Darden Restaurants (NYSE:DRI) Stock

Darden Restaurants

Darden Restaurants is the largest restaurant operator in the us full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 11 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, The Capital Burger, and most recently, Chuy's. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the us.

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The United States will be showered with love as 56% of its adults are planning to celebrate this Valentine&#39;s Day. About 28% of the population will observe the occasion. Spending would be a total of $27.5 billion (an average of $188.81 per person, up from $185.81 in 2024), per NRF.

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Barclays analyst Jeffrey A. Bernstein highlights key trends for U.S. restaurants in 2025, including mixed earnings results, easing inflation, and consumer outlook uncertainty. 

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The United States will be showered with love as 56% of its adults are planning to celebrate this Valentine&#39;s Day. About 28% of the population will observe the occasion. Spending would be a total of $27.5 billion (an average of $188.81 per person, up from $185.81 in 2024),&nbsp;<a href="https://nrf.com/research-insights/holiday-data-and-trends/valentines-day" target="_blank">per NRF</a>. The amount is up from last year&#39;s $25.8 billion and slightly above the previous record of $27.4 billion set in 2020.&nbsp;
Naturally, the day of love will translate into a great day for business. But exchanging chocolates, greeting cards, flowers, and precious metals as gifts may seem clich&eacute;d to some people lately. Instead, impress your loved one in a unique way with stocks of companies that are likely to do good business this Valentine&#39;s Day.
Let&#39;s dive a little deeper.
<h2>Candies, Cards &amp; Flowers Continue to Remain Age-Old Gift</h2>
About 56% of consumers are planning to buy candies, followed by greeting cards (40%) and flowers (40%). Zacks Rank #3 (Hold)&nbsp;Simply Good Foods (SMPL) is likely to be one of the best bets this year. When it comes to ETF investing, companies within First Trust Nasdaq Food &amp; Beverage ETF&nbsp;FTXG and Invesco Dynamic Food &amp; Beverage ETF&nbsp;PBJ should do good business on this day of love.
<h2>Gifting Precious Metals Is Ageless</h2>
Gifting jewelry this Valentine&#39;s Day has become more popular than ever before. About 22% of the population plans to spend on jewelry. Total spending on jewelry could touch a high of $6.5 billion, per NRF. Forget gifting precious metal in physical form, gift gold bullion ETF&nbsp;SPDR Gold Shares&nbsp;GLD. It is up about 9% this year. Gold is considered to be a safe haven and may gain strength if stock volatility persists.
<h2>Gifting an Experience: An Emerging Trend</h2>
About 35% of people are planning an evening out and are likely to spend about $5.4 billion. In this regard, restaurant ETF&nbsp;AdvisorShares Restaurant ETF&nbsp;EATZ and experience ETFs like&nbsp;Amplify Travel Tech ETF AWAY&nbsp;should benefit. As far as stocks are concerned, Zacks Rank #2 (Buy) players&nbsp;Intercontinental Hotels Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ihg#NYSE">IHG</a>)and Darden Restaurants DRI are good bets.
<h2>Shopping Online: The Latest Fad</h2>
About 38% of consumers are planning to buy their Valentine&#39;s gifts online this year.&nbsp;ProShares Online Retail ETF&nbsp;(ONLN) is a beneficiary of the trend. With all the celebrations around, who can forget&nbsp;Amazon&nbsp;AMZN, a hot destination for online shopping?
<h2>Dollar Store: A Winner Too?</h2>
Visiting department stores (34%) and discount stores (29%) would also remain in trend. Consumers will look for sales and promotions while celebrating Valentine&#39;s Day this year. Several discount retailers like Zacks Rank #2&nbsp;Costco&nbsp;COST may win from the trend and make&nbsp;VanEck Vectors Retail ETF&nbsp;RTH a gainer.
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ETFs & Stocks To Gift Your Valentine This Year

Raymond James analyst Brian Vaccaro maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Outperform and raises the price target from $200 to $210.

