Darden Restaurants, Inc. (NYSE:DRI) to Issue Quarterly Dividend of $1.29

Darden Restaurants, Inc. (NYSE:DRIGet Free Report) announced a quarterly dividend on Thursday, June 20th, RTT News reports. Stockholders of record on Thursday, July 11th will be paid a dividend of 1.29 per share by the restaurant operator on Thursday, August 15th. This represents a $5.16 annualized dividend and a dividend yield of 3.56%. The ex-dividend date is Wednesday, July 10th.

Darden Restaurants has raised its dividend payment by an average of 62.3% per year over the last three years. Darden Restaurants has a dividend payout ratio of 53.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Darden Restaurants to earn $10.43 per share next year, which means the company should continue to be able to cover its $5.60 annual dividend with an expected future payout ratio of 53.7%.

Darden Restaurants Stock Performance

Shares of NYSE:DRI opened at $144.79 on Tuesday. The company has a quick ratio of 0.24, a current ratio of 0.38 and a debt-to-equity ratio of 0.61. The company has a market capitalization of $17.28 billion, a price-to-earnings ratio of 16.99, a price-to-earnings-growth ratio of 1.66 and a beta of 1.29. The firm has a 50 day moving average of $149.45 and a 200 day moving average of $158.57. Darden Restaurants has a 52 week low of $133.36 and a 52 week high of $176.84.

Darden Restaurants (NYSE:DRIGet Free Report) last released its quarterly earnings results on Thursday, June 20th. The restaurant operator reported $2.65 EPS for the quarter, topping the consensus estimate of $2.61 by $0.04. Darden Restaurants had a return on equity of 49.82% and a net margin of 9.02%. The firm had revenue of $3 billion during the quarter, compared to analyst estimates of $2.97 billion. During the same period in the previous year, the company posted $2.58 EPS. The business’s revenue for the quarter was up 8.3% compared to the same quarter last year. On average, sell-side analysts predict that Darden Restaurants will post 9.5 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts recently commented on DRI shares. JPMorgan Chase & Co. decreased their target price on shares of Darden Restaurants from $176.00 to $165.00 and set an “overweight” rating for the company in a research report on Tuesday, May 28th. BTIG Research raised Darden Restaurants from a “neutral” rating to a “buy” rating and set a $175.00 target price on the stock in a research report on Friday, May 17th. Truist Financial reissued a “buy” rating and issued a $190.00 price target on shares of Darden Restaurants in a report on Friday, March 22nd. TD Cowen reaffirmed a “buy” rating and issued a $170.00 price objective on shares of Darden Restaurants in a research report on Thursday, June 20th. Finally, Oppenheimer dropped their target price on shares of Darden Restaurants from $186.00 to $182.00 and set an “outperform” rating on the stock in a research report on Friday, March 22nd. Five research analysts have rated the stock with a hold rating and seventeen have given a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $174.24.

Get Our Latest Stock Report on Darden Restaurants

Insider Activity at Darden Restaurants

In other news, SVP Matthew R. Broad sold 4,707 shares of the firm’s stock in a transaction that occurred on Thursday, April 25th. The shares were sold at an average price of $156.15, for a total transaction of $734,998.05. Following the sale, the senior vice president now owns 19,179 shares of the company’s stock, valued at approximately $2,994,800.85. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.85% of the stock is owned by company insiders.

Darden Restaurants announced that its board has authorized a share repurchase plan on Thursday, March 21st that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the restaurant operator to purchase up to 5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

About Darden Restaurants

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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.

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Dividend History for Darden Restaurants (NYSE:DRI)

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