Darden Restaurants Inc. (NYSE: ) hit an all-time high, with the stock price jumping to $188.91. This milestone reflects a significant upward trend for the company that operates a network of well-known restaurant chains. With a market cap of $22.2 billion and a P/E ratio of 21.4, InvestingPro analysis suggests that the stock is trading slightly above its fair value. Over the past year, Darden Restaurants has seen its stock increase 15.43%, with an impressive six-month gain of 25%. The company maintains a strong dividend yield of 3% and has consistently paid dividends for 30 consecutive years. Achieving this all-time high in prices marks a significant event for the company and its shareholders, with 12 analysts recently revising earnings expectations upwards. InvestingPro subscribers can access 8 additional key insights on DRI’s financial health and growth prospects.
In other recent news, Darden Restaurants was in the spotlight for its impressive earnings and revenue results, with its fiscal 2025 second quarter performance beating expectations. BMO Capital, Stephens, Oppenheimer, KeyBanc Capital Markets, Baird and Raymond (NS:) All James raised their price targets for Darden, reflecting confidence in the company’s financial trajectory. Darden reported second-quarter fiscal 2025 earnings per share of $2.03, beating the consensus estimate of $2.02, attributed to higher comparable sales and lower food costs. The company’s revenue rose nearly 6% over the past twelve months to $11.4 billion.
Darden reaffirmed its full-year 2025 EPS guidance, which is forecast to be between $9.40 and $9.60, and revised its full-year 2025 sales guidance to about 1.5%. The company’s solid financial health is evident in its consistent dividend payments, which it has maintained for 30 consecutive years. These are recent developments in Darden’s financial journey.
Analysts at various firms, such as Oppenheimer and Baird, expressed optimism about Darden’s initiatives, including new advertising strategies and the planned national rollout of Olive Garden’s delivery service. However, they remain cautious due to the need for evidence of sustainable improvements in same-store traffic.
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