Darden stock price target raised to $252 from $230 at Truist

Truist Securities raised its price target on Darden Restaurants (NYSE:DRI) to $252 from $230 on Wednesday, while maintaining a Buy rating ahead of the company’s fiscal fourth-quarter earnings report. The new target aligns with broader market optimism, as InvestingPro data shows 16 analysts have recently revised their earnings expectations upward for the upcoming period.

The restaurant operator, which owns chains including Olive Garden and LongHorn Steakhouse, is scheduled to release its earnings results on June 20, before market open. With a market capitalization of $26.22 billion and revenue growth of 5%, Truist expects Darden to deliver a "strong" fourth-quarter beat and "solid" initial fiscal 2026 guidance.

According to Truist Card Data, Olive Garden’s same-store sales are tracking at approximately 6.5% for the fiscal fourth quarter, above the consensus estimate of 4.5% and investor expectations of 5-6%. The firm believes these strong results are partially priced into the stock, which has gained 20.4% year-to-date compared to the S&P 500’s 1.7% increase.

Truist anticipates Darden will provide fiscal 2026 guidance above its long-term framework, driven by strong recent trends, continued benefits from delivery services, and an extra operating week. The restaurant company’s shares have responded positively to these growth indicators.

The investment firm expects Darden to reiterate its long-term framework targeting 10-15% total shareholder return, but with a shift toward greater new store development and less emphasis on margin expansion.

In other recent news, Darden Restaurants has seen several positive developments. Morgan Stanley (NYSE:MS) has raised its price target for Darden to $235, citing improved performance at Olive Garden and strength in the casual dining segment. Evercore ISI also increased its price target to $250, noting the company’s focus on profitable sales growth and a strong performance at Olive Garden and LongHorn Steakhouse. Raymond (NSE:RYMD) James raised its price target to $230, highlighting strong traffic data and potential upside in sales estimates for Olive Garden and LongHorn Steakhouse. Stifel maintained its Buy rating with a $215 price target, expecting solid comparable sales improvements at Olive Garden and LongHorn Steakhouse.

The company is expected to report fourth-quarter earnings soon, with Stifel projecting earnings per share of at least $2.90, slightly below the consensus of $2.94. Raymond James anticipates fiscal year 2026 earnings per share to align with long-term growth targets, estimating $10.84 per share. Despite commodity inflation pressures, Darden’s supply chain strategy and efficient labor management are expected to mitigate margin challenges. Analysts from Stifel and Raymond James believe that Darden’s upcoming fiscal guidance will reflect its long-term framework, with expected same-restaurant sales growth assumptions of 2-3%.

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