Darden Restaurants (NYSE:DRI) Issues Earnings Results, Beats Expectations By $0.04 EPS

Darden Restaurants (NYSE:DRIGet Free Report) announced its quarterly earnings data on Thursday. The restaurant operator reported $2.65 EPS for the quarter, topping analysts’ consensus estimates of $2.61 by $0.04, Briefing.com reports. The firm had revenue of $3 billion during the quarter, compared to analyst estimates of $2.97 billion. Darden Restaurants had a return on equity of 49.94% and a net margin of 9.24%. The company’s revenue was up 8.3% on a year-over-year basis. During the same period last year, the company earned $2.58 earnings per share. Darden Restaurants updated its FY25 guidance to $9.40-$9.60 EPS.

Darden Restaurants Stock Up 1.5 %

DRI stock opened at $154.29 on Friday. The stock’s 50 day simple moving average is $150.69 and its 200 day simple moving average is $159.69. Darden Restaurants has a fifty-two week low of $133.36 and a fifty-two week high of $176.84. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.25 and a current ratio of 0.39. The company has a market cap of $18.42 billion, a P/E ratio of 18.09, a price-to-earnings-growth ratio of 1.60 and a beta of 1.29.

Darden Restaurants Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 15th. Stockholders of record on Thursday, July 11th will be paid a $1.29 dividend. This represents a $5.16 dividend on an annualized basis and a dividend yield of 3.34%. The ex-dividend date of this dividend is Wednesday, July 10th. Darden Restaurants’s dividend payout ratio is 61.43%.

Darden Restaurants declared that its board has authorized a share repurchase program on Thursday, March 21st that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the restaurant operator to repurchase up to 5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on DRI. Truist Financial reissued a “buy” rating and set a $190.00 price target on shares of Darden Restaurants in a research note on Friday, March 22nd. Wedbush restated an “outperform” rating and issued a $170.00 price target on shares of Darden Restaurants in a research note on Thursday. Bank of America lifted their target price on Darden Restaurants from $180.00 to $185.00 and gave the stock a “buy” rating in a research note on Friday. BMO Capital Markets lifted their target price on Darden Restaurants from $160.00 to $165.00 and gave the stock a “market perform” rating in a research note on Thursday, March 7th. Finally, Stifel Nicolaus reduced their target price on Darden Restaurants from $190.00 to $180.00 and set a “buy” rating for the company in a research note on Friday. Five equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company’s stock. According to MarketBeat, Darden Restaurants currently has an average rating of “Moderate Buy” and an average price target of $173.57.

Get Our Latest Research Report on DRI

Insider Buying and Selling

In related news, SVP Matthew R. Broad sold 4,707 shares of the company’s stock in a transaction that occurred on Thursday, April 25th. The stock was sold at an average price of $156.15, for a total transaction of $734,998.05. Following the transaction, the senior vice president now directly owns 19,179 shares of the company’s stock, valued at approximately $2,994,800.85. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. In other news, SVP Matthew R. Broad sold 4,707 shares of the stock in a transaction that occurred on Thursday, April 25th. The stock was sold at an average price of $156.15, for a total value of $734,998.05. Following the completion of the sale, the senior vice president now directly owns 19,179 shares of the company’s stock, valued at $2,994,800.85. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Melvin John Martin sold 7,673 shares of the stock in a transaction that occurred on Wednesday, March 27th. The stock was sold at an average price of $165.52, for a total value of $1,270,034.96. Following the completion of the sale, the insider now directly owns 17,208 shares of the company’s stock, valued at $2,848,268.16. The disclosure for this sale can be found here. In the last three months, insiders have sold 13,599 shares of company stock valued at $2,197,891. 0.85% of the stock is owned by company insiders.

About Darden Restaurants

(Get Free Report)

Darden Restaurants, Inc, together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood, and Capital Burger brand names.

See Also

Earnings History for Darden Restaurants (NYSE:DRI)

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