Analyst Expectations For Darden Restaurants's Future

17 analysts have expressed a variety of opinions on Darden Restaurants DRI over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 5 9 0 0
Last 30D 1 1 3 0 0
1M Ago 2 4 5 0 0
2M Ago 0 0 0 0 0
3M Ago 0 0 1 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $228.18, along with a high estimate of $253.00 and a low estimate of $192.00. Witnessing a positive shift, the current average has risen by 6.77% from the previous average price target of $213.71.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Darden Restaurants. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Andrew Charles TD Securities Raises Hold $235.00 $215.00
Sara Senatore B of A Securities Raises Buy $253.00 $252.00
Eric Gonzalez Keybanc Raises Overweight $245.00 $230.00
David Tarantino Baird Raises Neutral $230.00 $218.00
Jim Salera Stephens & Co. Raises Equal-Weight $212.00 $200.00
Andrew Charles TD Securities Maintains Hold $215.00 $215.00
Jim Salera Stephens & Co. Maintains Equal-Weight $200.00 $200.00
Brian Harbour Morgan Stanley Raises Overweight $235.00 $215.00
Jake Bartlett Truist Securities Raises Buy $252.00 $230.00
Brian Bittner Oppenheimer Raises Outperform $250.00 $230.00
Zachary Fadem Wells Fargo Raises Equal-Weight $225.00 $200.00
David Palmer Evercore ISI Group Raises Outperform $250.00 $230.00
Dennis Geiger UBS Raises Buy $245.00 $225.00
Andy Barish Jefferies Raises Hold $210.00 $165.00
Jim Salera Stephens & Co. Raises Equal-Weight $200.00 $178.00
Eric Gonzalez Keybanc Raises Overweight $230.00 $220.00
David Tarantino Baird Lowers Neutral $192.00 $210.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Darden Restaurants. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Darden Restaurants compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Darden Restaurants's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Darden Restaurants's market position. Stay informed and make well-informed decisions with 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's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Darden Restaurants's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.24% net margin, the company effectively manages costs and achieves strong profitability.

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): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.58%, the company showcases effective utilization of assets.

Debt Management: Darden Restaurants's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.76.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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

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