Darden Restaurants Reaffirms Full-Year Targets as Cost Pressures Persist

Darden Restaurants, Inc. has retained its fiscal 2027 earnings guidance following a mixed operating performance. According to a report by Morningstar published by ad-hoc-news.de, the company continues to project diluted earnings between 11.10 and 11.35 US dollars per share. Darden is also proceeding with its strategy to shut or convert its Bahama Breeze units by the fourth quarter of fiscal 2027.

The restaurant operator reported quarterly figures showing sales rose 5.1 percent year over year to 3.2 billion US dollars, with blended same-restaurant sales advancing 3.1 percent on a fiscal calendar basis. However, higher labor, food, and restaurant expenses reduced profitability. Operating income fell from 339.2 million US dollars to 319.3 million US dollars, while earnings from continuing operations declined from 257.9 million US dollars to 234.3 million US dollars.

Institutional investors have continued adjusting their stakes in the company, which is 93.64% owned by institutional funds. Recent Securities and Exchange Commission filings show Alps Advisors Inc. increased its holdings by 4% in the third quarter, acquiring 5,266 shares to hold 136,067 shares valued at roughly $26.3 million. Cidel Asset Management Inc. also raised its position by 66.8%, and International Assets Investment Management LLC expanded its holdings by 13,052.1% during the same quarter.

MarketBeat reports that Wall Street brokerages hold a consensus "Moderate Buy" rating on Darden Restaurants, with an average target price of $232.82 based on 16 buy recommendations and nine hold ratings. Additionally, the company distributed a quarterly dividend of $1.62 per share on Monday, November 2nd, translating to an annualized payout of $6.48 and a 2.9% dividend yield.