Darden Restaurants Faces Analyst Downgrades After Earnings Miss

Author: Logan Wright Updated: 09-19-2025 10:28 AM

Darden Restaurants Report First Quarter Earnings

Darden Restaurants, Inc. (NYSE: DRI) recently announced their financial performance for the first quarter, revealing earnings that fell short of analyst expectations. The company's quarterly earnings stood at $1.97 per share, which was below the anticipated $2.00 per share consensus. Additionally, total sales for the quarter reached $3.004 billion, missing the forecasted $3.040 billion.

CEO Comments on Company Performance

Despite the earnings miss, Darden's President and CEO, Rick Cardenas, expressed optimism about the performance. "We had a strong start to the fiscal year with same-restaurant sales and earnings growth that exceeded our expectations," Cardenas stated, positioning the company’s efforts positively amidst the challenges.

Adjustments in Financial Guidance

Darden reaffirmed its adjusted earnings per share guidance for fiscal 2026, targeting a range of $10.50 to $10.70, aligning with the consensus estimate of $10.68. Furthermore, the company raised its sales outlook for the same fiscal year, adjusting it to a new range between $12.983 billion and $13.104 billion, up from the previous estimate of $12.922 billion to $13.043 billion, while slightly outperforming the market estimate of $13.078 billion.

Market Reaction and Share Performance

Following the results, Darden shares saw a drop of 7.7%, closing at $192.74 on market reports. This significant decline highlights investor concerns about the earnings miss and its potential impacts on the firm's growth projections.

Analysts React with Price Target Changes

In light of the disappointing earnings, several analysts have reassessed their price targets for Darden stock:

BTIG's Peter Saleh has maintained a Buy rating but reduced the price target from $235 to $225.
TD Cowen's Andrew M. Charles has emphasized a Hold rating and lowered the price target from $235 to $200.
Keybanc analyst Eric Gonzalez reiterated an Overweight rating with a decreased price target from $240 to $225.

Considering Investment in DRI Stock?

For investors considering Darden Restaurants, recent analyst sentiment offers insights into how the company is viewed in the market. With growing uncertainties surrounding future earnings performance, it is essential to weigh analyst recommendations and historical performance.

Frequently Asked Questions

What were Darden's earnings per share for Q1?

Darden reported earnings of $1.97 per share for the first quarter, missing analyst expectations.

What is Darden's updated sales outlook for fiscal 2026?

The company has raised its sales outlook to between $12.983 billion and $13.104 billion for fiscal 2026.

How did the stock perform after the earnings announcement?

After the announcement, Darden's stock fell by 7.7%, closing at $192.74.

Which analysts downgraded Darden's price target?

Analysts from BTIG, TD Cowen, and Keybanc have adjusted their price targets downward for Darden.

What rating did Peter Saleh maintain on Darden?

Peter Saleh maintained a Buy rating for Darden but decreased his price target to $225.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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