What Analysts Are Saying About Darden Restaurants Stock

20 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 provides a snapshot of their recent ratings, showcasing how sentiments have evolved 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 $209.8, a high estimate of $238.00, and a low estimate of $175.00. This current average has increased by 4.59% from the previous average price target of $200.60.

Investigating Analyst Ratings: An Elaborate Study

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.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |David Tarantino |Baird |Lowers |Neutral | $192.00|$210.00 | |Greg Francfort |Guggenheim |Raises |Buy | $220.00|$205.00 | |Zachary Fadem |Wells Fargo |Raises |Equal-Weight | $200.00|$180.00 | |Jon Tower |Citigroup |Raises |Buy | $229.00|$223.00 | |Jeffrey Bernstein |Barclays |Raises |Overweight | $235.00|$230.00 | |Brian Harbour |Morgan Stanley |Raises |Overweight | $217.00|$209.00 | |Andrew Strelzik |BMO Capital |Raises |Market Perform | $190.00|$175.00 | |Eric Gonzalez |Keybanc |Raises |Overweight | $220.00|$200.00 | |Dennis Geiger |UBS |Raises |Buy | $225.00|$210.00 | |Brian Bittner |Oppenheimer |Raises |Outperform | $230.00|$218.00 | |David Tarantino |Baird |Raises |Neutral | $210.00|$192.00 | |Jim Salera |Stephens & Co. |Raises |Equal-Weight | $178.00|$175.00 | |Chris O'Cull |Stifel |Raises |Buy | $215.00|$205.00 | |Sara Senatore |B of A Securities |Raises |Buy | $238.00|$230.00 | |Nick Setyan |Wedbush |Raises |Outperform | $235.00|$220.00 | |Andrew Charles |TD Securities |Raises |Hold | $190.00|$180.00 | |Jim Salera |Stephens & Co. |Maintains |Equal-Weight | $175.00|$175.00 | |Jake Bartlett |Truist Securities |Raises |Buy | $212.00|$200.00 | |Jim Salera |Stephens & Co. |Maintains |Equal-Weight | $175.00|$175.00 | |Brian Vaccaro |Raymond James |Raises |Outperform | $210.00|$200.00 |

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 navigate through adjustments in price targets, providing estimates for Darden Restaurants's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Darden Restaurants's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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: Delving into Financials

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 displayed positive results in 3M. As of 28 February, 2025, the company achieved a solid revenue growth rate of approximately 6.16%. This indicates a notable 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 net margin excels beyond industry benchmarks, reaching 10.24%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 15.13%, the company showcases effective utilization of 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 2.58%, the company showcases efficient use of assets and strong financial health.

Debt Management: Darden Restaurants's debt-to-equity ratio is below the industry average. With a ratio of 2.76, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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