Darden Restaurants' Steak Dinner Continues: Deutsche Banks Sees More Consistent Results Ahead

The brokerage said Darden maintains a focused and rational approach to corporate spending and capital returns to shareholders.

"With the company now positioning for its growth phase (rather than recovery), we expect to see more consistent and sustained results in-line with its LT growth algorithm," analyst Brett Levy wrote in a note.

The company generated EPS of $1.10, which was a penny ahead of Consensus Metrix and $0.03 above DB model.

Related Link: Darden May Be Right To Sacrifice Some Profit To Maintain Price Advantage

Levy now sees FY17 EPS of $3.90 (versus $3.95 previously, in-line with the top of Darden's $3.80–3.90 guidance range) on industry wide challenges that is pressuring comps and a higher tax rate.

"While DRI's outlook underwhelmed the Street, the company is outpacing the industry, but is not immune to competitive pressures, macro issues and the overall uncertainty," the analyst added.

That said, Levy noted that Darden remains focused on delivering an execution-led game plan, which has helped contribute to market share gains.

At the time of writing, shares of Darden fell 0.87 percent to $62.80. Levy has a price target of $76 on the stock.