Price Target

Raymond James Maintains Outperform on Darden Restaurants, Raises Price Target to $210

On January 15, it was revealed in an SEC filing that Burrowes Todd, President at Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) executed a significant exercise of company stock options.
What Happened: A notable Form 4 filing on Wednesday with the <a href="https://www.sec.gov/Archives/edgar/data/0000940944/000122520825000647//Archives/edgar/data/940944/000122520825000647/0001225208-25-000647-index.htm">U.S. Securities and Exchange Commission</a> revealed that Todd, President at Darden Restaurants, exercised stock options for 15,783 shares of DRI, resulting in a transaction value of $1,162,417.
As of Thursday morning, Darden Restaurants shares are down by 0.07%, with a current price of $180.7. This implies that Todd's 15,783 shares have a value of $1,162,417.
<h3>About Darden Restaurants</h3>
Darden Restaurants is the largest restaurant operator in the us full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 11 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, The Capital Burger, and most recently, Chuy's. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the us.
<h3>A Deep Dive into Darden Restaurants's Financials</h3>
Revenue Growth: Darden Restaurants's remarkable performance in 3 months is evident. As of 30 November, 2024, the company achieved an impressive revenue growth rate of 5.97%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Evaluating Earnings Performance:
<ul>
<li>
Gross Margin: With a low gross margin of 21.2%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): Darden Restaurants's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.83.
</li>
</ul>
Debt Management: Darden Restaurants's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 3.06.
Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 20.67 is lower than the industry average, indicating potential undervaluation for the stock.
</li>
<li>
Price to Sales (P/S) Ratio: With a P/S ratio of 1.87 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 14.95, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
</li>
</ul>
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
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<h3>Delving Into the Significance of Insider Transactions</h3>
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
<h3>Navigating the World of Insider Transaction Codes</h3>
Surveying the realm of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000940944">Check Out The Full List Of Darden Restaurants's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Options Exercise: Burrowes Todd At Darden Restaurants Realizes $1.16M

Barclays analyst Jeffrey A. Bernstein has outlined top themes to watch out for in the U.S. restaurants in 2025.
The restaurant industry, according to the analyst, is experiencing mixed results as it navigates a volatile environment heading into the third quarter of 2024.
A recent preview highlighted that many companies have struggled to meet expectations regarding same-store sales and earnings per share, noted the analyst.
Despite these challenges, most have shared optimistic outlooks on recent sales trends.
As 2024 progresses, the key focus remains the consumer outlook, which has been unpredictable. On a positive note, unemployment rates remain near record lows, and wages continue to rise, contributing to a healthy increase in real disposable income, the analyst added.
Inflation has also eased, allowing the Federal Reserve to slow down its rate changes, said the analyst.
However, the analyst warned that the cost of living, including high rent and basic expenses, continues to pressure consumers.
Consumer confidence has remained lower than pre-pandemic levels, and many restaurants are working to improve traffic by offering greater value in response to inflation concerns.
Commodity inflation, excluding coffee, has shown signs of normalization and December 2024 saw a year-on-year increase of around 16%, mainly driven by coffee prices, asserted the analyst.
Restaurants are expecting mid-single-digit inflation in 2025, assuming current prices hold and the industry is hoping for a more stable cost environment that can support margins amidst uncertain sales projections, added the analyst.
The analyst expressed concern about labor costs and said while wage inflation has slowed from the peaks seen during 2021 and 2022, December 2024 saw a year-on-year wage increase of 10.3%.
In menu pricing, restaurants are easing the aggressive price hikes seen in recent years and overall, the industry is moving towards smaller price increases as commodity and labor inflation stabilizes, said the analyst.
The analyst upgraded both Shake Shack Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHAK#NYSE">SHAK</a>) and Dutch Bros Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BROS#NYSE">BROS</a>) to Overweight from Equal Weight.
The analyst downgraded Bloomin&#8217; Brands Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BLMN#NASDAQ">BLMN</a>) and Dine Brands Global Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIN#NYSE">DIN</a>) to Equal Weight from Overweight.
Photo via Shutterstock.

Barclays analyst Jeffrey Bernstein maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Overweight and raises the price target from $206 to $230.

