Beyond The Numbers: 19 Analysts Discuss Darden Restaurants Stock

Analysts' ratings for Darden Restaurants DRI over the last quarter vary from bullish to bearish, as provided by 19 analysts.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $186.05, with a high estimate of $200.00 and a low estimate of $165.00. This upward trend is evident, with the current average reflecting a 1.53% increase from the previous average price target of $183.24.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Darden Restaurants among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Darden Restaurants. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.

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.

Get to Know Darden Restaurants Better

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.

Key Indicators: Darden Restaurants's Financial Health

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Darden Restaurants's remarkable performance in 3 months is evident. As of 30 November, 2023, the company achieved an impressive revenue growth rate of 9.68%. This signifies 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 net margin excels beyond industry benchmarks, reaching 7.78%. This signifies efficient cost management and strong financial health.

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): Darden Restaurants's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.88%, the company showcases efficient use 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.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.