10:51 AM EDT, 09/16/2025 (MT Newswires) -- Darden Restaurants ( DRI ) is expected to report "solid" fiscal first-quarter results, though it will likely reiterate its full-year earnings outlook, Oppenheimer said in a note e-mailed Tuesday.

The brokerage, which added the stock to its "top pick" list at the start of the year, said its positive view on the company remains intact. Darden's same-store sales could see catalysts in fiscal 2026 as the company is looking to reinvest into affordability for the consumer at Olive Garden ( DRI ) to drive traffic, according to Oppenheimer analysts Brian Bittner and Michael Tamas.

The Olive Garden ( DRI ) parent will announce its first-quarter results on Thursday.

"We expect solid results, but anticipate management to simply reiterate 2026 financial guidance," the analysts said. "Interestingly, our proprietary analysis has uncovered 'value' testing at Olive Garden ( DRI ) that could represent a meaningful future (same-store sales) catalyst."

The brokerage expects fiscal first-quarter earnings of $1.98 per share and models same-store sales growth of 4.4% year over year, while Wall Street is looking for EPS of $2.01 and same-store sales growth of 4.5%, according to the note.

In June, Darden said it expects same-store sales growth in the range of 2% to 3.5% and net earnings to be between $10.50 to $10.70 a share for fiscal 2026. Oppenheimer raised its fiscal 2026 EPS estimate to $10.63 from $10.61. Analysts polled by FactSet are currently projecting same-store sales growth of 3.5% and EPS of $10.68 for the year.

Darden's planned affordability reinvestment at Olive Garden ( DRI ) "represents a new strategic approach by management to

drive traffic in a way we have not witnessed before," the Oppenheimer analysts said.

The company's plans for Uber deliveries, along with its affordability push, set up Olive Garden ( DRI ) well relative to Street's 3.8% same-store sales growth estimate for fiscal 2026, according to the brokerage. Darden Restaurants ( DRI ) and Uber announced an exclusive multi-year delivery partnership last year.

"We believe we captured an early read on affordability reinvestments through our recent proprietary work that uncovered a test of a 'Lighter Portions' menu," the brokerage added.

Oppenheimer reiterated its outperform rating and price target of $250 on the stock.

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