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Darden Restaurants (DRI) Stock Price, News & Analysis

$157.43
-0.51 (-0.32%)
(As of 09/6/2024 ET)
Today's Range
$156.95
$160.64
50-Day Range
$138.02
$159.35
52-Week Range
$133.36
$176.84
Volume
1.15 million shs
Average Volume
1.22 million shs
Market Capitalization
$18.79 billion
P/E Ratio
18.48
Dividend Yield
3.56%
Price Target
$170.50

Darden Restaurants MarketRank™ Stock Analysis

Analyst Rating
Moderate Buy
2.68 Rating Score
Upside/​Downside
8.3% Upside
$170.50 Price Target
Short Interest
Bearish
5.54% of Float Sold Short
Dividend Strength
Strong
Based on Four Factors
Sustainability
-3.04
Upright™ Environmental Score
News Sentiment
1.06mentions of Darden Restaurants in the last 14 days
Based on 10 Articles This Week
Insider Trading
Selling Shares
$2.70 M Sold Last Quarter
Proj. Earnings Growth
9.81%
From $9.48 to $10.41 Per Share

Overall MarketRank

New Rank-Based ScoringMarketRank is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies.

4.27 out of 5 stars

Retail/Wholesale Sector

52nd out of 194 stocks

Eating Places Industry

10th out of 39 stocks

DRI stock logo

About Darden Restaurants Stock (NYSE:DRI)

Darden Restaurants, Inc. is a prominent American multi-brand restaurant operator headquartered in Orlando, Florida. With a diverse portfolio of fine dining and casual dining restaurant chains, Darden has established itself as the world's largest full-service restaurant company. The company operates a range of well-known brands, including Ruth's Chris Steak House, Eddie V's, The Capital Grille, Olive Garden Italian Restaurant, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Yard House, and Cheddar's Scratch Kitchen. Darden is committed to providing exceptional dining experiences and warm hospitality to its customers across various restaurant industry segments.

Darden Restaurants' mission is to create memorable experiences by delighting guests with outstanding food, service, and hospitality. The company aims to be the leading full-service restaurant company in the world, driven by a passion for excellence and a dedication to its employees, guests, and communities.

The company's restaurant brands offer a wide range of culinary options, from upscale dining experiences to casual, family-friendly atmospheres. Ruth's Chris Steak House, Eddie V's, and The Capital Grille cater to discerning diners seeking exceptional fine dining experiences. Olive Garden Italian Restaurant, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Yard House, and Cheddar's Scratch Kitchen provide casual dining options with diverse menus and inviting atmospheres.

Darden Restaurants targets a broad market to serve customers across different demographic segments and dining preferences. Its brands cater to a wide range of customers, including families, couples, business professionals, and individuals looking for quality dining experiences.

Darden Restaurants boasts a talented and experienced leadership team that drives the company's success. Led by Chief Executive Officer and President Ricardo Cardenas, the management team brings a wealth of expertise and industry knowledge to the table. Ricardo Cardenas has a proven track record in the restaurant industry and oversees the company's strategic direction and overall performance.

Darden Restaurants has consistently delivered strong financial performance, showcasing its ability to navigate the competitive landscape of the restaurant industry. When analyzing the company's financials, it is important to consider long-term trends and broader industry benchmarks.

Over the past few years, Darden Restaurants has reported impressive revenue growth. This upward trend reflects the popularity and customer loyalty enjoyed by Darden's restaurant brands. Earnings metrics also demonstrate the company's solid financial performance. Darden's earnings metrics indicate favorable market sentiment and future growth expectations.

Profit margin metrics reveal Darden's ability to generate strong returns. The company has maintained a net profit margin of around 9%, showcasing its operational efficiency and effective cost management. Darden Restaurants maintains a healthy debt-to-equity ratio indicating a balanced approach to capital structure. This prudent debt management strategy contributes to the company's financial stability and resilience.