Barclays Maintains Overweight on Darden Restaurants, Raises Price Target to $230

Oppenheimer analyst Brian Bittner maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Outperform and raises the price target from $200 to $218.

Oppenheimer Maintains Outperform on Darden Restaurants, Raises Price Target to $218

A substantial insider activity was disclosed on December 30, as John, President at Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>), reported the exercise of a large sell of company stock options.
What Happened: John, President at Darden Restaurants, made a strategic move by exercising stock options for 9,470 shares of DRI as detailed in a Form 4 filing on Monday with the <a href="https://www.sec.gov/Archives/edgar/data/0000940944/000122520824011035//Archives/edgar/data/940944/000122520824011035/0001225208-24-011035-index.htm">U.S. Securities and Exchange Commission</a>. The transaction value amounted to $761,009.
Currently, Darden Restaurants shares are trading up 0.58%, priced at $187.86 during Tuesday's morning. This values John's 9,470 shares at $761,009.
<h3>All You Need to Know About Darden Restaurants</h3>
Darden Restaurants is the largest restaurant operator in the US full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 11 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, The Capital Burger, and most recently, Chuy's. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the US.
<h3>Unraveling the Financial Story of Darden Restaurants</h3>
Revenue Growth: Darden Restaurants's remarkable performance in 3 months is evident. As of 30 November, 2024, the company achieved an impressive revenue growth rate of 4.82%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Exploring Profitability:
<ul>
<li>
Gross Margin: The company shows a low gross margin of 21.2%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
</li>
<li>
Earnings per Share (EPS): Darden Restaurants's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.83.
</li>
</ul>
Debt Management: With a below-average debt-to-equity ratio of 3.06, Darden Restaurants adopts a prudent financial strategy, indicating a balanced approach to debt management.
Financial Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.35, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.93 is lower than the industry average, implying a discounted valuation for Darden Restaurants's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With a below-average EV/EBITDA ratio of 15.37, Darden Restaurants presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
</li>
</ul>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
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<h3>Navigating the Impact of Insider Transactions on Investments</h3>
Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
<h3>Important Transaction Codes</h3>
Taking a closer look at transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000940944">Check Out The Full List Of Darden Restaurants's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Martin Melvin John At Darden Restaurants Executes Options Exercise, Realizing $761K

Disclosed in a recent SEC filing on December 30, John, President at Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>), made a noteworthy transaction involving the exercise of company stock options.
What Happened: John, President at Darden Restaurants, exercised stock options for 9,470 shares of DRI stock. This information was disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000940944/000122520824011035//Archives/edgar/data/940944/000122520824011035/0001225208-24-011035-index.htm">U.S. Securities and Exchange Commission</a> on Monday. The exercise price of the options was $107.5 per share.
Currently, Darden Restaurants shares are trading down 1.06%, priced at $185.6 during Monday's morning. This values John's 9,470 shares at $739,607.
<h3>Get to Know Darden Restaurants Better</h3>
Darden Restaurants is the largest restaurant operator in the US full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 11 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, The Capital Burger, and most recently, Chuy's. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the US.
<h3>Breaking Down Darden Restaurants's Financial Performance</h3>
Revenue Growth: Darden Restaurants displayed positive results in 3 months. As of 30 November, 2024, the company achieved a solid revenue growth rate of approximately 4.82%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Key Profitability Indicators:
<ul>
<li>
Gross Margin: With a low gross margin of 21.2%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): Darden Restaurants's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.83.
</li>
</ul>
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.06.
Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: The P/E ratio of 21.44 is lower than the industry average, implying a discounted valuation for Darden Restaurants's stock.
</li>
<li>
Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.94, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio 15.42 is below the industry average, indicating that it may be relatively undervalued compared to peers.
</li>
</ul>
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
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<h3>Why Insider Transactions Are Important</h3>
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
<h3>Transaction Codes To Focus On</h3>
<a href="https://www.benzinga.com/money/investing-tools">Investors</a> prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000940944">Check Out The Full List Of Darden Restaurants's Insider Trades.</a>
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At Darden Restaurants, Martin Melvin John Chooses To Exercise Options, Resulting In $739K

