Darden Restaurants, Inc. (NYSE: DRI) is a major player in the full-service restaurant industry, known for its popular brands like Olive Garden, LongHorn Steakhouse, and The Capital Grille. The company operates a mix of company-owned and franchised locations across the United States and Canada, making it a significant presence in the North American dining scene.
The consensus price target for Darden's stock has been on a downward trend over the past year. A year ago, the average price target was $218.76, which has gradually decreased to $213.5. This decline may indicate analysts' cautious outlook on Darden's future performance, possibly due to market conditions or operational challenges.
Ahead of Darden's second-quarter earnings release, analysts have been revising their forecasts. Notably, Credit Suisse analyst Lauren Siberman has set a price target of $152 for Darden. This target aligns with the average 1-year target price of $152, as reported by MarketBeat, suggesting a more conservative outlook on the stock.
Despite the downward trend in price targets, Darden has received an average recommendation of "Moderate Buy" from thirty brokerages. Out of these, eleven analysts have rated the stock as a hold, while nineteen have given it a buy rating. This mixed sentiment reflects the uncertainty surrounding Darden's future performance.
The company's well-known brands, Olive Garden and LongHorn Steakhouse, are expected to drive revenue growth despite facing cost pressures. Investors should consider these expectations and the revised price targets when evaluating Darden's stock.
