating on shares of Darden Restaurants in a research report on Friday, December 19th. BTIG Research reissued a “buy” rating and set a $225.00 target price on shares of Darden Restaurants in a research note on Friday. Finally, Guggenheim dropped their target price on shares of Darden Restaurants from $235.00 to $230.00 and set a “buy” rating on the stock in a report on Wednesday, December 17th. Eighteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $226.24.

Darden Restaurants Trading Down 0.7%

DRI opened at $202.99 on Friday. Darden Restaurants has a fifty-two week low of $169.00 and a fifty-two week high of $228.27. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.39 and a quick ratio of 0.26. The firm has a market capitalization of $23.37 billion, a price-to-earnings ratio of 21.48, a PEG ratio of 1.98 and a beta of 0.61. The company’s 50 day moving average price is $208.09 and its two-hundred day moving average price is $194.56.

Darden Restaurants (NYSE:DRI) last announced its earnings results on Thursday, March 19th. The restaurant operator reported $2.95 EPS for the quarter, topping the consensus estimate of $2.94 by $0.01. Darden Restaurants had a return on equity of 53.54% and a net margin of 8.66%.The firm had revenue of $3.35 billion for the quarter, compared to the consensus estimate of $3.33 billion. During the same period in the previous year, the business earned $2.80 EPS. The business’s quarterly revenue was up 5.9% compared to the same quarter last year. As a group, research analysts predict that Darden Restaurants will post 9.52 earnings per share for the current year.

Insider Activity at Darden Restaurants

In other news, SVP Susan M. Connelly sold 2,635 shares of the firm’s stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $207.36, for a total value of $546,393.60. Following the completion of the sale, the senior vice president directly owned 4,098 shares in the company, valued at $849,761.28. This trade represents a 39.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider John W. Wilkerson sold 2,258 shares of the business’s stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $213.00, for a total value of $480,954.00. Following the completion of the sale, the insider directly owned 17,784 shares of the company’s stock, valued at $3,787,992. The trade was a 11.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 18,770 shares of company stock worth $3,948,970 over the last three months. 0.49% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Darden Restaurants

A number of hedge funds have recently added to or reduced their stakes in DRI. 1620 Investment Advisors Inc. raised its position in shares of Darden Restaurants by 2.4% during the fourth quarter. 1620 Investment Advisors Inc. now owns 2,190 shares of the restaurant operator’s stock worth $403,000 after purchasing an additional 51 shares during the period. Cary Street Partners Investment Advisory LLC grew its position in Darden Restaurants by 4.7% in the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 1,144 shares of the restaurant operator’s stock valued at $211,000 after purchasing an additional 51 shares during the period. MAI Capital Management increased its stake in Darden Restaurants by 0.7% during the 2nd quarter. MAI Capital Management now owns 7,177 shares of the restaurant operator’s stock valued at $1,564,000 after purchasing an additional 52 shares in the last quarter. Concurrent Investment Advisors LLC increased its stake in Darden Restaurants by 1.7% during the 3rd quarter. Concurrent Investment Advisors LLC now owns 3,285 shares of the restaurant operator’s stock valued at $625,000 after purchasing an additional 55 shares in the last quarter. Finally, New York Life Investment Management LLC raised its holdings in Darden Restaurants by 0.3% during the fourth quarter. New York Life Investment Management LLC now owns 15,983 shares of the restaurant operator’s stock worth $2,941,000 after buying an additional 55 shares during the last quarter. Institutional investors and hedge funds own 93.64% of the company’s stock.

Trending Headlines about Darden Restaurants

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

• Positive Sentiment: Q3 results and guidance lift — Darden reported $2.95 EPS (in line/just above consensus), revenue of $3.35B (+5.9% YoY) and raised its full‑year outlook for sales and adjusted EPS, citing strength at LongHorn and unit growth. Management’s guidance lift is the primary catalyst for optimism. PR Newswire: Q3 Results & Outlook
• Positive Sentiment: Analysts lift targets and ratings — A wave of firms raised targets (Citigroup to $238, Deutsche Bank to $230, Barclays to $232, KeyCorp, BTIG, others), with several reaffirming Buy/Overweight ratings. That collective upward revision signals stronger Street momentum behind the stock. Benzinga: Analysts Increase Forecasts
• Positive Sentiment: Dividend declared & capital returns — Darden announced a quarterly dividend (covers April record / May pay date) and continues significant buybacks; MarketBeat highlights strong cash flow and share‑count reduction as supportive of future returns. That makes the stock more attractive to income and valuation‑focused investors. MarketBeat: Growth & Cash Flow
• Neutral Sentiment: Earnings call / transcripts available — Management held the Q3 call and released transcripts/slides (useful for digging into LFLs, unit‑economics, weather impacts and cadence of buybacks). Investors should review the call for color on margins and FY26 assumptions. MSN: Q3 Earnings Call Transcript
• Negative Sentiment: One‑time charges and brand exit — Darden took impairments and other one‑offs tied to the Bahama Breeze review and planned closures/conversions; GAAP results look weaker as a result. These items compress near‑term margins and add uncertainty around restructuring costs. MarketBeat: One‑offs & Impairments
• Negative Sentiment: Risks flagged by some commentary — A few writeups note building risks (weather, commodity/labor pressure, and noise from restructuring) that could press margins even as revenue growth remains healthy. Seeking Alpha: Risks Building

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.