Darden Restaurants Downgraded, Target Price Upgraded by 30% for Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 17 2026
0mins
Should l Buy DRI?
Source: CNBC
- Darden Downgrade: Truist Securities analyst Jake Bartlett downgraded Darden Restaurants from Buy to Hold, lowering the price target from $240 to $207, implying a potential decline of over 3%, reflecting challenges and uncertainties in the restaurant sector.
- Target Upgrade: Gordon Haskett analyst Chuck Grom upgraded Target from Hold to Buy, establishing a new price target of $140, suggesting over 30% upside from current levels, indicating market optimism about its future performance.
- Overbought Stocks: Darden Restaurants has a relative strength index (RSI) of 77, indicating it is considered overbought, with a 6% increase in stock price this week, yet analysts remain cautious about its future growth, reflecting a complex market view on the restaurant industry.
- Digital Transformation Boost: Datadog's RSI is at 22, indicating it is seen as oversold; Morgan Stanley analyst Sanjit Singh upgraded it to Overweight with a price target of $180, suggesting a potential rally of over 50%, highlighting growth potential driven by digital transformation initiatives.
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Analyst Views on DRI
Wall Street analysts forecast DRI stock price to rise
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 200.710
Low
200.00
Averages
224.35
High
261.00
Current: 200.710
Low
200.00
Averages
224.35
High
261.00
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.
Darden Restaurants Reports Strong Q3 2026 Earnings with Increased Guidance
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- Strong Brand Performance: All four major brands achieved positive growth, with Olive Garden posting a 3.2% increase in same-restaurant sales and launching seven new dishes under $15, successfully attracting customers and enhancing market competitiveness.
- Optimistic Future Outlook: The company updated its fiscal 2026 guidance, now expecting total sales growth of approximately 9.5% and same-restaurant sales growth of about 4.5%, along with plans to open around 70 new restaurants, indicating confidence in future growth.
- Cost Control Challenges: Despite reporting adjusted diluted earnings per share of $2.95, up 5.4% year-over-year, food and beverage expenses rose by 50 basis points due to increased beef costs and weather impacts, necessitating ongoing focus on cost management.
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- Surge in Energy Prices: European natural gas prices surged over 24% to a three-year high after Qatar reported extensive damage at its largest gas export facility, exacerbating fears of supply disruptions that could further elevate global inflation.
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Darden Restaurants Raises Full-Year Sales Outlook
- Sales Outlook Increase: Darden Restaurants announced on Thursday an increase in its full-year sales outlook, indicating strong confidence in future performance, which is likely to drive stock price appreciation and attract more investor interest.
- Positive Market Reaction: The market reacted positively to Darden's sales outlook increase, potentially enhancing the company's competitiveness in the restaurant industry and further solidifying its market position.
- Financial Health Indicator: The sales outlook adjustment signals Darden's financial health in the current economic environment, which may bolster investor confidence in its long-term growth potential.
- Strategic Adjustment Potential: With the sales outlook raised, Darden may consider further strategic adjustments and investments to capitalize on market opportunities and enhance overall business performance.
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Darden (DRI) Q3 2026 Earnings Call Transcript
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Darden Restaurants Reports Strong Q3 2026 Earnings with Increased Guidance
- Significant Sales Growth: Darden Restaurants reported total sales of $3.3 billion in Q3 2026, reflecting a 5.9% year-over-year increase, with same-restaurant sales growth of 4.2%, demonstrating strong performance that exceeded industry benchmarks by 540 basis points.
- Strong Brand Performance: All four major brands achieved positive growth, with Olive Garden posting a 3.2% increase in same-restaurant sales and launching seven new dishes under $15, successfully attracting customers and enhancing market competitiveness.
- Optimistic Future Outlook: The company updated its fiscal 2026 guidance, now expecting total sales growth of approximately 9.5% and same-restaurant sales growth of about 4.5%, along with plans to open around 70 new restaurants, indicating confidence in future growth.
- Cost Control Challenges: Despite reporting adjusted diluted earnings per share of $2.95, up 5.4% year-over-year, food and beverage expenses rose by 50 basis points due to increased beef costs and weather impacts, necessitating ongoing focus on cost management.
See More
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- Market Decline: The S&P 500 index fell by 0.43%, the Dow Jones Industrial Average by 0.59%, and the Nasdaq 100 by 0.44%, indicating a broad sell-off in global equities driven by inflation concerns and investor pessimism.
- Rising Bond Yields: Hawkish comments from the BOE, ECB, and BOJ pushed global bond yields higher, with the 10-year German Bund yield reaching a 2.25-year high of 3.01%, which will increase borrowing costs and impact corporate financing.
- Surging Energy Prices: European natural gas prices surged over 12% to a three-year high due to escalating conflict in Iran, with Qatar reporting a 17% damage to its LNG export capacity, raising inflation risks and potentially disrupting global energy supplies.
- Strong US Economic Data: Despite initial jobless claims unexpectedly falling to 205,000, indicating a robust labor market, January new home sales plummeted 17.6% to 587,000, below expectations, reflecting weakness in the housing market that may affect future economic growth.
See More
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- Oil Price Surge Impact: Stocks fell as Brent crude briefly hit $119 per barrel following Iran's attack on a key LNG facility in Qatar, causing the S&P 500 to slip below its 200-day moving average for the first time since last May, raising concerns among long-term investors.
- Eli Lilly Drug Study Update: Eli Lilly reported that its Phase 3 study of retatrutide for type 2 diabetes showed superior weight loss compared to Mounjaro over 40 weeks, yet the stock remained stagnant as investors are more focused on the anticipated approval of its new GLP-1 pill next month.
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US Stocks Decline Amid Surge in Energy Prices
- Market Decline: The S&P 500 index fell by 0.66%, the Dow Jones Industrial Average by 0.57%, and the Nasdaq 100 by 0.80%, all reaching 3.75-month lows, indicating market concerns over inflation and economic slowdown due to the Middle East conflict.
- Surge in Energy Prices: European natural gas prices surged over 24% to a three-year high after Qatar reported extensive damage at its largest gas export facility, exacerbating fears of supply disruptions that could further elevate global inflation.
- Rising Bond Yields: The 10-year Treasury note yield jumped to a 6.75-month high of 4.32% as stronger-than-expected US economic data indicated labor market resilience, increasing expectations for future rate hikes and adding pressure on the stock market.
- International Market Weakness: Overseas stock markets fell sharply, with the Euro Stoxx 50 hitting a 1.5-week low and China's Shanghai Composite dropping to a 2.5-month low, reflecting heightened risks of global economic slowdown impacting investor sentiment.
See More
Darden Restaurants Raises Full-Year Sales Outlook
- Sales Outlook Increase: Darden Restaurants announced on Thursday an increase in its full-year sales outlook, indicating strong confidence in future performance, which is likely to drive stock price appreciation and attract more investor interest.
- Positive Market Reaction: The market reacted positively to Darden's sales outlook increase, potentially enhancing the company's competitiveness in the restaurant industry and further solidifying its market position.
- Financial Health Indicator: The sales outlook adjustment signals Darden's financial health in the current economic environment, which may bolster investor confidence in its long-term growth potential.
- Strategic Adjustment Potential: With the sales outlook raised, Darden may consider further strategic adjustments and investments to capitalize on market opportunities and enhance overall business performance.
See More
Darden (DRI) Q3 2026 Earnings Call Transcript
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