Darden Presents 'Attractive Entry Point' For Investors With Less Negative Macro Outlook, Says Analyst - Darden Restaurants (NYSE:DRI)

Raymond James analyst Brian M.Vaccaro reiterated an Outperform rating on the shares of Darden Restaurants Inc DRI with a price target of $136.00.
The analyst expects in-line 1Q23 sales and EPS results.
While broader recession and rate concerns have re-intensified after last week’s inflation and FedEx Corp FDX headlines, demand for U.S. restaurants remains resilient, said Vaccaro.
He added that lower gas prices, still solid labor market and wage growth conditions, and the buffer of excess savings for middle/upper-income consumers seem to be supportive.
Also Read: Why 40% Of Monthly U.S. Food Budgets Are Spent On Restaurants: Report
Vaccaro thinks the company’s shares trade at the lower end of the stock’s historical valuation range with an attractive dividend (nearly 4%), continuing to present an attractive entry point for investors with a less negative macro outlook.
He also is of the opinion that Darden is a high-quality, full-service restaurant company characterized by a portfolio of high AUV/margin brands, a best-in-class management team, scale, and systems, and a strong cash flow profile.
Price Action: DRI shares are trading higher by 1.55% at $131.69 on the last check Monday.
Photo Via Wikimedia Commons