Evaluating Darden Restaurants: Insights From 23 Financial Analysts

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

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $185.52, a high estimate of $200.00, and a low estimate of $165.00. This current average reflects an increase of 1.19% from the previous average price target of $183.33.

Breaking Down Analyst Ratings: A Detailed Examination

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: 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 gauge the dynamics of price targets, providing estimates for the future value of Darden Restaurants's stock. This comparison reveals trends 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.

Discovering Darden Restaurants: A Closer Look

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's Economic Impact: An Analysis

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Darden Restaurants's remarkable performance in 3 months is evident. As of 29 February, 2024, the company achieved an impressive revenue growth rate of 6.77%. 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 is impressive, surpassing industry averages. With a net margin of 10.52%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Darden Restaurants's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 14.83%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Darden Restaurants's ROA stands out, surpassing industry averages. With an impressive ROA of 2.76%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 2.43, Darden Restaurants adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically 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.