Darden Restaurants (NYSE:DRI) Updates FY25 Earnings Guidance

Darden Restaurants (NYSE:DRI - Get Free Report) issued an update on its FY25 earnings guidance on Thursday morning. The company provided earnings per share guidance of $9.40-$9.60 for the period, compared to the consensus earnings per share estimate of $9.42. The company issued revenue guidance of $12.1 billion, compared to the consensus revenue estimate of $11.97 billion. Darden Restaurants also updated its FY 2025 guidance to 9.400-9.600 EPS.

Darden Restaurants Stock Up 14.7 %

DRI stock traded up $23.57 during trading on Thursday, hitting $183.44. 4,765,794 shares of the company's stock traded hands, compared to its average volume of 1,242,947. The business has a fifty day simple moving average of $166.25 and a two-hundred day simple moving average of $156.99. The company has a quick ratio of 0.22, a current ratio of 0.35 and a debt-to-equity ratio of 0.65. The firm has a market capitalization of $21.55 billion, a P/E ratio of 21.16, a PEG ratio of 1.90 and a beta of 1.31. Darden Restaurants has a 1 year low of $135.87 and a 1 year high of $188.82.

Darden Restaurants (NYSE:DRI - Get Free Report) last issued its quarterly earnings data on Thursday, December 19th. The restaurant operator reported $2.03 earnings per share for the quarter, hitting analysts' consensus estimates of $2.03. Darden Restaurants had a return on equity of 49.46% and a net margin of 9.11%. The firm had revenue of $2.89 billion during the quarter, compared to analysts' expectations of $2.87 billion. During the same period in the prior year, the business posted $1.84 EPS. The firm's quarterly revenue was up 6.0% on a year-over-year basis. Sell-side analysts anticipate that Darden Restaurants will post 9.47 EPS for the current year.

Darden Restaurants Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, February 3rd. Shareholders of record on Friday, January 10th will be paid a $1.40 dividend. The ex-dividend date of this dividend is Friday, January 10th. This represents a $5.60 annualized dividend and a yield of 3.05%. Darden Restaurants's dividend payout ratio (DPR) is 64.59%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on DRI shares. BMO Capital Markets lowered their price objective on Darden Restaurants from $175.00 to $165.00 and set a "market perform" rating for the company in a research report on Tuesday, December 10th. Wedbush raised their price target on Darden Restaurants from $170.00 to $200.00 and gave the stock an "outperform" rating in a report on Friday, September 20th. BTIG Research boosted their price target on Darden Restaurants from $175.00 to $195.00 and gave the stock a "buy" rating in a research note on Friday, September 20th. TD Cowen reaffirmed a "hold" rating and issued a $150.00 price objective on shares of Darden Restaurants in a research report on Thursday, September 19th. Finally, Truist Financial lifted their target price on shares of Darden Restaurants from $185.00 to $195.00 and gave the stock a "buy" rating in a research note on Friday, September 20th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating and sixteen have assigned a buy rating to the company. According to data from MarketBeat.com, Darden Restaurants has a consensus rating of "Moderate Buy" and a consensus target price of $180.46.

Insider Transactions at Darden Restaurants

In related news, insider Melvin John Martin sold 3,000 shares of the company's stock in a transaction dated Friday, October 4th. The stock was sold at an average price of $163.30, for a total value of $489,900.00. Following the completion of the transaction, the insider now owns 12,601 shares of the company's stock, valued at approximately $2,057,743.30. This represents a 19.23 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Nana Mensah sold 1,171 shares of the firm's stock in a transaction that occurred on Monday, September 23rd. The shares were sold at an average price of $171.90, for a total value of $201,294.90. Following the completion of the sale, the director now directly owns 10 shares in the company, valued at approximately $1,719. The trade was a 99.15 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 59,265 shares of company stock valued at $10,116,030 in the last 90 days. 0.58% of the stock is currently owned by company insiders.

About Darden Restaurants

Darden Restaurants, Inc, together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood, and Capital Burger brand names.