Darden Restaurants Has 'Solid Setup' Into Fiscal 2027, Oppenheimer Says

MT Newswires Live04-09

Darden Restaurants (DRI) management remains upbeat on its core consumer, with flexibility across the business to drive reliable earnings growth and a "solid setup" into fiscal 2027, Oppenheimer said.

The firm said in note Wednesday that a strong fiscal Q4 same-store sales outlook of 3.5% to 5.0% could help offset concerns about tougher comparisons and highlight underlying demand. Darden Restaurants' customer base remains healthy, with the higher-income cohort showing the fastest growth.

For Olive Garden, Oppenheimer said near-term support includes an extended buy-one-take-one promotion and a larger delivery mix.

For LongHorn, the firm pointed to more than 6% average same-store sales growth over the last four quarters and said the brand's above-average momentum is sustainable.

Oppenheimer maintained its outperform rating on Darden Restaurants, with a $235 price target.

Price: 195.41, Change: -0.24, Percent Change: -0.12

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment