Oppenheimer Reaffirms Buy Rating on Darden Restaurants
Oppenheimer maintains its buy rating for Darden Restaurants with a $235 target, a 11.75% upside from the current price.
Key Points
- Oppenheimer reiterated its buy rating on Darden Restaurants, Inc. (NYSE:DRI) with a price target of $235 on June 18, 2026.
- Oppenheimer's $235 price target implies 11.75% upside from Darden Restaurants, Inc.'s ($DRI) current $210.28 share price.
- Darden Restaurants has a market cap of about $24.2 billion and a P/E ratio of 22.27, with shares trading near $213.87.
- Insider activity includes sales by SVP Douglas Milanes and SVP Lindsay Koren, while analysts like Citigroup and B of A Securities also maintain positive ratings.
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Oppenheimer has reiterated its buy rating on Darden Restaurants, Inc. (NYSE:DRI) with a price target of $235. This reaffirmation by analyst Brian Bittner was made on June 18, 2026, highlighting continued confidence in the restaurant operator's potential.
Other Institutional Activity in Darden Restaurants
Capital World Investors trimmed its holdings by 232,593 shares, ending with about 14.9 million shares valued at $2.93 billion. BlackRock, Inc. also reduced its position by 280,271 shares, holding roughly 9.6 million shares worth $1.89 billion. Vanguard Capital Management LLC initiated a new position with 7.47 million shares valued at $1.47 billion. Meanwhile, Wellington Management Group LLP significantly cut its stake by 1,228,575 shares, now holding 6.8 million shares valued at $1.34 billion. State Street Corp made a minor reduction of 6,595 shares, maintaining 4.86 million shares worth $953 million.
Darden Restaurants, Inc. Stock Down 1.9%
Shares of Darden Restaurants, Inc. (NYSE:DRI) traded near $213.87. The company has a market cap of approximately $24.2 billion, with a P/E ratio of 22.27 and a forward P/E of 18.58. Its beta is 0.587, indicating lower volatility compared to the market. The stock's 52-week range is between $169.00 and $228.27, with a 50-day moving average of $199.16 and a 200-day moving average of $195.82.
$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, marking a growth of 5.9%. The company achieved an EPS of $9.49, with a net margin of 8.66% and a return on equity of 51.54%. The next earnings release 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
The company offers an annual dividend rate of $6.00, yielding 2.87%. Its dividend payout ratio stands at 62.17%.
Insider Buying and Selling at Darden Restaurants, Inc.
Recent insider activity includes sales by Douglas Milanes, SVP and Chief Supply Chain Officer, who sold 3,620 shares on April 17, 2026, at an average price of $202.17. Lindsay Koren, SVP General Counsel, sold 300 shares on April 7, 2026, at an average price of $194.32.
Analysts Set New Price Targets
On June 18, 2026, Oppenheimer reiterated its buy rating with a $235 price target. Citigroup maintained its buy rating with a $245 target on June 15, 2026, while B of A Securities kept a buy rating with a $276 target on June 5, 2026. The consensus rating is a buy, with an average target price of $226.23 based on 26 analyst opinions.
About Darden Restaurants
Darden Restaurants, Inc. operates a variety of full-service restaurants in the United States and Canada, including popular chains like Olive Garden and LongHorn Steakhouse. Headquartered in Orlando, Florida, and led by CEO Ricardo Cardenas, the company employs nearly 198,000 people.
Bottom Line
Oppenheimer's reiterated buy rating on Darden Restaurants underscores continued optimism for the company's performance. With a solid market cap and a positive earnings outlook, Darden remains a significant player in the restaurant industry. As always, it's important to remember that analyst ratings are projections and can change based on market conditions.
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