Q1 2025 EPS Estimates for Darden Restaurants, Inc. Decreased by Wedbush (NYSE:DRI)

Darden Restaurants, Inc. (NYSE:DRI) – Analysts at Wedbush dropped their Q1 2025 EPS estimates for Darden Restaurants in a research report issued on Thursday, June 20th. Wedbush analyst N. Setyan now expects that the restaurant operator will post earnings of $1.69 per share for the quarter, down from their previous forecast of $1.80. Wedbush currently has a “Outperform” rating and a $170.00 target price on the stock. The consensus estimate for Darden Restaurants’ current full-year earnings is $9.50 per share. Wedbush also issued estimates for Darden Restaurants’ Q2 2025 earnings at $1.93 EPS, Q3 2025 earnings at $2.78 EPS, Q1 2026 earnings at $1.87 EPS, Q2 2026 earnings at $2.11 EPS and Q3 2026 earnings at $3.02 EPS.

Darden Restaurants (NYSE:DRI) last announced its quarterly earnings results on Thursday, June 20th. The restaurant operator reported $2.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.61 by $0.04. Darden Restaurants had a net margin of 9.02% and a return on equity of 49.82%. The business had revenue of $3 billion during the quarter, compared to the consensus estimate of $2.97 billion. During the same quarter last year, the firm posted $2.58 EPS. The business’s revenue was up 8.3% compared to the same quarter last year.

A number of other research firms have also weighed in on DRI. Oppenheimer cut their price objective on shares of Darden Restaurants from $186.00 to $182.00 and set an “outperform” rating for the company in a research report on Friday, March 22nd. Stifel Nicolaus cut their price target on Darden Restaurants from $190.00 to $180.00 and set a “buy” rating for the company in a report on Friday. Guggenheim raised their price objective on Darden Restaurants from $180.00 to $185.00 and gave the stock a “buy” rating in a report on Tuesday, March 19th. Truist Financial reiterated a “buy” rating and issued a $190.00 target price on shares of Darden Restaurants in a research note on Friday, March 22nd. Finally, Bank of America raised their price target on Darden Restaurants from $180.00 to $185.00 and gave the stock a “buy” rating in a research note on Friday. Five analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $174.20.

Darden Restaurants Stock Performance

Darden Restaurants stock opened at $154.13 on Monday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 0.25 and a current ratio of 0.38. Darden Restaurants has a fifty-two week low of $133.36 and a fifty-two week high of $176.84. The stock has a fifty day moving average of $150.70 and a two-hundred day moving average of $159.57. The company has a market capitalization of $18.40 billion, a price-to-earnings ratio of 18.09, a PEG ratio of 1.63 and a beta of 1.29.

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

Darden Restaurants Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 1st. Shareholders of record on Wednesday, July 10th will be issued a dividend of $1.29 per share. This represents a $5.16 dividend on an annualized basis and a yield of 3.35%. The ex-dividend date of this dividend is Wednesday, July 10th. Darden Restaurants’s dividend payout ratio (DPR) is currently 61.50%.

Insider Buying and Selling

In other news, SVP Matthew R. Broad sold 4,707 shares of the business’s stock in a transaction on Thursday, April 25th. The shares were sold at an average price of $156.15, for a total value of $734,998.05. Following the completion of the transaction, 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 document filed with the Securities & Exchange Commission, which is available through this link. In other Darden Restaurants news, Director William S. Simon sold 1,219 shares of the business’s stock in a transaction that occurred on Monday, April 8th. The stock was sold at an average price of $158.21, for a total value of $192,857.99. Following the sale, the director now owns 6,281 shares in the company, valued at approximately $993,717.01. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Matthew R. Broad sold 4,707 shares of the stock in a transaction that occurred on Thursday, April 25th. The shares were sold at an average price of $156.15, for a total value of $734,998.05. Following the transaction, the senior vice president now directly owns 19,179 shares of the company’s stock, valued at $2,994,800.85. The disclosure for this sale can be found here. Insiders have sold 13,599 shares of company stock valued at $2,197,891 in the last 90 days. 0.85% of the stock is owned by insiders.

Hedge Funds Weigh In On Darden Restaurants

A number of hedge funds and other institutional investors have recently bought and sold shares of DRI. Rise Advisors LLC raised its stake in Darden Restaurants by 131.3% in the 1st quarter. Rise Advisors LLC now owns 155 shares of the restaurant operator’s stock valued at $26,000 after acquiring an additional 88 shares during the period. ESL Trust Services LLC bought a new position in shares of Darden Restaurants in the first quarter valued at about $27,000. Fortitude Family Office LLC acquired a new stake in shares of Darden Restaurants during the 4th quarter worth about $29,000. Hartford Financial Management Inc. boosted its holdings in shares of Darden Restaurants by 65.1% during the 4th quarter. Hartford Financial Management Inc. now owns 180 shares of the restaurant operator’s stock worth $30,000 after buying an additional 71 shares during the period. Finally, Tennessee Valley Asset Management Partners acquired a new position in Darden Restaurants in the 4th quarter valued at about $33,000. Institutional investors own 93.64% of the company’s stock.

About Darden Restaurants

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.