12:05 PM EDT, 03/23/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $1 to $168, 16x (unchanged) our FY 26 EPS view, a discount to its 18x three-year average, reflecting ongoing margin pressure due to commodity headwinds. We raise our FY 26 EPS to $10.49 from $10.42 and raise FY 27 to $11.16 from $11.12 following FQ3 (Feb-Q) results that showed strong broad-based comparable sales growth. We reiterate our Sell rating despite the comp momentum as risks to consumer spending have heightened due to higher oil prices. Food and beverage costs (+7.7% Y/Y in FQ3) are offsetting operational leverage. Margins at Olive Garden ( DRI ) (flat Y/Y in FQ3) were disappointing given the strong +3.2% comp performance, along with ongoing compression at LongHorn Steakhouse to 18.6% (-60 bps Y/Y in FQ3). While management raised FY26 EPS guidance to $10.57-$10.67, the modest increase suggests limited confidence in margin recovery. At current levels, valuation does not adequately reflect persistent cost headwinds and margin pressure threatening profitability.