TD Cowen downgraded Darden Restaurants to Hold from Buy with a price target of $150, down from $170. The analyst expects the shares to “stagnate,” saying a lack of tangible sales drivers in a tough full service industry backdrop presents greater risks than tailwinds to Darden’s fiscal 2025 guidance for 1%-2% portfolio same store sales. Further, the firm is concerned that Chuy’s presents “risk of distraction while siphoning off cash” that it prefers to be returned to shareholders.
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