Darden Restaurants (NYSE:DRI) Announces Quarterly Earnings Results, Hits Expectations

Darden Restaurants (NYSE:DRIGet Rating) posted its quarterly earnings data on Thursday. The restaurant operator reported $1.56 earnings per share for the quarter, hitting the consensus estimate of $1.56, RTT News reports. The business had revenue of $2.45 billion during the quarter, compared to the consensus estimate of $2.47 billion. Darden Restaurants had a net margin of 9.89% and a return on equity of 39.05%. The company’s quarterly revenue was up 6.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.76 earnings per share. Darden Restaurants updated its FY23 guidance to $7.40-8.00 EPS.

Darden Restaurants Stock Performance

Shares of DRI opened at $131.28 on Thursday. The company’s fifty day moving average is $126.36 and its 200-day moving average is $125.47. Darden Restaurants has a 12 month low of $110.96 and a 12 month high of $164.28. The firm has a market cap of $16.27 billion, a price-to-earnings ratio of 17.74, a price-to-earnings-growth ratio of 1.75 and a beta of 1.30. The company has a quick ratio of 0.49, a current ratio of 0.64 and a debt-to-equity ratio of 0.41.

Darden Restaurants Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, November 1st. Stockholders of record on Monday, October 10th will be paid a dividend of $1.21 per share. This represents a $4.84 annualized dividend and a dividend yield of 3.69%. Darden Restaurants’s dividend payout ratio (DPR) is 65.41%.

Insider Transactions at Darden Restaurants

In other Darden Restaurants news, Director Timothy J. Wilmott purchased 10,000 shares of the company’s stock in a transaction dated Tuesday, June 28th. The shares were bought at an average price of $120.00 per share, for a total transaction of $1,200,000.00. Following the purchase, the director now directly owns 27,094 shares in the company, valued at approximately $3,251,280. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, Director Nana Mensah sold 567 shares of the company’s stock in a transaction on Friday, July 15th. The shares were sold at an average price of $117.03, for a total transaction of $66,356.01. Following the completion of the sale, the director now directly owns 10 shares of the company’s stock, valued at approximately $1,170.30. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Timothy J. Wilmott acquired 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, June 28th. The shares were purchased at an average cost of $120.00 per share, with a total value of $1,200,000.00. Following the completion of the acquisition, the director now owns 27,094 shares in the company, valued at approximately $3,251,280. The disclosure for this purchase can be found here. 0.93% of the stock is currently owned by company insiders.

Institutional Trading of Darden Restaurants

Several large investors have recently modified their holdings of the company. ExodusPoint Capital Management LP bought a new stake in Darden Restaurants in the 2nd quarter valued at $2,165,000. Centiva Capital LP bought a new stake in Darden Restaurants in the 2nd quarter valued at $515,000. National Pension Service boosted its holdings in Darden Restaurants by 1.4% in the 2nd quarter. National Pension Service now owns 237,517 shares of the restaurant operator’s stock valued at $26,868,000 after purchasing an additional 3,295 shares during the period. First Republic Investment Management Inc. boosted its holdings in Darden Restaurants by 1.8% in the 2nd quarter. First Republic Investment Management Inc. now owns 14,370 shares of the restaurant operator’s stock valued at $1,625,000 after purchasing an additional 255 shares during the period. Finally, Captrust Financial Advisors boosted its holdings in Darden Restaurants by 22.4% in the 2nd quarter. Captrust Financial Advisors now owns 24,848 shares of the restaurant operator’s stock valued at $2,811,000 after purchasing an additional 4,552 shares during the period. 89.62% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Credit Suisse Group dropped their price target on shares of Darden Restaurants from $175.00 to $152.00 and set an “outperform” rating on the stock in a research report on Friday, June 24th. MKM Partners dropped their price target on shares of Darden Restaurants from $165.00 to $150.00 and set a “buy” rating on the stock in a research report on Tuesday, June 14th. KeyCorp dropped their price target on shares of Darden Restaurants from $160.00 to $136.00 in a research report on Wednesday, June 15th. BMO Capital Markets assumed coverage on shares of Darden Restaurants in a research report on Friday, June 24th. They issued a “hold” rating and a $130.00 price target on the stock. Finally, Morgan Stanley dropped their price target on shares of Darden Restaurants from $161.00 to $148.00 and set an “overweight” rating on the stock in a research report on Friday, June 24th. Four equities research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $143.62.

Darden Restaurants declared that its Board of Directors has approved a stock buyback program on Thursday, June 23rd that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the restaurant operator to reacquire up to 6.6% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Darden Restaurants Company Profile

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Darden Restaurants, Inc, through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 29, 2022, it owned and operated 1,867 restaurants, which included 884 under the Olive Garden brand, 546 under the LongHorn Steakhouse brand name, 172 under the Cheddar's Scratch Kitchen brand, 85 under the Yard House brand name, 62 under The Capital Grille brand, 45 under the Seasons 52 brand name, 42 under the Bahama Breeze brand, 28 under the Eddie V's Prime Seafood brand name, and 3 under the Capital Burger brand; and franchised 60 restaurants comprising 35 under the Olive Garden brand, 18 under the LongHorn Steakhouse brand name, 4 under the Cheddar's Scratch Kitchen brand, 2 under The Capital Grille brand name, and 1 under the Bahama Breeze brand.Darden Restaurants, Inc was founded in 1968 and is based in Orlando, Florida.

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Earnings History for Darden Restaurants (NYSE:DRI)

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