BMO Capital lowered the firm’s price target on Darden (DRI) to $205 from $215 and keeps a Market Perform rating on the shares. The company’s Q1 results missed consensus as lower restaurant margins and higher G&A more than offset 50bps comp upside, though casual dining brands have realized traffic growth across income cohorts and comp momentum continues quarter-to-date, the analyst tells investors in a research note. The firm is reducing its estimates however to reflect incremental inflation, BMO added.
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Read More on DRI:
- Darden price target lowered to $225 from $235 at BTIG
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- Darden Restaurants: Strong Fundamentals and Strategic Positioning Justify Buy Rating Despite Short-term Challenges
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