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Investing.com - Truist Securities maintained its buy rating and $252.00 price target on Darden Restaurants (NYSE:DRI) stock following the company's fourth-quarter fiscal 2025 results. The stock, currently trading near its 52-week high of $228.27, has delivered an impressive 52.35% return over the past year according to InvestingPro data.
Darden reported same-store sales that exceeded expectations while earnings per share were roughly in line with consensus estimates. The company achieved $8.88 in diluted EPS over the last twelve months, with revenue growing 6.03%. Despite the positive quarterly performance, the restaurant operator issued fiscal year 2026 earnings guidance that came in below analyst expectations.
Truist's maintained price target reflects confidence in Darden's sales momentum, noting several growth catalysts including an anticipated 1.5% sales boost from delivery at Olive Garden in fiscal year 2026, strong performance at LongHorn Steakhouse, and an industry-wide shift toward casual dining establishments. The company maintains a strong financial foundation, with InvestingPro assigning it a "GOOD" overall financial health score of 2.95.
The research firm positioned its fiscal year 2026 estimates at the high end of Darden's guidance range, suggesting the company's outlook may be conservative given current sales trends. Truist's estimates account for both the quarterly results and the lower-than-expected forward guidance.
Truist expressed approval of Darden's updated long-term framework, which emphasizes sales growth through accelerated development rather than margin expansion. The firm views this sales-driven approach as more sustainable and believes it justifies a higher valuation for the restaurant company.
In other recent news, Darden Restaurants reported quarterly results that surpassed consensus expectations across key metrics, including same-store sales and adjusted earnings per share. Olive Garden and LongHorn Steakhouse showed strong performance, while the Fine Dining segment saw slower recovery. The company closed 22 underperforming locations, including 15 Bahama Breeze restaurants, signaling a strategic shift toward improving portfolio quality. Analysts at Stephens raised their price target for Darden to $212, maintaining an Equal Weight rating, while BTIG reiterated a Buy rating with a $235 target, citing strong sales momentum.
Raymond (NSE:RYMD) James also increased its price target to $240, noting robust comparable sales growth for Olive Garden and LongHorn Steakhouse. Evercore ISI maintained an Outperform rating and a $250 price target, highlighting growth potential for Olive Garden and LongHorn Steakhouse. KeyBanc raised its price target to $245, emphasizing better-than-expected earnings and same-store sales trends. These developments reflect a positive outlook for Darden, with several firms noting the company's strategic focus on revenue growth and market share gains.
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