Zacks Research Issues Pessimistic Estimate for DRI Earnings

Darden Restaurants, Inc. (NYSE:DRI - Free Report) - Equities research analysts at Zacks Research reduced their FY2025 earnings per share estimates for Darden Restaurants in a report issued on Wednesday, April 2nd. Zacks Research analyst M. Kaushik now expects that the restaurant operator will post earnings per share of $9.46 for the year, down from their previous estimate of $9.49. The consensus estimate for Darden Restaurants' current full-year earnings is $9.52 per share. Zacks Research also issued estimates for Darden Restaurants' Q1 2026 earnings at $1.88 EPS, Q2 2026 earnings at $2.05 EPS, Q3 2026 earnings at $3.09 EPS, Q2 2027 earnings at $2.31 EPS and Q3 2027 earnings at $3.19 EPS.

Darden Restaurants (NYSE:DRI - Get Free Report) last announced its quarterly earnings data on Thursday, March 20th. The restaurant operator reported $2.80 earnings per share for the quarter, meeting analysts' consensus estimates of $2.80. The company had revenue of $3.16 billion during the quarter, compared to analyst estimates of $3.22 billion. Darden Restaurants had a net margin of 9.01% and a return on equity of 50.12%. The firm's revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter last year, the business posted $2.60 EPS.

A number of other equities research analysts have also weighed in on DRI. Wells Fargo & Company lifted their target price on Darden Restaurants from $180.00 to $200.00 and gave the company an "equal weight" rating in a research report on Friday, March 21st. Robert W. Baird decreased their price objective on Darden Restaurants from $210.00 to $192.00 and set a "neutral" rating for the company in a report on Monday. Wedbush increased their target price on shares of Darden Restaurants from $220.00 to $235.00 and gave the stock an "outperform" rating in a report on Friday, March 21st. Stephens raised their target price on shares of Darden Restaurants from $175.00 to $178.00 and gave the company an "equal weight" rating in a research report on Friday, March 21st. Finally, Raymond James upped their price target on shares of Darden Restaurants from $200.00 to $210.00 and gave the stock an "outperform" rating in a research report on Tuesday, January 28th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and seventeen have given a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $201.38.

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Darden Restaurants Trading Up 1.2 %

Shares of Darden Restaurants stock traded up $2.37 on Monday, hitting $194.40. 1,109,051 shares of the company traded hands, compared to its average volume of 1,286,396. The company has a current ratio of 0.37, a quick ratio of 0.23 and a debt-to-equity ratio of 1.02. The company has a market cap of $22.75 billion, a PE ratio of 22.27, a PEG ratio of 2.15 and a beta of 0.93. The stock's 50 day moving average price is $195.89 and its 200-day moving average price is $181.05. Darden Restaurants has a 52 week low of $135.87 and a 52 week high of $211.00.

Darden Restaurants Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 1st. Stockholders of record on Thursday, April 10th will be paid a dividend of $1.40 per share. The ex-dividend date of this dividend is Thursday, April 10th. This represents a $5.60 annualized dividend and a dividend yield of 2.88%. Darden Restaurants's payout ratio is currently 63.13%.

Insider Activity

In other Darden Restaurants news, CEO Ricardo Cardenas sold 20,518 shares of the company's stock in a transaction on Monday, March 24th. The shares were sold at an average price of $208.19, for a total value of $4,271,642.42. Following the sale, the chief executive officer now directly owns 58,836 shares of the company's stock, valued at approximately $12,249,066.84. This represents a 25.86 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP John W. Madonna sold 1,806 shares of the stock in a transaction dated Monday, March 24th. The stock was sold at an average price of $207.88, for a total value of $375,431.28. Following the sale, the senior vice president now directly owns 7,192 shares in the company, valued at $1,495,072.96. This represents a 20.07 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 61,047 shares of company stock valued at $11,947,346 over the last ninety days. 0.58% of the stock is currently owned by insiders.

Institutional Trading of Darden Restaurants

Hedge funds have recently modified their holdings of the stock. Kestra Investment Management LLC acquired a new position in Darden Restaurants in the fourth quarter valued at approximately $25,000. Compass Wealth Management LLC purchased a new position in shares of Darden Restaurants during the 4th quarter valued at approximately $28,000. TCTC Holdings LLC acquired a new position in shares of Darden Restaurants in the 4th quarter valued at $28,000. MCF Advisors LLC boosted its holdings in Darden Restaurants by 50.9% during the fourth quarter. MCF Advisors LLC now owns 175 shares of the restaurant operator's stock worth $33,000 after buying an additional 59 shares in the last quarter. Finally, Whipplewood Advisors LLC grew its position in Darden Restaurants by 296.0% during the first quarter. Whipplewood Advisors LLC now owns 198 shares of the restaurant operator's stock valued at $41,000 after buying an additional 148 shares during the period. Hedge funds and other institutional investors own 93.64% of the company's stock.

Darden Restaurants Company Profile

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.