Citigroup Reiterates Buy Rating on Darden Restaurants, Inc.
On June 15, 2026, Citigroup reiterated its buy rating for Darden Restaurants, Inc. with a $245 price target, a 13.49% upside from the current price.
Key Points
- On June 15, 2026, Citigroup reiterated its buy rating for Darden Restaurants, Inc. (NYSE:DRI) with a $245 price target.
- Citigroup's $245 price target implies 13.49% upside from Darden Restaurants, Inc.'s ($DRI) current $215.88 share price.
- Darden Restaurants, Inc. trades at $211.47 with a market cap of $24.2 billion and a P/E ratio of 22.26.
- Insiders have been active, with transactions including both purchases and sales in recent months.
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On June 15, 2026, Citigroup reiterated its buy rating for Darden Restaurants, Inc. (NYSE:DRI), maintaining a price target of $245. Analyst Jon Tower emphasized the continued potential for the restaurant group, which operates well-known brands like Olive Garden and LongHorn Steakhouse.
Darden Restaurants, Inc. Stock Up 0.1%
Shares of NYSE:DRI traded around $211.47. Darden Restaurants, Inc. has a market capitalization of approximately $24.2 billion and a P/E ratio of 22.26, with a forward P/E of 18.59. The stock’s 52-week range is between $169.00 and $228.27, and it has a beta of 0.587. The company's 50-day moving average is $198.24, while the 200-day moving average is $195.78.
$DRI price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Darden Restaurants, Inc. reported revenue of $12.76 billion, reflecting a growth rate of 5.9%. The company achieved a net margin of 8.66% and a return on equity of 51.54%. Earnings per share stood at $9.50. The next earnings report is expected on June 25, 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 Restaurants, Inc. offers an annual dividend rate of $6.00, yielding 2.84%. The dividend payout ratio is 62.17%.
Insider Buying and Selling at Darden Restaurants, Inc.
Recent insider activity at Darden Restaurants includes various transactions. On May 31, 2026, Daryl Kenningham engaged in multiple transactions, both buying and selling 159 shares each. On April 17, 2026, Douglas Milanes, the SVP and Chief Supply Chain Officer, sold 3,620 shares at an average price of $202.17. Lindsay Koren, SVP General Counsel, sold 300 shares on April 7, 2026, at $194.32.
Analysts Set New Price Targets
On June 15, 2026, Citigroup maintained its buy rating with a $245 price target. Earlier, on June 5, 2026, B of A Securities reiterated a buy rating with a target of $276. Keybanc also maintained a buy rating with a $228 target on May 27, 2026. The consensus recommendation is a buy, with a mean target price of $226.23 based on 26 analyst opinions.
About Darden Restaurants, Inc.
Darden Restaurants, Inc., based in Orlando, Florida, operates a range of full-service restaurants in the U.S. and Canada. Its portfolio includes popular brands such as Olive Garden, LongHorn Steakhouse, and The Capital Grille. With nearly 198,000 employees, the company is led by CEO Ricardo Cardenas.
Bottom Line
Investors closely watch analyst ratings, and Citigroup's reiteration of a buy rating with a $245 target for Darden Restaurants reflects continued confidence. Darden's diverse restaurant portfolio and strong financial performance make it a significant player in the consumer cyclical sector. As always, it's important to remember that analyst ratings and 13F filings are backward-looking and may not reflect the most current market conditions.
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