UBS Reiterates Buy Rating on Darden Restaurants (DRI) Post Q2 Print

UBS analyst Dennis Geiger reiterated a Buy rating and $230.00 price target on Darden Restaurants (NYSE: DRI).

The analyst commented, "F2Q results included adj EPS of $2.08, which was ~in line w/ expectations (Consensus $2.10) on better than expected sales ($3.102BN vs. Cons. $3.076BN) despite softer restaurant margins (18.5% vs 19.1% Cons.). F2Q blended sss of 4.3% beat Consensus (3.0%), including Olive Garden sss of 4.7% (Cons. 3.7%) and LongHorn of 5.9% (Cons. 4.0%). FY26 guidance was updated to include total sales growth of 8.5-9.3% (vs. 7.5-8.5% prior; Cons. 8.2%), w/ ~2% from the 53rd wk, sss of 3.5-4.3% (up from 2.5-3.5%; Cons. 3.2%), 65 to 70 new unit openings (vs. ~65 prior), higher total inflation of 3.5% from 3.0-3.5%, higher capex ($750-775MM vs. $700-750MM prior) and reiterated adj EPS of $10.50-10.70 (Cons. $10.59)."

For an analyst ratings summary and ratings history on Darden Restaurants click here. For more ratings news on Darden Restaurants click here.

Shares of Darden Restaurants closed at $192.88 yesterday.

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