Analyst Expectations For Darden Restaurants's Future

In the latest quarter, 17 analysts provided ratings for Darden Restaurants DRI, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Darden Restaurants, revealing an average target of $200.12, a high estimate of $230.00, and a low estimate of $164.00. Surpassing the previous average price target of $187.65, the current average has increased by 6.65%.

Exploring Analyst Ratings: An In-Depth Overview

An in-depth analysis of recent analyst actions unveils how financial experts perceive Darden Restaurants. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Darden Restaurants. This information provides a snapshot of how analysts perceive 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: Delving into movements, analysts provide estimates for the future value of Darden Restaurants's stock. This analysis reveals shifts 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.

Unveiling the Story Behind Darden Restaurants

Darden Restaurants is the largest restaurant operator in the US full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 11 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, The Capital Burger, and most recently, Chuy's. 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 2024, the company operated 2,031 restaurants in the US.

Darden Restaurants: A Financial Overview

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 revenue growth over a period of 3 months has been noteworthy. As of 30 November, 2024, the company achieved a revenue growth rate of approximately 5.97%. This indicates a substantial increase 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: Darden Restaurants's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 7.44%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Darden Restaurants's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 10.21%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.8%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 3.06, Darden Restaurants adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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