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Correction: Darden Restaurants Seen Boosted by Olive Garden, LongHorn in 2025, UBS Says
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Correction: Darden Restaurants Seen Boosted by Olive Garden, LongHorn in 2025, UBS Says
Dec 9, 2024 9:18 AM

12:07 PM EST, 12/09/2024 (MT Newswires) -- (Corrects spelling of "boosted" in headline.)

Darden Restaurants ( DRI ) shares are expected to get a boost in 2025 amid improving sales trends at Olive Garden ( DRI ) and "sustained momentum" at LongHorn, UBS said Monday in a report.

"Despite recent sales pressures across much of the portfolio, we anticipate a positive inflection in Olive Garden ( DRI ) sales growth into H2 supported by multiple strategic initiatives, including menu innovation and a greater emphasis on price pointed marketing," UBS said.

"The Uber Direct partnership can provide a notable incremental sales lift, with benefits likely to scale post the Q$ system launch, and expanded delivery optionality over time," UBS said.

Darden is seen "as an attractive compounder set to deliver a 10-15% total shareholder return over the long term with a more compelling catalyst path to drive earnings upside," the report said.

UBS has a buy rating and a $195 price target on Darden.

Price: 167.06, Change: -2.69, Percent Change: -1.58

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