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Research Alert: CFRA Reiterates Sell Opinion On Shares Of Darden Restaurants Inc.
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Research Alert: CFRA Reiterates Sell Opinion On Shares Of Darden Restaurants Inc.
Sep 24, 2025 8:32 AM

11:20 AM EDT, 09/24/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12 month target by $22 to $165, 16x (down from 18x) our FY 26 EPS view, reflecting a discount to its 18x three-year historical average given heightened margin risks from commodity inflation and limited pricing power. We cut our FY 26 EPS to $10.33 from $10.39 and lower FY 27 to $10.90 from $11.11, reflecting pressure from commodities inflation, particularly beef costs, along with higher throughput, as we revised our same-store sales estimates slightly higher, to reflect recent momentum at Olive Garden ( DRI ) and LongHorn Steakhouse. We feel margin expansion is critical to DRI's earnings growth but see limited ability to offset commodity inflation through pricing given competitive pressures in casual dining. In our view, DRI is facing heightened risks surrounding food costs, including potential tariff effects and recent beef price volatility. We reiterate our Sell rating.

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