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Darden Restaurants, Inc. (DRI) is a leading full-service restaurant company in the United States. Valued at a market cap of $22.7 billion, the company owns and manages a diverse portfolio of restaurant brands, including Olive Garden, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood, and Capital Burger. The Orlando, Florida-based company is expected to announce its fiscal Q3 2025 on Thursday, Mar. 20.
Ahead of the event, analysts expect DRI to report a profit of $2.82 per share, up 7.6% from $2.62 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
For the full year, analysts expect DRI to report EPS of $9.52, up 7.2% from $8.88 in fiscal 2024. Moreover, its EPS is expected to rise 11.8% year-over-year to $10.64 in fiscal 2026.
DRI stock has underperformed the S&P 500’s ($SPX) 22.6% gain over the past 52 weeks, with shares up 18.5% during this period. In addition, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 32.6% gains over the same time frame.
On Dec. 19, DRI shares climbed over 14% after reporting Q2 results, driven by better-than-expected revenue of $2.9 billion. LongHorn Steakhouse was a key growth driver, with same-restaurant sales soaring 7.5%, well above the expected, highlighting strong consumer demand. Additionally, the company raised its full-year revenue outlook to $12.1 billion, reflecting confidence in continued growth. Despite the slight earnings miss, investors reacted positively to strong sales momentum, improved same-restaurant performance, and an optimistic fiscal 2025 outlook.
Analysts’ consensus opinion on DRI stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 28 analysts covering the stock, 17 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” eight give a “Hold,” and one recommends “Moderate Sell.”
As of writing, DRI is trading below the average analyst price target of $200.46.