Vennam Rajesh, SVP at Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>), reported a large exercise of company stock options on December 26, according to a new SEC filing.
What Happened: Rajesh, SVP at Darden Restaurants, made a strategic move by exercising stock options for 7,228 shares of DRI as detailed in a Form 4 filing on Thursday with the <a href="https://www.sec.gov/Archives/edgar/data/0000940944/000122520824010992//Archives/edgar/data/940944/000122520824010992/0001225208-24-010992-index.htm">U.S. Securities and Exchange Commission</a>. The transaction value amounted to $696,190.
Currently, Darden Restaurants shares are trading down 0.63%, priced at $187.48 during Friday's morning. This values Rajesh's 7,228 shares at $696,190.
<h3>Get to Know Darden Restaurants Better</h3>
Darden Restaurants is the largest restaurant operator in the US full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 11 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, The Capital Burger, and most recently, Chuy's. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the US.
<h3>Darden Restaurants: A Financial Overview</h3>
Revenue Growth: Darden Restaurants's remarkable performance in 3 months is evident. As of 30 November, 2024, the company achieved an impressive revenue growth rate of 4.82%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Navigating Financial Profits:
<ul>
<li>
Gross Margin: With a low gross margin of 21.2%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): Darden Restaurants's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.83.
</li>
</ul>
Debt Management: Darden Restaurants's debt-to-equity ratio is below the industry average at 3.06, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: Darden Restaurants's P/E ratio of 21.56 is below the industry average, suggesting the stock may be undervalued.
</li>
<li>
Price to Sales (P/S) Ratio: The current P/S ratio of 1.95 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio of 15.49 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
</li>
</ul>
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
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<h3>The Impact of Insider Transactions on Investments</h3>
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Breaking Down the Significance of Transaction Codes</h3>
Surveying the realm of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000940944">Check Out The Full List Of Darden Restaurants's Insider Trades.</a>
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

At Darden Restaurants, Vennam Rajesh Chooses To Exercise Options, Resulting In $696K

