Analyst Jeff Bernstein from Barclays reiterated a Buy rating on Darden Restaurants (DRI – Research Report) and increased the price target to $255.00 from $235.00.
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Jeff Bernstein’s rating is based on Darden Restaurants’ impressive performance in the fourth quarter of fiscal year 2025, particularly with Olive Garden and LongHorn Steakhouse surpassing expectations. This momentum has continued into the first quarter of fiscal year 2026, which suggests a positive outlook for the company’s future performance. Additionally, Darden has demonstrated a strong focus on long-term sales growth, raising their guidance for both comparable sales and unit growth, which indicates confidence in their ability to drive top-line growth.
Furthermore, Bernstein highlights Darden’s unique position as a large-cap casual dining company with significant scale and strategic planning capabilities. Despite previous beliefs that quick-service restaurants might be better positioned, the current economic environment favors Darden’s company-operated business model, which offers potential for greater comparable sales upside and earnings leverage. The valuation of Darden is also seen as justified, trading at a higher multiple compared to its peers, reflecting the company’s strong performance and growth prospects.
In another report released today, Stifel Nicolaus also reiterated a Buy rating on the stock with a $245.00 price target.