Darden Restaurants (DRI) has reported strong fundamentals over the past four quarters, with same store sales exceeding 3% and double-digit earnings per share growth, Oppenheimer said in a Sunday note ahead of the company's fiscal Q2 results on Dec. 18.
The firm expects Darden to deliver a steady, in-line quarter, with fiscal 2026 guidance for same-store sales in the range of +2.5% to 3.5% and EPS of $10.50-$10.70. Analysts surveyed by FactSet expect fiscal 2026 non-GAAP EPS of $10.60.
Oppenheimer's revised 2026 EPS forecast is $10.61, with fiscal 2027 unchanged at $11.43, reflecting ongoing strength for the full-service restaurant operator. Analysts surveyed by FactSet fiscal 2027 non-GAAP EPS of $11.37
The report highlighted that investor concerns over tougher same-store sales comps, particularly at Olive Garden, are manageable, with 2026 restaurant margins expected to remain flat.
Oppenheimer noted that earnings upside is likely to depend mainly on stronger-than-expected sales, as margin expansion is projected to be limited.
The firm maintained its outperform rating on the stock with a price target of $250.
Shares of the company were up 1.5% in recent Monday trading.
Price: 185.06, Change: +2.78, Percent Change: +1.53
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