5 Best Restaurant Stocks to Invest In

3. Darden Restaurants, Inc. (NYSE: DRI)

Number of Hedge Fund Holders: 49

Darden Restaurants, Inc. (NYSE: DRI) is a Florida-based restaurant operator. The company owns some of the famous restaurants, including Olive Garden, LongHorn Steakhouse, Yard House, Seasons 52, etc. It has over 1,500 restaurants located worldwide. In Q4 2021, the company opened 30 new restaurants.

Darden Restaurants, Inc. (NYSE: DRI) announced its Q4 FY21 results on June 24, 2021. The company reported a revenue of $2.28 billion, up 79.5% from $1.27 billion during the same period last year. The EPS beat the market consensus by $0.24 at $2.03. Same-restaurant sales also grew massively by 90.4% as the pandemic-related restrictions have lifted. In the fourth quarter, the company increased its quarterly dividend by 25% at $1.10 per share and also repurchased shares of its common stock for approximately $38 million. In FY22, the company expects revenue of between the range of $9.2 to $9.5 billion and a 29% increase in same-restaurant sales. In the past year, the DRI stock has delivered a 105.6% return. After the strong quarter, many investment banks have raised their price target on the DRI stock, including MKM Partners, Morgan Stanley, Baird, Truist, BMO Capital, etc. Deutsche Bank raised its price target on DRI to $152 and appreciated the company’s strong fiscal results.

The number of hedge funds having stakes in Darden Restaurants, Inc. (NYSE: DRI) also increased this quarter to 49, from 42 in the previous quarter. The total value of these stakes is $1.31 billion. Citadel Investment Group is the largest shareholder of the company with over 1.4 million shares, worth $204.8 million.