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Investing.com - BMO Capital has reiterated its Market Perform rating on Darden Restaurants (NYSE:DRI) with a price target of $215.00. According to InvestingPro data, the stock is currently trading near its Fair Value, with a solid YTD return of 15%.
The firm’s analyst team expects Darden to deliver strong fiscal first-quarter results that will generally align with market expectations.
BMO Capital’s maintained rating comes as investors await the restaurant group’s upcoming earnings report.
Darden Restaurants, which operates chains including Olive Garden and LongHorn Steakhouse, has maintained its position in the casual dining segment despite industry challenges.
The $215.00 price target suggests BMO analysts see limited near-term upside potential for the stock at current trading levels.
In other recent news, Darden Restaurants reported fiscal fourth-quarter earnings that slightly exceeded analyst expectations, with adjusted earnings per share of $2.98, just above the consensus estimate of $2.97. The company also reported revenue of $3.272 billion, surpassing the expected $3.265 billion, and achieved restaurant margins of 21.6%, outperforming the projected 21.3%. Despite this positive performance, Darden issued a conservative outlook for fiscal year 2026, which was below analyst expectations. Truist Securities maintained its Buy rating and $252.00 price target on Darden, noting that same-store sales exceeded expectations. Meanwhile, Stephens raised its price target for Darden to $212 from $200, highlighting strong same-store sales at Olive Garden and LongHorn Steakhouse, though the Fine Dining segment lagged. Melius Research initiated coverage on Darden with a Hold rating and a $240.00 price target, acknowledging the company’s consistent performance in full-service dining. Truist Securities expects Darden’s upcoming first-quarter 2026 results to be solid, potentially leading to increased guidance for the fiscal year.
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