Cracking The Code: Understanding Analyst Reviews For Darden Restaurants

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

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $177.67, a high estimate of $190.00, and a low estimate of $160.00. Surpassing the previous average price target of $168.33, the current average has increased by 5.55%.

Understanding Analyst Ratings: A Comprehensive Breakdown

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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Darden Restaurants compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Darden Restaurants's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Darden Restaurants analyst ratings.

All You Need to Know 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.

Darden Restaurants: A Financial Overview

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Darden Restaurants's revenue growth over a period of 3 months has been noteworthy. As of 30 November, 2023, the company achieved a revenue growth rate of approximately 9.68%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the 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 7.78%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Darden Restaurants's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.13% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.88%, the company showcases effective utilization of assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.71, caution is advised due to increased financial risk.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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