Deep Dive Into Darden Restaurants Stock: Analyst Perspectives (12 Ratings)

In the last three months, 12 analysts have published ratings on Darden Restaurants DRI, offering a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $172.5, with a high estimate of $190.00 and a low estimate of $155.00. Surpassing the previous average price target of $166.25, the current average has increased by 3.76%.

Decoding Analyst Ratings: A Detailed Look

The standing of Darden Restaurants among financial experts becomes clear 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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Darden Restaurants. This offers insight into analysts' perspectives on 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 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.

Capture valuable insights into Darden Restaurants's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic 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 U.S. full-service space, with consolidated revenue of $10.5 billion in fiscal 2023 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 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, and The Capital Burger. 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 2023, the company operated 1,914 restaurants in the U.S.

A Deep Dive into Darden Restaurants's Financials

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Darden Restaurants's revenue growth over a period of 3 months has faced challenges. As of 30 November, 2023, the company experienced a revenue decline of approximately -0.12%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 7.78%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Darden Restaurants's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 10.13%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Darden Restaurants's ROA excels beyond industry benchmarks, reaching 1.88%. This signifies efficient management of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 2.71, Darden Restaurants faces challenges in effectively managing its debt levels, indicating potential financial strain.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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