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Evercore ISI raised its price target on Darden Restaurants (NYSE:DRI) to $250.00 from $230.00 on Monday, while maintaining an Outperform rating on the stock. The restaurant chain, currently valued at $25.45 billion, has seen its shares surge over 51% in the past year and is trading near its 52-week high of $220.79.
The research firm cited strength at Olive Garden and LongHorn Steakhouse restaurants, along with the company’s continued focus on profitable sales growth, as key factors behind the more bullish outlook.
Evercore noted that Darden’s brands are benefiting from improved value perception compared to fast food establishments and their relative exposure to middle- and high-income consumers, similar to competitors like Texas Roadhouse (NASDAQ:TXRH) and Chili’s.
Olive Garden, which represents approximately 45% of Darden’s sales, is currently outpacing an accelerating casual dining industry, partly due to targeted promotions and the launch of Uber (NYSE:UBER) Direct delivery service, according to the research firm.
The price target increase follows Evercore’s decision to raise its earnings estimates for Darden above the current consensus, reflecting the firm’s more optimistic outlook on the restaurant operator’s performance.
In other recent news, Darden Restaurants is gearing up for its fourth-quarter earnings report, with Stifel maintaining a Buy rating and a $215 price target. Stifel anticipates Darden will report earnings per share of at least $2.90, slightly below the consensus of $2.94, while highlighting Olive Garden’s promotional success and LongHorn Steakhouse’s momentum. Raymond (NSE:RYMD) James has increased its price target for Darden to $230, citing strong traffic data and potential upside in comparable sales estimates for both Olive Garden and LongHorn. KeyBanc also raised its price target to $230, reflecting the company’s strong same-store sales momentum and effective delivery service implementation. Guggenheim adjusted its price target to $220, noting an increase in fiscal year 2026 earnings per share estimates to $10.80, factoring in a 53rd week and a higher tax rate. KeyBanc further lifted its target to $220, based on stronger-than-expected restaurant-level margins and a positive outlook for the fourth quarter. These developments underscore Darden’s ongoing efforts to navigate market challenges and maintain growth.
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