Assessing Darden Restaurants: Insights From 24 Financial Analysts
Analysts' ratings for Darden Restaurants (NYSE:DRI) over the last quarter vary from bullish to bearish, as provided by 24 analysts.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 10 | 9 | 4 | 1 | 0 |
| Last 30D | 0 | 0 | 0 | 1 | 0 |
| 1M Ago | 7 | 8 | 4 | 0 | 0 |
| 2M Ago | 2 | 1 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Analysts have recently evaluated Darden Restaurants and provided 12-month price targets. The average target is $172.25, accompanied by a high estimate of $192.00 and a low estimate of $124.00. Observing a downward trend, the current average is 3.25% lower than the prior average price target of $178.04.
Understanding Analyst Ratings: A Comprehensive 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 |
|---|---|---|---|---|---|
| Andy Barish | Jefferies | Lowers | Underperform | $124.00 | $154.00 |
| John Staszak | Argus Research | Lowers | Buy | $175.00 | $186.00 |
| Brian Harbour | Morgan Stanley | Maintains | Overweight | $175.00 | $175.00 |
| Brian Vaccaro | Raymond James | Raises | Outperform | $170.00 | $167.00 |
| Jon Tower | Citigroup | Raises | Buy | $192.00 | $191.00 |
| 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 | $190.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Darden Restaurants. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Darden Restaurants compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Darden Restaurants's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Darden Restaurants's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Darden Restaurants analyst ratings.
All You Need to Know About Darden Restaurants
Darden Restaurants is the largest restaurant operator in the US full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 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 2024, the company operated 2,031 restaurants in the US.
Unraveling the Financial Story of Darden Restaurants
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Negative Revenue Trend: Examining Darden Restaurants's financials over 3 months reveals challenges. As of 31 May, 2024, the company experienced a decline of approximately -0.59% in revenue growth, reflecting a decrease 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: Darden Restaurants's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.42% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Darden Restaurants's ROE excels beyond industry benchmarks, reaching 13.93%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Darden Restaurants's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.72% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Darden Restaurants's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.3.
Analyst Ratings: Simplified
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.