Darden Restaurants Inc (DRI) saw its shares decline by 5.01%, hitting a 5-day low, despite positive market conditions with the Nasdaq-100 and S&P 500 both up over 0.6%.
Mizuho Securities upgraded Darden Restaurants from Neutral to Outperform, reflecting optimism about the casual dining sector and the company's potential to benefit from industry trends. Analyst Nick Setyan raised the Olive Garden's FQ3 same-store sales growth estimate to 5.0%, surpassing the consensus estimate of 4.5%, indicating strong brand performance. This upgrade suggests that Darden is expected to outperform its previous performance metrics, despite the recent stock decline.
The upgrade by Mizuho highlights the potential for Darden to improve its profitability and competitive position in the market, particularly with anticipated margin improvements amid cooling inflation. Investors may view this as a buying opportunity, given the positive outlook for the company's future performance.
Wall Street analysts forecast DRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRI is 221.82 USD with a low forecast of 200.00 USD and a high forecast of 261.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
Wall Street analysts forecast DRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRI is 221.82 USD with a low forecast of 200.00 USD and a high forecast of 261.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Buy
8 Hold
0 Sell
Moderate Buy
Current: 196.500
Low
200.00
Averages
221.82
High
261.00
Current: 196.500
Low
200.00
Averages
221.82
High
261.00
Mizuho, Melius
upgrade
$208.54
2026-01-23
Reason
Mizuho, Melius
Price Target
$208.54
AI Analysis
2026-01-23
upgrade
Reason
Darden jumps 2% to $208.54 after upgrades at Mizuho, Melius
Melius Research
Hold
to
Buy
upgrade
$240 -> $265
2026-01-23
Reason
Melius Research
Price Target
$240 -> $265
2026-01-23
upgrade
Hold
to
Buy
Reason
Melius Research upgraded Darden to Buy from Hold with a price target of $265, up from $240. The firm says the company's discipline to value is driving durable traffic and market share gains. Meanwhile, beef inflation is a "timing headwind, not a structural impairment," the analyst tells investors in a research note. Melius believes Darden is intentionally absorbing elevated costs to defend steak occasions and emerge from the cycle with a larger traffic base. First-party delivery is also creating a "new incremental occasion" at Olive Garden, the firm adds. Darden this morning was also upgraded at Mizuho.
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Mizuho
Neutral -> Outperform
upgrade
$195 -> $235
2026-01-23
Reason
Mizuho
Price Target
$195 -> $235
2026-01-23
upgrade
Neutral -> Outperform
Reason
Mizuho upgraded Darden to Outperform from Neutral with a price target of $235, up from $195. The firm expects casual dining to outperform as a segment in 2026 and views Darden as a beneficiary of segment tailwinds and company-specific drivers. Higher tax refunds will benefit both of the company's brands and its margins have upside as menu pricing "somewhat accelerates," the analyst tells investors in a research note. Mizuho upped it comp estimates for Darden citing its "strong checks."
Melius Research
Hold
to
Buy
upgrade
2026-01-23
Reason
Melius Research
Price Target
2026-01-23
upgrade
Hold
to
Buy
Reason
Melius Research upgraded Darden to Buy from Hold.
About DRI
Darden Restaurants, Inc. is a restaurant company. The Company owns and operates full-service dining restaurants in the United States and Canada under the trade names Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Chuy's, Seasons 52, Eddie V's and Bahama Breeze. It owns and operates approximately 2,140 restaurants in the United States and Canada. Its segments include Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Businesses. Olive Garden is a full-service Italian dining restaurant operator in the United States. LongHorn Steakhouse is a full-service steakhouse restaurant, which features a variety of menu items including signature steaks and chicken, as well as salmon, shrimp, and burgers. Fine Dining includes Ruth’s Chris, The Capital Grille and Eddie V’s. Other businesses include Cheddar’s Scratch Kitchen, Yard House, Bahama Breeze, Seasons 52, and The Capital Burger.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
