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Stifel maintained its buy rating and $215.00 price target on Darden Restaurants (NYSE: NYSE:DRI) ahead of the company’s fourth-quarter earnings report, due June 20. With 9 analysts recently revising earnings estimates upward according to InvestingPro, and the stock trading near its 52-week high of $220.79, market expectations are high. The research firm expects the upcoming results to show "solid comp improvement" at Olive Garden and "continued momentum" at LongHorn Steakhouse.
Stifel projects fourth-quarter earnings per share of at least $2.90, slightly below the Street consensus of $2.94. The company has demonstrated solid performance with 5% revenue growth over the last twelve months. The firm believes Olive Garden’s return to value-oriented promotions and benefits from Uber (NYSE:UBER) Direct likely resulted in comparable sales at least matching analysts’ 4% expectation.
LongHorn Steakhouse visitation remained strong with same-restaurant sales growth estimated at 5.5%, according to Stifel. The steakhouse chain benefited from "consistent execution and the reintroduction of guests’ favorite LTOs."
While commodity inflation is expected to remain a headwind, Darden’s supply chain strategy and efficient labor management should help mitigate margin pressure. Stifel anticipates fiscal year 2026 guidance will reflect the company’s long-term framework with same-restaurant sales growth assumptions of 2-3%.
The firm believes initial earnings guidance could fall short of the Street’s $10.73 consensus (Stifel estimates $10.55), but investors might view this as conservative given fourth-quarter same-restaurant sales momentum.
In other recent news, Darden Restaurants has seen a series of positive developments from various analyst firms. Evercore ISI raised its price target for Darden to $250, citing strength at Olive Garden and LongHorn Steakhouse and an improved value perception. Stifel maintained a Buy rating with a $215 price target, expecting earnings per share of at least $2.90 in the upcoming fiscal fourth-quarter report. Raymond (NSE:RYMD) James also increased its price target to $230, highlighting strong traffic data and potential upside in comparable sales estimates for Olive Garden and LongHorn Steakhouse.
KeyBanc followed suit, raising its target to $230, driven by strong same-store sales momentum, particularly at Olive Garden. Guggenheim adjusted its price target to $220, reflecting an increase in fiscal year 2026 earnings per share estimates. These analysts’ updates come as Darden prepares to report its quarterly results, with expectations of continued growth and strong performance across its brands. The company’s strategic moves, such as the rollout of delivery services, have been noted as contributing factors to its recent success.
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