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NYSE:DRI

Darden Restaurants (DRI) Stock Price, News & Analysis

$170.70
+11.56 (+7.26%)
(As of 11:46 AM ET)

About Darden Restaurants Stock (NYSE:DRI)

Key Stats

Today's Range
$167.18
$173.51
50-Day Range
$138.02
$161.54
52-Week Range
$133.36
$176.84
Volume
1.51 million shs
Average Volume
1.22 million shs
Market Capitalization
$20.37 billion
P/E Ratio
20.04
Dividend Yield
3.28%
Price Target
$170.18
Consensus Rating
Moderate Buy

Company Overview

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.

Darden Restaurants Stock Analysis - MarketRank™

See Top Rated MarketRank™ Stocks

Overall MarketRank™: 89th Percentile

Darden Restaurants scored higher than 89% of companies evaluated by MarketBeat, and ranked 4th out of 28 stocks in the consumer cyclical sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

  • Consensus Rating

    Darden Restaurants has received a consensus rating of Moderate Buy. The company's average rating score is 2.68, and is based on 16 buy ratings, 5 hold ratings, and 1 sell rating.

  • Amount of Analyst Coverage

    Darden Restaurants has been the subject of 11 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

  • Read more about Darden Restaurants' stock forecast and price target.
  • Earnings Growth

    Earnings for Darden Restaurants are expected to grow by 9.93% in the coming year, from $9.47 to $10.41 per share.

  • Price to Earnings Ratio vs. the Market

    The P/E ratio of Darden Restaurants is 20.07, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 139.51.

  • Price to Earnings Ratio vs. Sector

    The P/E ratio of Darden Restaurants is 20.07, which means that it is trading at a less expensive P/E ratio than the Consumer Cyclical sector average P/E ratio of about 401.55.

  • Price to Earnings Growth Ratio

    Darden Restaurants has a PEG Ratio of 1.76. PEG Ratios above 1 indicate that a company could be overvalued.

  • Price to Book Value per Share Ratio

    Darden Restaurants has a P/B Ratio of 9.06. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

  • Read more about Darden Restaurants' valuation and earnings.
  • Percentage of Shares Shorted

    5.36% of the float of Darden Restaurants has been sold short.
  • Short Interest Ratio / Days to Cover

    Darden Restaurants has a short interest ratio ("days to cover") of 4.8.
  • Change versus previous month

    Short interest in Darden Restaurants has recently decreased by 3.22%, indicating that investor sentiment is improving.
  • Dividend Yield

    Darden Restaurants pays a meaningful dividend of 3.49%, higher than the bottom 25% of all stocks that pay dividends.

  • Dividend Growth

    Darden Restaurants does not have a long track record of dividend growth.

  • Dividend Coverage

    The dividend payout ratio of Darden Restaurants is 65.73%. This payout ratio is at a healthy, sustainable level, below 75%.

  • Dividend Sustainability

    Based on earnings estimates, Darden Restaurants will have a dividend payout ratio of 53.79% next year. This indicates that Darden Restaurants will be able to sustain or increase its dividend.

  • Read more about Darden Restaurants' dividend.
  • Percentage of Shares Shorted

    5.36% of the float of Darden Restaurants has been sold short.
  • Short Interest Ratio / Days to Cover

    Darden Restaurants has a short interest ratio ("days to cover") of 4.8.
  • Change versus previous month

    Short interest in Darden Restaurants has recently decreased by 3.22%, indicating that investor sentiment is improving.
  • News Sentiment

    Darden Restaurants has a news sentiment score of 0.36. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Consumer Cyclical companies.
  • News Coverage This Week

    MarketBeat has tracked 46 news articles for Darden Restaurants this week, compared to 12 articles on an average week.
  • Search Interest

    Only 11 people have searched for DRI on MarketBeat in the last 30 days. This is a decrease of -8% compared to the previous 30 days.
  • MarketBeat Follows

    Only 5 people have added Darden Restaurants to their MarketBeat watchlist in the last 30 days. This is a decrease of -67% compared to the previous 30 days.
  • Insider Buying vs. Insider Selling

    In the past three months, Darden Restaurants insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $2,697,008.00 in company stock.

  • Percentage Held by Insiders

    Only 0.85% of the stock of Darden Restaurants is held by insiders.

  • Percentage Held by Institutions

    93.64% of the stock of Darden Restaurants is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

  • Read more about Darden Restaurants' insider trading history.

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Darden Restaurants (NYSE:DRI) Updates FY 2025 Earnings Guidance
Darden Restaurants' (DRI) "Hold" Rating Reiterated at TD Cowen
See More Headlines

DRI Stock Analysis - Frequently Asked Questions

Darden Restaurants' stock was trading at $164.30 at the beginning of the year. Since then, DRI stock has increased by 4.1% and is now trading at $170.99.
View the best growth stocks for 2024 here
.

Darden Restaurants, Inc. (NYSE:DRI) issued its earnings results on Thursday, June, 20th. The restaurant operator reported $2.65 earnings per share for the quarter, beating analysts' consensus estimates of $2.61 by $0.04. The company's revenue was up 8.3% compared to the same quarter last year.
Read the conference call transcript
.

Darden Restaurants' board initiated a stock buyback plan on Thursday, March 21st 2024, which allows the company to buy back $1,000,000,000 in shares, according to EventVestor. This means that the company could purchase up to 5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Darden Restaurants subsidiaries include these companies: 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.

Darden Restaurants' top institutional shareholders 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
.

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.

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).

Company Calendar

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

Industry, Sector and Symbol

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

Price Target and Rating

Average Stock Price Target
$170.18
High Stock Price Target
$191.00
Low Stock Price Target
$124.00
Potential Upside/Downside
-0.3%
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
$13.99 per share
Book Value
$18.87 per share

Miscellaneous

Free Float
118,344,000
Market Cap
$20.38 billion
Optionable
Optionable
Beta
1.30

Social Links

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

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 Sunday, September 8, 2024. Please send any questions or comments about these Darden Restaurants pros and cons to contact@marketbeat.com.

Darden Restaurants
Bull Case

green Wall Street bull icon

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

  • Darden Restaurants, Inc. reported strong quarterly earnings, beating analysts' estimates, showcasing financial stability and growth potential.
  • The company has a consistent track record of revenue growth, indicating a healthy business model.
  • With a current stock price of $149.68, there is potential for capital appreciation based on historical performance.
  • Darden Restaurants, Inc. has a solid return on equity of 49.82%, indicating efficient use of shareholder funds.
  • The company's dividend yield of 3.45% provides investors with a steady income stream, enhancing overall returns.

Darden Restaurants
Bear Case

red Wall Street bear icon

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

  • The stock price volatility of Darden Restaurants, Inc. may pose risks for short-term investors.
  • Market competition in the full-service restaurant industry could impact Darden Restaurants, Inc.'s market share and profitability.
  • Changes in consumer preferences or economic conditions may affect the company's sales and revenue growth.
  • The company's debt-to-equity ratio of 0.61 indicates a moderate level of financial leverage, which could increase risk during economic downturns.
  • Darden Restaurants, Inc.'s payout ratio of 65.73% suggests a significant portion of earnings is being distributed as dividends, potentially limiting reinvestment for growth.

This page (NYSE:DRI) was last updated on 9/19/2024 by MarketBeat.com Staff
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