Truist Securities maintains Buy rating on Darden Restaurants stock

Investing.com - Truist Securities has reiterated its Buy rating and $252.00 price target on Darden Restaurants (NYSE:DRI) ahead of the company’s fiscal first-quarter 2026 earnings report scheduled for September 18. According to InvestingPro data, the company maintains a GOOD financial health score, with analyst targets ranging from $157 to $255.

The research firm expects Darden to deliver "solid" first-quarter results that could potentially lead to increased guidance for fiscal year 2026. Truist’s analysis of card data suggests Olive Garden may outperform consensus same-store sales expectations, with the firm estimating 7.0% growth compared to the consensus of 5.9%. This optimism aligns with the company’s recent performance, as InvestingPro data shows revenue growth of 6.03% over the last twelve months.

Truist attributes Olive Garden’s strong positioning to its value focus, service quality, and company-specific sales drivers, particularly its delivery service. The firm noted these factors give Darden advantages in the current market environment.

While acknowledging that Darden typically takes a conservative approach to guidance by staying within its long-term framework, Truist believes fiscal year 2026 guidance might be "nudged higher" based on strong first-quarter results, August momentum, and delivery service success.

Truist has slightly increased its fiscal year 2026 estimates for Darden while maintaining its $252 price target on the stock. InvestingPro reveals the company has maintained dividend payments for 31 consecutive years, with a current yield of 2.9%. For deeper insights into Darden’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Darden Restaurants reported fiscal fourth-quarter earnings that slightly exceeded analyst expectations. The company posted adjusted earnings per share of $2.98, just above the consensus estimate of $2.97, while revenue reached $3.272 billion, surpassing the anticipated $3.265 billion. Restaurant margins also outperformed expectations, coming in at 21.6% compared to the projected 21.3%. Despite this positive performance, Darden issued a conservative outlook for fiscal year 2026, which did not meet analyst expectations. Truist Securities reiterated its buy rating with a $252.00 price target, noting the company’s strong same-store sales despite the cautious guidance. Meanwhile, Stephens increased its price target for Darden from $200 to $212, citing the company’s quarterly results that exceeded consensus expectations. BTIG also maintained its Buy rating and $235.00 price target, highlighting strong sales growth at Olive Garden and LongHorn Steakhouse. Additionally, Melius Research initiated coverage on Darden with a Hold rating and a price target of $240.00, praising the company’s consistent performance in the full-service dining sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.