Insider Decision: Milanes Douglas J Exercises Options At Darden Restaurants For $1.11M

Milanes Douglas J, SVP at Darden Restaurants DRI, reported a large exercise of company stock options on June 26, according to a new SEC filing.

What Happened: J, SVP at Darden Restaurants, exercised stock options for 8,142 shares of DRI stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $78.84 per share.

The latest update on Friday morning shows Darden Restaurants shares down by 0.46%, trading at $214.97. At this price, J's 8,142 shares are worth $1,108,370.

All You Need to Know About Darden Restaurants

Darden Restaurants is the largest restaurant operator in the US full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 11 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, The Capital Burger, and most recently, Chuy's. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the US.

Unraveling the Financial Story of Darden Restaurants

Revenue Growth: Over the 3 months period, Darden Restaurants showcased positive performance, achieving a revenue growth rate of 3.6% as of 31 May, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company shows a low gross margin of 22.88%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Darden Restaurants's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.59.

Debt Management: Darden Restaurants's debt-to-equity ratio is below the industry average at 2.57, reflecting a lower dependency on debt financing and a more conservative financial approach.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 24.32, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.12, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 15.87, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Why Insider Activity Matters in Finance

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Darden Restaurants's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.