Melius Research Upgrades Darden Restaurants (NYSE:DRI) to “Buy”

Darden Restaurants (NYSE:DRI) was upgraded by equities research analysts at Melius Research from a “hold” rating to a “buy” rating in a research note issued to investors on Friday, MarketBeat reports.

Several other equities research analysts also recently weighed in on the stock. BMO Capital Markets raised their price target on shares of Darden Restaurants from $205.00 to $220.00 and gave the company a “market perform” rating in a research report on Tuesday, January 6th. Raymond James Financial reissued a “market perform” rating on shares of Darden Restaurants in a research report on Wednesday. Evercore ISI restated an “outperform” rating on shares of Darden Restaurants in a research note on Friday, December 19th. Weiss Ratings upgraded shares of Darden Restaurants from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, January 12th. Finally, KeyCorp reiterated an “overweight” rating on shares of Darden Restaurants in a research note on Friday, December 19th. Twenty research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat.com, Darden Restaurants presently has a consensus rating of “Moderate Buy” and an average target price of $224.78.

Darden Restaurants Price Performance

DRI stock opened at $205.93 on Friday. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.26 and a current ratio of 0.39. The firm has a 50 day moving average price of $188.79 and a 200-day moving average price of $194.21. Darden Restaurants has a 52-week low of $169.00 and a 52-week high of $228.27. The firm has a market capitalization of $23.71 billion, a price-to-earnings ratio of 21.59, a PEG ratio of 1.98 and a beta of 0.64.

Darden Restaurants (NYSE:DRI) last issued its quarterly earnings results on Thursday, December 18th. The restaurant operator reported $2.08 earnings per share for the quarter, missing the consensus estimate of $2.10 by ($0.02). The company had revenue of $3.10 billion for the quarter, compared to the consensus estimate 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 was up 7.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.03 earnings per share. Darden Restaurants has set its FY 2026 guidance at 10.500-10.700 EPS. Equities research analysts forecast that Darden Restaurants will post 9.52 EPS for the current fiscal year.

Insider Buying and Selling

In other Darden Restaurants news, SVP Susan M. Connelly sold 2,635 shares of the company’s stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $207.36, for a total value of $546,393.60. Following the completion of the transaction, the senior vice president directly owned 4,098 shares in the company, valued at $849,761.28. This represents a 39.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Rajesh Vennam sold 6,774 shares of the firm’s stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $214.12, for a total transaction of $1,450,448.88. Following the sale, the chief financial officer owned 9,040 shares in the company, valued at $1,935,644.80. The trade was a 42.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 18,770 shares of company stock worth $3,948,970. Corporate insiders own 0.49% of the company’s stock.

Hedge Funds Weigh In On Darden Restaurants

A number of hedge funds have recently made changes to their positions in the business. Ballentine Partners LLC raised its stake in Darden Restaurants by 2.5% during the 2nd quarter. Ballentine Partners LLC now owns 1,975 shares of the restaurant operator’s stock valued at $430,000 after purchasing an additional 49 shares during the period. GAM Holding AG increased its holdings in Darden Restaurants by 0.7% in the 2nd quarter. GAM Holding AG now owns 6,975 shares of the restaurant operator’s stock valued at $1,520,000 after acquiring an additional 51 shares during the last quarter. MAI Capital Management lifted its stake in Darden Restaurants by 0.7% in the 2nd quarter. MAI Capital Management now owns 7,177 shares of the restaurant operator’s stock worth $1,564,000 after purchasing an additional 52 shares in the last quarter. Avidian Wealth Enterprises LLC lifted its stake in Darden Restaurants by 3.6% in the 2nd quarter. Avidian Wealth Enterprises LLC now owns 1,540 shares of the restaurant operator’s stock worth $336,000 after purchasing an additional 54 shares in the last quarter. Finally, Concurrent Investment Advisors LLC boosted its holdings in shares of Darden Restaurants by 1.7% during the 3rd quarter. Concurrent Investment Advisors LLC now owns 3,285 shares of the restaurant operator’s stock valued at $625,000 after purchasing an additional 55 shares during the last quarter. Institutional investors own 93.64% of the company’s stock.

Key Stories Impacting Darden Restaurants

Here are the key news stories impacting Darden Restaurants this week:

• Positive Sentiment: Mizuho upgraded DRI from Neutral to Outperform and raised its price target to $235 (from $195), citing Olive Garden strength and implying meaningful upside vs. the current price. Mizuho upgrades Darden Restaurants (DRI)
• Positive Sentiment: Melius Research moved its rating from Hold to Buy, adding to analyst bullishness that can support upward momentum in the stock. Melius Research upgrade (Finviz link)
• Positive Sentiment: Company fundamentals and shareholder returns remain supportive: FY2026 guidance was set at $10.50–$10.70 EPS and the firm announced a $1.50 quarterly dividend (annualized $6.00). Those items underpin earnings visibility and yield appeal for income-focused investors. MarketBeat Darden Restaurants coverage
• Neutral Sentiment: Raymond James reiterated a Market Perform rating, signaling some analysts remain cautious and limiting consensus conviction despite upgrades. Raymond James Reiterates Market Perform for Darden
• Neutral Sentiment: Valuation discussion: recent coverage (Yahoo Finance) highlights mixed share performance vs. fundamentals — investors are weighing the higher multiple against steady cash flow and brand strength. A Look At Darden Restaurants (DRI) Valuation
• Negative Sentiment: Insider selling: Director John Wilkerson sold 2,258 shares at roughly $213, reducing his stake ~11%. While insider sales can be routine, they can pressure sentiment if they repeat. John Wilkerson insider sale
• Negative Sentiment: Another insider, Rajesh Vennam, sold 6,774 shares — additional insider exits add to short-term headwinds for sentiment. Rajesh Vennam Sells DRI Shares

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.