Darden Restaurants, Inc. (NYSE:DRI) Announces Dividend Increase – $1.40 Per Share

Darden Restaurants, Inc. (NYSE:DRI) declared a quarterly dividend on Thursday, September 19th, Zacks reports. Investors of record on Thursday, October 10th will be given a dividend of 1.40 per share by the restaurant operator on Friday, November 1st. This represents a $5.60 dividend on an annualized basis and a dividend yield of 3.51%. The ex-dividend date of this dividend is Thursday, October 10th. This is a boost from Darden Restaurants’s previous quarterly dividend of $1.29.

Darden Restaurants has increased its dividend payment by an average of 62.3% annually over the last three years. Darden Restaurants has a payout ratio of 53.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Darden Restaurants to earn $10.48 per share next year, which means the company should continue to be able to cover its $5.60 annual dividend with an expected future payout ratio of 53.4%.

Darden Restaurants Price Performance

DRI stock opened at $159.55 on Tuesday. Darden Restaurants has a 52 week low of $133.36 and a 52 week high of $176.84. The firm has a market capitalization of $19.04 billion, a P/E ratio of 18.73, a price-to-earnings-growth ratio of 1.99 and a beta of 1.30. The company has a fifty day simple moving average of $155.85 and a two-hundred day simple moving average of $152.70. The company has a quick ratio of 0.22, a current ratio of 0.35 and a debt-to-equity ratio of 0.65.

Darden Restaurants (NYSE:DRI) last released its quarterly earnings results on Thursday, September 19th. The restaurant operator reported $1.75 EPS for the quarter, missing the consensus estimate of $1.83 by ($0.08). The company had revenue of $2.76 billion during the quarter, compared to analysts’ expectations of $2.80 billion. Darden Restaurants had a return on equity of 49.46% and a net margin of 9.11%. The company’s revenue was up 1.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.78 EPS. Analysts anticipate that Darden Restaurants will post 9.48 earnings per share for the current fiscal year.

Insider Buying and Selling at Darden Restaurants

In other news, SVP Susan M. Connelly sold 3,320 shares of the company’s stock in a transaction dated Tuesday, October 1st. The shares were sold at an average price of $163.43, for a total transaction of $542,587.60. Following the transaction, the senior vice president now owns 6,155 shares in the company, valued at $1,005,911.65. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other news, SVP Douglas J. Milanes sold 5,705 shares of the stock in a transaction dated Monday, September 23rd. The stock was sold at an average price of $172.04, for a total value of $981,488.20. Following the transaction, the senior vice president now directly owns 3,834 shares of the company’s stock, valued at approximately $659,601.36. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Susan M. Connelly sold 3,320 shares of the stock in a transaction that occurred on Tuesday, October 1st. The stock was sold at an average price of $163.43, for a total transaction of $542,587.60. Following the completion of the transaction, the senior vice president now owns 6,155 shares in the company, valued at approximately $1,005,911.65. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 74,706 shares of company stock worth $12,323,138. 0.85% of the stock is owned by insiders.

Analysts Set New Price Targets

Several brokerages recently commented on DRI. UBS Group upped their price target on shares of Darden Restaurants from $188.00 to $195.00 and gave the company a “buy” rating in a report on Friday, September 20th. Morgan Stanley increased their price target on Darden Restaurants from $175.00 to $188.00 and gave the stock an “overweight” rating in a report on Friday, September 20th. BTIG Research boosted their price objective on Darden Restaurants from $175.00 to $195.00 and gave the company a “buy” rating in a report on Friday, September 20th. Stephens lifted their target price on Darden Restaurants from $159.00 to $164.00 and gave the stock an “equal weight” rating in a research report on Friday, September 20th. Finally, Raymond James reiterated an “outperform” rating and set a $160.00 price objective on shares of Darden Restaurants in a report on Tuesday, August 20th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and seventeen have issued a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $179.25.

About Darden Restaurants

Darden Restaurants, Inc, together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s Prime Seafood, and Capital Burger brand names.