11:43 AM EST, 12/09/2024 (MT Newswires) -- 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: 166.99, Change: -2.76, Percent Change: -1.63