Goldman Sachs Positive on Darden's Olive Garden Fix

Goldman Sachs has published a research report on Darden Restaurants (NYSE: DRI) stating that the company's turnaround for the Olive Garden may take time but will yield to the upside.

In the report, Goldman Sachs writes, "We believe the Olive Garden turnaround strategy hits on all the right points and is being implemented with an appropriate sense of urgency. In the near term, three new value-oriented promotions from January forward and updated advertising may stabilize results. Longer term, we believe DRI has the ability to return the brand to prior form by remodeling all units that have not been refreshed since the 1998-2002 wave, revamping its advertising strategy, and rolling out a new value-focused core menu."

Goldman Sachs maintains its Buy rating and $50 price target on Darden Restaurants, which closed today at $43.68, down $0.14% from market open.