Zacks Research Has Negative Forecast for DRI Q3 Earnings

Darden Restaurants, Inc. (NYSE:DRI) – Zacks Research dropped their Q3 2026 earnings estimates for shares of Darden Restaurants in a report released on Wednesday, December 31st. Zacks Research analyst Team now expects that the restaurant operator will post earnings per share of $2.96 for the quarter, down from their prior estimate of $2.97. The consensus estimate for Darden Restaurants’ current full-year earnings is $9.52 per share. Zacks Research also issued estimates for Darden Restaurants’ Q4 2026 earnings at $3.55 EPS, FY2026 earnings at $10.56 EPS, Q1 2027 earnings at $2.10 EPS, Q2 2027 earnings at $2.26 EPS, Q3 2027 earnings at $3.30 EPS, Q4 2027 earnings at $3.62 EPS, FY2027 earnings at $11.29 EPS, Q1 2028 earnings at $2.16 EPS and Q2 2028 earnings at $2.62 EPS.

A number of other brokerages have also commented on DRI. Cowen restated a “hold” rating on shares of Darden Restaurants in a research report on Friday, December 19th. Bank of America raised their price target on shares of Darden Restaurants from $253.00 to $254.00 and gave the stock a “buy” rating in a report on Tuesday, September 16th. Guggenheim lowered their price objective on shares of Darden Restaurants from $235.00 to $230.00 and set a “buy” rating on the stock in a research report on Wednesday, December 17th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Darden Restaurants in a research report on Friday, December 19th. Finally, KeyCorp reissued an “overweight” rating on shares of Darden Restaurants in a research note on Friday, December 19th. Nineteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $223.75.

Darden Restaurants Stock Up 1.7%

NYSE:DRI opened at $187.12 on Monday. The firm has a market capitalization of $21.76 billion, a price-to-earnings ratio of 19.61, a PEG ratio of 1.79 and a beta of 0.64. Darden Restaurants has a 1-year low of $169.00 and a 1-year high of $228.27. The company has a current ratio of 0.39, a quick ratio of 0.26 and a debt-to-equity ratio of 1.03. The business’s fifty day moving average price is $180.31 and its 200 day moving average price is $195.43.

Darden Restaurants (NYSE:DRI) last released its earnings results on Thursday, December 18th. The restaurant operator reported $2.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.10 by ($0.02). The business had revenue of $3.10 billion during the quarter, compared to analysts’ expectations of $3.07 billion. Darden Restaurants had a net margin of 8.92% and a return on equity of 52.44%. Darden Restaurants’s revenue for the quarter was up 7.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.03 EPS. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS.

Darden Restaurants Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Friday, January 9th will be given a $1.50 dividend. This represents a $6.00 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend is Friday, January 9th. Darden Restaurants’s payout ratio is currently 62.89%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Midwest Trust Co acquired a new position in Darden Restaurants in the second quarter valued at approximately $2,441,000. Nisa Investment Advisors LLC raised its position in shares of Darden Restaurants by 12.7% during the 2nd quarter. Nisa Investment Advisors LLC now owns 42,550 shares of the restaurant operator’s stock valued at $9,275,000 after acquiring an additional 4,804 shares during the last quarter. Rockefeller Capital Management L.P. raised its position in shares of Darden Restaurants by 19.7% during the 2nd quarter. Rockefeller Capital Management L.P. now owns 23,352 shares of the restaurant operator’s stock valued at $5,090,000 after acquiring an additional 3,844 shares during the last quarter. Capital Management Associates Inc bought a new stake in shares of Darden Restaurants during the 2nd quarter valued at $795,000. Finally, Campbell & CO Investment Adviser LLC acquired a new position in shares of Darden Restaurants in the 2nd quarter valued at $1,983,000. Institutional investors 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: Zacks issued several upward revisions: they raised FY2026 EPS to $10.56 (from $10.53) and bumped a couple of quarterly estimates (Q4 2027 to $3.62 and Q1 2027 to $2.10). These upgrades point to modestly stronger near-term profitability expectations and can support positive sentiment for DRI. Zacks / MarketBeat DRI estimates update
• Neutral Sentiment: A sector story highlights Darden as one of two “oversold” restaurant stocks offering strong dividends, which could attract income-focused investors and provide a valuation floor, but it does not change near-term fundamentals. 2 Oversold Restaurant Stocks Offering Strong Dividends
• Negative Sentiment: Offsetting the upgrades, Zacks trimmed multiple quarter and full‑year estimates across 2026–2028 (notable cuts: Q1 2028 to $2.16 from $2.39, Q2 2027 and several other quarters modestly lower; FY2027 trimmed to $11.29). These downward revisions signal potential near-term margin or demand pressures and represent a headwind for the stock if trends persist. Zacks / MarketBeat DRI estimates update (cuts)

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.