Darden Restaurants (DRI) Stock Forecast & Price Target

Darden Restaurants, as the largest full-service restaurant operator in the U.S., achieved consolidated revenue of $12.1 billion in fiscal 2025 while operating 2,159 restaurants. Key observations indicate that Olive Garden is poised for significant same-store sales (SSS) outperformance due to its strong everyday value proposition, enhanced service quality, and brand trust, particularly in a challenging macroeconomic environment. Furthermore, there is an expectation of accelerated unit growth exceeding the long-term target of 2.0-3.0% and ongoing acquisition activity in the casual dining sector, reinforcing a positive outlook on the company's financial trajectory.

Darden Restaurants has reported a cautious outlook due to modestly below guidance same-store sales and profitability expectations, particularly affected by low-income consumer segments facing economic challenges. The company anticipates misses in same-store sales and earnings per share for the third quarter of fiscal 2025, alongside potential margin pressures from slight sales shortfalls and increasing beef costs. Furthermore, the unit growth strategy may introduce operational challenges, including inefficiencies and difficulties in maintaining company culture across new store openings, impacting overall performance and stability.