Great Lakes Advisors Adds $10M in Darden Restaurants, Inc. ($DRI)
The firm boosted its position in Darden Restaurants by over 21%, reflecting confidence in the company.
Key Points
- Great Lakes Advisors boosted its Darden Restaurants stake by 21.52%, adding 48,190 shares to total 272,083 shares, valued at $57.5 million.
- Darden Restaurants, with a market cap of $24.22 billion, trades near $211.47 with a P/E ratio of 22.26 and a beta of 0.587.
- Analysts maintain a 'buy' consensus for Darden, with a mean target price of $226.23 and the next earnings report due on June 25, 2026.
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Great Lakes Advisors has raised its stake in Darden Restaurants, Inc. (NYSE: DRI) by 21.52%, according to the latest Form 13F filing with the SEC. The firm added 48,190 shares during the reporting period, bringing its total holdings to 272,083 shares valued at approximately $57.5 million. This move suggests a strong vote of confidence in the restaurant operator.
What Changed in Great Lakes Advisors' Darden Restaurants Position
Great Lakes Advisors increased its investment in Darden Restaurants by 48,190 shares, moving from 223,893 shares to 272,083 shares. This represents a 21.52% increase in their holdings, which are now valued at about $57.5 million. The decision to boost their stake indicates a positive outlook on the restaurant company's future performance.
Other Institutional Activity in Darden Restaurants
In other institutional activity, Capital World Investors reduced its holdings by 232,593 shares, ending with 14,928,684 shares valued at $2.93 billion. BlackRock, Inc. also trimmed its position by 280,271 shares, holding 9,649,638 shares worth $1.89 billion. Meanwhile, Vanguard Capital Management LLC acquired 7,473,998 shares, reaching a total of 7,473,998 shares valued at $1.47 billion. Wellington Management Group LLP cut its position significantly by 1,228,575 shares, now holding 6,848,992 shares valued at $1.34 billion.
Darden Restaurants, Inc. Stock Down 4.3%
Shares of NYSE:DRI traded near $211.47. Darden Restaurants has a market cap of $24.22 billion and a P/E ratio of 22.26. The stock has a beta of 0.587, suggesting it is less volatile than the market. The 52-week range for the stock is between $169.00 and $228.27. Its 50-day moving average is $198.24, and the 200-day moving average is $195.78. The company's current ratio stands at 0.387, with a quick ratio of 0.133 and a debt-to-equity ratio of 387.681.
$DRI stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
Darden Restaurants reported revenue of $12.76 billion, with a revenue growth rate of 5.9%. The company's net margin is 8.66%, and it boasts a return on equity of 51.54%. Its earnings per share stand at $9.50. The next earnings report is scheduled for 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 pays an annual dividend rate of $6.00, yielding 2.84% with a payout ratio of 62.17%. This provides investors with a steady income stream alongside potential capital gains.
Insider Buying and Selling at Darden Restaurants, Inc.
Insider activity at Darden Restaurants included several transactions on May 31, 2026. Daryl Kenningham bought 159 shares and sold the same amount on the same day. Timothy Wilmott purchased 162 shares, while Douglas Milanes, the SVP and Chief Supply Chain Officer, sold 3,620 shares on April 17, 2026, at an average price of $202.17. Lindsay Koren, the SVP General Counsel, sold 300 shares on April 7, 2026, at an average price of $194.32.
Analysts Set New Price Targets
Analyst firms have maintained their ratings for Darden Restaurants. On June 5, 2026, B of A Securities maintained a 'buy' rating with a price target of $276. Keybanc also maintained a 'buy' rating on May 27, 2026, with a target of $228. Overall, the consensus among 26 analysts is to 'buy', with a mean target price of $226.23.
About Darden Restaurants
Darden Restaurants, Inc., based in Orlando, Florida, operates full-service restaurants in the U.S. and Canada under various brand names, including Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen. Founded in 1938, the company is led by CEO Ricardo Cardenas and employs nearly 198,000 people. It is a major player in the consumer cyclical sector, specifically within the restaurant industry.
Bottom Line
Great Lakes Advisors' decision to boost its stake in Darden Restaurants reflects confidence in the company's future prospects. Darden's strong market position, coupled with consistent revenue growth and a healthy dividend, makes it an attractive option for investors. However, it's important to remember that 13F filings are backward-looking and may not represent the investor's current position.
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