20 Analysts Assess Darden Restaurants: What You Need To Know

In the preceding three months, 20 analysts have released ratings for Darden Restaurants DRI, presenting a wide array of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Darden Restaurants and provided 12-month price targets. The average target is $210.8, accompanied by a high estimate of $238.00 and a low estimate of $175.00. Observing a 4.56% increase, the current average has risen from the previous average price target of $201.60.

Interpreting Analyst Ratings: A Closer Look

A clear picture of Darden Restaurants's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Darden Restaurants. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Darden Restaurants compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Darden Restaurants's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Darden Restaurants's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Darden Restaurants analyst ratings.

About Darden Restaurants

Darden Restaurants is the largest restaurant operator in the US full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 11 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, The Capital Burger, and most recently, Chuy's. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the US.

Darden Restaurants: Financial Performance Dissected

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Darden Restaurants displayed positive results in 3M. As of 28 February, 2025, the company achieved a solid revenue growth rate of approximately 6.16%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Darden Restaurants's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.24%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Darden Restaurants's ROE excels beyond industry benchmarks, reaching 15.13%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Darden Restaurants's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.58% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.76.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.