Keybanc Maintains Overweight on Darden Restaurants, Lowers Price Target to $170
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 13 2024
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Source: Benzinga
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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: 212.760
Low
200.00
Averages
224.35
High
261.00
Current: 212.760
Low
200.00
Averages
224.35
High
261.00
About DRI
Darden Restaurants, Inc. owns and operates full-service dining restaurants in the United States under the trade names Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Chuy’s, Yard House, Ruth’s Chris Steak House (Ruth’s Chris), The Capital Grille, Seasons 52, Eddie V’s Prime Seafood (Eddie V’s), Bahama Breeze, and The Capital Burger. Its segments include reportable segments: Olive Garden, LongHorn Steakhouse, Fine Dining and Other Business. Olive Garden is a full-service dining Italian restaurant operator in the United States. LongHorn Steakhouse is a full-service steakhouse restaurant brand with locations primarily in the eastern United States. The Fine Dining segment includes brands that operate within the fine-dining sub-segment of full-service dining and includes Ruth’s Chris, The Capital Grille and Eddie V’s restaurants. The Other Business segment includes Cheddar’s Scratch Kitchen, Chuy’s, Yard House, Seasons 52, Bahama Breeze and The Capital Burger restaurants.
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 Set to Release Q4 Earnings
- Earnings Announcement Date: Darden Restaurants (DRI) is set to announce its Q4 earnings on June 25th after market close, with consensus EPS estimate at $3.64, reflecting a 22.1% year-over-year increase, and revenue expected at $3.73 billion, up 13.0% year-over-year.
- Historical Performance Review: Over the past two years, Darden has beaten EPS and revenue estimates 50% of the time, indicating a level of stability in its financial performance, although market confidence in its future outlook has fluctuated.
- Estimate Revision Dynamics: In the last three months, Darden's EPS estimates have seen 12 upward revisions and 8 downward revisions, while revenue estimates have experienced 12 upward and 5 downward revisions, reflecting analyst divergence and market uncertainty regarding the company's future performance.
- Market Analysis Perspective: Evercore ISI has taken a cautious stance on Darden's outlook, citing limited near-term upside potential, which may impact investor confidence and stock price performance.
See More
Darden Restaurants Rating Upgraded to Overweight
- Rating Upgrade: Darden Restaurants (DRI) has received an overweight rating, reflecting analysts' optimistic expectations for its future performance, which is likely to attract more investor attention.
- Price Target Set: The average price target set by analysts is $230.84, indicating market recognition of Darden's future growth potential, which could drive the stock price higher.
- Market Reaction: The rating upgrade and price target increase may enhance investor confidence, thereby promoting trading activity in Darden's stock and improving market liquidity.
- Industry Outlook: In the context of a recovering restaurant industry, Darden's positive rating could position it more favorably in competition, further solidifying its market share.
See More
Darden Restaurants Reports Strong Q4 Performance with Significant Sales Growth
- Significant Sales Growth: Darden Restaurants reported total sales of $3.7 billion in Q4, marking a 13.7% year-over-year increase, which not only exceeded market expectations but also laid a solid foundation for future expansion.
- Same-Store Sales Performance: Olive Garden, LongHorn Steakhouse, and Yard House achieved same-store sales growth of 2.4%, 9.5%, and a notable increase respectively, marking the fifth consecutive year of growth for these brands and enhancing their market competitiveness.
- New Restaurant Openings: The company opened 71 new restaurants in fiscal 2026, surpassing initial plans, demonstrating strong expansion momentum while supporting future revenue growth.
- Increased Shareholder Returns: Darden returned $310 million to shareholders through buybacks and dividends in Q4, reflecting the company's commitment to enhancing shareholder value while maintaining financial flexibility.
See More
Darden Restaurants Exceeds Expectations in Q4 Fiscal 2026 Earnings Call
- Strong Performance: Darden Restaurants reported total sales of $3.7 billion in Q4 fiscal 2026, reflecting a 13.7% year-over-year increase and a same-restaurant sales growth of 4.6%, indicating robust market demand and customer traffic that further solidifies its leadership position in the dining industry.
