Orlando, Florida-based Darden Restaurants, Inc. (DRI) owns and operates full-service restaurants in the United States and Canada. The company has a market cap of $24.9 billion and operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Chuy's, Yard House, Ruth's Chris Steak House, The Capital Grille, Seasons 52, and other brand names.
DRI is expected to release its Q2 2027 earnings soon. Ahead of the event, analysts expect the company’s EPS to be $2.28 on a diluted basis, up 9.6% from the year-ago quarter. The company has met or beaten Wall Street’s EPS estimates in two of its last four quarters, missing on the other two.
For fiscal 2027, analysts project the company’s EPS to be $11.24, up 5.6% from $10.64 in fiscal 2026. Moreover, its EPS is expected to rise by roughly 10.6% year over year (YoY) to $12.43 in fiscal 2028.
DRI stock has grown 20.9% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 12% rise and the State Street Consumer Cyclical Select Sector SPDR ETF’s (XLY) 2.8% fall during the same time frame.
On Sept. 24, DRI stock declined 3% following the release of its mixed Q1 2027 earnings. The company’s revenue for the period rose 5.1% from the prior year’s quarter to $3.2 billion and came in line with the Street’s estimates. However, its adjusted EPS amounted to $2.05, missing the consensus estimates. DRI’s EPS guidance for the full year is $11.23 at the midpoint, which came in line with Wall Street’s forecasts. Despite declining operating margin and free cash flow margin YoY, the company reported growth in its number of locations as well as its same-store sales.
Analysts are somewhat bullish on DRI, with the stock having a “Moderate Buy” rating overall. Among the 28 analysts covering the stock, 18 are recommending a “Strong Buy,” one recommends a “Moderate Buy,” and nine suggest a “Hold” for the stock. DRI’s average analyst price target is $234.31, indicating a 6.3% upside from the current level.
On the date of publication, Aritra Gangopadhyay did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.