The latest news on Darden Restaurants (NYSE:DRI) from StockNews.com reveals a downgrade in rating from “buy” to “hold”. Investors are starting to take notice and closely examining the company’s performance in light of this shift. However, their quarterly earnings report released on March 23rd shows impressive results with $2.34 earnings per share (EPS) for the quarter, beating analyst estimates by $0.10. The company had revenue of $2.79 billion during the same period, up 13.8% on a year-over-year basis.
Darden Restaurants is a full-service restaurant company that provides restaurant services through its Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Business segments. The Olive Garden segment is currently the largest full-service dining Italian restaurant operator.
What could be causing the downgrade in rating for Darden Restaurants? It’s difficult to tell without more information from StockNews.com or other sources. Some possible factors could include growing competition in the restaurants industry, concerns about sustainability and ethical sourcing practices, or shifts in consumer preferences towards healthier food options.
It’s important for investors to stay informed about current market trends and company performance when making investment decisions. While it may be tempting to panic over sudden shifts in ratings or other news, a closer examination of earnings reports and long-term strategy can provide valuable insights into a company’s overall health and prospects for growth.
As of right now, research analysts forecast that Darden Restaurants will post 7.94 EPS for the current fiscal year – indicating continued strong performance overall. However, this situation is worth keeping an eye on as more information becomes available in order to make informed decisions about investments in the future.
Darden Restaurants’ Stock Rated a ‘Moderate Buy’ by Analysts with Increased Price Targets
Darden Restaurants, Inc. has recently seen a surge of interest from equities analysts with many firms issuing reports and increased price targets. Bank of America, Guggenheim and TD Cowen are amongst the few who have rated the stock as “Moderate Buy” whilst Citigroup upgraded the company to a “Buy” rating. According to Bloomberg, Darden currently has a consensus rating of “Moderate Buy” and a consensus price target of $160.23.
Darden Restaurants is a full-service restaurant company that operates under several segments including Olive Garden, LongHorn Steakhouse, Fine Dining and Other Business. Olive Garden represents one of the largest Italian-themed restaurant chains in America.
Recent announcements from Darden have indicated some insider selling activities with senior vice president Douglas J. Milanes disclosing a sale of 2,229 shares in March for an estimated total transaction cost of $345,495 while Chairman Eugene I. Lee Jr., sold over 78,000 shares at an average price of $153.93 around the same time.
Despite this news, hedge funds such as Vanguard Group Inc., BlackRock Inc., State Street Corp and Charles Schwab Investment Management Inc. have increased their position in the company in recent months.
Darden Restaurants’ success can be attributed to its well-known chain brands such as Olive Garden which continue to perform well even in volatile economic times. The company’s strategic expansion initiatives continue to play a vital role in augmenting investor confidence towards it.
The market cap for Darden currently stands at approximately $19.47 billion with shares opening on Friday trading at $161.03; far beyond its 52-week high showing positive momentum for investors to consider investing despite recent losses by insiders within the firm.
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