In the last three months, 18 analysts have published ratings on Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>), offering a diverse range of perspectives from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">5</td>
<td align="right">5</td>
<td align="right">8</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">5</td>
<td align="right">4</td>
<td align="right">7</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $191.72, a high estimate of $220.00, and a low estimate of $164.00. This upward trend is apparent, with the current average reflecting a 4.43% increase from the previous average price target of $183.59.
<img src="https://www.benzinga.com/files/images/story/2024/1734976826_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
A comprehensive examination of how financial experts perceive Darden Restaurants is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Brian Harbour</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$209.00</td>
<td>$193.00</td>
</tr>
<tr>
<td>Sara Senatore</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$211.00</td>
<td>$195.00</td>
</tr>
<tr>
<td>Andrew Strelzik</td>
<td>BMO Capital</td>
<td>Raises</td>
<td>Market Perform</td>
<td>$175.00</td>
<td>$165.00</td>
</tr>
<tr>
<td>Brian Bittner</td>
<td>Oppenheimer</td>
<td>Raises</td>
<td>Outperform</td>
<td>$200.00</td>
<td>$182.00</td>
</tr>
<tr>
<td>Chris O'Cull</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$205.00</td>
<td>$190.00</td>
</tr>
<tr>
<td>Jake Bartlett</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$200.00</td>
<td>$195.00</td>
</tr>
<tr>
<td>Dennis Geiger</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$210.00</td>
<td>$195.00</td>
</tr>
<tr>
<td>Jeffrey Bernstein</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$206.00</td>
<td>$192.00</td>
</tr>
<tr>
<td>Eric Gonzalez</td>
<td>Keybanc</td>
<td>Raises</td>
<td>Overweight</td>
<td>$200.00</td>
<td>$194.00</td>
</tr>
<tr>
<td>David Tarantino</td>
<td>Baird</td>
<td>Raises</td>
<td>Neutral</td>
<td>$194.00</td>
<td>$180.00</td>
</tr>
<tr>
<td>Nick Setyan</td>
<td>Wedbush</td>
<td>Raises</td>
<td>Outperform</td>
<td>$220.00</td>
<td>$200.00</td>
</tr>
<tr>
<td>Jim Salera</td>
<td>Stephens &amp; Co.</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$175.00</td>
<td>$164.00</td>
</tr>
<tr>
<td>Jim Salera</td>
<td>Stephens &amp; Co.</td>
<td>Maintains</td>
<td>Equal-Weight</td>
<td>$164.00</td>
<td>$164.00</td>
</tr>
<tr>
<td>Andrew Strelzik</td>
<td>BMO Capital</td>
<td>Lowers</td>
<td>Market Perform</td>
<td>$165.00</td>
<td>$175.00</td>
</tr>
<tr>
<td>Jim Salera</td>
<td>Stephens &amp; Co.</td>
<td>Maintains</td>
<td>Equal-Weight</td>
<td>$164.00</td>
<td>$164.00</td>
</tr>
<tr>
<td>Christine Cho</td>
<td>Goldman Sachs</td>
<td>Announces</td>
<td>Neutral</td>
<td>$183.00</td>
<td>-</td>
</tr>
<tr>
<td>Jon Tower</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Buy</td>
<td>$206.00</td>
<td>$209.00</td>
</tr>
<tr>
<td>Jim Salera</td>
<td>Stephens &amp; Co.</td>
<td>Maintains</td>
<td>Equal-Weight</td>
<td>$164.00</td>
<td>$164.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Darden Restaurants. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Darden Restaurants compared to the broader market.</li>
<li>Price Targets: Gaining insights, analysts provide estimates for the future value of Darden Restaurants's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
To gain a panoramic view of Darden Restaurants's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/DRI/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Darden Restaurants analyst ratings.</a>
<h2>Unveiling the Story Behind Darden Restaurants</h2>
Darden Restaurants is the largest restaurant operator in the us full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the us.
<h3>Financial Milestones: Darden Restaurants's Journey</h3>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Positive Revenue Trend: Examining Darden Restaurants's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.82% as of 30 November, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Darden Restaurants's net margin is impressive, surpassing industry averages. With a net margin of 7.44%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Darden Restaurants's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 10.21%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Darden Restaurants's ROA stands out, surpassing industry averages. With an impressive ROA of 1.8%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Darden Restaurants's debt-to-equity ratio is below the industry average. With a ratio of 3.06, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>What Are Analyst Ratings?</h2>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
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Analyst Expectations For Darden Restaurants's Future

Morgan Stanley analyst Brian Harbour maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Overweight and raises the price target from $193 to $209.

Morgan Stanley Maintains Overweight on Darden Restaurants, Raises Price Target to $209

