11:05 AM EDT, 09/16/2025 (MT Newswires) -- Darden Restaurants ( DRI ) is showing resilience in a weakening restaurant market, outperforming its peers ahead of its fiscal Q1 2026 earnings report on Thursday, Oppenheimer said.

Darden's stock has risen 1.3% over the past two months, while the broader restaurant group has seen a decline of 10.7%, the brokerage said in a Monday research note, adding that it has labeled Darden a "top pick" for 2025 and remains bullish on the company's prospects for sales and earnings growth.

Analysts at Oppenheimer also pointed to catalysts for Darden's growth, including its flagship brand Olive Garden's ( DRI ) affordability tests and new "Lighter Portions" menu, its Uber ( UBER ) delivery partnership expected to lift same-store sales in 2026, and continued strong momentum at LongHorn Steakhouse.

While the brokerage projects a strong Q1 for Darden, it expects that management will likely reiterate its existing 2026 financial guidance for earnings per share of $10.50 to $10.70. This aligns with the company's reinvestment philosophy, which prioritizes sales-driving investments over near-term margin expansion.

Analysts slightly lifted Darden's EPS forecasts to $10.63 for 2025 and $11.43 for 2026 on sales momentum and reinvestment, with Q1 earnings projected at $1.98 per share, 4.4% same-store sales growth, and 7.7% net income margins, according to the note.

Oppenheimer reiterated an outperform rating on Darden with a price target of $250.

Price: 210.67, Change: -1.50, Percent Change: -0.70