Darden was Upgraded to a Buy Rating at Guggenheim

By Jason Carr

Darden (NYSE: DRI) received a Buy rating from Guggenheim analyst Matthew Difrisco today. The company’s shares closed yesterday at $73.30, close to its 52-week high of $74.99.

According to TipRanks.com, Difrisco is a top 25 analyst with an average return of 29.7% and a 87.6% success rate. Difrisco covers the Services sector, focusing on stocks such as Restaurant Brands International, Buffalo Wild Wings, and Cheesecake Factory.

Darden has an analyst consensus of Hold, with a price target consensus of $67.40.

Based on Darden’s latest earnings report for the quarter ending August 31, the company posted quarterly revenue of $1.71 billion and quarterly net profit of $110 million. In comparison, last year the company earned revenue of $1.61 billion and had a net profit of $43.2 million.

Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DRI in relation to earlier this year. Most recently, in July 2015, Valerie Insignares, the President of DRI sold 5,090 shares for a total of $377,271.

Darden Restaurants, Inc. engages in the provision of restaurant services. It operates through the following segments: Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Business. The Olive Garden segment is the largest full-service dining Italian restaurant operator in the United States. The LongHorn Steakhouse segment includes the results of the company-owned LongHorn Steakhouse restaurants in the United States of America. The Fine Dining segment accumulates the premium brands that operate within the fine-dining sub-segment of full-service dining and includes the results of its company-owned The Capital Grille and Eddie V’s restaurants in the United States of America. The Other Business segment aggregates the remaining brands and includes the results of its company-owned Yard House, Seasons 52 and Bahama Breeze restaurants in the United States of America. This segment also includes results from franchises and consumer-packaged goods sales. The company was founded by William B. Darden in 1938 and is headquartered in Orlando, FL.