11:12 AM EDT, 06/18/2025 (MT Newswires) -- Darden Restaurants ( DRI ) is set for an earnings upside cycle through fiscal 2026 based on its "unique sales levers" and "solid" earnings before interest and taxes margin setup, Oppenheimer said in a note Wednesday.

Analysts said the company will likely issue a conservative fiscal 2026 guidance Friday, with earnings per share and same store sales growth estimates expected to be in line with consensus.

"We anticipate [fiscal 2026] to represent a potential 'beat-and-raise year underpinned by operational catalysts for sales/margins," Oppenheimer analysts said in the note.

The company's Olive Garden ( DRI ) segment could be the largest swing factor at approximately 43% of sales, Oppenheimer said. The segment is "well-positioned" to surpass the Street's expectations in same-store sales for fiscal 2026 as delivery momentum builds, along with more aggressive marketing strategies, according to the note.

Oppenheimer raised its price target on the stock to $250 from $230 and maintained an outperform rating, while reiterating Darden Restaurants ( DRI ) among its top picks.

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