Guggenheim Reiterates Buy Rating on Darden Restaurants, Inc.
Guggenheim maintains its Buy rating for Darden Restaurants with a $235 price target, a 11.32% upside from the current price.
Key Points
- Guggenheim reiterated its Buy rating on Darden Restaurants, Inc. (NYSE:DRI) with a price target of $235 on June 24, 2026.
- Guggenheim's $235 price target implies 11.32% upside from Darden Restaurants, Inc.'s ($DRI) current $211.10 share price.
- Shares of Darden traded around $210.28 on Wednesday, with a market cap of $24.28 billion and a P/E ratio of 22.3.
- Vanguard Portfolio Management LLC opened a new position in Darden with 5,355,047 shares valued at about $1.05 billion.
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Guggenheim has reiterated its Buy rating on Darden Restaurants, Inc. (NYSE:DRI), setting a price target of $235. This reaffirmation came on June 24, 2026, as analyst Gregory Francfort expressed continued confidence in the company's prospects.
Other Institutional Activity in Darden Restaurants
Among Darden's institutional investors, Vanguard Portfolio Management LLC opened a new position, acquiring 5,355,047 shares valued at approximately $1.05 billion. Meanwhile, Capital World Investors trimmed its holdings by 232,593 shares, ending with 14,928,684 shares worth about $2.93 billion—a 1.5% decrease. BlackRock, Inc. also reduced its stake by 280,271 shares to 9,649,638 shares, valued at around $1.89 billion, marking a 2.8% reduction. Wellington Management Group LLP decreased its position by 1,228,575 shares, holding 6,848,992 shares valued at $1.34 billion, a 15.2% decrease.
Darden Restaurants, Inc. Stock Down 2.1%
Shares of Darden Restaurants, Inc. traded near $210.28 on Wednesday. The company boasts a market cap of $24.28 billion and a P/E ratio of 22.3. The stock's 52-week range is between $169.00 and $224.94, with a 50-day moving average of $199.51 and a 200-day moving average of $195.85. Darden has a beta of 0.587, indicating lower volatility compared to the market. The company's current ratio stands at 0.387, and its quick ratio is 0.133, with a debt-to-equity ratio of 387.68.
$DRI price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Darden Restaurants reported revenue of $12.76 billion, reflecting a growth of 5.9%. The company's earnings per share (EPS) were $9.50, with a net margin of 8.66% and a return on equity (ROE) of 51.54%. 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 pays an annual dividend rate of $6.00, yielding 2.81%. The dividend payout ratio is 62.17%, indicating the proportion of earnings paid to shareholders as dividends.
Insider Buying and Selling at Darden Restaurants, Inc.
Recent insider activity includes Daryl Kenningham, who bought 159 shares on May 31, 2026. On the same day, he also sold 159 shares. Timothy Wilmott purchased 162 shares, while Douglas Milanes, the SVP and Chief Supply Chain Officer, sold 3,620 shares at an average price of $202.17 on April 17, 2026. Lindsay Koren, SVP General Counsel, sold 300 shares at $194.32 on April 7, 2026.
Analysts Set New Price Targets
On June 24, 2026, Guggenheim maintained its Buy rating on Darden with a $235 price target. Oppenheimer reiterated its Buy rating with the same target on June 18, 2026. Citigroup maintained its Buy rating with a $245 target on June 15, 2026, while B of A Securities upheld a Buy rating with a $276 target on June 5, 2026. The consensus among 26 analysts is a Buy, with an average target price of $226.23.
About Darden Restaurants, Inc.
Darden Restaurants, Inc. operates a variety of full-service restaurant chains in the U.S. and Canada. Its well-known brands include Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen, among others. Headquartered in Orlando, Florida, Darden was founded in 1938 and is led by CEO Ricardo Cardenas. The company employs nearly 198,000 people.
Bottom Line
Guggenheim's reiterated Buy rating and $235 price target reflect continued confidence in Darden Restaurants' performance. Investors keep a close eye on Darden due to its strong brand portfolio and financial metrics. It's important to remember that analyst ratings and 13F filings are backward-looking and may not reflect current conditions.
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