Sara Senatore, an analyst from Bank of America Securities, reiterated the Buy rating on Darden Restaurants (DRI – Research Report). The associated price target was raised to $238.00.
Sara Senatore has given her Buy rating due to a combination of factors that highlight Darden Restaurants’ strong performance and strategic initiatives. The company’s underlying momentum is evident, despite industry-wide weather challenges, with positive same-store sales growth across all segments. This growth is supported by effective execution and consumer willingness to opt for higher-value offerings.
Additionally, the introduction of Uber Direct at Olive Garden has shown promising results, with order volumes doubling and contributing to sustainable sales growth. The company’s marketing efforts, particularly in digital and TV advertising, are expected to enhance brand awareness and drive further sales. Furthermore, while the margin outlook is conservative, there is potential for modest expansion due to positive sales mix and transaction growth. These factors, combined with a favorable valuation, underpin the Buy rating with a price objective of $238.
In another report released today, Barclays also maintained a Buy rating on the stock with a $235.00 price target.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DRI in relation to earlier this year.
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