With a market capitalization of $23 billion, Darden Restaurants, Inc. (DRI) is a hospitality company that owns and operates a diverse portfolio of full-service restaurant brands in the United States and Canada. It manages well-known chains such as Olive Garden, LongHorn Steakhouse and Ruth’s Chris Steak House.
The Orlando, Florida-based company is expected to soon announce its fiscal fourth-quarter 2026 results. Ahead of this event, analysts predict that Darden Restaurants will report adjusted EPS of $3.64, up 22.2% from $2.98 in the prior-year quarter. It has surpassed or met Wall Street earnings estimates in two of the last four quarters, while missing them on two other occasions.
More Barchart news
For fiscal 2026, analysts forecast Olive Garden’s parent company will post adjusted EPS of $10.61, an increase of 11.1% from $9.55 in fiscal 2025.
Darden Restaurants shares have risen marginally over the past 52 weeks, lagging the S&P 500 Index ($SPX)’s 29.4% gain and the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 18.8% return over the period.
Darden Restaurants shares rose 1.9% on March 19 after the company reported strong third-quarter 2026 results, including total sales growth of 5.9% to $3.3 billion and same-restaurant sales growth of 4.2%. Investor sentiment was further supported by adjusted EPS of $2.95 (up 5.4%) and strong performance at the brand level, particularly at Olive Garden (3.2%) and LongHorn Steakhouse (7.2%).
Additionally, sentiment was boosted by a full-year adjusted EPS forecast of between $10.57 and $10.67, with expected sales growth of ~9.5%.
The analyst consensus view on DRI stock is cautiously optimistic, with an overall rating of “Moderate Buy.” Among the 31 analysts covering the stock, 19 recommend “Strong Buy”, one suggests “Moderate Buy” and 11 indicate “Hold”. The average analyst price target for Darden Restaurants is $226.66, suggesting a potential upside of 13.1% from current levels.
As of the date of publication, Sohini Mondal had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com