Darden Restaurants has enjoyed favorable stock performance recently, driven by its strong financial results and market positioning. While stock prices can fluctuate in response to market conditions and investor sentiment, Darden has demonstrated resilience and the ability to deliver shareholder value.

Darden Restaurants operates in the broader eating places industry, encompassing a wide range of dining establishments. The industry is highly competitive, with numerous players vying for market share and consumer attention. However, Darden has carved out a distinctive position through its diverse brand portfolio and commitment to culinary excellence.

Darden's competitive advantages lie in its well-established restaurant brands, each catering to different customer segments and culinary preferences. The company's scale and industry expertise enables it to leverage economies of scale, drive operational efficiencies and maintain strong relationships with suppliers and partners.

Darden Restaurants has several growth opportunities at its disposal. The company can leverage its existing brand portfolio to expand into new markets and capitalize on emerging consumer trends. Additionally, Darden can pursue strategic acquisitions or partnerships to enhance its offerings and reach new customer segments.

As consumer preferences evolve, Darden can focus on culinary innovation, menu diversification, and providing exceptional guest experiences. By continuously adapting to changing market dynamics and consumer demands, Darden can secure its position as a leader in the multi-brand restaurant industry.

While Darden Restaurants has a strong market position, it faces certain risks and challenges inherent to the industry. The restaurant business is susceptible to economic downturns, shifts in consumer preferences, and labor market dynamics. Additionally, increasing food costs, regulatory changes, and competitive pressures can impact the company's profitability.

However, Darden has demonstrated effective risk management strategies to mitigate these challenges. The company's strong financial position, operational expertise, and focus on guest satisfaction provide a solid foundation for navigating potential headwinds and maintaining long-term success.

DRI Stock Price History

DRI Stock News Headlines

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Casual dining restaurant operator Brinker International Inc. (NYSE: EAT) missed its Q2 2024 EPS estimates and provided mixed forward guidance.
NASDAQ to crash 50%?
During the 2020 Covid Crash he called a market reversal - eleven days before the S&P bottomed out... Now, he's saying there are four major cracks forming in the US economy...
Darden Restaurants (DRI) Receives a Buy from KeyBanc
Bank of America Securities Keeps Their Buy Rating on Darden Restaurants (DRI)
Darden Restaurants, Inc. (NYSE:DRI) Short Interest Update
NASDAQ to crash 50%?
During the 2020 Covid Crash he called a market reversal - eleven days before the S&P bottomed out... Now, he's saying there are four major cracks forming in the US economy...
Tupelo receiver Darden is all business
See More Headlines
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Company Calendar

Last Earnings
6/20/2024
Ex-Dividend for 8/15 Dividend
7/10/2024
Dividend Payable
8/15/2024
Today
9/07/2024
Next Earnings (Confirmed)
9/19/2024
Fiscal Year End
5/31/2025

Industry, Sector and Symbol

Industry
Eating places
Sub-Industry
Restaurants
CUSIP
23719410
Employees
191,105
Year Founded
1968

Price Target and Rating

Average Stock Price Target
$170.50
High Stock Price Target
$192.00
Low Stock Price Target
$124.00
Potential Upside/Downside
+8.3%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.68
Research Coverage
22 Analysts

Profitability

Net Income
$1.03 billion
Pretax Margin
10.32%

Debt

Sales & Book Value

Annual Sales
$11.39 billion
Cash Flow
$12.83 per share
Book Value
$18.87 per share

Miscellaneous

Free Float
118,344,000
Market Cap
$18.79 billion
Optionable
Optionable
Beta
1.30

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Should I Buy Darden Restaurants Stock? DRI Pros and Cons Explained

Pros

Here are some ways that investors could benefit from investing in Darden Restaurants, Inc.:

  • Darden Restaurants has received multiple "buy" ratings from analysts, indicating positive sentiment towards the company's future performance.
  • The company has a consensus rating of "Moderate Buy" with an average price target of $170.95, suggesting potential for stock price appreciation.
  • Equities analysts predict that Darden Restaurants will post 9.48 earnings per share for the current year, indicating strong financial performance.
  • Darden Restaurants recently announced a quarterly dividend of $1.29 per share, with an annualized yield of 3.53%, providing potential income for investors.
  • Institutional investors own 93.64% of the stock, indicating confidence in the company's long-term growth prospects.

