11:01 AM EDT, 09/02/2025 (MT Newswires) -- Darden Restaurants' ( DRI ) setup into fiscal Q1 earnings is positive, with a "solid" beat expected and a potentially raised fiscal 2026 guidance expected, Truist Securities said in a Tuesday note ahead of Darden Restaurants' ( DRI ) Q1 results due Sept. 18.

Truist Securities increased its fiscal Q1 same-store sales and an earnings per share estimates to 5% and $2.03, respectively, from 4.4% and $2, and said it expected restaurant-level margins of 21%, up from 20.9% prior and above consensus of 20.9%.

Expecting a "fiscal Q1 beat and strong exit from the quarter", Truist Securities said it is increasing its fiscal 2026 blended same-store sales and an earnings per share estimates to 3.7% and $10.75, respectively, from 3.5% and $10.7 previously, above consensus guidance 2.0-3.5% and EPS of $10.5-10.7.

Truist said it believed that DRI's management will increase fiscal 2026 guidance given the "incremental sales driver of delivery at Olive Garden ( DRI ) and its value promotions" that is working well in the current consumer environment.

The firm rated Darden Restaurants ( DRI ) as a buy with a $252 price target.

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