Darden Restaurants (DRI) Stock Forecast & Price Target

Darden Restaurants, as the largest full-service restaurant operator in the U.S., reported consolidated revenue of $12.1 billion for fiscal 2025 and operates 2,159 locations across its portfolio of 11 restaurant brands. The company's strong performance is reflected in its increased same-store sale (SSS) growth estimates, with Olive Garden projected to grow at 3.5% and LongHorn Steakhouse at 6.0%, indicating resilience in consumer spending despite economic uncertainty. Management's guidance for mid-to-high 2% pricing growth as fiscal year 2026 progresses further supports the expectation for continued category share gains and robust long-term returns.

Darden Restaurants has revised its fiscal year 2025 Earnings Per Share (EPS) estimate down to $9.51 from $9.55, reflecting potential challenges in achieving revenue targets amid increasing operational volatility. The company faces significant competition within the restaurant industry and is highly sensitive to macroeconomic conditions, including low consumer confidence and rising unemployment, which could negatively impact discretionary spending. Additionally, disappointing same-store sales growth for its major brands, notably Olive Garden and LongHorn Steakhouse, coupled with adverse weather and holiday shifts, has further compounded concerns regarding Darden's ability to maintain momentum and achieve future growth projections.