Darden's Core Sales Momentum Seen Holding Into Fiscal 2027, UBS Says

MT Newswires Live06-27

Darden Restaurants (DRI) is entering fiscal 2027 with stable underlying same-store-sales trends supported by solid traffic, strong value perceptions and brand initiatives across its major chains, UBS Securities said Thursday in a report.

Olive Garden's momentum should carry into fiscal 2027, helped by menu innovation, returning brand programs, continued gains from the Uber Direct partnership and increased guest frequency tied to the lighter-portions menu, the report said. LongHorn is also expected to sustain healthy traffic, supported by operational consistency and strong value delivery, UBS said.

Fuel-cost pressure should ease as the year progresses with projected adjusted operating margins of 10.1% in fiscal Q1 and 12.2% for the full year, the report said.

UBS raised its price target on Darden stock to $240 from $230 and maintained its buy rating.

Price: 210.74, Change: -2.02, Percent Change: -0.95

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