Vennam Rajesh Takes Money Off The Table, Sells $1.28M In Darden Restaurants Stock

Vennam Rajesh, SVP at Darden Restaurants DRI, disclosed an insider sell on June 26, according to a recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Rajesh executed a sale of 5,780 shares of Darden Restaurants with a total value of $1,284,402.

Tracking the Friday's morning session, Darden Restaurants shares are trading at $214.97, showing a down of 0.46%.

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.

Darden Restaurants: A Financial Overview

Revenue Growth: Darden Restaurants's remarkable performance in 3 months is evident. As of 31 May, 2025, the company achieved an impressive revenue growth rate of 3.6%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Interpreting Earnings Metrics:

• Gross Margin: With a low gross margin of 22.88%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Darden Restaurants's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average 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.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 24.32 is lower than the industry average, implying a discounted valuation for Darden Restaurants's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.12 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 15.87, Darden Restaurants presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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The Importance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.