Stephens Reiterates Equal Weight Rating for Darden Restaurants (NYSE:DRI)

Darden Restaurants (NYSE:DRI)‘s stock had its “equal weight” rating reaffirmed by stock analysts at Stephens in a research note issued to investors on Thursday,Benzinga reports. They presently have a $205.00 target price on the restaurant operator’s stock. Stephens’ target price would indicate a potential upside of 0.99% from the stock’s current price.

Several other equities analysts have also issued reports on the stock. Mizuho upgraded shares of Darden Restaurants from a “neutral” rating to an “outperform” rating and boosted their target price for the company from $195.00 to $235.00 in a report on Friday, January 23rd. Morgan Stanley decreased their price target on Darden Restaurants from $238.00 to $236.00 and set an “overweight” rating for the company in a report on Friday, December 12th. BMO Capital Markets lifted their price objective on Darden Restaurants from $205.00 to $220.00 and gave the stock a “market perform” rating in a research report on Tuesday, January 6th. KeyCorp reissued an “overweight” rating on shares of Darden Restaurants in a research note on Friday, December 19th. Finally, BTIG Research restated a “buy” rating and set a $225.00 target price on shares of Darden Restaurants in a research report on Friday, December 19th. Eighteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $226.24.

Darden Restaurants Stock Down 0.7%

Darden Restaurants stock opened at $202.99 on Thursday. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.26 and a current ratio of 0.39. Darden Restaurants has a 52-week low of $169.00 and a 52-week high of $228.27. The firm has a 50 day moving average price of $208.09 and a two-hundred day moving average price of $194.66. The firm has a market cap of $23.37 billion, a price-to-earnings ratio of 21.48, a PEG ratio of 1.99 and a beta of 0.61.

Darden Restaurants (NYSE:DRI) last issued its quarterly earnings results on Thursday, March 19th. The restaurant operator reported $2.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.94 by $0.01. Darden Restaurants had a net margin of 8.66% and a return on equity of 53.54%. The firm had revenue of $3.35 billion for the quarter, compared to the consensus estimate of $3.33 billion. During the same quarter in the previous year, the company earned $2.80 EPS. The company’s revenue for the quarter was up 5.9% on a year-over-year basis. Equities analysts predict that Darden Restaurants will post 9.52 EPS for the current year.

Insider Buying and Selling at Darden Restaurants

In related news, SVP Susan M. Connelly sold 2,635 shares of Darden Restaurants stock in a transaction 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 sale, the senior vice president owned 4,098 shares of the company’s stock, valued at approximately $849,761.28. This trade represents a 39.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider John W. Wilkerson sold 2,258 shares of the business’s stock in a transaction on Friday, January 16th. The shares were sold at an average price of $213.00, for a total transaction of $480,954.00. Following the sale, the insider owned 17,784 shares of the company’s stock, valued at $3,787,992. This trade represents a 11.27% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 18,770 shares of company stock worth $3,948,970. 0.49% of the stock is owned by company insiders.

Institutional Investors Weigh In On Darden Restaurants

Several hedge funds and other institutional investors have recently made changes to their positions in DRI. Wellington Management Group LLP boosted its stake in Darden Restaurants by 81.0% during the 4th quarter. Wellington Management Group LLP now owns 8,077,567 shares of the restaurant operator’s stock valued at $1,486,434,000 after purchasing an additional 3,613,781 shares during the last quarter. JPMorgan Chase & Co. raised its stake in shares of Darden Restaurants by 78.4% in the third quarter. JPMorgan Chase & Co. now owns 2,666,919 shares of the restaurant operator’s stock worth $507,675,000 after purchasing an additional 1,171,890 shares during the last quarter. Norges Bank bought a new position in shares of Darden Restaurants in the fourth quarter valued at approximately $144,483,000. Marshall Wace LLP lifted its holdings in shares of Darden Restaurants by 820.4% in the second quarter. Marshall Wace LLP now owns 706,416 shares of the restaurant operator’s stock valued at $153,977,000 after purchasing an additional 629,669 shares in the last quarter. Finally, Alyeska Investment Group L.P. purchased a new position in shares of Darden Restaurants during the fourth quarter valued at approximately $113,301,000. 93.64% of the stock is owned by institutional investors.

More Darden Restaurants News

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

• Positive Sentiment: Q3 results and guidance lift — Darden reported $2.95 EPS (in line/just above consensus), revenue of $3.35B (+5.9% YoY) and raised its full‑year outlook for sales and adjusted EPS, citing strength at LongHorn and unit growth. Management’s guidance lift is the primary catalyst for optimism. PR Newswire: Q3 Results & Outlook
• Positive Sentiment: Analysts lift targets and ratings — A wave of firms raised targets (Citigroup to $238, Deutsche Bank to $230, Barclays to $232, KeyCorp, BTIG, others), with several reaffirming Buy/Overweight ratings. That collective upward revision signals stronger Street momentum behind the stock. Benzinga: Analysts Increase Forecasts
• Positive Sentiment: Dividend declared & capital returns — Darden announced a quarterly dividend (covers April record / May pay date) and continues significant buybacks; MarketBeat highlights strong cash flow and share‑count reduction as supportive of future returns. That makes the stock more attractive to income and valuation‑focused investors. MarketBeat: Growth & Cash Flow
• Neutral Sentiment: Earnings call / transcripts available — Management held the Q3 call and released transcripts/slides (useful for digging into LFLs, unit‑economics, weather impacts and cadence of buybacks). Investors should review the call for color on margins and FY26 assumptions. MSN: Q3 Earnings Call Transcript
• Negative Sentiment: One‑time charges and brand exit — Darden took impairments and other one‑offs tied to the Bahama Breeze review and planned closures/conversions; GAAP results look weaker as a result. These items compress near‑term margins and add uncertainty around restructuring costs. MarketBeat: One‑offs & Impairments
• Negative Sentiment: Risks flagged by some commentary — A few writeups note building risks (weather, commodity/labor pressure, and noise from restructuring) that could press margins even as revenue growth remains healthy. Seeking Alpha: Risks Building

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.