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Darden Restaurants, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) shares are trading <a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">relatively flat on Friday.</a>
Yesterday, the company reported that the second quarter adjusted earnings per share was&nbsp;$2.03, <a target="_blank" href="https://www.benzinga.com//node/42585797" rel="noreferrer noopener">beating the street view of $2.02.</a>
Looking ahead, Darden Restaurants said it now sees FY25 total sales of approximately $12.1 billion (prior outlook $11.8&nbsp;billion – $11.9 billion). It reiterated diluted net earnings per share from continuing operations of&nbsp;$9.40&nbsp;to&nbsp;$9.60.
Following the results, here are the <a target="_blank" href="https://www.benzinga.com/quote/DRI/analyst-ratings" rel="noreferrer noopener">analyst takes on the stock</a>:
<ul>
<li>BofA Securities analyst Sara Senatore reiterated the Buy rating on the stock, raising the price forecast to $211 from $195.</li>
<li>Goldman Sachs analyst Christine Cho maintained the Neutral rating on Darden Restaurants, raising the price objective to $193 from $183.</li>
<li>Stephens analyst Jim Salera reiterated the Equal-Weight rating on the company, increasing the price forecast to $175 from $164.</li>
<li>Truist Securities analyst Jake Bartlett reiterated the Buy rating on Darden Restaurants, raising the price forecast to $200 from $195.</li>
<li>Oppenheimer analyst Brian Bittner maintained the Outperform rating on the stock, raising the price forecast to $200 from $182.</li>
<li>Wedbush analyst Nick Setyan reiterated the Outperform rating on Darden Restaurants, increasing the price forecast to $220 from $200.</li>
<li>KeyBanc Capital Markets analyst Eric Gonzalez maintained the Overweight rating on the company, raising the price forecast to $200 from $194.</li>
</ul>
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BofA Securities: According to the analyst, Olive Garden&#8217;s comps will stay positive in the second half of 2025, thanks to increased marketing efforts and potential growth from new channels like the upcoming Uber Technologies, Inc. rollout. The initial 100-store test shows that delivery order sizes are higher.
While Fine Dining continues to face challenges with a 3.8% decline in comparable sales (excluding timing shifts and weather factors), the analyst thinks this performance aligns with a return to previous trends for households with incomes under $150k, Senatore writes.
Goldman Sachs: The analyst projects Darden Restaurants to continue benefiting from its scale, the strength of the LongHorn brand, and subsegment diversification, but uncertainties remain around Olive Garden and Fine Dining traffic.
The Uber partnership is anticipated to bring increased advertising dollars to Darden Restaurants, though management has indicated they will not promote the delivery option until the full rollout in Olive Garden stores, expected by the fourth quarter of fiscal 2025 or the first quarter of fiscal 2026.
Stephens: Following the quarterly results, the analyst notes that the adjusted earnings per share estimate for fiscal year 2025 has been revised from $9.38 to $9.40, while EBITDA is adjusted from $1.939 billion to $1.962 billion.
For fiscal year 2026, the adjusted EPS estimate increases from $10.30 to $10.35, and EBITDA moves from $2.102 billion to $2.111 billion.
Truist Securities: The analyst notes that stronger-than-expected same-store sales at Olive Garden have increased confidence in both restaurant demand and the brand&#8217;s ability to gain market share through disciplined promotions.
These promotions will continue in the third quarter of fiscal year 2025 and through the new national delivery partnership, which has tested well. With operating cost inflation decreasing and solid same-store sales performance, Darden Restaurants appears to be focusing on development, which is expected to accelerate in fiscal year 2026, supporting its valuation, Bartlett writes.
Oppenheimer: The analyst notes that they have increased their earnings per share estimates for fiscal years 2025 and 2026 to $9.50 and $10.68, respectively, up from previous estimates of $9.46 and $10.61.
These new estimates are higher than the street&#8217;s consensus of $9.43 and $10.58. Bittner also sees potential for further positive revisions as sales levers are implemented.
Wedbush: Per the analyst, Darden Restaurants will continue gaining category share despite an uncertain consumer environment, which increases confidence in its ability to achieve long-term annual return targets.
The analyst writes that the FY25 EPS estimate has been raised to $9.55 from $9.50, and the FY26 EPS estimate has been increased to $10.64 from $10.32.
KeyBanc Capital Markets: The analyst writes that the Fine Dining segment remains a concern due to lower-to-middle-income consumers cutting back on aspirational purchases. However, Darden Restaurants&#8217; diversified portfolio helps offset these challenges.
Darden Restaurants now expects an earlier rollout of its third-party delivery partnership with Uber and sees an additional $2 million in synergies from its Chuy&#8217;s acquisition, the analyst notes.
Price Action: DRI shares are trading higher by 1.92% to $186.96 at last check Friday.
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Photo by Sundry Photography via Shutterstock.

Reiteration

Markets

UBER

Darden Restaurants' Diversified Portfolio And Uber Delivery Partnership Offer Confidence In Overcoming Fine Dining Challenges: Analysts

B of A Securities analyst Sara Senatore maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Buy and raises the price target from $195 to $211.

B of A Securities Maintains Buy on Darden Restaurants, Raises Price Target to $211

BMO Capital analyst Andrew Strelzik maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Market Perform and raises the price target from $165 to $175.

BMO Capital Maintains Market Perform on Darden Restaurants, Raises Price Target to $175

Oppenheimer analyst Brian Bittner reiterates Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Outperform and raises the price target from $182 to $200.

