UPDATE: Citi Raises Darden Restaurants' PT

According to a research report published earlier today, Citi has increased Darden Restaurants' DRI PT from $58 to $59. In the report, Citi commented, “DRI reported FY3Q EPS of $1.25 vs. preannounced EPS of $1.23-$1.25 on 2/23 and FC of $1.24. SSS at the 3 top brands were +4.1% in line w/ 2/23 preannounce. This was an acceleration on a 2-year average basis (at +2.5% in 3Q vs. +1.6% in 2Q). Sales at Red Lobster were +6%, Olive Garden was +2%, and Longhorn was +6.7%, which were all inline with the preannounce. Excluding a 60bps benefit (preannounced 70bps benefit) from a shift in Lenten and 200bps benefit to each brand from less severe weather, we est SSS was solid at +1.5% in FY3Q vs. +1.8% in FY2Q.” Citi maintains its Buy rating on Darden Restaurants, which closed Friday at $51.83.