12:29 PM EDT, 09/16/2024 (MT Newswires) -- Darden Restaurants' ( DRI ) fiscal Q1 results are unlikely to be a near-term catalyst as earnings per share and same-store sales could slightly miss analysts' estimates, Oppenheimer said in a Monday note.

Oppenheimer forecasts fiscal Q1 same-store sales to decline 0.2%, versus Street's flat estimate, and EPS to hit $1.78, versus the consensus estimate of $1.83.

The company is set to release its fiscal Q1 results on Thursday and Oppenheimer said it expects management to reiterate its outlook for fiscal year 2025 and outline strategies to improve sales.

"We believe management has levers to improve investor sentiment," Oppenheimer said, citing more aggressive promotional strategies and third-party delivery as examples. According to the investment firm, earnings before interest and taxes margin expansion of up to 30 basis points throughout fiscal 2025 is still possible even as Darden Restaurants ( DRI ) refuses to implement deep discounting strategies.

Oppenheimer maintained its outperform rating on Darden Restaurants ( DRI ), with a $182 price target.

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