Darden Restaurants (DRI) Soars 2.48% on Strong Earnings, Dividend Hike

Darden Restaurants (DRI) shares surged to a record high today, with an intraday gain of 2.48%.

The strategy of buying DRI shares after they reached a recent high and holding for one week yielded a 49.04% return, slightly underperforming the benchmark return of 56.94% over the same period. The strategy had a maximum drawdown of -19.68%, a Sharpe ratio of 0.84, and a volatility of 21.05%.

Darden Restaurants' stock price has been influenced by several recent developments. The company reported strong Q4 2025 earnings, with revenue reaching $3.27 billion and earnings per share (EPS) rising 12.5% to $2.98, exceeding market expectations. Additionally, Darden announced a 7.1% increase in its quarterly dividend and authorized a new $1 billion share repurchase program, indicating confidence in its financial health. Furthermore, Darden is exploring the sale of its Bahama Breeze chain, a strategic move to refine its brand portfolio. Analysts have a mixed but generally positive outlook on Darden, with an average one-year price target of $223.85, suggesting a slight upside from the current trading price. Overall, these factors have contributed to the recent rise in Darden's stock price.