A Closer Look at 24 Analyst Recommendations For Darden Restaurants
Providing a diverse range of perspectives from bullish to bearish, 24 analysts have published ratings on Darden Restaurants (NYSE:DRI) in the last three months.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 12 | 7 | 5 | 0 | 0 |
| Last 30D | 2 | 0 | 1 | 0 | 0 |
| 1M Ago | 4 | 7 | 3 | 0 | 0 |
| 2M Ago | 2 | 0 | 0 | 0 | 0 |
| 3M Ago | 4 | 0 | 1 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $175.96, with a high estimate of $191.00 and a low estimate of $165.00. This current average represents a 1.7% decrease from the previous average price target of $179.00.
Analyzing Analyst Ratings: A Detailed Breakdown
A clear picture of Darden Restaurants's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Chris O'Cull | Stifel | Lowers | Buy | $180.00 | $190.00 |
| Sara Senatore | B of A Securities | Raises | Buy | $185.00 | $180.00 |
| Jim Salera | Stephens & Co. | Maintains | Equal-Weight | $165.00 | $165.00 |
| Andrew Charles | TD Cowen | Maintains | Buy | $170.00 | $170.00 |
| Jim Salera | Stephens & Co. | Maintains | Equal-Weight | $165.00 | $165.00 |
| Nick Setyan | Wedbush | Maintains | Outperform | $170.00 | $170.00 |
| Brian Vaccaro | Raymond James | Lowers | Outperform | $167.00 | $175.00 |
| Jeffrey Bernstein | Barclays | Lowers | Overweight | $180.00 | $187.00 |
| Jim Salera | Stephens & Co. | Lowers | Equal-Weight | $165.00 | $170.00 |
| Andrew Charles | TD Cowen | Lowers | Buy | $170.00 | $190.00 |
| Sara Senatore | B of A Securities | Lowers | Buy | $180.00 | $194.00 |
| Eric Gonzalez | Keybanc | Lowers | Overweight | $170.00 | $177.00 |
| David Palmer | Evercore ISI Group | Lowers | In-Line | $165.00 | $170.00 |
| Brian Nowak | Morgan Stanley | Lowers | Overweight | $175.00 | $180.00 |
| Nick Setyan | Wedbush | Lowers | Outperform | $170.00 | $181.00 |
| Jon Tower | Citigroup | Lowers | Buy | $191.00 | $192.00 |
| John Ivankoe | JP Morgan | Lowers | Overweight | $165.00 | $176.00 |
| Peter Saleh | BTIG | Announces | Buy | $175.00 | - |
| Andrew Charles | TD Cowen | Maintains | Buy | $190.00 | - |
| Andrew Charles | TD Cowen | Maintains | Buy | $190.00 | - |
| Jim Salera | Stephens & Co. | Announces | Equal-Weight | $170.00 | - |
| Andrew Charles | TD Cowen | Maintains | Buy | $190.00 | - |
| Andrew Charles | TD Cowen | Maintains | Buy | $190.00 | - |
| Jake Bartlett | Truist Securities | Lowers | Buy | $185.00 | $190.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Darden Restaurants. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Darden Restaurants compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Darden Restaurants's stock. This examination reveals shifts in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Darden Restaurants's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Darden Restaurants analyst ratings.
Delving into Darden Restaurants's Background
Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $10.5 billion in fiscal 2023 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2023, the company operated 1,914 restaurants in the U.S.
Financial Insights: Darden Restaurants
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Positive Revenue Trend: Examining Darden Restaurants's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.77% as of 29 February, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 10.52%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Darden Restaurants's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.83% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Darden Restaurants's ROA stands out, surpassing industry averages. With an impressive ROA of 2.76%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Darden Restaurants's debt-to-equity ratio is below the industry average at 2.43, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyst Ratings: What Are They?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.