- Profitability Improvement: The adjusted diluted EPS was $3.66, which includes a $0.25 contribution from the extra fiscal week, while the restaurant-level EBITDA margin improved by 50 basis points to 22.1%, showcasing the company's success in cost control and operational efficiency.
- Future Outlook: CFO Vennam guided for total sales in fiscal 2027 to be between $13.6 billion and $13.75 billion, with same-restaurant sales growth projected at 2.5% to 3.5%, and plans for 75 to 80 new restaurant openings, reflecting the company's confidence in future growth.
- Capital Expenditure Plans: The company plans to invest approximately $875 million in capital expenditures for fiscal 2027, including about $500 million for new unit growth, indicating strategic decisions aimed at expanding market share and enhancing brand value.
See More
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- BlackBerry Earnings Beat: BlackBerry reported fiscal Q1 adjusted earnings of 4 cents per share on revenue of $152.9 million, exceeding analyst expectations, resulting in a 20% stock increase, reflecting a recovery in its software business and enhanced market confidence.
- Apple Price Hike: Apple announced price increases for MacBooks and iPads, causing its shares to drop nearly 5%, driven by rising memory and storage costs, which may impact consumer purchasing decisions and future sales.
- Hertz Stock Decline: Hertz Global's stock fell over 9% following a 37 million share secondary offering priced at $2.70 per share, with proceeds going to JPMorgan, potentially affecting market liquidity and investor confidence despite Hertz not receiving direct benefits.
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- Tech Stock Weakness: The US stock market is mixed as the performance of the 'Magnificent Seven' tech stocks weighs down overall market sentiment, with Apple (AAPL) leading losses by dropping over 4% due to price hikes on Macs and iPads to offset rising costs from memory chip shortages, potentially impacting its market share and consumer demand.
- Strong Economic Data: Recent US economic indicators show Q1 GDP revised up to 2.1%, surpassing expectations of 1.6%, while weekly initial jobless claims fell to 215,000, indicating a resilient labor market that may influence the Federal Reserve's monetary policy decisions moving forward.
- Declining Oil Prices: WTI crude oil prices fell over 1% to a four-month low, with Saudi Arabian ships heading to the key Ras Tanura terminal, signaling a potential restart of exports from the Persian Gulf, which could affect global oil prices and profitability in related sectors.
- Chipmakers Surge: Micron Technology (MU) forecasts Q4 revenue of $50 billion, significantly above the consensus of $43.24 billion, leading to a stock price increase of over 9%, reflecting strong demand in the artificial intelligence sector that may further boost the stock prices of related tech companies.
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Darden Restaurants Set to Release Q4 Earnings
- Earnings Announcement Date: Darden Restaurants (DRI) is set to announce its Q4 earnings on June 25th after market close, with consensus EPS estimate at $3.64, reflecting a 22.1% year-over-year increase, and revenue expected at $3.73 billion, up 13.0% year-over-year.
- Historical Performance Review: Over the past two years, Darden has beaten EPS and revenue estimates 50% of the time, indicating a level of stability in its financial performance, although market confidence in its future outlook has fluctuated.
- Estimate Revision Dynamics: In the last three months, Darden's EPS estimates have seen 12 upward revisions and 8 downward revisions, while revenue estimates have experienced 12 upward and 5 downward revisions, reflecting analyst divergence and market uncertainty regarding the company's future performance.
- Market Analysis Perspective: Evercore ISI has taken a cautious stance on Darden's outlook, citing limited near-term upside potential, which may impact investor confidence and stock price performance.
See More
Darden Restaurants Rating Upgraded to Overweight
- Rating Upgrade: Darden Restaurants (DRI) has received an overweight rating, reflecting analysts' optimistic expectations for its future performance, which is likely to attract more investor attention.
- Price Target Set: The average price target set by analysts is $230.84, indicating market recognition of Darden's future growth potential, which could drive the stock price higher.
- Market Reaction: The rating upgrade and price target increase may enhance investor confidence, thereby promoting trading activity in Darden's stock and improving market liquidity.
- Industry Outlook: In the context of a recovering restaurant industry, Darden's positive rating could position it more favorably in competition, further solidifying its market share.
