Charles M. Sonsteby, a member of the board of Darden Restaurants Inc (NYSE: DRI), completed a sale of 3,123 shares of common stock on January 23, 2026, according to a Securities and Exchange Commission filing. The shares changed hands at prices between $205.205 and $205.515, producing an average proceeds-per-share of $205.3185 and netting approximately $641,209 for the director.
After the transaction, Sonsteby's direct holdings in Darden stand at 19,351 shares. The sale price range reported in the filing was at a premium to the company's then-current trading price of $195.81.
Company financial snapshot
Darden's market valuation is listed at $22.62 billion. Financial ratios and income returns in the filing show a price-to-earnings ratio of 20.48 and a dividend yield of 3.05%. InvestingPro data referenced in related disclosures notes that Darden has paid a dividend for 32 consecutive years and has increased its payout for five straight years. The same InvestingPro assessment marks the stock as currently fairly valued. Additional InvestingPro resources, including a Pro Research Report, eight ProTips and expanded financial metrics, were cited as available for subscribers.
Recent operating results
In its fiscal second quarter, Darden reported total sales of $3.102 billion, topping analysts' expectations of $3.076 billion. Adjusted earnings per share, however, came in at $2.08, slightly below the consensus forecast of $2.10. The company recorded same-store sales growth at two of its major concepts - Olive Garden and LongHorn Steakhouse - and those results beat consensus estimates.
Analyst reactions and peer activity
Following the quarterly release, several brokerages updated their views and targets on Darden. Mizuho raised its price target to $195.00 while retaining a Neutral rating. UBS maintained its Buy rating with a $230.00 price target. TD Cowen kept a Hold rating and pointed to Darden's robust sales performance and its upward revision to comparable sales guidance for fiscal 2026. Stifel reiterated its Buy rating, citing potential sales growth drivers that include macroeconomic influences and delivery services.
In related sector activity, Raymond James upgraded Brinker International from Market Perform to Outperform and set a $195.00 price target, projecting that Brinker could post quarterly results that exceed market expectations and possibly lead to raised guidance for the fiscal year.
Summary and context
The director-level share sale by Sonsteby produced roughly $641,209 in proceeds and left him with 19,351 shares directly held. The sale price sat above the contemporaneous market price. Separately, Darden's reported fiscal second-quarter top line outperformed expectations while adjusted EPS missed consensus by a small margin. Analysts reacted with a range of ratings and target updates across the sector.
Key points
- Director Charles M. Sonsteby sold 3,123 Darden shares on January 23, 2026, for about $641,209, leaving him with 19,351 shares.
- Darden reported fiscal Q2 sales of $3.102 billion, above the $3.076 billion estimate, while adjusted EPS of $2.08 was slightly below the $2.10 consensus.
- Analysts issued mixed responses - Mizuho raised its target to $195 (Neutral), UBS kept a Buy at $230, TD Cowen held a Hold, and Stifel reiterated Buy; Raymond James upgraded peer Brinker to Outperform with a $195 target.
Sectors affected - Restaurants, consumer discretionary and broader equity markets tracking large-cap restaurant operators.
Risks and uncertainties
- Insider transaction timing and scale - The director sale was executed at prices above the trading price, but insider sales can be interpreted in multiple ways by market participants.
- Earnings variance - Darden's adjusted EPS for the quarter fell slightly below consensus, which introduces short-term earning-per-share uncertainty for investors.
- Analyst divergence - Varied broker ratings and price targets reflect differing assessments of near-term performance and guidance, creating potential volatility in investor expectations for the restaurant sector.
These points are drawn directly from the company filing, reported results and published analyst actions cited in the filings and disclosures.