UPDATE: Bank of America Downgrades Darden Restaurants to Underperform Following Q2 Results

Bank of America reduced its rating on Darden Restaurants

from Buy to Underperform and reduced its price objective from $62 to $45. Bank of America said, "Our rating change reflects disappointment with 2Q results but also is driven by a deeper concern that this company is out of sync with its customers and may continue to struggle in an overall soft and more competitive casual dining sales environment. We have long perceived brand management and marketing as core Darden skills but promotional offers, especially at Olive Garden, have repeatedly failed to gain traction. Meanwhile, expansion is still targeted at 100 net new restaurants for FY 2013 (down from a prior 100-110 range) and the company is integrating recently acquired Yard House. Management has a lot of initiatives that may be distracting it from addressing core business issues." Darden Restaurants closed at $47.70 on Monday.