In a recent transaction, John W. Madonna, the Senior Vice President and Corporate Controller of Darden Restaurants Inc. (NYSE:DRI), sold shares of the company's stock, resulting in over $800,000 in total sales. The executive sold 4,735 shares at an average price range of $172.59 to $173.2295, with the weighted average sale price reported at $172.9588 per share, amounting to a total of $818,959.
The sale took place on September 24, 2024, and was disclosed in a filing with the Securities and Exchange Commission. According to the filing, the shares sold by Madonna were part of a larger holding, and following the sale, he still owned 9,160.783 shares in the company. The disclosure also noted that the shares included in Madonna's post-transaction ownership figure encompass those acquired through the Darden Restaurants, Inc. Employee Stock Purchase Plan and dividends reinvested as part of the plan.
On the same day, Madonna also engaged in a transaction that involved acquiring 4,735 shares of common stock at a price of $107.05 per share. This acquisition, which totaled $506,881, coincided with the sale of an equivalent number of shares, suggesting a possible exercise of stock options followed by a sale of the acquired shares.
Darden Restaurants Inc., headquartered in Orlando, Florida, operates a variety of restaurant brands and is known for its commitment to quality dining experiences. The transactions by Madonna represent a routine part of executive compensation and stock ownership management, and are regularly reported by company insiders in compliance with SEC regulations.
Investors and market watchers often monitor insider transactions as they can provide insights into executives' perspectives on their company's stock. However, it is important to consider that insider transactions can be motivated by a variety of personal financial considerations and do not necessarily reflect direct insight into a company's future performance.
In other recent news, Darden Restaurants reported a modest 1% increase in sales, totaling $2.8 billion, despite earnings per share falling short of expectations. The company, despite underwhelming first-quarter results, reiterated its full-year guidance. Darden also announced the future acquisition of Chuy's, which is expected to have a neutral impact on earnings per share. KeyBanc Capital Markets, BMO Capital Markets, Raymond James, TD Cowen, and Jefferies have all adjusted their price targets for Darden, with Evercore ISI upgrading the stock to "Outperform". These adjustments followed Darden's first-quarter results and the announcement of a partnership with Uber (NYSE:UBER) for delivery services. The new delivery initiative, along with the potential benefits from the acquisition of Chuy's, are expected to contribute to Darden's growth trajectory. However, some analysts, such as those from TD Cowen, expressed cautious optimism regarding the effectiveness of these strategic initiatives. These are recent developments in the company's ongoing efforts to navigate a competitive landscape and capitalize on emerging business opportunities.
InvestingPro Insights
Darden Restaurants Inc. (NYSE:DRI) has been a subject of interest for analysts and investors alike, particularly in light of recent insider transactions. As we delve into the company's financial health and market performance, several key metrics from InvestingPro stand out. With a market capitalization of $19.89 billion and a P/E ratio currently at 19.2, Darden Restaurants showcases a significant presence in the industry. Adjusted figures for the last twelve months as of Q1 2025 indicate a slightly lower P/E ratio of 18.92, reflecting the company's earnings relative to its share price.
Revenue growth remains a critical indicator of a company's progress, and Darden Restaurants reported a 5.98% increase in revenue over the last twelve months as of Q1 2025. However, the quarterly growth rate for Q1 2025 slowed to 0.97%, suggesting a more tempered short-term trajectory. The company's gross profit margin stands at a healthy 21.16%, indicating its ability to maintain profitability in its operations.
InvestingPro Tips also reveal that Darden Restaurants has had a history of rewarding its shareholders, maintaining dividend payments for 30 consecutive years and raising its dividend for the past 4 years, which is a testament to its financial stability and commitment to returning value to investors. Moreover, the company's dividend yield as of late 2024 was 3.33%, with a dividend growth of 6.87% over the last twelve months as of Q1 2025, further underscoring its appeal to income-focused investors.
While Darden Restaurants is predicted by analysts to be profitable this year, it is important to note that some analysts have revised their earnings downwards for the upcoming period. Additionally, the company is trading at a high Price / Book multiple of 9.29, which may raise questions about valuation among discerning investors. For those seeking a deeper analysis, InvestingPro offers additional insights and tips, with a total of 9 InvestingPro Tips available for Darden Restaurants at https://www.investing.com/pro/DRI.
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