Unveiling 24 Analyst Insights On Darden Restaurants

Darden Restaurants DRI underwent analysis by 24 analysts in the last quarter, revealing a spectrum of viewpoints 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 provide deeper insights through their assessments of 12-month price targets, revealing an average target of $168.42, a high estimate of $192.00, and a low estimate of $124.00. Experiencing a 3.16% decline, the current average is now lower than the previous average price target of $173.92.

Understanding Analyst Ratings: A Comprehensive Breakdown

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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Darden Restaurants. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

Capture valuable insights into Darden Restaurants's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Darden Restaurants analyst ratings.

About 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 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 2024, the company operated 2,031 restaurants in the us.

Darden Restaurants's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Darden Restaurants displayed positive results in 3 months. As of 31 May, 2024, the company achieved a solid revenue growth rate of approximately 6.8%. 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 is impressive, surpassing industry averages. With a net margin of 10.42%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 13.93%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Darden Restaurants's ROA stands out, surpassing industry averages. With an impressive ROA of 2.72%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Darden Restaurants's debt-to-equity ratio is below the industry average. With a ratio of 2.42, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

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.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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