Darden Restaurants (DRI) Stock Forecast & Price Target

Darden Restaurants has demonstrated strong financial performance with consolidated revenue reaching $12.1 billion in fiscal 2025, bolstered by a 7.3% year-over-year increase in total sales in 2QF26 to $3.10 billion, driven by a 4.3% blended same restaurant sales growth. The company gained market share, outperforming industry trends with same restaurant sales exceeding Black Box casual dining by approximately 300 basis points, alongside significant contributions from its growing Other Business segment, which increased sales by 11.3%. Key brands, particularly LongHorn Steakhouse, showed exceptional results, with sales growth of 9.3% year-over-year, indicating strong consumer demand and a solid positioning in the market despite rising beef costs.

Darden Restaurants reported an adjusted EPS of $2.08, slightly falling short of estimates due to a 5.5% inflation in beef, which negatively impacted restaurant margins by 90 basis points. LongHorn Steakhouse experienced a segment margin of 16.2%, with pricing lagging 320 basis points behind inflation, highlighting persistent profitability pressures despite strong sales performance. Additionally, challenges from recent acquisitions, declining retail demand for steak, and the impact of economic uncertainties on consumer confidence further exacerbate concerns regarding Darden’s operational stability and future earnings growth.