KeyBanc Starts Darden Restaurants (DRI) at Hold; Shares Lack A Near-Term Catalyst

KeyBanc initiates coverage on Darden Restaurants (NYSE: DRI) with a Hold.

Analyst, Christopher O'Cull, said, "Same-restaurant sales (SRS) improving at Olive Garden is unlikely before 2H13, or when several new menu and advertising changes are implemented. Moreover, we believe near-term EPS estimates may be too aggressive. However, the stock price downside risk is limited, in our opinion, as easing commodity prices and unit growth should contribute meaningfully to EPS growth in FY13, and investors can receive a 4% annual dividend yield."

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 $50.38 yesterday.

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