Argus Research Reiterates Buy Rating on Darden Restaurants
Argus Research maintains its Buy rating on Darden Restaurants with a $245 price target, a 18.57% upside from the current price.
Key Points
- Argus Research reiterated its Buy rating on Darden Restaurants, Inc. (NYSE:DRI) with a $245 price target on June 30, 2026.
- Argus Research's $245 price target implies 18.57% upside from Darden Restaurants, Inc.'s ($DRI) current $206.62 share price.
- Shares of Darden traded near $207.7 on Tuesday, with a market cap of about $24.5 billion and a P/E ratio of 20.49.
- Insiders at Darden, including CEO Ricardo Cardenas, purchased shares recently, while analysts maintain positive ratings.
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Argus Research reiterated its Buy rating on Darden Restaurants, Inc. (NYSE:DRI) on June 30, 2026. The firm set a price target of $245, highlighting its confidence in the restaurant giant. Darden's shares traded around $207.7 on Tuesday.
Argus Research vs. the S&P 500
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Darden Restaurants, Inc. Stock Down 4.2%
Shares of NYSE:DRI traded near $207.7 on Tuesday. Darden Restaurants has a market cap of approximately $24.5 billion and a P/E ratio of 20.49. The stock's 52-week range spans from $169.0 to $222.56. It has a 50-day moving average of $201.20 and a 200-day moving average of $195.91. The company has a beta of 0.587, indicating lower volatility compared to the market.
$DRI price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Darden Restaurants reported revenue of $13.21 billion, with a growth rate of 13.7% year-over-year. Its net margin stands at 9.1%, and it boasts a return on equity of 53.7%. The company is set to announce its next earnings on September 17, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
8 target raises vs 1 cuts.
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EPS & revenue
EPS missed estimates by 0.8%. Revenue missed estimates by 0.6%.
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Profit surprise
EBITDA missed by 7 percent. Operating income missed by 9 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
8 target raises, 1 target cut.
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Earnings quality
Gross margin down 4.3 points. Positive free cash flow.
Earnings Call Summary
Darden delivered a strong second quarter with 3.1 billion in sales and 4.3 percent same restaurant sales growth, outperforming the industry by 300 basis points. Olive Garden led with 4.7 percent growth driven by the Never Ending Pasta Bowl promotion and strong Uber Direct delivery at 4 percent of sales. However, elevated beef prices compressed margins as the company priced 130 basis points below inflation to protect guest value. Management expects beef costs to ease in the fourth quarter and margins to improve in the back half.
Guidance Darden raised its full year sales guidance to 8.5 to 9.3 percent growth, up from prior range. The company expects same restaurant sales of 3.5 to 4.3 percent for the year and 65 to 70 new openings. Full year adjusted earnings per share guidance stays at 10.60 to 10.70, which includes about 20 cents from a fifty-third week.
Fine but not compelling. Acceptable results that likely do not create a meaningful forward reset.
Dividend
Darden offers an annual dividend rate of $6.12, yielding 2.86% based on the current stock price. The dividend payout ratio is 57.47%, providing investors with a steady income stream.
Insider Buying and Selling at Darden Restaurants, Inc.
Recent insider activity at Darden Restaurants shows several executives purchasing shares. On June 23, 2026, President and CEO Ricardo Cardenas bought 23,249 shares. Other executives, including John Wilkerson, Rajesh Vennam, and Susan Connelly, also acquired shares on the same day, indicating confidence in the company's future.
Analysts Set New Price Targets
On June 30, 2026, Argus Research maintained its Buy rating for Darden Restaurants with a $245 price target. UBS and Deutsche Bank also reiterated their Buy ratings with targets of $240 and $236, respectively. Piper Sandler, Baird, and Stephens & Co. maintained Hold ratings, with price targets ranging from $212 to $220. The consensus among 24 analysts is a Buy, with an average price target of $229.
About Darden Restaurants
Darden Restaurants, Inc. operates full-service restaurants in the U.S. and Canada. Its well-known brands include Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen. Based in Orlando, Florida, and led by CEO Ricardo Cardenas, the company continues to expand its presence in the restaurant industry.
Bottom Line
Argus Research's reiteration of a Buy rating for Darden Restaurants reflects ongoing optimism about the company's prospects. With a solid market position and a diverse portfolio of restaurant brands, Darden remains a key player in the consumer cyclical sector. Investors track such analyst ratings closely, though they should remember that these are backward-looking assessments.
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