Options Movement At Darden Restaurants: Connelly Susan M Exercises Worth $511K

Disclosed in a recent SEC filing on June 26, M, SVP at Darden Restaurants DRI, made a noteworthy transaction involving the exercise of company stock options.

What Happened: Disclosed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, M, SVP at Darden Restaurants, executed a strategic derivative sale. This involved exercising stock options for 4,735 shares of DRI, resulting in a transaction value of $511,001.

During Friday's morning session, Darden Restaurants shares down by 0.46%, currently priced at $214.97. Considering the current price, M's 4,735 shares have a total value of $511,001.

Discovering Darden Restaurants: A Closer Look

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.

Darden Restaurants: A Financial Overview

Revenue Growth: Darden Restaurants displayed positive results in 3 months. As of 31 May, 2025, the company achieved a solid revenue growth rate of approximately 3.6%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Holistic Profitability Examination:

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

• Earnings per Share (EPS): Darden Restaurants's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.59.

Debt Management: Darden Restaurants's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.57.

Analyzing 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): Darden Restaurants's EV/EBITDA ratio at 15.87 suggests potential undervaluation, falling below industry averages.

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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Unmasking the Significance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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.