- Stephens increased its price target for Darden Restaurants to $216.00, suggesting a 1.52% upside.
- The company reported strong fiscal Q4 adjusted earnings per share of $3.66, surpassing analyst estimates.
- LongHorn Steakhouse was a key driver, achieving an impressive 9.5% increase in same-restaurant sales.
On June 26, 2026, analyst firm Stephens increased its price target for Darden Restaurants (NYSE: DRI) to $216.00, up from $210.00. Darden Restaurants is a large casual dining company that owns and operates several well-known restaurant chains. The new target suggests a potential 1.52% upside from Darden Restaurants’ trading price of $212.76 at the time of the announcement, reflecting positive stock market performance and analyst ratings.
This optimistic view follows the company’s recent financial performance. In its fiscal fourth quarter, Darden Restaurants reported adjusted earnings per share of $3.66, beating analyst estimates. This strong profitability demonstrates the company’s strategy of balanced growth and disciplined pricing within the competitive casual dining industry.
A key driver of this success was the LongHorn Steakhouse brand, as highlighted by the Wall Street Journal. The brand achieved an impressive 9.5% increase in same-restaurant sales. This metric measures sales growth from existing locations, showing strong customer loyalty and demand. The brand’s segment profit margin also grew by 110 basis points, indicating robust restaurant industry trends.
Overall company sales grew 13.7% year-over-year to $3.72 billion, though this figure was just under revenue expectations. As noted by Zacks, this growth was supported by a 4.6% increase in same-restaurant sales across all brands and the opening of 43 net new restaurants during the year, indicating robust restaurant expansion and strong revenue growth.
Looking ahead to fiscal 2027, Darden Restaurants guides for total sales between $13.60 billion and $13.75 billion. The company also projects a same-restaurant sales growth of 2.5% to 3.5%. This more moderate growth forecast may explain why the stock saw a slight decline after the earnings release, influencing the overall investment outlook and future growth projections.
