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Wall Street JournalAssessing Darden Restaurants: Insights From 28 Financial Analysts
Darden Restaurants (NYSE:DRI) has been analyzed by 28 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 9 | 14 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 4 | 6 | 8 | 0 | 0 |
| 2M Ago | 1 | 2 | 2 | 0 | 0 |
| 3M Ago | 0 | 1 | 3 | 0 | 0 |
Analysts have recently evaluated Darden Restaurants and provided 12-month price targets. The average target is $175.29, accompanied by a high estimate of $205.00 and a low estimate of $150.00. This current average reflects an increase of 4.03% from the previous average price target of $168.50.
Investigating Analyst Ratings: An Elaborate Study
The standing of Darden Restaurants among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jim Salera | Stephens & Co. | Maintains | Equal-Weight | $164.00 | $164.00 |
| Zachary Fadem | Wells Fargo | Raises | Equal-Weight | $165.00 | $160.00 |
| Sara Senatore | B of A Securities | Raises | Buy | $195.00 | $184.00 |
| Peter Saleh | BTIG | Raises | Buy | $195.00 | $175.00 |
| Andrew Strelzik | BMO Capital | Raises | Market Perform | $175.00 | $165.00 |
| Eric Gonzalez | Keybanc | Raises | Overweight | $194.00 | $170.00 |
| Jake Bartlett | Truist Securities | Raises | Buy | $195.00 | $185.00 |
| John Ivankoe | JP Morgan | Raises | Overweight | $176.00 | $165.00 |
| Brian Mullan | Piper Sandler | Raises | Neutral | $177.00 | $159.00 |
| Jeffrey Bernstein | Barclays | Raises | Overweight | $192.00 | $180.00 |
| Dennis Geiger | UBS | Raises | Buy | $195.00 | $188.00 |
| Brian Harbour | Morgan Stanley | Raises | Overweight | $188.00 | $175.00 |
| David Palmer | Evercore ISI Group | Raises | Outperform | $205.00 | $165.00 |
| Nick Setyan | Wedbush | Raises | Outperform | $200.00 | $170.00 |
| Jim Salera | Stephens & Co. | Raises | Equal-Weight | $164.00 | $159.00 |
| Danilo Gargiulo | Bernstein | Lowers | Market Perform | $180.00 | $190.00 |
| Andrew Charles | TD Cowen | Raises | Hold | $165.00 | $150.00 |
| Andrew Charles | TD Cowen | Maintains | Hold | $150.00 | $150.00 |
| Jim Salera | Stephens & Co. | Maintains | Equal-Weight | $159.00 | $159.00 |
| Jim Salera | Stephens & Co. | Lowers | Equal-Weight | $159.00 | $165.00 |
| Andrew Charles | TD Cowen | Maintains | Hold | $150.00 | $150.00 |
| Jon Tower | Citigroup | Lowers | Buy | $191.00 | $192.00 |
| Nick Setyan | Wedbush | Maintains | Outperform | $170.00 | $170.00 |
| Brian Vaccaro | Raymond James | Maintains | Outperform | $160.00 | $160.00 |
| Andrew Charles | TD Cowen | Lowers | Hold | $150.00 | $170.00 |
| Brian Mullan | Piper Sandler | Lowers | Neutral | $159.00 | $163.00 |
| Jim Salera | Stephens & Co. | Maintains | Equal-Weight | $165.00 | $165.00 |
| Nick Setyan | Wedbush | Maintains | Outperform | $170.00 | $170.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Darden Restaurants. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Darden Restaurants compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Darden Restaurants's stock. This comparison reveals trends in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Darden Restaurants's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Darden Restaurants analyst ratings.
Delving into Darden Restaurants's Background
Darden Restaurants is the largest restaurant operator in the us full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the us.
A Deep Dive into Darden Restaurants's Financials
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Positive Revenue Trend: Examining Darden Restaurants's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.97% as of 31 August, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Darden Restaurants's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.52% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Darden Restaurants's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.45% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Darden Restaurants's ROA excels beyond industry benchmarks, reaching 1.83%. This signifies efficient management of assets and strong financial health.
Debt Management: Darden Restaurants's debt-to-equity ratio is below the industry average at 2.48, reflecting a lower dependency on debt financing and a more conservative financial approach.
How Are Analyst Ratings Determined?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
Which Stocks Are Analysts Recommending Now?
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This article was generated by Benzinga's automated content engine and reviewed by an editor.