Darden Restaurants (DRI) Stock Forecast & Price Target

Darden Restaurants is well positioned because its scale, disciplined pricing, and differentiated brand portfolio continue to drive share gains even as industry sales growth moderates, with 1QF27 same-store sales up 3.2% and EPS of $2.05. Its growth pipeline also looks strong, as company-owned restaurants rose to 2,218 in 1QF27, led by Olive Garden and LongHorn, while Yard House crossed $1 billion in trailing 52-week sales with a $10.5 million AUV. The outlook is further supported by restrained category supply, moderating input and labor inflation, and continued expansion through 75-80 new openings and about $875 million of capital spending in FY27.

Darden Restaurants is facing a cautious outlook as FY27 and FY28 model revisions show only modest deterioration, with Adj. EPS cut from $11.30 to $11.29 and then from $12.49 to $12.35, while EBITDA is reduced from $2.289 billion to $2.275 billion and from $2.459 billion to $2.440 billion, respectively. These downward adjustments suggest softer operating momentum and limited earnings acceleration despite its scale across 2,202 company-owned stores and over $13 billion in system sales. With a business heavily concentrated in Olive Garden, LongHorn Steakhouse, and fine dining, even small pressure on traffic, margins, or mix can weigh meaningfully on consolidated results.