Cons

Investors should be bearish about investing in Darden Restaurants, Inc. for these reasons:

  • Some analysts have issued a "hold" rating for Darden Restaurants, suggesting uncertainty about the company's future performance.
  • One research analyst has rated the stock with a sell rating, indicating a negative outlook on the company's stock price.
  • There have been target price reductions by analysts, such as Barclays lowering their target price on Darden Restaurants, which may signal concerns about the company's growth potential.
  • The company's payout ratio is 65.73%, which may indicate a high dividend payout relative to earnings, potentially limiting future dividend growth.
  • TD Cowen downgraded Darden Restaurants from a "buy" rating to a "hold" rating, reflecting a shift in analyst sentiment towards the stock.
These pros and cons were generated based on recent news and financial data from MarketBeat in order to provide readers with the fastest and most accurate insights. They were last updated on Tuesday, August 20, 2024. Please send any questions or comments about these Darden Restaurants pros and cons to contact@marketbeat.com.

DRI Stock Analysis - Frequently Asked Questions

How have DRI shares performed this year?

Darden Restaurants' stock was trading at $164.30 on January 1st, 2024. Since then, DRI shares have decreased by 4.2% and is now trading at $157.43.
View the best growth stocks for 2024 here
.

How were Darden Restaurants' earnings last quarter?

Darden Restaurants, Inc. (NYSE:DRI) announced its earnings results on Thursday, June, 20th. The restaurant operator reported $2.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.61 by $0.04. The firm's revenue was up 8.3% on a year-over-year basis.
Read the conference call transcript
.

How will Darden Restaurants' stock buyback program work?

Darden Restaurants' Board of Directors initiated a share buyback program on Thursday, March 21st 2024, which permits the company to repurchase $1,000,000,000 in shares, according to EventVestor. This means that the company could purchase up to 5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's board believes its stock is undervalued.

What is Gene Lee's approval rating as Darden Restaurants' CEO?

333 employees have rated Darden Restaurants Chief Executive Officer Gene Lee on Glassdoor.com. Gene Lee has an approval rating of 88% among the company's employees.

Does Darden Restaurants have any subsidiaries?

The following companies are subsidiaries of Darden Restaurants: Cheddar's Scratch Kitchen, Yard House, Rare Hospitality Management, Bahama Breeze Holdings, Capital Grille Holdings, Cheddar’s Casual Café, Cheddar's Restaurant Holding Corp., and more.

Who are Darden Restaurants' major shareholders?

Top institutional shareholders of Darden Restaurants include Victory Capital Management Inc. (2.53%), Raymond James & Associates (1.93%), Newport Trust Company LLC (1.68%) and Earnest Partners LLC (1.33%). Insiders that own company stock include Ricardo Cardenas, Todd Burrowes, Timothy J Wilmott, Richard L Renninger, Matthew R Broad, Daniel J Kiernan, Melvin John Martin, Susan M Connelly, John W Madonna, William S Simon, Rajesh Vennam, Douglas J Milanes, Sarah H King, Nana Mensah, Juliana L Chugg and M Shan Atkins.
View institutional ownership trends
.

How do I buy shares of Darden Restaurants?

Shares of DRI stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Darden Restaurants own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Darden Restaurants investors own include NVIDIA (NVDA), Boeing (BA), Walt Disney (DIS), Home Depot (HD), Intel (INTC), Johnson & Johnson (JNJ) and Micron Technology (MU).

This page (NYSE:DRI) was last updated on 9/7/2024 by MarketBeat.com Staff

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