See More
Darden Restaurants Reports Strong Q4 Performance with Significant Sales Growth
- Significant Sales Growth: Darden Restaurants reported total sales of $3.7 billion in Q4, marking a 13.7% year-over-year increase, which not only exceeded market expectations but also laid a solid foundation for future expansion.
- Same-Store Sales Performance: Olive Garden, LongHorn Steakhouse, and Yard House achieved same-store sales growth of 2.4%, 9.5%, and a notable increase respectively, marking the fifth consecutive year of growth for these brands and enhancing their market competitiveness.
- New Restaurant Openings: The company opened 71 new restaurants in fiscal 2026, surpassing initial plans, demonstrating strong expansion momentum while supporting future revenue growth.
- Increased Shareholder Returns: Darden returned $310 million to shareholders through buybacks and dividends in Q4, reflecting the company's commitment to enhancing shareholder value while maintaining financial flexibility.
See More
Darden Restaurants Exceeds Expectations in Q4 Fiscal 2026 Earnings Call
- Strong Performance: Darden Restaurants reported total sales of $3.7 billion in Q4 fiscal 2026, reflecting a 13.7% year-over-year increase and a same-restaurant sales growth of 4.6%, indicating robust market demand and customer traffic that further solidifies its leadership position in the dining industry.
- Profitability Improvement: The adjusted diluted EPS was $3.66, which includes a $0.25 contribution from the extra fiscal week, while the restaurant-level EBITDA margin improved by 50 basis points to 22.1%, showcasing the company's success in cost control and operational efficiency.
- Future Outlook: CFO Vennam guided for total sales in fiscal 2027 to be between $13.6 billion and $13.75 billion, with same-restaurant sales growth projected at 2.5% to 3.5%, and plans for 75 to 80 new restaurant openings, reflecting the company's confidence in future growth.
- Capital Expenditure Plans: The company plans to invest approximately $875 million in capital expenditures for fiscal 2027, including about $500 million for new unit growth, indicating strategic decisions aimed at expanding market share and enhancing brand value.
See More
Biotech Stocks Surge Amid Positive Trials and Earnings
- Biotech Breakthrough: Kymera Therapeutics enrolled in a Phase 2b Broaden2 trial for its KT-621 drug aimed at treating atopic dermatitis, leading to a 17% stock surge, indicating potential market share growth in the therapeutic area.
- BlackBerry Earnings Beat: BlackBerry reported fiscal Q1 adjusted earnings of 4 cents per share on revenue of $152.9 million, exceeding analyst expectations, resulting in a 20% stock increase, reflecting a recovery in its software business and enhanced market confidence.
- Apple Price Hike: Apple announced price increases for MacBooks and iPads, causing its shares to drop nearly 5%, driven by rising memory and storage costs, which may impact consumer purchasing decisions and future sales.
- Hertz Stock Decline: Hertz Global's stock fell over 9% following a 37 million share secondary offering priced at $2.70 per share, with proceeds going to JPMorgan, potentially affecting market liquidity and investor confidence despite Hertz not receiving direct benefits.
See More
Mixed US Stock Performance as Tech Stocks Weigh Down Market
- Tech Stock Weakness: The US stock market is mixed as the performance of the 'Magnificent Seven' tech stocks weighs down overall market sentiment, with Apple (AAPL) leading losses by dropping over 4% due to price hikes on Macs and iPads to offset rising costs from memory chip shortages, potentially impacting its market share and consumer demand.
- Strong Economic Data: Recent US economic indicators show Q1 GDP revised up to 2.1%, surpassing expectations of 1.6%, while weekly initial jobless claims fell to 215,000, indicating a resilient labor market that may influence the Federal Reserve's monetary policy decisions moving forward.
- Declining Oil Prices: WTI crude oil prices fell over 1% to a four-month low, with Saudi Arabian ships heading to the key Ras Tanura terminal, signaling a potential restart of exports from the Persian Gulf, which could affect global oil prices and profitability in related sectors.
- Chipmakers Surge: Micron Technology (MU) forecasts Q4 revenue of $50 billion, significantly above the consensus of $43.24 billion, leading to a stock price increase of over 9%, reflecting strong demand in the artificial intelligence sector that may further boost the stock prices of related tech companies.
See More
