Analyst Sara Senatore from Bank of America Securities reiterated a Buy rating on Darden Restaurants and keeping the price target at $261.00.
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Sara Senatore has given his Buy rating due to a combination of factors tied to Darden’s strong operating performance and upgraded outlook. The company delivered same-store sales growth meaningfully above both her expectations and broader consensus, with Olive Garden and LongHorn Steakhouse notably outperforming industry indicators. Other Brands also showed improvement, helped in part by removing a weaker concept from the comparable base, while Fine Dining returned to positive same-store growth for the first time since fiscal 2023. Even though restaurant-level margins were pressured by higher labor and food costs, disciplined control of marketing and G&A expenses kept earnings essentially in line with forecasts.
Sara Senatore’s rating is based on the view that Darden is positioned as a high-quality compounder that can continue gaining share in full-service dining. Management raised its fiscal 2026 sales growth and same-store sales guidance, both now sitting above Visible Alpha consensus, signaling confidence in demand and new unit expansion. While inflation expectations were nudged higher, the company maintained its EPS outlook, suggesting underlying resilience and operational leverage. With industry-leading same-store sales trends, an enhanced growth algorithm, and guidance that outpaces market expectations, Senatore reiterates a Buy rating and sees further upside to the current share price relative to her price objective.
DRI’s price has also changed moderately for the past six months – from $222.750 to $192.880, which is a -13.41% drop .