Oppenheimer Reiterates Outperform on Darden Restaurants, Raises Price Target to $200

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Truist Securities cut the price target for NIKE, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) from $97 to $90. Truist Securities analyst Joseph Civello maintained a Buy rating. Nike shares closed at $77.10 on Thursday. See how other analysts view this stock.</li>
<li>Stifel raised the price target for Darden Restaurants, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) from $190 to $205. Stifel analyst Chris O&#8217;Cull maintained a Buy rating. Darden shares closed at $183.44 on Thursday. <a href="https://www.benzinga.com/quote/DRI/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Keefe, Bruyette &amp; Woods boosted the price target for T. Rowe Price Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TROW#NASDAQ">TROW</a>) from $114 to $116. Keefe, Bruyette &amp; Woods analyst Aidan Hall maintained a Market Perform rating. T. Rowe Price shares closed at $112.97 on Thursday. <a href="https://www.benzinga.com/quote/TROW/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>UBS cut Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) price target from $225 to $205. UBS analyst John Lovallo maintained a Buy rating. Lennar shares settled at $138.40 on Thursday. <a href="https://www.benzinga.com/quote/LEN/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Stifel raised FedEx Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) price target from $321 to $368. Stifel analyst J. Bruce Chan maintained a Buy rating. FedEx shares closed at $275.88 on Thursday. <a href="https://www.benzinga.com/quote/FDX/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Canaccord Genuity increased BlackBerry Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) price target from $2.8 to $3. Canaccord Genuity analyst Kingsley Crane maintained a Hold rating. BlackBerry shares closed at $2.98 on Thursday.  <a href="https://www.benzinga.com/quote/BB/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Barclays cut General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) price target from $74 to $68. Barclays analyst Andrew Lazar maintained an Equal-Weight rating. General Mills shares closed at $64.01 on Thursday. See how other analysts view this stock.</li>
<li>Keefe, Bruyette &amp; Woods raised the price target for Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) from $165 to $275. Keefe, Bruyette &amp; Woods analyst Kyle Voigt maintained a Market Perform rating. Coinbase shares settled at $273.92 on Thursday. <a href="https://www.benzinga.com/quote/COIN/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Morgan Stanley raised Brinker International, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EAT#NYSE">EAT</a>) price target from $70 to $115. Morgan Stanley analyst John Glass upgraded the stock from Underweight to Equal-Weight. Brinker shares closed at $131.33 on Thursday. <a href="https://www.benzinga.com/quote/EAT/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Stifel increased FactSet Research Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDS#NYSE">FDS</a>) price target from $469 to $493. Stifel analyst Shlomo Rosenbaum maintained a Hold rating. FactSet Research shares closed at $489.73 on Thursday. <a href="https://www.benzinga.com/quote/FDS/analyst-ratings">See how other analysts view this stock</a>.</li>
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COIN

TROW

FedEx To Rally More Than 33%? Here Are 10 Top Analyst Forecasts For Friday

Stifel analyst Chris O'Cull maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Buy and raises the price target from $190 to $205.

Stifel Maintains Buy on Darden Restaurants, Raises Price Target to $205

Truist Securities analyst Jake Bartlett maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Buy and raises the price target from $195 to $200.

Truist Securities Maintains Buy on Darden Restaurants, Raises Price Target to $200

UBS analyst Dennis Geiger maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Buy and raises the price target from $195 to $210.

UBS Maintains Buy on Darden Restaurants, Raises Price Target to $210

Earnings

Dividends

Press Releases

Darden Restaurants Reports Fiscal 2025 First Quarter Results; Declares Quarterly Dividend; And Reiterates Fiscal 2025 Financial Outlook

Darden and Uber Partner to Introduce On-Demand Delivery, with Olive Garden the First to Pilot

DARDEN RESTAURANTS HELPS FEEDING AMERICA® EXPAND IMPACT IN THE MOVEMENT TO END HUNGER WITH FOOD TRUCK DONATIONS FOR THE FOURTH CONSECUTIVE YEAR

CHUY'S INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Chuy's Holdings, Inc. - CHUY

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