03:44 PM EDT, 03/11/2025 (MT Newswires) -- Darden Restaurants' ( DRI ) fiscal third-quarter results are likely to fall short of Wall Street's expectations amid weak industry trends, Deutsche Bank said in note emailed Tuesday.

The parent company of Olive Garden ( DRI ) and LongHorn Steakhouse is scheduled to release its quarterly financials next week.

The brokerage lowered its third-quarter earnings estimate for Darden to $2.78 per share from $2.83, below the consensus that Deutsche Bank put at $2.80. Same-store sales growth is now projected at 1% year over year, versus the 2.4% that it previously expected. The consensus is for a 1.9% improvement, compared with second-quarter growth of 2.4%.

Deutsche Bank analyst Lauren Silberman cited soft industry trends in January and February as a reason behind an expected quarterly miss, though she said that such dynamics will likely be looked through as comparable sales have improved quarter to date.

"There is line of sight into continued momentum as Olive Garden ( DRI ) executes a more aggressive strategy with increased value-focused advertising and contribution from the Uber (UBER) partnership," the analyst further said.

Darden is expected to reaffirm its full-year adjusted EPS guidance of $9.40 to $9.60. Deutsche Bank revised its 2025 estimate to $9.50 from $9.52. The consensus on FactSet is for $9.49 on a non-GAAP basis, compared with the prior year's $8.88.

"We believe (Darden) offers a favorable setup into 2025," Silberman said, citing factors including increased visibility into comparable sales reacceleration and potential upside catalysts from the Uber partnership's expansion.

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